Material Management
MATERIAL MANAGEMENT
Description also available in video format (attached
below), for better experience use your desktop.
Introduction
·
Material Management
deals with the
o
Planning
o
Organizing
o
& Controlling the flow of materials from
the initial purchase to the point of their distribution
·
Basically it is the grouping of management function
to support the complete cycle of material flow
Importance
of Material Management
·
Main
o
To procure the material
§ In right quantity
§ Of right quality
§ At right time
§ From right source
§ At right price
·
Primary
o
To purchase the best item at lowest cost
o
To increase the inventory turnover and
decrease the inventory cost
o
To maintain the flow of production and
consistency of quality
o
Optimization of acquisition and possession
o
Good relationship with supplier
o
Maintaining records, personal development and
contribution towards competitiveness
·
Secondary
o
Forecasting
o
Promotion of standardization with supplier
o
Development of reciprocal relations with
customers
o
Committees to decide on economic make or buy
decisions
o
Development of interdepartmental relations
o
Can undertake acquisitions
Principles
of Material Management
· Effective management & supervision by the help of
proper
o
Planning
o
Organizing
o
Staffing
o
Directing
o
Controlling
o
Reporting
o
Budgeting
· Sound purchasing methods
· Skillful & hard poised negotiations
· Effective purchasing system
· Simplicity
· Not results in the increase of other costs
· Inventory Control programme
Elements
· Demand estimation
· Identify the needed items
· Calculate from the trends in consumption during last 2
years
· Review with resource constraints
Video
Description
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