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  • Dept.of Pharmaceutics.

Material management Material management Presentation Transcript

  • Material Management Prof. Dr. Basavaraj K. Nanjwade M. Pharm., Ph. D Department of Pharmaceutics KLE University College of Pharmacy BELGAUM-590010, Karnataka, India. E-mail: nanjwadebk@gmail.com Cell No.: 00919742431000There are thousand reasons for failure, but only one way to success, ‘HARD WORK’
  • ContentsDefinitionObjective and importancePrinciples of material managementFunctions of material managementMaterials – Quality and Quantity19 July 2012 KLE College of Pharmacy, Nipani. 2
  • Contd.. Contents Value analysis Purchasing Vendor development Buying techniques Purchasing cycles and procedure Advantages of material management 19 July 2012 KLE College of Pharmacy, Nipani. 3
  • Definition It is defined as an organizational concept, which has the authority and responsibility of all activities, concerned with the flow of materials in the organization.19 July 2012 KLE College of Pharmacy, Nipani. 4
  • Objectives and importance• Efficient use of the working capital.• Lowering inventory investment and increasing the inventory turnover.• Responding to the market changes related to any product.• Ensuring the cooperation of all departments.• Providing best services to the king of the market i.e customer.19 July 2012 KLE College of Pharmacy, Nipani. 5
  • Principles of material handling• Least handling is the best handling.• Lengths and number of move to be minimized.• Unit loads• Minimize the distance.19 July 2012 KLE College of Pharmacy, Nipani. 6
  • Principles of material handling• The design of the container.e.g. shippers are used for storing finished bulk. & for raw materials as per the property of materials they are stored- plastic containers ( light weight containers)• Re-handling and back tracking of the materials should be avoided.• The materials handling service should not interfere with the production flow.19 July 2012 KLE College of Pharmacy, Nipani. 7
  • Classes of materials• Raw materials:- These are materials that are used in the product which is in an unprocessed condition.• Purchased Parts:- These are the items used in the assembly of the product.19 July 2012 KLE College of Pharmacy, Nipani. 8
  • Classes of materials• In-progress materials:- They are called ‘work in progress’ inventories. These goods require further processing.• Finished materials:- These are fully manufactured goods, inspected and ready for delivery to the customers.• Supplies:- These are consumable goods used in the process of manufacturing.19 July 2012 KLE College of Pharmacy, Nipani. 9
  • Functions of material management19 July 2012 KLE College of Pharmacy, Nipani. 10
  • Materials-Quality & Quantity• Four factors affecting the purchase of raw materials are 1) Quality :- The suitably of an item to accomplish the intended work. The raw materials should satisfy the following requirements.i. Efficiency of the material.ii. Cost and the shelf –life.iii. For equipments, power consumption and power requirement.19 July 2012 KLE College of Pharmacy, Nipani. 11
  • Quantity• From the inventory point of view, quantity standards are decided on the following parameters;i. Maximum inventoryii. Minimum inventoryiii. Standard orderiv. Reorder point 3) Price 4) Delivery Date19 July 2012 KLE College of Pharmacy, Nipani. 12
  • Value Analysis• Definition:- It is a systematic study of every element for it’s cost in a part, material or service to make certain that it performs it’s function at the lowest possible cost.• Benefits of value analysis:-i. Decrease in existing cost of the product or service.ii. Unnecessary expenditure is identified and eliminated.iii. Product value improves for new materials and processes.iv. More profits.19 July 2012 KLE College of Pharmacy, Nipani. 13
  • Value ratioMathematical representation of the value can be done as Function Value = Total costReasons for unnecessary costs:-i. Lack of informationii. Lack of ideasiii. Changed circumstancesiv. Wrong beliefs, habits and attitudes19 July 2012 KLE College of Pharmacy, Nipani. 14
  • Value Analysis Technique In this technique (n) number of questions are applied, like:-o what must I do?o What else does the item do?o What does it cost?o What else will the job do?o What will be alternative costs? 19 July 2012 KLE College of Pharmacy, Nipani. 15
  • PurchasingCentralized :- the purchasing Decentralized:- different procedure of materials for department purchase their different department is done requirement seperately. together from one This is basically seen in purchasing department. large organizations. This is seen in small organizations. Advantages  Flexible purchasing systemAdvantages  Procurement is faster Efficient system Bargaining capabilities increased Good raw material obtained at lower price 19 July 2012 KLE College of Pharmacy, Nipani. 16
  • Vendor development The supplier or the person who sells the required materials or services for the production is known as a vendor. The purchase of raw materials/service from a specific vendor is known as the vendor development. There are four stages of vendor development:-19 July 2012 KLE College of Pharmacy, Nipani. 17
  • Four stages of vendor development Stage Name Development Survey stage Identifying the potential 1st sources of suppliers. Seeking information. Provisional vendors list. Enquiry stage Analysis of information in 2nd standard enquiry format. Accreditation, FDA approval, ISO certification. Personal visits. Negotiations and Quality control 3rd selection stage specifications, clarification, credit, quantity discounts. Experience and Performance appraisal, 4th evaluation stage Quality, delivery time.19 July 2012 KLE College of Pharmacy, Nipani. 18
  • 1) Survey stageThe following sources are considered for information• Trade directories :- e.g. Yellowpages.eindiabusiness.com• Trade journals:- e.g. Pharmatimes• Telephone directories• Supplier’s catalogue• Salesmen Other ways are like interchanging of information with other companies, tracing of public tenders and advertisements in the press.19 July 2012 KLE College of Pharmacy, Nipani. 19
  • 2) Enquiry stage After getting the information of the suppliers, detailed analysis of the supplier is being carried out. A comparison is being made between the different suppliers on basis of the following points:-a. Technological competition,b. service competition,c. price competition,d. delivery time.19 July 2012 KLE College of Pharmacy, Nipani. 20
  • 2) Enquiry stageThe following aspects can be verified by the first hand visit:- Internal facilities of the vendor Financial adequacy, stability and reputation of the vendor Location of vendor’s factory After sales service Industrial relations19 July 2012 KLE College of Pharmacy, Nipani. 21
  • 3) Negotiation and selection stage• The vendors who clear the enquiry stage are selected and negotiations are being carried out with them.• The various aspects such as credit, quantity discount, quality specifications are being discussed.19 July 2012 KLE College of Pharmacy, Nipani. 22
  • 4) Experience and evaluation stage• The buyer evaluates and appraises the performance of the vendor.• The objective is to improve the performance of the vendors. Few ways of evaluating a vendor are:-o Categorial methodo Weighted point methodo Cost ratio method19 July 2012 KLE College of Pharmacy, Nipani. 23
  • Categorial methodThe buyer sets up some category on which the evaluation of the vendor is done. Specimenof supplier’s evaluation form is given below. Grading Factors Always Usually Seldom Never 9 8 7 6 5 4 3 2 1 0 Supplies are as per quantity selected Deliveries are on time Rigorous follow up is not necessary Willing to accommodate when production schedules are suddenly changed 19 July 2012 KLE College of Pharmacy, Nipani. 24
  • Weighted point methodHere the rating points are divided between quality,delivery and price.For eg quality – 50 points delivery- 30 points price – 20 points so total is 100 points.The rating can be obtained by following equation.19 July 2012 KLE College of Pharmacy, Nipani. 25
  • Weighted point methodQuantity rating = (no. of lots accepted/ no. lots received) ×rating pointsDelivery rating = (no of lots delivered on time/ no of lots delivered) × rating pointsPrice rating =(least offer received/ supplier’s offer) × rating points 19 July 2012 KLE College of Pharmacy, Nipani. 26
  • Buying techniques Purchasing of material , machinery and services is done by purchasing department. For buying the material company has to pay up a price, the value that a seller sets on his goods in the market is called as the price of that good. Price is one of the greatest variables in the purchasing of material.19 July 2012 KLE College of Pharmacy, Nipani. 27
  • How is the purchasing done????• Quotations :- It is a kind of an inquiry done to know whether the vendor can supply the desired material and at what price.• They are not the purchase order. They just contain all the details including freight, taxes and many other costs.• The highly used quotation techniques are• Spot quotations• Floating a limited enquire19 July 2012 KLE College of Pharmacy, Nipani. 28
  • How is the purchasing done????• Spot quotations:- this is basically used for the small items not related to the technical purpose. The prospective buyer goes to the market and gets the quotations from the different suppliers.• Floating a limited enquire:- this method is used when the value of the purchase is small. In this technique the reliable vendors are called upon and asked to provide the quotations. 19 July 2012 KLE College of Pharmacy, Nipani. 29
  • How is the purchasing done????• Tenders:- It is a written letter or a published document that is aimed at finding the price for procuring certain materials. Tenders are invited from recognized firms. A few types of tenders are: # single tender # Open tender # Closed tender or limited tender19 July 2012 KLE College of Pharmacy, Nipani. 30
  • How is the purchasing done????• Single tender:- It is invited from one reliable supplier. This kind of tender is floated only when the itms are required urgently.• Open tender:- Also known as ‘ press tender’. This is used when the value of item to be purchased is very high. It is used to locate more suppliers. In this tender procured, a small amount of the deposit money is taken from the supplier so that they do not withdraw from the submitted rates.19 July 2012 KLE College of Pharmacy, Nipani. 31
  • How is the purchasing done????• Closed tender or limited tender (Negotiations):- It is done to arrive at the mutual understanding between the supplier/vendor and the buyer.19 July 2012 KLE College of Pharmacy, Nipani. 32
  • How is the purchasing done????What’s the need for negotiation?@ prices are related to large volumes or to a large value.@ terms and conditions are required for large volumes.@ contract is desired for a longer period.@ variations in quantity to be purchase are possible.@ when supplies or services can be obtained from only one source.@ when no acceptable quotations are received from the other vendors.19 July 2012 KLE College of Pharmacy, Nipani. 33
  • How is the purchasing done???? Process of negotiations:- It is a kind of win-win situation. Both the parties try to benefit to the maxima through the negotiation. It is not a kind of bargaining but a mutual understanding between the two parties.19 July 2012 KLE College of Pharmacy, Nipani. 34
  • How is the purchasing done????• Discounts:- They are cash concessions offered by the vendor to the buyer, in order to enhance the volume of the business opportunities. Reasons for offering discounts????? ! When there is a bulk purchase. ! When the bills are cleared immediately. ! And also to maintain the good rapo with the buyerTypes of discounts:-1) Volume contracts.2) Deals3) Discounts4) Consignment terms19 July 2012 KLE College of Pharmacy, Nipani. 35
  • How is the purchasing done???? # Volume contracts:- This kind of discount is offered proportionate to the volume of material ordered.# Cash discount:- Cash discount is given on the basis of the time of the payment done by the purchaser. The normal credit period is 90 days.# Cumulative discount:- It is a method of offering the discount on the basis of actual purchases and appropriate to the quantity range in a year.19 July 2012 KLE College of Pharmacy, Nipani. 36
  • Purchasing cycle and procedure• The purchasing department of the company is responsible for the purchase of all the raw materials as well as the requirements.The following steps are followed in the purchasing cycle.1) Recognition of need and receipt of requisition: The requisition includes the following information:- - Name - Quality and quantity specifications - Date by which material is required - Place at which material is to be delivered 19 July 2012 KLE College of Pharmacy, Nipani. 37
  • Purchasing cycle and procedure2) Selection of potential sources of supply3) Making request for quotation4) Receipt and analysis of quotations - material specifications and quality - price of the material - taxes - terms of payemeny - place of delivery - delivery period - gurantee period - validity of tender19 July 2012 KLE College of Pharmacy, Nipani. 38
  • Purchasing cycle and procedure5) Selection of right source of supply6) Issuing the purchase order7) Follow-up of the order8) Receipt of materials,reports and analysis9) Checking and approving of vendor’s invoice for payment10) Closing of completed order11) Maintenance of record and file Purchasing cycle flow chart has been given in the following slide.19 July 2012 KLE College of Pharmacy, Nipani. 39
  • Spell out of specifications & Need recognition requirements Official requisitions Check specifications,Specifications Purchase prices/suppliesfile records Inquiry tender Select suppliers Supplier’s record Quotations & analysis prices and terms, negotiations, finalisation Purchase order for supply Suppliers’ acceptance Follow-up19 July 2012 KLE College of Pharmacy, Nipani. 40
  • • Contd …. Delivery of materials Checking of invoice Materials & reports, with purchase order analysis Payment made19 July 2012 KLE College of Pharmacy, Nipani. 41
  • Example of Materials and People Flow19 July 2012 KLE College of Pharmacy, Nipani. 42
  • Location of Stores : Store should be located adjacent to the manufacturing area.It depends up on nature and value of items to be stored and frequency with which items are received and issued Objectives :  Minimum wastage of space  Maximum ease of operation  Minimum handling cost  Minimum other operational cost19 July 2012 KLE College of Pharmacy, Nipani. 43
  • Facilities of StoreInspection centerQuarantine roomWashing roomCentralized weighing departmentAdequate space19 July 2012 KLE College of Pharmacy, Nipani. 44
  • Functions of stores General function : Maintenance of Stock (materials and tools) Maintenance of hygiene, sanitation, and pest control Maintenance of material handling equipment19 July 2012 KLE College of Pharmacy, Nipani. 45
  • Functions of stores Specific functions : Receiving & recording of raw materials Quarantine storage – Sampling & approval by QC Positioning & Storage Issuing & recording of materials Receiving & Dispatching of finished goods Distribution Optional functions : Dispensing, Maintenance of weights & measures19 July 2012 KLE College of Pharmacy, Nipani. 46
  • Material handling systemRight Definition : Material handling uses the right method to provide the right amount of the right material at the right place, at the right time, in the right sequence, in the right position, in the right condition, and at the right cost. 19 July 2012 KLE College of Pharmacy, Nipani. 47
  • Material handling systemInvolves handling, storing, and controlling material• The raw materials, in-process materials and finished goods are moved from one place to another in the plant.• Adds value through time and place utility• Impacts space requirement, profits, quality, safety, and productivity• On an average, 20% of production cost is spent on material handling system19 July 2012 KLE College of Pharmacy, Nipani. 48
  • Twenty Principles of Material Handling1. Planning principle. Plan all material handling and storage activities to obtain maximum overall operating efficiency.2. System principle. Integrate as many handling activities as is practical into a coordinated system of operations, covering vendor, receiving, storage, production, inspection, packaging, warehousing, transportation. etc. 19 July 2012 KLE College of Pharmacy, Nipani. 49
  • Twenty Principles of Material Handling3. Material flow principle. Provide an operation sequence and equipment layout optimizing material flow.4. Simplification principle. Simplify handling by reducing, eliminating, or combining unnecessary movement and/or equipment.5. Gravity principle. Utilize gravity to move material wherever practical.19 July 2012 KLE College of Pharmacy, Nipani. 50
  • Twenty Principles of Material Handling6. Space utilization principle. Make optimum utilization of space .7. Unit size principle. Increase the quantity, size, or weight of unit loads or flow rate.8. Mechanization principle. Mechanize handling operations.19 July 2012 KLE College of Pharmacy, Nipani. 51
  • Twenty Principles of Material Handling9. Automation principle. Provide automation to include production, handling, and storage functions.10. Equipment selection principle. In selecting handling equipment, consider all aspects of the material being handled.19 July 2012 KLE College of Pharmacy, Nipani. 52
  • Twenty Principles of Material Handling11. Standardization principle. Standardize handling methods as well as types and sizes of handling equipment.12. Adaptability principle. Use methods and equipment that can best perform a variety of tasks and applications where special purpose equipment is not justified.19 July 2012 KLE College of Pharmacy, Nipani. 53
  • Twenty Principles of Material Handling13. Dead weight principle. Reduce ratio of dead weight of mobile handling equipment to load carried.14. Utilization principle. Plan for optimum utilization of handling equipment and manpower.15. Maintenance principle. Plan for preventive maintenance and scheduled repairs of all handling equipment.19 July 2012 KLE College of Pharmacy, Nipani. 54
  • Twenty Principles of Material Handling16. Obsolescence principle. Replace obsolete handling methods and equipment when more efficient methods or equipment will improve operations.17. Control principle. Use material handling activities to improve control of production inventory and order handling.19 July 2012 KLE College of Pharmacy, Nipani. 55
  • Twenty Principles of Material Handling18. Capacity principle. Use handling equipment to help achieve desired production capacity. 19. Performance principle. Determine effectiveness of handling performance in terms of expense per unit handled.20. Safety principle. Provide suitable methods and equipment for safe handling.19 July 2012 KLE College of Pharmacy, Nipani. 56
  • Handling of materials must be performed  Safely  Efficiently  At low cost  In a timely manner  Accurately (the right materials in the right quantities to the right locations)  And without damage to the materials19 July 2012 KLE College of Pharmacy, Nipani. 57
  • Risks associated with improper handling• Increase in cost of raw material and finished products• Delay in production schedule and long production cycle• Waste of machine time and personnel time• Increase in in-process inventories• Damage or loss of material and employee safety liabilities• Employee frustration and reduced morale• Customers dissatisfaction19 July 2012 KLE College of Pharmacy, Nipani. 58
  • Selecting Material Handling System Systematic Approach 1. Define the problem19 July 2012 KLE College of Pharmacy, Nipani. 59
  • Selecting Material Handling System2. Analyze the problem Observe activities Obtain layouts, flow patterns, schedules, etc. Obtain information on existing material handling equipment Analyze situation by Twenty Principles of Material Handling, and/or forms Can activities be combined, simplified, eliminated???19 July 2012 KLE College of Pharmacy, Nipani. 60
  • Selecting Material Handling System3. Identify possible solutions Organize meeting with: material handlers machine operators supervisors support engineers4. Evaluate alternatives Meet again to rate alternatives19 July 2012 KLE College of Pharmacy, Nipani. 61
  • Material Handling Equipment Five categories: 1. Industrial trucks 2. Automated guided vehicles 3. Monorails and other rail guided vehicles 4. Conveyors 5. Cranes and hoists19 July 2012 KLE College of Pharmacy, Nipani. 62
  • Industrial TrucksTwo basic categories:1. Non-powered – Human workers push or pull loads1. Powered – Self-propelled, guided or driven by human – Common example: forklift truck19 July 2012 KLE College of Pharmacy, Nipani. 63
  • Nonpowered Industrial Trucks (Hand Trucks) (a) Two-wheel hand truck, (b) four-wheel dolly, (c) hand-operated low-lift pallet truck19 July 2012 KLE College of Pharmacy, Nipani. 64
  • Powered Trucks Capacities from 450 kg up to 4500 kg Power sources include on-board batteries and internal combustion motors19 July 2012 KLE College of Pharmacy, Nipani. 65
  • Powered Trucks•Designed to pullone or more trailingcarts in factories andwarehouses, as wellas for airportbaggage handling•Powered by on-board batteries or ICengines 19 July 2012 KLE College of Pharmacy, Nipani. 66
  • Automated Guided Vehicles An Automated Guided Vehicle System (AGVS) is a material handling system that uses independently operated, self- propelled vehicles guided along defined pathways in the facility floor• Types of AGV: – Driverless trains – Pallet trucks – Unit load AGVs 19 July 2012 KLE College of Pharmacy, Nipani. 67
  • Driverless Automated Guided Train • First type of AGVS to be introduced around 1954 • Common application is moving heavy loads over long distances in warehouses and factories without intermediate stops along the route19 July 2012 KLE College of Pharmacy, Nipani. 68
  • AGV Pallet Truck• Used to move palletized loads along predetermined routes• Vehicle is backed into loaded pallet by worker; pallet is then elevated from floor• Worker drives pallet truck to AGV guide path and programs destination 19 July 2012 KLE College of Pharmacy, Nipani. 69
  • Unit Load Carrier• Used to move unitloads from station tostation• Often equipped forautomaticloading/unloading ofpallets and pans usingroller conveyors,moving belts, ormechanized liftplatforms 19 July 2012 KLE College of Pharmacy, Nipani. 70
  • AGVs Applications1. Driverless train operations - movement of large quantities of material over long distances2. Storage and distribution - movement of pallet loads between shipping/receiving docks and storage racks3. Assembly line operations - movement of car bodies and major subassemblies (motors) through the assembly stations4. Flexible manufacturing systems - movement of work parts between machine tools5. Miscellaneous 19 July 2012 KLE College of Pharmacy, Nipani. 71
  • Rail-Guided Vehicles• Self-propelled vehicles that ride on a fixed-rail system• Vehicles operate independently and are driven by electric motors that pick up power from an electrified rail• Fixed rail system – Overhead monorail - suspended overhead from the ceiling – On-floor - parallel fixed rails, tracks generally protrude up from the floor19 July 2012 KLE College of Pharmacy, Nipani. 72
  • Overhead Monorail19 July 2012 KLE College of Pharmacy, Nipani. 73
  • Conveyor Systems• Large family of material transport equipment designed to move materials over fixed paths, usually in large quantities or volumes 1. Non‑powered : Materials moved by human workers or by gravity 2. Powered : Power mechanism for transporting materials is contained in the fixed path, using chains, belts, rollers or other mechanical devices 19 July 2012 KLE College of Pharmacy, Nipani. 74
  • Conveyor Types• Roller• Skate‑wheel• Belt• In‑floor towline• Overhead trolley conveyor19 July 2012 KLE College of Pharmacy, Nipani. 75
  • Roller Skate‑wheel Belt Overhead trolley conveyor In‑floor towline19 July 2012 KLE College of Pharmacy, Nipani. 76
  • Cranes and HoistsHandling devices for lifting, lowering and transporting materials, often as heavy loads• Cranes – Used for horizontal movement of materials• Hoists – Used for vertical lifting of materials• Cranes usually include hoists so that the crane- and-hoist combination provides – Horizontal transport – Vertical lifting and lowering 19 July 2012 KLE College of Pharmacy, Nipani. 77
  • Hoist Load19 July 2012 KLE College of Pharmacy, Nipani. 78
  • Bridge Crane Gantry Crane Jib Crane 19 July 2012 KLE College of Pharmacy, Nipani. 79
  • Salvaging and Disposal of Scrap and Surplus The words ‘Scrap’ and ‘Surplus’ symbolize waste and to that extent these account for the loss of profits. Scrap is commonly used for waste of all kinds.19 July 2012 KLE College of Pharmacy, Nipani. 80
  • These occur for the following reasons: Mistakes in procurement Wrong planning decisions Wasteful processes in production Inevitable waste during the adjustment of the equipment Overall absence of efficiency19 July 2012 KLE College of Pharmacy, Nipani. 81
  •  Disposal of scrap, surplus, recyclable, obsolete materials is one of the most important area of materials management, but often overlooked or considered minor. Popular due to increased public awareness of environment, government legislation, better recognition of opportunities it offers in return. e.g. paper files and forms are recyclable item that can be sold to recycle company.19 July 2012 KLE College of Pharmacy, Nipani. 82
  • The following measure are adopted and monitored for handling scrap: 1. Controlling of surplus and scrap 2. salvaging or converting the waste for advantageous use. 3. Disposal of the surplus and scrap to the best advantage.19 July 2012 KLE College of Pharmacy, Nipani. 83
  • The production department primarily controls the first function by proper design, while purchase department handles the second and third functions. Waste materials in pharmaceutical industry:• Empty drums, packing materials, card boards, aluminium caps, bottles etc. these are non- recoverable rejects.• Spoiled materials during production. In a few instances, these may be recoverable.• Worn-out parts of equipments (examples are punches and dies), old equipment (due to expiry of life) and obsolete equipment (due to technology change).19 July 2012 KLE College of Pharmacy, Nipani. 84
  • Salvage : It is defined as the processing of materials (items) for advantageous use or disposal of company property, which is no longer economically useful in its present position. Salvage operation : Waste materials are properly collected and stored at one place continuously, so that these can form a separate batch in production. Recoverable materials are stored in a scientific way as other items stored.19 July 2012 KLE College of Pharmacy, Nipani. 85
  •  Materials are stored in terms of quality or size or specifications. Waste is invested for suitability to recover or avoid them. Salvaging operation are possible under the following conditions: Evidences from laboratory tests and assays that the drug products meet all applicable standards of identity, strength, quality and purity. Evidence from inspection of premises that the drug products and their associated packing were not subjected to improper storage condition, as a result of the disaster or accident.19 July 2012 KLE College of Pharmacy, Nipani. 86
  • Disposal Disposal of scrap, waste and surplus materials can be effected by several way : Surplus material should be returned to the original supplier. Alternatively a customer who needs them should be explored. As a social obligation, some material are defected or broken before selling them as scrap. 19 July 2012 KLE College of Pharmacy, Nipani. 87
  • Disposal Materials may be sold by inviting quotations from potential buyers or through various contracts such as fixed price contract, varying price contract, specific bids and negotiations.• It is worth considering that scrap like any other material represents money and to that extent it has a value.19 July 2012 KLE College of Pharmacy, Nipani. 88
  • Unit lode, Pelletization and Containerization Unit load is a set of items (raw material, semi finished parts, finished product) to be move together, like: A set of cartons on a pallet A set of products in a container In a unit load, parts are In something (In a carton) On something (On a pallet) Grouped by something (wrapped, strapped)19 July 2012 KLE College of Pharmacy, Nipani. 89
  • Reasons for using unit loads in material handling Multiple items handled simultaneously Required number of trips is reduced Loading/unloading times are reduced Product damage is decreased (a) Wooden pallet, (b) pallet box, (c) tote box19 July 2012 KLE College of Pharmacy, Nipani. 90
  •  Pallets : Style and Size based on: Shipping and receiving restrictions Size and weight of items on the pallet Space restrictions Equipment used to move the pallet Cost, supply, and maintenance Aisle widths, door sizes, stacking heights19 July 2012 KLE College of Pharmacy, Nipani. 91
  •  Types of Pallets : Materials used : • Plastic• Softwood • Steel• Hardwood • Aluminium• Paper19 July 2012 KLE College of Pharmacy, Nipani. 92
  • Containerization : Different types of containers are used according to the type of material.e.g Boxes, cartons, cases, sacks, bales, pallets, drums, barrels, crates, cable drums, machinery, and processed timber• Tank containers for bulk liquids and dangerous goods.19 July 2012 KLE College of Pharmacy, Nipani. 93
  • TRAINING AND DEVLOPMENT• Training and development may be defined as an attempt to improve current or future performance of employees through learning, usually by changing the employees attitude or increasing his/her skills and knowledge.19 July 2012 KLE College of Pharmacy, Nipani. 94
  • TRAINING AND DEVLOPMENT• Training and development program - Steps : I. Explain the trainee what is the job, how is the job done and why is it done (relevance). II. Show how the job should be done (demonstration). III. Allow the trainee to do the job (practice). IV. Follow up by explaining what was done correctly and what was done incorrectly. Correction always should be made as privately as possible (feedback). 19 July 2012 KLE College of Pharmacy, Nipani. 95
  • TRAINING AND DEVLOPMENT• Training and development program – Methods : I. On-the job training II. Off-the job training19 July 2012 KLE College of Pharmacy, Nipani. 96
  • TRAINING AND DEVLOPMENTI. On-the job training : Majority of industrial training are on-the job training, because it is related to the productivity. On-the job training refers to methods that are applied at the workplace, while the employee is actually working.19 July 2012 KLE College of Pharmacy, Nipani. 97
  • TRAINING AND DEVLOPMENTII. Off-the job training : This method is commonly used for the training of employees. Off-the job training refers to methods that are applied away from workplace.19 July 2012 KLE College of Pharmacy, Nipani. 98
  • JOB ANALYSIS• Job analysis is defined as a process of collecting and studying information relating to the operations and responsibilities of a specific job.19 July 2012 KLE College of Pharmacy, Nipani. 99
  • JOB ANALYSIS• Process of job analysis : Defining uses of job analysis Information collecting Information processing Job description Job specification19 July 2012 KLE College of Pharmacy, Nipani. 100
  • JOB ANALYSIS• Uses of job analysis : • Personnel planning • Training and development • Work scheduling • Performance appraisal • Job evaluation19 July 2012 KLE College of Pharmacy, Nipani. 101
  • JOB ANALYSIS• Job Description : is defined as a combination of statement containing the work to be performed and the essential working conditions of a particular job.• Job specification : may be defined as a statement of human qualities and other desirable characteristics required for discharging the assigned job.19 July 2012 KLE College of Pharmacy, Nipani. 102
  • JOB ANALYSIS Job AnalysisJob description Job specificationsJob title EducationJob place Experience Job summary Training Machines, tools and equipment Judgment Materials and forms used InitiativeWorking condition ResponsibilitiesHazards19 July 2012 KLE College of Pharmacy, Nipani. Physical effort 103
  • JOB DESIGN• Job design involves conscious efforts to organize tasks, duties and responsibilities into a unit to achieve objectives.• Job design involves three steps. – Specifications of individual tasks. – Specification of the methods of performing each tasks. – Conversion of tasks into specific jobs to be assigned to individuals.19 July 2012 KLE College of Pharmacy, Nipani. 104
  • JOB DESIGN• Mechanisms of job design : Understanding the nature of job is important, because it determines the skill requirement in performing a job. Skill variation, responsibility and growth Low High Enlargement and enrichment19 July 2012 KLE College of Pharmacy, Nipani. 105
  • Job enlargement  It involves performing of a variety of jobs or operations at the same time. It is mainly intended to enlarge the job horizontally.  It avoids monotony, as a result of high degree of specialization, but the basic nature of job remains same. Therefore, it has limited role in motivating employees. There is a need for up- gradation of authority and responsibility.19 July 2012 KLE College of Pharmacy, Nipani. 106
  • Job enrichment  It acts as an additional motivating factors to other models described earlier in job design. This factor attracted more attention, both in academic circles as well as in practice. Therefore, it requires a detailed study.19 July 2012 KLE College of Pharmacy, Nipani. 107
  • Job enrichment Job enrichment is concerned with designing of job in terms of the following : • Work content provides greater variety. • Levels of knowledge and skills are higher. • More autonomy and responsibility in terms of planning, directing and controlling is given to workers for their own performance. • Work experience becomes meaningful.19 July 2012 KLE College of Pharmacy, Nipani. 108
  • BLUE AND WHITE-COLLAR JOBS• A position that involves mainly physical labor. With the decline in manufacturing and an increase in harmonization agreements, the term blue collar is now rarely used.• Blue collar refers to the blue overalls traditionally worn in factories in contrast to the white shirt and tie supposedly worn by an office worker, known as a white-collar worker.19 July 2012 KLE College of Pharmacy, Nipani. 109
  • LABOR WELFARE• Labor Welfare means working out things for the well-being of the labors. Knowing there wants and enabling them to fullfill there wants.• Labor welfare is the voluntary efforts of employer to establish within the existing industrial system, working and sometimes living and cultural conditions of the employee beyond what is required by law.19 July 2012 KLE College of Pharmacy, Nipani. 110
  • Advantages of material management• It eliminates unproductive handling of the materials like back-tracking, rehandling etc.• It reduces idle machine capacity and thus ensures better turnover on investment.• It reduces considerably the idle time of the workers.19 July 2012 KLE College of Pharmacy, Nipani. 111
  • Advantages of material management• The quality of the materials is also maintained through minimum human touches, elimination of breakages, etc.• Every inch of the factory space is properly utilized.• The issue of materials is also facilitated.• It helps in maintaining effective production planning and control.19 July 2012 KLE College of Pharmacy, Nipani. 112
  • Advantages of material management• Reduced operating costs and timely production.• Greater job satisfaction on the part of both the workers and the employer.19 July 2012 KLE College of Pharmacy, Nipani. 113
  • References• CVS Subrahmanyam; Pharmaceutical Product and Management, Published by- Vallabh Prakashan, Page no :- 260 – 282• S.C. Saksena; Business Administration Management, Published by- Sahitya Bhawan, Page no :- 262 – 263, chapter 20.19 July 2012 KLE College of Pharmacy, Nipani. 114
  • 19 July 2012 KLE College of Pharmacy, Nipani. 115