materials
Materials Management
It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.OR
Materials management is the system for planning and controlling all of the efforts necessary to ensure that the correct quality and quantity of materials are properly specified in a timely manner, are obtained at a reasonable cost and most importantly are available at the point of use when required
Four basic needs of Material managementTo have adequate materials on hand when needed
To pay the lowest possible prices, consistent with quality and value requirement for purchases materials
To minimize the inventory investment
To operate efficiently
Maximize the use of the firms resourcesManufacturing Planning and Control
Provide the required level of customer serviceCustomer service means being able to provide the customer the right quality, quantity, time, place, price
AIM OF MATERIAL MANAGEMENT To getRight qualityRight quantity of supplies Right timeRight placeRight cost
PURPOSE OF MATERIAL MANAGEMENTTo gain economy in purchasingTo satisfy the demand during period of replenishmentTo carry reserve stock to avoid stock outTo stabilize fluctuations in consumptionTo provide reasonable level of client servicesConstruction materials and equipments utilize 70% cost
Organization of Materials Management
Functions of Materials Management
Objectives of Material Management
Objectives of Material Management
PrimaryRight priceHigh turnoverLow procurement & storage costContinuity of supplyConsistency in qualityGood supplier relationsDevelopment of personnelGood information systemObjective of material managementSecondaryForecastingInter-departmental harmonyProduct improvementStandardizationMake or buy decisionNew materials & productsFavorable reciprocal relationships
Primary SecondaryMaterials Requirements Planning (MRP)
Purchasing
Inventory Planning and Control
Ascertaining and Maintaining the Flow and Supply of Materials
Quality Control of MaterialsStandardization and Simplification
Make and Buy decisions
Coding and Classification of Materials
Forecasting and Planning
Government
Economy
Competition
QualityOrder qualifiersOrder winners