MATERIAL MANAGEMENT Visit for more Learning Resources

MATERIAL MANAGEMENT Visit for more Learning Resources

DEFINIION IT IS THE CONCEPT OF MANAGEMENT WHICH IS CONCERNED WITH FLOW OF MATERIALS IN AN ORGANISATION BY USING FUNCTIONS LIKE PURCHASING,STORING,MOVING,DISTRIBUTIN G,PRODUCTION,DISPATCHING.

INVENTORY MANAGEMENT Meaning Types of inventory Raw material inventory Semi finished material inventory Finished material inventory Tools inventory Machinery spares inventory Supplies inventory Standerd parts inventory

FUNCTIONS OF INVENTORY MNAGENMENT Ensure availability of engineering Proper purchasing guidelines Supply of material whenever required Smooth functioning of production system Cost minimization Reduce time to market Improves customer satisfaction Prevents stock outs

OBJECTIVES OF INVENTORY MANAGEMENT TO streamline decision making To purchase material in minimum cost To purchase material in right quantity To purchase material at right cost To provide sufficient storage space To classify material on various parameters To avoid delay in material issue To reduce inventory costs

ABC Analysis A type materials: Materials with 10 % in quantity but cost contribution is 90%. C type materials: Materials with 70 % in quantity but cost contribution is 10%. B Type materials: Medium valued and number lies between A and C.

EOQ EOQ: It means the Economic Order Quantity The size of an order that minimizes the total inventory cost is know as EOQ.

METHODS OF PURCHASING MARKET PURCHASING PURCHASING FOR SPECIFIC PERIOD CENTRALISED PURCHASING RATE COTRACT PURCHASING THROUGH DIRECTOR GENERAL OF SUPPLIES AND DISPOSALS PURCHASING ACCORDING TO REQUIREMENT

Principles of purchasing Right time Right price Right source Right quantity Right quality Right transport Right procedure Right contact

Procedure for purchasing Management should decide the method of purchasing Purchasing department should be formed Inspection staff must see that the material supplied is of good quality. When contracts are given favorable terms can be detected Saving can be effected by arranging standardized purchasing

MODERN TECHNIQUES OF MATERIAL MANAGEMENT JUST IN TIME SYSTEM(JIT) SYSTEM APPLICATIONS AND PRODUCTS(SAP) ENTERPRISE RESOURSE PLANNING(ERP) For more detail contact us