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Material Mannagement

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Shashikanth Shanbogh
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12 views14 pages

Material Mannagement

Uploaded by

Shashikanth Shanbogh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Seminar

On
Materials Management
Content
• Introduction
• What is Materials Management?
• Role of Materials Management
• Purpose of Material Management
• Objective of material management
• Basic principles of material management
• Materials management functions
• Advantages of material management
• Conclusion
• References
Introduction

• Material management is an approach for planning,


organizing, and controlling all those activities
principally concerned with the flow of materials into
an organization.
• The scope of Materials Management varies greatly
from company to company and may include material
planning and control, production planning,
Purchasing, inventory control, in-plant materials
movement, and waste management.
What is Materials Management?

• Coordinating function that balances the conflicting


objectives of marketing, production, and finance by
managing the flow of Materials.
• Balancing the Resources of the company with
Customer Demand
Role of Materials Management
• Make the best use of company resources
• Provide the desired level of customer service (demand)
Purpose of Material Management

•To gain economy in purchasing


•To satisfy the demand during period of replenishment
•To carry reserve stock to avoid stock out
•To stabilize fluctuations in consumption
•To provide reasonable level of client services
Objective of material management
Primary Secondary
•Forecasting
• Right price •Inter-departmental harmony
• High turnover •Product improvement
• Low procurement •Standardization
•Make or buy decision
• & storage cost •New materials & products
• Continuity of supply •Favorable reciprocal relationships
• Consistency in quality
• Good supplier relations
• Development of personnel
• Good information system
Materials management functions

• Material planning and programming

• Purchasing and outsourcing

• Inventory control

• Storekeeping and warehousing

• Codification
Basic principles of material management
1. Effective management & supervision
It depends on managerial functions of
• Planning
• Organizing
• Staffing
• Directing
• Controlling
• Reporting
• Budgeting
2. Sound purchasing methods
3.Skillful & hard poised negotiations
4.Effective purchase system
5.Should be simple
6.Must not increase other costs
7.Simple inventory control programme
Elements of material management

1. Demand estimation
2. Identify the needed items
3. Calculate from the trends in Consumption during last 2 years.
4. Review with resource constraints
Advantages of material
management
• Reduced operating costs and timely production.
• Greater job satisfaction on the part of both the
workers and the employer.
• Every inch of the space is properly utilized.
• The issue of materials is also facilitated.
• It helps in maintaining effective production
planning and control.
CONCLUSION
• Material management is an important management tool which
will be very useful in getting the right quality & right quantity
of supplies at right time, having good inventory control &
adopting sound methods of condemnation & disposal will
improve the efficiency of the organization & also make the
working atmosphere healthy any type of organization, whether
it is Private, Government ,Small organization, Big organization
and Household.

• Even a common man must know the basics of material


management so that he can get the best of the available
resources and make it a habit to adopt the principles of material
management in all our daily activities
References

• www.google.com
• www.wikipedia.com
• www.studymafia.org
• www.pptplanet.com
THANKS

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