FUNCTIONS OF MaTERIALs MANAGEMENT

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PRESENTED BY NIRMAL B MANOJ MARKOSE 6/28/12

Materials management
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DEFINITION Its a total concept involving an organizational Structure unifying into a single responsibility, the Systematic flow and control of material from Identification of the need through customer delivery

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Materials management functions

Material management embraces all functions concerning
1. 2. 3. 4. 5. 6. 7.

Planning Purchasing Production Control Stores Traffic Physical distribution

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Functions of material management

Planning function

Production and control Inventory and stores control Shipping/physical distribution Traffic

purchasing function

Receiving and stores Material handling

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PLANNING FUNCTION
The planning part of the materials management deals with the following issues:
v

Translation of the sales projection into long term requirements of materials. On the basis of updated production plan, adjust the latest sales demand and the requirements of material accordingly. To arrange the facilities required for the materials management.
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PRODUCTION CONTROL
This is done by: Determining requirements of materials and parts to be purchased and manufactured.
v

Schedules of production and purchasing processes of parts and materials.

v

Issue work order to manufacturing department and purchase order to suppliers.

v v

To dispatch the materials to the production departments.

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PURCHASING
Purchasing department procures the materials of desired quality in time to meet the production specifications at the lowest possible cost. The main activities of purchasing are: Selection of acceptable suppliers and issue of purchase order.
v

To expedite the delivery of materials to meet the inventory requirements.

v

To look for new materials and suppliers that can contribute to company profile.
v

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INVENTORY AND STORES CONTROL

Inventory control is a systematic procedure for ensuring the availability of items necessary to meet the production requirements at optimum cost . It includes : Requisition of materials according to requirements at appropriate time. vKeep updated records of materials received, issued and balance. vDecision about the optimum size of the order(EOQ)
v

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RECEIVING AND STORES

The main activities of the section are; To accept the delivery of purchase materials, to verify them with the purchases order and packing slip, to inspect them and to prepare the goods received note for stores accounts.
v

To store the materials properly according to the policy and ensure their quick identification.
v

To verify the materials physically at periodic intervals and to record discrepancies, if any, along with the reasons
v

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SHIPPING/PHYSICAL DISTRIBUTION
It is concerned with the distribution of finished goods from the production department and to verify the quantity; To receive the finished goods from the production departments, to verify them and store them properly till they are distributed.
v

To pack and label the finished goods to make them ready for transport to customers.
v

To prepare shipping documents such as packing slip, bill of materials, railway receipts, lorry receipts etc. which are forwarded with shipments.
v

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MATERIALS HANDLING It involves; vTo handle in-planned materials through trucking, pallets, containers, etc vTo maintain the material handling equipments and other incidental items like pallets, containers ,etc TRAFFIC It is concern with the incoming consignments of raw materials and outgoing shipments of finished goods. It includes : v To carry raw materials from the suppliers plant or railway goods office or such destinations. v To carry finished goods to customers, railway goods office branch, wholesalers or retailers. v To administer fright rates, routes, etc. If transport services are hired.
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THANK YOU

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