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Material management



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  • 1.  
  • 2. Definition
    • Material management is the planning , directing , controlling and coordinating those activities which are concerned with material and inventory.
    • It deals in material quality and quantity
    • Controls the flow of material in relation to changes in variables like demand , price.
  • 3. Objectives Of Material Mgmt.
    • Material Selection
    • Low operating cost (without affecting the quality)
    • Receiving and controlling the material safely and in good condition
    • Issue material upon receipt of appropriate authority
    • Identification of surplus stocks and taking appropriate measures to reduce it
    • To minimize storage and control costs
    • By minimizing waste while handling of material
    • To purchase items of best quality
  • 4. Duties Of Material Manager
    • Purchasing of raw material
    • - Selection of suppliers
    • - Delivery of material on time
    • - To look for new products
    • Production control
    • - Proper schedules for production
    • - Time control
    • Inventory and stores control
    • - Record of inventory
    • Traffic (shipment of RM & FG )
    • - Selection of carriers
    • - Developing technique to reduce transportation cost
    • Physical distribution ( final goods to customers )
  • 5. Factors responsible for providing economy in Material Mgmt.
    • Volume of purchase
    • Plant near the source of material
    • Fluctuations in price of material
    • Design and engineering of the product ( design of the product should be simple so that
    • Design of the equipment
    • Inspection of the material before placing the order
  • 6. Importance of Material Mgmt.
    • Ensure regular supply of material
    • Minimizes waste
    • Transportation costs associated with material are checked
    • Shortages can be eliminated
    • Better utilization of resources
    • Timely supply of raw material