Materials management notes for final year b pharm.

1. MATERIALS MANAGEMENT
PRESENTED BY
PRAKASH.T

2. INTRODUCTION
 It is the planning,directing,controlling and
coordinating those activities which are concerned
with materials and inventory requirements from their
point of inception to their introduction into the
manufacturing process.
 It deals with procurement of raw materials,machines
and equipments which are necessary for production
process and spare parts for the manufacture of the
plant.

3. OBJECTIVES
 Provide regular supply of raw materials.
 Helps in high productivity.
 Minimising stock out problems.
 Purchase items of best quality.
 Minimising waste .
 Provides economy in purchasing.
 Minimise production cost.

4. FUNCTIONS
 Planning and programming for materials
purchase.
 Stores and stock control.
 Receiving and issuing of the materials.
 Transportation and handling.
 Disposal of waste.

5. ORGANISATION OF MM DEPARTMENT

6. IMPORTANCE OF MM
• It ensure regular supply of raw materials.
• It minimize waste of raw materials.
• It assures timely supply of raw materials.
• It helps in eliminating shortages.
• It helps in better utilization of labour, capital and
equipment.
• It helps in promoting profit to the organisation.

7. PURCHASING
 It is the first step in material management.
 It means procurement of goods and services from
external sources for the production of goods or
products.
 It enables to make an enterprise or an organization to
run.

8. OBJECTIVES
 Right source
 Right quality
 Right quantity
 Right price
 Right time
 Right place of delivery
 Right mode of transportation

9. ORGANISATION OF PURCHASE DEPARTMENT
PURCHASE
MANAGER
GENERAL
OFFICES
PURCHASE
RESEARCH
SALVAGE AND
CONTROL
BUYER

10. QUALITIES OF PURCHASE MANAGER
 Quick decision making power.
 Pleasing personality.
 Good leadership.
 Good communication skill.
 Good implementor.

11. TYPES OF PURCHASING
• CENTRALISED PURCHASING - for smaller plants
or single units.
• LOCALISED PURCHASING – for multiplants or
multi production units.
Localised is preferred more coz the materials can be
brought in bulk and various materials can be obtained in
one single place at a tym.

12. PURCHASING PROCEDURE
 Purchase requisition
 Selection of the suppliers
 Placing the order
 Receiving and checking of materials
 Checking of bill or invoice
 Recording of bills in books
 Releasing the payment to the supplier

13. METHOD OF PURCHASING
 Purchasing according to the requirements
 Market purchasing
 Speculative purchasing
 Contract purchasing
 Scheduled purchasing