A Thesis Submitted in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Procurement and Supply Chain Management (MSc.PSCM) of Mzumbe University Dar es Salaam Campus College.
This study aimed at investigating how assets disposal affect the performance of Tanzania Ports Authority (TPA). Specifically the study was to examine how life span of an disposed asset affects the performance of TPA, to determine the extent to which the value of an disposed asset contribute to the performance of TPA, to examine how asset disposing procedures contribute to the performance of TPA and to analyze the challenges facing tpa on asset disposal procedures. The methodology used to conduct this study was descriptive and exploratory designs and involved the use of various data collection methods and/or tools such as questionnaires and interviews. The study also used secondary data collection methods such as documentation of various report concern with asset disposal. The study used SPSS to analysed data whereby descriptive analysis including frequency, mean and standard deviation were calculated.
The study found out that the average life span of assets to be disposed in TPA is 5 years where the life span of vehicles is 8 years, ICT equipment’s is 3 ½ years and furniture’s is 4 years. It was also found the value of an assets disposed is determined by duration of working of an asset, functionality of the asset, market price of an asset, replacement cost of an asset and cost of maintaining the asset. The study discoved through disposing of asset there was some amount of asset value or money lose due to undervaluation processes coupled by short life span of asset in this organization. Concern with procedures used while disposing asset, the study argued that TPA has good procedures which was accountable for the increase of service offering efficiency, gain control of inventory, save working time and money that would be wasted on the use of old assets, gain value of money, minimize incremental risks and adoption of new technology through disposing old assets. Lastly, the challenges faced disposal process were found to be very low in TPA, apart from undervaluation of asset for disposal purpose. It was concluded and recommended that asset disposal has improved the performance of TPA. Therefore, the study suggested that in order to maintain good asset disposal the procedure of assets disposal should be always made clear.