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Components of Integrated Materials Management

Integrated material management refers to managing resources in a coordinated way to support economic development through efficient use of technology and innovative materials. It has several key components: strategic sourcing and purchasing to select the right materials at the right time from the right vendors; inventory management to organize stock levels; material requirements planning to schedule production; and capacity, process, demand management and forecasting, sales and operations planning, risk management, supply chain continuity and resilience, and physical distribution to streamline the entire supply chain.

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127 views2 pages

Components of Integrated Materials Management

Integrated material management refers to managing resources in a coordinated way to support economic development through efficient use of technology and innovative materials. It has several key components: strategic sourcing and purchasing to select the right materials at the right time from the right vendors; inventory management to organize stock levels; material requirements planning to schedule production; and capacity, process, demand management and forecasting, sales and operations planning, risk management, supply chain continuity and resilience, and physical distribution to streamline the entire supply chain.

Uploaded by

B. LAKSHMIPATHI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The term 'integrated material management' refers to the management of resources in an

integrative manner to make way for national economic development, through efficient utilization
of MIS, advanced technologies and innovative, economic materials for manufacturing.

Components of Material Management


1.     Strategic Sourcing and Purchasing
 
Strategic sourcing and purchasing is the calculated decision making process in choosing the right
materials of the right quantity, at the right time for the right time, this includes procurement decisions
which involves the selection of vendors, and materials.
 

2.     Inventory Management


 
Inventory management is the organisation of stock control in the manufacturing to
distribution/warehouses and alternately, from the warehouses to the location of sales.

3.     Material Requirements Planning


 
Materials Requirement Planning is the scheduling, planning and inventory control process, which
dictates the manufacturing processes in terms of materials required and product output.
 

4.     Capacity Planning


 
Capacity planning is the determination of the amount of products required by the organisation to
meet the demands of its customers. The design capacity in turn is the amount of product demand
that the organisation is capable in meeting.
 

5.     Process Planning


 
Process planning is the usage of technology to assist in the manufacturing of products and in the
arrangements in meeting the demands set by the organisation.
6.     Demand Management and Forecasting
 
Demand management is the method used to forecast the demand that the organisation would
potentially be looking at meeting. Forecasting are methods adopted to predict the actual demand
that an organisation would be expecting during a manufacturing cycle period.
 

7.     Sales and Operations Planning


 
Sales and Operations Planning is the synchronization of the entire manufacturing processes to
enable effective supply chain management.

8.     Risk Management


 
Risk management is the strategic management of processes in the manufacturing line through
control of static and dynamic materials to ensure that an organisation is able to maintain profitability
rather than conduct activities that would increase cost of production and inventory holding.

9.     Supply Chain Continuity


 
Supply chain continuity is the elimination of risks that would otherwise cause unpredictable breakage
in the production line, which would affect the company performance.
 

10.  Physical Distribution Management


 
Physical Distribution Management is the streamlining of all processes after the manufacturing of end
processes, which includes transportation, packaging, customer service and inventory control.
 

11.  Supply Chain Resilience


 
Supply chain resilience is the ability of the supply chain to cope with major shock and its capability to
maintain output and customer service.

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