1.

Definition of Materials:

Materials refer to inputs into the production process, most of which are embodied in the finished

goods being manufactured. It may be raw materials, work-in-progress, finished goods, spare

parts and components, operating supplies such as lubricating oil, cleaning materials, and others,

required for maintenance and repairs.

Definition on Material Management: Material management deals with controlling and

regulating the flow of materials in relation to changes in variables like demand, prices,

availability, quality, delivery schedules etc.

Objects of materials management:

1. Minimization of materials costs

2. To reduce inventory for use in production process and to develop high inventory turnover

ratios.

3. To procure materials of desired quality when required, at lowest possible overall cost of the

country. 4. To reduce paper work procedure in order to minimize delays in procuring materials.

5. To note changes in market conditions and other factors affecting the concern.

6. The purchase, receive, transport, store materials efficiently

7. To reduce cost, through simplification, standardization, value analysis etc.

8. To conduct studies in new areas e.g., equality consumption and cost of materials so as to

minimize cost of production.

Function of Materials Management:

1. Materials planning and programming

2. Purchasing materials inspection of materials

3. Inspection of Materials

4. Classification, codification and standardization in stores

5. Storage of materials

6. Issuing of materials

7. Maintence of proper inventory records

8. Materials receiving

Material management:

Materials management can deal with campus planning and building design for the

movement of materials, or with logistics that deal with the tangible components of a supply

chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of
purchasing and ordering such parts, and the standards involved in ordering, shipping, and

warehousing the said parts.

Some Definitions of Materials Management:

(i) ‗Materials Management‘ is a term used to connote ―controlling the kind, amount, location,

movement and timing of various commodities used in production by industrial enterprises‖.

(ii) Materials Management is the planning, directing, controlling and coordinating those

activities which are concerned with materials and inventory requirements, from the point of their

inception to their introduction into the manufacturing process.

It begins with the determination of materials quality and quantity and ends with its issuance to

production to meet customer‘s demand as per schedule and at the lowest cost.

(iii) Materials Management is a basic function of the business that adds value directly to the

product itself

(iv) Materials Management embraces all activities concerned with materials except those directly

concerned with designing or manufacturing the product.

(v) Materials Management deals with controlling and regulating the flow of material in relation

to changes in variables like demand, prices, availability, quality, delivery schedules etc.
Thus, material management is an important function of an organisation covering various aspects

of input process, i.e., it deals with raw materials, procurement of machines and other equipment‘s
necessary for the production process and spare parts for the maintenance of the

plant. Thus in a production process materials management can be considered as an preliminary to

transformation process.

It involves planning and programming for the procurement of material and capital goods of

desired quality and specification at reasonable price and at the required time.

It is also concerned with market exploration for the items to be purchased to have up to date

information, stores and stock control, inspection of the material received in the enterprise,

transportation and material handling operations related to materials and many other functions. In

the words of Bethel, ―Its responsibility end when the correct finished product in proper condition

and quantity passes to the consumer.‖

(i) Planning and programming for materials purchase.

(ii) Stores and Stock control.

(iii) Receiving and issue of the material.

(iv) Transportation and material handling of the material.

(v) Value engineering and value analysis.

(vi) Disposal of scrap and surplus materials.

Objectives of Materials Management:

Materials management contributes to survival and profits of an enterprise by providing adequate

supply of materials at the lowest possible costs.

The fundamental objectives of materials management activities can be:

(i) Material Selection:

Correct specification of material and components is determined. Also the material requirement in

agreement with sales programme are assessed. This can be done by analysing the requisition

order of the buying department. With this standardisation one may have lower cost and the task

of procurement, replacement etc. may be easier.

(ii) Low operating costs:

It should endeavor to keep the operating costs low and increase the profits without making any

concessions in quality.

(iii) Receiving and controlling material safely and in good condition.

(iv) Issue material upon receipt of appropriate authority.

(v) Identification of surplus stocks and taking appropriate measures to produce it.

The outcome of all these objectives can be listed as given below:

(i) Regular uninterrupted supply of raw-materials to ensure continuity of production.

(ii) By providing economy in purchasing and minimising waste it leads to higher productivity.

(iii) To minimise storage and stock control costs.

(iv) By minimising cost of production to increase profits.

(v) To purchase items of best quality at the most competitive price.

The Integrated Materials Management evolved as a rationale for bringing all the materials

related activities under one common head. The Materials Manager to permit uninterrupted flow

of raw materials, components & parts from the suppliers to the corporation, to all consumer

points in the organization & distribution of finished goods at minimum cost.

Functions Integrated Materials Management:

Various functions served by materials management include the material planning, purchasing,

receiving, stores, inventory control, scrap and surplus disposal. All these functions can have

separate working norms including the one for performance.

Efficient management of input materials is of utmost importance in a business organization

for maximizing materials productivity, which ultimately adds to the profitability of the

organization.

This requires well co-ordinated approach towards various issues involving decision making

with respect to materials. All the materials related activities such as material planning &

indenting, purchase systems & procedure, variety reduction through standardization &

rationalization, reducing uncertainties in demand & supply.

Handling & transportation, inspection, proper storage & issue of materials to the internal

customers, inventory management, vendor management & finally disposal of obsolete, surplus &

scrap materials etc. taken together is termed as Integrated Materials Management.

For example, while inventory manager would like to have minimum level of inventory to show

of his performance, Purchasing manager would like to place bulk orders in order to lessen his

work load and show discounts as reductions. Both of these acts may be little contradictory from

the organisational point of view. That is if some of the functions were to be handled separately, a

conflict of interests may occur.

Therefore, the conflicting objectives need to be balanced and intertwined from a total
organisational viewpoint so as to achieve optimum results for the organisation as a whole.
Functions Integrated Materials Management:

Various functions served by materials management include the material planning, purchasing,

receiving, stores, inventory control, scrap and surplus disposal. All these functions can have

separate working norms including the one for performance.

Efficient management of input materials is of utmost importance in a business organization

for maximizing materials productivity, which ultimately adds to the profitability of the

organization.

This requires well co-ordinated approach towards various issues involving decision making

with respect to materials. All the materials related activities such as material planning &

indenting, purchase systems & procedure, variety reduction through standardization &

rationalization, reducing uncertainties in demand & supply.

Handling & transportation, inspection, proper storage & issue of materials to the internal

customers, inventory management, vendor management & finally disposal of obsolete, surplus &

scrap materials etc. taken together is termed as Integrated Materials Management.

For example, while inventory manager would like to have minimum level of inventory to show
of his performance, Purchasing manager would like to place bulk orders in order to lessen his

work load and show discounts as reductions. Both of these acts may be little contradictory from

the organisational point of view. That is if some of the functions were to be handled separately, a

conflict of interests may occur.

Therefore, the conflicting objectives need to be balanced and intertwined from a total

organisational viewpoint so as to achieve optimum results for the organisation as a whole.

In an integrated set up, one materials manager (usually the chief) is responsible for all such

inter related functions and he is in a position to exercise control and coordinate all the activities

with a view to ensure proper balance of the conflicting objectives of the individual functions.

Integration also attains the synergetic advantage in terms of eliminating water tight

compartments that set in in a disjointed environment of working. The resulting benefits can be

seen in terms of rapid transfer of data, through effective and informal communication channels.

Integrated Material management

It is well co ordinated approach towards v arious issues such as material planning, reducing

uncertainties in demand and supply transportation, inspection, proper storage & manage issue of

materials and finally disposal of obsolete, surplus & scrap materials etc.,
Sequence in Material Management

 Forecasting the requirements

 Making stocking policies

 Vendor evaluation

 Release of order

 Receipt of materials

 Handling issue of maintainence

 Inventory controIntegrated Material management

It is well co ordinated approach towards v arious issues such as material planning, reducing

uncertainties in demand and supply transportation, inspection, proper storage & manage issue of

materials and finally disposal of obsolete, surplus & scrap materials etc.,

Sequence in Material Management

 Forecasting the requirements

 Making stocking policies

 Vendor evaluation

 Release of order
 Receipt of materials

 Handling issue of maintainence

 Inventory contro.

Conclusion

MATERIAL MANAGEMENT PLAN AND DESIGN

Materials management plans and designs for the delivery, distribution, storage,

collection, and removal of occupant-generated streams of materials and services. It is usually an

additional service that is offered as part of a campus planning process or a building design

project. It is most beneficial for university, health care, and corporate environments. Materials

management looks at the planning and design considerations needed to support the efficient

delivery and removal of goods and services that support occupant activity. The streams of

occupant-generated materials and activity include mail, office supplies, lab supplies, food,

special deliveries, custodial services, building supplies, waste and recycling, and service calls.

A materials management plan may include planning guidelines or full design for the following:

 Truck delivery and service vehicle routes, to reduce vehicle / pedestrian conflict

 Loading docks and delivery points, to increase accommodation and reduce queuing and
vehicle idling

 Recycling, trash, and hazardous waste collection and removal, to increase waste diversion

and reduce costs

 Service equipment and utility infrastructure relocation or concealment, to improve aesthetics

and realize landscaping goals

 Regulatory and operation planning

Benefits

The effective materials management plan builds from and enhances an institutional master plan

by filling in the gaps and producing an environmentally responsible and efficient outcome. An

institutional campus, office, or housing complex can expect a myriad of benefits from an

effective materials management plan. For starters,there are long-term cost savings, as

consolidating, re-configuring, and better managing a campus‘ core infrastructure reduces annual

operating costs. An institutional campus, office, or housing complex will also get the highest and

best use out of campus real estate.

An effective materials management plan also means a more holistic approach to managing

vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As a
result, this means a ―greener,‖ more sustainable environment and a manifestation of the many

demands today for institutions to become more environmentally friendly. In fact, thanks to such

environmental advantages, creative materials management plans may qualify for LEAD

Innovation in Design credits.

And finally, an effective materials management plan can improve aesthetics. Removing unsafe

and unsightly conditions, placing core services out of sight, and creating a more pedestrian friendly
environment will improve the visual and physical sense of place for those who live and

work there.