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Material management
The document discusses material management in three parts. It first outlines the scope, objectives, departments, and functions of material management. This includes material planning, purchasing, inventory control, and warehousing. It then explains why material management is necessary, such as stabilizing production and meeting demand. Finally, it discusses the systems used in material management and challenges in implementing material management, such as forecasting demand accurately and managing information.
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Material management
- 2.
- 3. Scope ofMM. Process of MM. Why MM is Necessary? Focus of MM. Objectives of MM Main depts. Of MM. Functions of MM. Systems Challenges for MM implementation.
- 4. The scope ofmaterial management varies from company to company include material planning and control, production planning, purchasing, inventory control and stores, in-plant. ManagementMaterial + Planning ControllingOrganizing Management Internal Operations Distribution on Service Points Purchasing
- 5. Consumption & End Usage Issuance& Distribution Purchasing Receiving Quality Control Warehousing & Storage Inventory Control Production Start
- 7. To stabilizethe production. To take advantage of price discounts. To meet the demand during the replenishment period. To prevent the loses of orders. To keep pace with changing market conditions.
- 8. In-Right Quantity Of-Right Quality At-RightTime From-Right Source At-Right Price
- 10. Material Planning. Purchase Inventory Control Store/Warehouse
- 11. Functions involved in MaterialManagement
- 13. Functions involved in MaterialManagement
- 14. ◦ Centralized Purchasing-purchasing department located at the firm’s corporate office makes all the purchasing decisions. ◦ Decentralized Purchasing- individual, local purchasing departments, such as plant level, make their own purchasing decisions. Production Control
- 15. Advantages- Centralization ◦ BulkQuantity Discount ◦ Concentrated volume- leveraging purchase volume ◦ Avoid duplication ◦ Specialization ◦ Lower transportation costs ◦ Uniformity in purchasing policies. ◦ No competition within units ◦ Common supply base Advantages- Decentralization Closer knowledge of requirements Local sourcing No heavy investment is required Quick Order placing Less bureaucracy Disadvantages- Centralization High initial investment Delay in materials from deliveries. Not suitable, if branches are located at different geographical locations. Materials can not be purchased from local suppliers. Defective materials can not be replaced timely. Disadvantages- Decentralization Lose of discount on bulk buying. lacks of specialization in purchasing. Inappropriate quantity procured Less chances of effective control. Lack of proper coordination among depts.
- 24. Selection of appropriate vendors. Difficulty in forecasting demand accurately. Diversification ofproduct lines. Optimizing time and quantity for the products Land and storage cost increases. Management of information.
- 26. O + B= OB Organization + Behavior = Organization Behavior Organizational Behavior is the study of the factors that affect how individual and group act and behave in the organization and how organization manage their environment. The study of human attitude, behavior and performance in the organization.
- 27. The Person TheEnvironment Skill Ability Personality Attitude Values Ethics Organization Work group Job Personal Life
- 29. Passion Knowledge Just Know Job. Don’t Know Don’tCare Know Well But No Passion about Job Lots of Passion But Little Understanding” Vision Centered Culture Know and Carry
- 30. Forces of OB ConflictProcess
- 31. Individual Level * Job Satisfaction *Empowerment * Behaving Ethics Group Level * Working with other * Workforce Diversity Organization System Level * Productivity * Developing effective employees * Global Competencies