an arrangement or assembly of inter-dependent processes (activities) that are based on some logic and functionProduction SystemModelan act of either A model is anmanufacturing imitation of aor mining or real worldgrowing of system orgoods process.
As we may see, Materials is a part of inputsin a production system.These may be anything, a finished productor even a unprocessed “raw material” whichis directly harvested from the earth (theseinclude: any crop/plant or a part of it, water ,rock, soil and some times air).
Almost all industries require a fewmaterial inputs to produce their desiredproduct. An incorrect decision by the materialsmanager directly affects the productionprocess and the finished good. In the following slides we will discuss thisimportance of materials chosen forproduction and therefore the importanceof correct materials management by usingthe example of a café.
The type of material to beused Say in a cafe, salt was added to coffeerather than sugar, the owner would suffera loss in the following ways : a) the cost of salt wasted b) the cost of other ingredients added tocoffee (as no one would buy salted coffeeand the materials cannot be recovered intheir original form) c) the cost of running a coffee maker d) loss of labour time and hence per unittime wage
The quantity of material to beused In another café, they added fivetablespoons of sugar instead of one. Eventhough the material is right it is too much!!. In such a situation also the managementwill suffer a loss. This time the loss will beof a) the cost of adding the extra 4tablespoons b) the cost of other ingredients and of
The quality to be used If the café is renowned for using imported sugar from Brazil but due to wrong selection it uses sugar from a local company which is relatively bad in quality. The coffee would taste different and because it was a wrong selection the whole stock of local sugar would be wasted .
Materials CostIf the café usually buys sugar whichcosts very cheap but due to incorrectselection decision, the sugar broughtcosts very high.The managers would have to recover itby rising the price of coffee.Such a decision can reduce the café’scompetitiveness.
Timeliness of materials As sugar is an important ingredient of coffee, the shortage of sugar supply means a) delay in meeting orders b) labor lying idle (loss in the form of per unit time labor) c) coffee making machine’s depreciation d) and incase too much of time is taken in procurement other materials