Materials Management• From Wiki – Materials management can deal with campus planning and building design for the movement of materials, or with logistics that deal with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts.
Bill of MaterialsA bill of materials (sometimes bill of material or BOM) is a list ofthe raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of eachneeded to manufacture an end product. No physical dimension isdescribed in a BOM.
Materials ManagementTo run the production process smoothly and efficiently, while adapting tocustomer demand, a materials manager asks the following questions:•What materials are needed? How much?•How much to make and how much to buy?•Are the materials of adequate quality? How much is scrap?•How much to store? In what conditions, so that they can be utilized later?•How much inventory at various points in production process?•How to transport?•How to distribute?•How to track the material?•When and how to dispose scrap?•How to find out how much will be needed?•How to improve quality, reduce scrap?•Where can I get better materials, better deals?
How Materials Management seeded today’s ERP systems• Product-Services Mix• Services need resources (materials and humans)• Human resources have special needs – Need to be paid, take leave, need medical insurance• Work in teams and can implement complex projects involving multiple work flows• The functioning of an enterprise depends on the quality of materials (and information) flowing to the right places at the right time• MRP and MIS• Enterprise Resource Planning Systems – Cover pretty much all functions of enterprise operations, from Finance/Accounting, HR, Manufacturing, Project Management, CRM etc.• Objective is to provide rich information to enable good analysis and decisions
Purchasing methods continued . . .
Purchasing Methods continued . . .
Something to think about . . .• In what scenario will purchasing department’s role be maximum?• When would it be minimum?
Stores Management• Request purchase department for supplies• Quantity control• Protection• Authorized access• Coding (for unique identification)• Record keeping
Factory Stores Plant Store Sub Crib Finished Part Receiving Store Main StoreRejection Quarantine Warehouse Production Process Scrap Yard
Activity: What kinds of stores would be needed in a typical retail outletsuch as Shopper’s Stop or Big Bazaar?
Retail Evolution in India
Something to think about• Why RFID technology has fundamentally altered materials, purchasing and stores management principles?