MATERIAL MANAGEMENT
MATERIALS
MANAGEMENT
“Materials Management as the function
responsible for the coordination of planning, sourcing, purchasing, moving,
storing and controlling materials in an optimum manner so as to provide a
pre-decided service to the customer at a minimum cost.”
Functions materials management
1. Material Planning and Control
2. Purchasing
3. Stores Management
4. Inventory Control or Management
5. Standardization
6. Simplification
7. Value Analysis
8.
Human Engineering
- Materials
planning and control
Based on the sales forecast and production plans, the materials planning
and control is done. This involves estimating the individual requirements of
parts, preparing materials budget, forecasting the levels of inventories,
scheduling the orders and monitoring the performance in relation to production
and sales.
2. Purchasing
This includes selection of sources of supply finalization in terms of
purchase, placement of purchase orders, follow-up, maintenance of smooth
relations with suppliers, approval of payments to suppliers, evaluating and
rating suppliers.
3. Stores management or
management
This involves physical control of materials, preservation of stores,
minimization of obsolescence and damage through timely disposal and efficient
handling, maintenance of stores records, proper location and stocking. A store
is also responsible for the physical verification of stocks and reconciling
them with book figures. A store plays a vital role in the operations of a
company.
4. Inventory control or management
Inventory generally refers to the materials in
stock. It is also called the idle resource of an enterprise. Inventories
represent those items, which are either stocked for sale or they are in the
process of manufacturing or they are in the form of materials, which are yet to
be utilized. The interval between receiving the purchased parts and
transforming them into final products varies from industries to industries
depending upon the cycle time of manufacture. It is, therefore, necessary to
hold inventories of various kinds to act as a buffer between supply and demand for
efficient operation of the system. Thus, an effective control on inventory is a
must for smooth and efficient running of the production cycle with least
interruptions.
5)
Standardization
Standardization
means producing maximum variety of products from the minimum variety of materials,
parts, tools and processes. It is the process of establishing standards or
units of measure by which extent, quality, quantity, value, performance etc.
may be compared and measured.
6)
Simplification
The concept of simplification is closely
related to standardization. Simplification is the process of reducing the
variety of products manufactured. Simplification is concerned with the
reduction of product range, assemblies, parts, materials and design.
7) Value analysis
Value
analysis is concerned with the costs added due to inefficient or unnecessary
specifications and features. It makes its contribution in the last stage of
product cycle, namely, the maturity stage. At this stage research and
development no longer make positive contributions in terms of improving the
efficiency of the functions of the product or adding new functions to it.
8)Human
Engineering:
The human
factors or human engineering is concerned with man-machine system. Ergonomics is
“the design of human tasks, man-machine system, and effective accomplishment of
the job, including displays for presenting information to human sensors,
controls for human operations and complex man-machine systems.”
0 comments:
Post a Comment