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Overview of Material Management

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Overview of Material Management

Uploaded by

akshat srivastava
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Overview of

Material
Management
By-
Mayank Raghav (FC22144)
Piyush Sharma (FC22149)
Rohan Kumar (FC22181)
Samiksha Mishra (FC22160)
Vikas Goyal (FC22176)
CONTENTS
 Introduction

 Functions

 Purpose/ Objectives

 Advantages

 Elements of MM-

i. Estimating Demand

ii. Procurement

iii. Receipt and Inspection

iv. Storage

v. Issue and Use

vi. Maintenance & Repair

vii. Condemnation

viii. Disposal
INTRODUCTION
• Material is defined as “equipment, apparatus and supplies used by an organization for the purpose
of rendering services”.
• Lack of proper attention to the material management in the health system in the country has been a
major problem in effective implementation of various health programs.
• Man fails to realize the fact that material represents money and also there is a lack of perception
about the inter-relationship between money and material.
• Material Management is a scientific technique which is concerned with the planning, organizing
and controlling the flow of materials from their initial purchase through internal operation to the
distribution to the service points.
• Effective management and supervision.
• Sound purchasing methods.
• An efficient purchase system.
• A simple inventory control program.
Functions of
• A result oriented requisition and
Material distribution system.
Management • Written policies and procedures.
• A practical receiving program: It denotes
the need for accountability and
responsibility. For the best results, the
purchasing, receiving & paying of invoice
should be done by separate persons.
• To have material in hand when
needed.
• To pay the lowest possible price,
consistent with quality and value
investment.
• To minimize inventory
PURPOSE/
investment. OBJECTIVE
• To operate efficiently. OF
• To gain economy in purchasing.
• To satisfy the demand during
MATERIAL
period of replenishment. MANAGEMENT
• To carry reserve stock to avoid
stock out.
• To stabilize fluctuations in
consumption.
• Improved
ADVANTAGES Accountability.
OF • Better Coordination.
MATERIAL • Better Performance.
MANAGEMEN • Analysis of Data.
T
• Better Team Work
Demand Estimation
• Forecasting is the method of Estimating demand based on time series analysis of past
while anticipating the future.

• Demands for material could be certain or predictable, and uncertain or unpredictable.

• Methods of forecasting demand-

i. Last Period Demand


ii. The Arithmetic Average
iii. Moving Average – It generates the next period’s forecast by averaging the actual
demands for the last ‘n’ time periods.
Procurement
• Process of acquiring supplies.

• Three sources:
i. Purchase
ii. Donations
iii. Manufacturing

• Objectives of well procurement system-

1. Acquire needed supplies as inexpensively as possible.


2. Obtain supplies of high quality.
3. Assure prompt dependable delivery.
4. Distribute the procurement workload to avoid period of idleness & overwork.
5. Optimize inventory management the scientific procurement procedure.
Receipt and Inspection
• Supplies offered are received in the store.
• The inspection policy should enunciate the sampling procedure for
inspection and this procedure must be followed.
• At the point of delivery check each item physically and count against
supplier’s invoice.
• The lot thus picked up by a random sampling method should be
subjected to physical and chemical inspection. Thus any discrepancy,
problem or error in a specific transaction, becomes evident during the
receiving operation.
• Carry out basic documents immediately i.e. day book or inward good
register.
Storage
• Location of store will, therefore be guided by the flow activities of
the store. Also, light, ventilation, cupboards, shelves should be of
adequate size.
• Items received later from the supplies should be stored behind
similar items and the principle of FIFO should be adopted.
• Refrigerators or cold rooms are necessary.
• Combustible and Non- Combustible should be kept separate.
• Poisonous drugs & narcotics should e stored in locked cupboards.
• Storage areas should be rodent free.
Issue and Use
• Issue should be made after receiving written indents.

• Distribution system can be either by direct supply or through a sub


store.

 Push Method (Allocation System)


 Pull Methods (Requisition System)
Maintenance Repair
Records needed for maintenance
• History Sheet:
i. Identification data- Make model and date of purchase.
ii. Source of details of supplies and its spare.
iii. Purchase cost and detail of purchase procedure.
iv. Details of breakdowns and repair undertaken.
v. Expenditure incurred on repair.
• Log Book for equipment:
i. Records for its maintenance should be kept, i.e. warranty period & servicing/repair
done, annual service contract, expenditure incurred.
ii. Details of preventive maintenance.
iii. Whether in working condition or not.
Condemnation
Minimum criteria to be followed for condemnation,
• Non-functional and beyond economical repair.
• Non-functional and obsolete.
• Functional and Obsolete.
• Functional but hazardous.
• Functional but no longer required.

A Condemnation Committee should be consulted for assessing whether or not an


equipment should be condemned and disposed of based on the history sheet &
recommendations of the user department.

This committee should meet periodically at regular intervals, at least twice an year.
Disposal
• Disposal is a process doing away with an asset that is deemed to be excess , harmful or
outdated through a safe manner which safeguards the environment.
• It helps to manage assets and declaration of surplus and obsolete items that need to be
disposed by a department in an organization.
• Assets are usually disposed when they do not work and cannot be salvaged, no longer
support current business needs and standard requirements or when they are old.
• A disposal committee should be established to manage dispose of assets i.e.
unserviceable stock, redundant assets and obsolete stock etc.
• The disposal committee shall make decisions on disposal indicating the following Six
(6) W’s:
These are What, Why, Who, Which (How), Where, When.
THANK YOU

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