Sie sind auf Seite 1von 8

MATERIALS MANAGEMENT

INTRODUCTION
Material Management plays a very significant role in
controlling the costs and reducing the wastage,
particularly in a manufacturing industry.
Material costs forms a significant portion of the total
cost.
Material refers to inputs into the production process.
Material Management is the process of planning,
organizing and controlling the materials in a given
organization.
Materials is a broad term, which includes inventory
and stores.


INVENTORY CONTROL
It is defined as the scientific method of providing the right type of
material at right time in the right quantities and at right price to sustain
the given production schedules.
It is mainly concerned with two aspects: minimizing investments for
the organization in the materials and maximizing the service levels to
the customers.
Objectives of Inventory Control:
To minimize investments in the materials by ensuring economics of
storage and ordering costs.
To avoid accumulation of work in process.
To ensure economy of costs of processing economic order quantities.
To maintain adequate inventories at the required sales outlet to meet
market demands.
To contribute directly to the overall profitability of the enterprise.


Factors Affecting Inventory Control Function:
Sudden changes in the production plans
Increases in the material prices
Excessive storage costs
Stock-out costs
Increasing lead time
The Process Of Inventory Control:
Formulae a clear-cut purchase procedure
Maintain store records to ensure continuous stock taking
Monitor each category of the stocks through ABC
analysis
Set stock levels for different items
Replenish the stocks as and when required

PURCHASING FUNCTION
Objectives of the purchasing function:
To purchase the right quantity and quality of materials at
the most economical rate at proper time.
To ensure continuous flow of supplies y maintaining
effective relationships with the existing suppliers
To explore and develop other sources of supply
To obtain the best value for the money spent
To maintain the functional relations with other
deparments
To train staff, make policies and procedures
Requisitioning process
Exploring the sources of supply
Issuing of tenders and obtaining and preparation of
comparative statement
Opening of tenders and quotations and preparation of
comparative statement
Negotiating over the purchase price and terms of supply &
placing purchase order
Receiving of materials along with invoice and checking inward
invoice
Inspecting and testing materials
Forwarding the materials to stores
Checking invoice and passing of bills for payment

PURCHASING PROCESS
Purchasing: A rational decision
O Economical prices for the materials
O Faster turnover of inventory
O Continued supplies
O Reduced lead times
O Savings in transport costs
O Reduced obsolescence in the materials
O Improved vendor-supplier relationships
O Better quality of materials
O Efficient inventory control systems
O Development of inventory information
systems.

Das könnte Ihnen auch gefallen