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Ion of Material Management

The document discusses the organisation of material management in an academic organization. It begins with a declaration by students about a project on the topic. It then acknowledges those who provided assistance. The introduction defines material management and outlines its scope, including purchasing, inventory control, and materials handling. The objectives of material management are then explained, such as purchasing materials at low rates, reducing department expenses, maintaining reliable suppliers and good supplier relationships, developing personnel, and maintaining proper records.

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Giselle Athaide
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18 views6 pages

Ion of Material Management

The document discusses the organisation of material management in an academic organization. It begins with a declaration by students about a project on the topic. It then acknowledges those who provided assistance. The introduction defines material management and outlines its scope, including purchasing, inventory control, and materials handling. The objectives of material management are then explained, such as purchasing materials at low rates, reducing department expenses, maintaining reliable suppliers and good supplier relationships, developing personnel, and maintaining proper records.

Uploaded by

Giselle Athaide
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Organisation Of Material Management

ACADEMIC YEAR 2010-2011


SYBMS SEMESTER 3
SUBJECT : PRODUCTION AND MATERIAL
MANAGEMENT
TOPIC :ORGANISATION OF MATERIAL
MANAGEMENT
PROF. INCHARGE –V.M.KAPOOR.
Declaration

• We the students of Tolani College Of Commerce S.Y.BMS declare


that we have completed a project on “Organisation Of Material
Management” for the subject Production and materials
management for the academic year 2010-11.
• The information submitted is true to the best of our knowledge.

NAME ROLL NO. SIGNATURE


Giselle Athaide 04

Sonu Nahata 31

Pooja Patel 35

Sapna Sahu 39

ACKNOWLEDGMENTS
 It gives us immense pleasure in acknowledging the valuable &
cooperative assistance extended to us by the various individuals
who have helped us successfully in completing our project.

 We would like to show our gratitude to Prof. V.M.Kapoor for his


valuable assistance, encouragement & support on the topic
“Organisation Of Material Management”

 Lastly we would like to thank our friends, colleagues and


professors who have supported us during the making of this
project. It the encouragement of these people that has made us
proceed towards achieving our goals.

INTRODUCTION
 Every organization, big or small, depends on materials and
services from other organizations to varying extents. These
materials and services are obtained through exchange of money
and the physical arrangement of it all is called Materials
Management or even Material Management.

 Every organization invests a considerable amount of capital on


materials. In many cases, the cost of materials exceeds 50
percent of the total cost of goods produced. Such a large
investment requires considerable planning and control so as to
minimize wastage. Materials management encompasses all
operations and management functions from purchasing to the
final delivery of the end items.

 The scope of materials management includes decision on


purchasing raw materials, management and control of work in
progress items, stores and warehouse management, and the
shipping and distribution of finished products. The materials
flow is divided into three different overlapping functions -
production control, inventory control and the materials
handling function.

Objectives Of Materials Management


The Materials Department handles roughly about 60% of a company’s
money. Any mishandling of these funds can lead to the financial ruin
of the company.

The objectives of the company are as follows:-

 Purchase the materials at low rates: The profitability of a


company largely depends on how efficiently the materials are
purchased. It is the most important objective of the materials
department. If the purchase rate of the company is kept
below 1%, the profit can go up by as much as 5%.

 Reduce the department expenses: If the employee cost is low,


the profits of the company increase. This can be done by
increasing employee efficiency.

 Reliable suppliers: Suppliers are an important part of the


trading cycle. The company needs good, reliable and
professional suppliers in order to be successful. A
considerable effort has to be made to ensure that the
company retains all their reliable suppliers while also trying to
attract as many suppliers as possible.

 Maintaining good relationships with the suppliers: It is


extremely important to maintain good relationships with all
of the suppliers. This is because the suppliers can often offer
good tips regarding the product leading to cost saving and
product/process improvements which will in turn increase the
profit of the company
.
 Development of personnel: The people on the job make all
the decisions. The profit of the company depends on the
decisions that these people make. Recruitment of talented
people and proper training will help to increase the
profitability of the company.

 Maintaining records:

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