Quality Material managementPresentations By Rajendran Ananda Krishnan, https://www.facebook.com/ialwaysthinkprettythings

1. Materials Management
Rajendran Ananda Krishnan
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2. Why Materials Management
 Materials is one of the five M’s of an industrial
organization
 Increasing Material costs
 Materials offer considerable scope for improving profit.
 Materials form an important form of current assets in
any organization.
 Material add value to the product
 Suppliers and materials management account for more
than 50 percent of total value.
 Quality of the finished product depends on quality of
materials used.
 social responsibility of business.
 Exploring new sources of supply is a challenge for
material management executives.
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3. Material management
Material management involves organizing, and coordinating all
management functions that are responsible for every aspect of
materials, storage, and transformation
Bailey and Farmer define Material Management as the management
of the flow of materials in to an organization to the point where those
materials are converted in to the firm ‘s end products
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4. Objectives of Material Management
 Buying, storage, and movement of material are the three basic
objectives of materials management.
 Optimum investment in inventory is the prime objective of
materials management.
Primary Objectives
1. Lower prices
2. High Inventory Turnover
3. Low cost acquisition and possession
4. Continuity of supply
5. Consistency of quality
6. Favorable supplier relations
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5. Secondary objectives
1. Reciprocal Relations
2. New materials and products
3. Economic make or buy
4. Standardization
5. Product Improvement
6. Inter departmental harmony
7. Forecasts
8. Acquisitions
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6. Purchasing
Purchasing is the act of buying an item at a price
Purchasing is responsible for obtaining the materials , parts ,
supplies and services needed to produce a product or provide a
service.
Objectives
Purchasing objective: Buying raw materials of the right
quantities, in the right-quality at the right time, at the right price,
and from the right source.
1. To pay reasonably low prices for best values obtainable.
2. To keep inventories as low as possible
3. Collaborative relationship with supplies
4. To secure good vendor performance – delivery and quality
5. To locate new materials or products as required
6. To develop good procedure together with adequate control
and purchasing policies
7. To implement https://www.facebook.com/ialwaysthinkpr analysis , cost analysis
programs like value
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and make or buy decision

7. Purchasing Functions
 Responsibilities often fully delegated to the purchasing function
a. Obtaining prices
b. Selecting vendors
c. Awarding purchase orders
d. Following up on delivery promises
e. Selecting and training of purchasing personnel
f. Vendor relations
 Functions other than purchasing functions
a. Obtaining Technical information and advice
b. Scheduling orders and delivers
c. Inspecting
d. Accounting
e. Expediting
f. Determination of whether to make or buy
Other functions
a. Receiving and warehousing
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b. Payment of invoices ettythings

8. Purchasing Cycle
Purchasing cycle comprising of eight steps.
1. Recognition of Need
2. Description of Requirement
3. Selection of Source
4. Determination of Price and Availability
5. Placing the Order
6. Order Acknowledgement
7. Follow Up and Expediting
8. Checking The Invoice and Approval
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9. Factors in source/vendor selection
Reliability
Technical Abilities
After sales service availability
Past experience
Price
Quality
Discounts received
Promptness of delivery
Co-operation
Credit terms
Installation costs
Financial Position https://www.facebook.com/ialwaysthinkpr
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10. Vendor rating
– The ability to select reliable vendors is a successful
purchasing action
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11. Rating Techniques
 Categorical Plan
 The weighted Point Plan
 Critical Incidents Method
 Checklist System
A. Reliability
B. Technical capabilities
C. After- sale service
D. Availability
E. Buying Convenience
F. Sales assistance
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12. Ethics in Purchasing
• Ethics is segment of philosophy concerned with values of
human conduct.
• the term ethics refers to a code of conduct that guides an
individual in dealing with others.
Ways to achieving Ethical Behaviour
 Definite polices on all matters involving ethics should be
formulated
 An attempt should be made to create a working environment
,where unethical temptations seldom become realities
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