MSY 083 INTEGRATED MATERIALS MANAGEMENT

2009-11 (Trimester V)

Instructor: S.K.G.GANESH
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Introduction

In manufacturing industries, the cost of materials occupies a significant

percentage of the price of the product. Therefore, materials management assumes greater
significance in manufacturing organisations. Managing materials efficiently would help
in ensuring timely availability of materials in stores and help in uninterrupted production
of products. Every manufacturing organisation has various types of materials such as raw
materials, components, sub-assemblies, spares, tools, consumables, and so on. Integrated
efforts and techniques to plan for, procure, store and control all these materials are
integral part of operations management. Management students specialising in operations
management need to understand these techniques so that they get the requisite knowledge
to apply the same in their profession.

Objectives

To provide the students inputs regarding the essentials and techniques of material
planning

To enable the students have an understanding of the concepts and methods of storing

To impart knowledge regarding techniques and methods of purchasing

To make the students understand the importance and ways of controlling inventory

To train the students on integrated efforts that are needed to manage materials efficiently

Pedagogy

The pedagogy would be broadly lecture based supported by a mix of assignments, mini-
project, situation/case analysis and other exercises.
EVALUATION PATTERN
Mid-Term Test : 10%
Attendance & Class performance : 10%
Quiz/Assignment : 10%
Case study : 10%
Mini Project Work : 10%
End-Term Examination : 50%

Total : 100%

References

1. Varma, M.M. (2001). Materials Management. New Delhi: Sultan Chand & Sons.
(R1)
2. Gopalakrishnan, P. and Sundaresan, M. (1994). Materials Management:An
Integrated Approach. New Delhi:Prentice Hall of India (R2)
3. Dutta, A.K. (2007). Materials Management: Procedures, Text and Cases. New
Delhi: Prentice Hall of India(R3)
4. Panneerselvam, R. (2005). Production and Operations Management. New Delhi:
Prentice Hall of India. (R4)
5. Krajewski and Ritzman. (2004). Operations Management. New Delhi: Pearson
Education (R5)

Course Outline

Sl. Topic Refer- Chap- Other inputs /

No. ence ter materials
Unit INTRODUCTION
1
1 Purpose of inventory - Types of R1 1 HO
inventory – Importance, Need and
Functions of Materials management
2 Integrated materials management: R1 2
meaning, importance and benefits –

Various types of organisation structure R1 3

for materials management – Associated
costs in materials management

Unit MATERIAL PLANNING

2
3 Materials budget: meaning, objectives – R1 5 Case on
Codification
Codification: objectives, different R1 6
 systems

4 Meaning of Economic order quantity - R4 9 HO

Basic inventory models: Purchase and (problems)
manufacturing models (with and
without shortages) – Meaning of
minimum, maximum, lead time, reorder
point, safety stock – Quantity discount
model – Meaning of Review systems: P
and Q systems.
5 MRP-I, MRP-II and ERP R4 9 HO
(problems)
R5

Unit PURCHASING
3
6 Importance – Functions – Organisation R1 21 &
for purchasing – Centralised vs 22
Decentralised purchasing – Purchase
with other departments - Six Rs Case: Ethical
aspects of buying
Ethics in purchasing – Legal aspects in
R1 26&
purchasing - Code of conduct
27
7 Source selection: Source of information, R3 5
Evaluation and selection methods –
Single source and multi source –
Purchasing cycle –

Negotiation – Vendor rating – Petty cash R2 & Case on Vendor

for purchase. R5 Rating

Unit STORES MANAGEMENT

4
8 Storekeeping: Objectives, R1 10, 11 Case:
Responsibilities, Importance, Functions & 12 Productivity and
– Stores organisation - Location of store Behavioural
house – Centralised and Decentralised Issues in Stores
stores – Layout – Types of stores –
Methods of storing – Store room
equipments – Principles of storing goods
– Security measures in stores – Safety
in stores – Preservation
9 Stores ledger - Kardex system – Forms R2 HO
involved - Automation in material
 handling and storing.

Unit INVENTORY CONTROL

5
10 Need for inventory control – Objectives R1 7
of scientific inventory control – 2 bin
system - Visual control system -
Selective inventory controls: ABC,
XYZ, HML, VED, FSN, SOS, SDE,
GOLF

Stock verification procedure – Obsolete, R2 24 HO

surplus and scrap control – Benefits of
Just-in-time

Ratios used in Evaluation of materials R1 9

management

Mini Project: This is an individual activity. Every student is required to visit any
manufacturing organization of his/her choice and identify the procedures related to
certain MM functions (will be announced in the class) that are being practised in the
organization. For this, it is suggested that the students keep track of the various MM
related concepts that are learnt in the class. The students will be required to submit a
report on the MM procedures, with relevant charts wherever possible.

Assignment / Quiz / Test: These are individual tasks; the title / portion / pattern will be
announced in the class.

Case study and presentation: This is a group activity. The students will be required to
form groups, study and analyse the case. Every group will have a facilitator. After
analysis, the group is to make a presentation highlighting the analysis and solution.
Contribution by every member is mandatory and is to be highlighted. The score earned
by the group will be the score for all the individual members also.