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Integrated Approach of Material Management

This document discusses materials management (MM), which includes planning, sourcing, purchasing, moving, storing, and controlling materials. The objectives of MM are low costs, consistent quality supply, and high inventory turnover. Integrated materials management involves inventory control, purchasing, stores management, and materials planning and control. Purchasing involves selecting suppliers, finalizing purchase terms, placing orders, and maintaining relationships. There are pre-purchase, ordering, and post-purchase systems. Stores management involves receiving, storing, and issuing materials properly while minimizing waste. Materials planning and control estimates requirements, prepares budgets, forecasts inventory levels, and schedules orders.

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Shashidhar Kasturi
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811 views14 pages

Integrated Approach of Material Management

This document discusses materials management (MM), which includes planning, sourcing, purchasing, moving, storing, and controlling materials. The objectives of MM are low costs, consistent quality supply, and high inventory turnover. Integrated materials management involves inventory control, purchasing, stores management, and materials planning and control. Purchasing involves selecting suppliers, finalizing purchase terms, placing orders, and maintaining relationships. There are pre-purchase, ordering, and post-purchase systems. Stores management involves receiving, storing, and issuing materials properly while minimizing waste. Materials planning and control estimates requirements, prepares budgets, forecasts inventory levels, and schedules orders.

Uploaded by

Shashidhar Kasturi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTION

MATERIALS MANAGEMENT(MM)
INCLUDES
PLANNING
SOURCING
PURCHASING
MOVING
STORING AND
CONTROLLING MATERIALS

OBJECTIVES OF MM

MATERIAL SELECTION
OPERATING COST
CONSISTENT QUALITY
CONTINUITY IN SUPPLY
LOW COST OF POSSESSION
HIGH INVENTORY TURNOVER
VENDOR-VENDEE RELATIONS
STANDARDISATION
SCIENTIFIC SYSTEMS & RECORDS

INTEGRATED MATERIAL
MANAGEMENT
1.

2.
3.
4.

INVENTORY CONTROL
PURCHASING
STORES MANAGEMENT
MATERIALS PLANNING &
CONTROL

1. INVENTORY CONTROL
IDLE RESOURCE OF AN
ENTERPRISE
THIS INVOLVES PYSICAL CONTROL
MATERIALS PRESERVATION OF
STORES, MINIIMISATION OF
OBSOLESCENCE AND DAMAGE
THROUGH TIMELY DISPOSAL AND
EFFICIANT HANDLING

2.PURCHASING

SELECTION OF SOURCES OF
SUPPLY
FINALISATION OF TERMS OF
PURCHASE
PLACEMENT OF PURCHASE ORDERS
FOLLOWUP
MAINTANACE OF SMOOTH
RELATIONS WITH SUPPLAIERS
EVALUATING AND RATING

Purchase parameters

Right place of
delivery
Price
communication
Right sources
Vendor rating
Purchase
research

Right material
Value analysis
stdisation

Right attitude
Training
SWOT
analysis
Materials
intelligens

Right contracts
Legal aspects

Right
transportation
Cost analysis
of
transportation
& logistics

Right time
Re-order point
Lead time
analysis

Right quality
Rejections and
specifications

Right quantity
EOQ &
inventory
models

Right price
Negotiation
Learning curve

TYPES OF PURCHASING
SYSTEM
1.

2.
3.

PRE-PURCHASE SYSTEM
ORDERING SYSTEM
POST- PURCHASE SYSTEM
1.PRE-PURCHASE SYSTEM

REQUISITION
TRAVELLING REQUISITIONS

ENQUIRIES

2.ORDERING SYSTEM

PURCHASE ORDER REFERENCE


NUMBER.
DESCRIPTION OF THE MATERIALS AND
DETAILED SPECIFICATIONS.
QUANTITY REQUIRED AND DELIVERY
SCHEDULE & DETAILED
TERMS,CONDITION
PRICE AND DISCOUNTS.
LOCATION WHERE THE MATERIALS ARE
TO BE SHIPPED
SIGNATURE OF THE MATERIALS

3.POST-PURCHASING SYSTEM

FOLLOW-UP

RECEIPT

INVOICE CHECKING

3.STORES MANAGEMENT
FUNCTIONS OF STORES
TO RECIEVE RAW MATERIALS, COMPONENTS,
TOOLS etc. AND ITACCOUNT THEM.
TO PROVIDE ADEQUATE AND PROPER STORAGE
AND PRESERVATION TO THE VARIOUS ITEMS.
TO MEET THE DEMANDS OF THE CONSUMING
DEPARTMENTS BY PROPER ISSUE AND ACCOUNT
FOR THE CONSUMPTION.
TO MINIMISE OBSOLESECENS,SURPLUS ect.

TO HIGHLIGHT STOCK ACCUMULATION,


DISCREPANCIES AND ABNORMAL
CONSUMPTION.
TO ENSURE GOOD HOUSE KEEPING .
TO ASSIST IN VERIFICATION AND PROVIDE
SUPPORTING INFORMATION.
TWO SYSTEMS
RECEIPT SYSTEM
PHYSICAL SYSTEM

FUNCTONS OF M.PLANNING &


CONTROL
INVOLVES ESTIMATING THE INDIVITUALS
REQUIREMENTS OF PARTS,PREPARATING
MATERIALS BUDGET,FORECASTING THE
LEVELS OF INVENTORIES,SCHEDULING THE
ORDERS AND MONITORING THE
PERFORMANCE IN RELATION TO
PRODUCTION AND SALES.

TYPE OF MATERIALS PLANNING


MACRO FACTOR
MICRO FACTOR

THANK YOU

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