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    Introduction of Material Management

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    Narayana Reddy
    Materials management controls the procurement, storage, movement, and consumption of materials within an industrial enterprise. It determines materials needs, decides whether to produce or buy materials externally, purchases materials, receives and inspects materials, stores materials properly, maintains optimal inventory levels, distributes materials efficiently, transports materials, disposes of surplus materials, researches new materials, and manages waste. The objectives of materials management are to maintain records, dispose of surplus efficiently, ensure consistent immediate flow of high quality materials while preserving materials, reducing wastage and inventory investment, improving the firm's market strength, image, and overall financial position.

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    Introduction of Material Management

    Uploaded by

    Narayana Reddy
    423 views15 pages
    Materials management controls the procurement, storage, movement, and consumption of materials within an industrial enterprise. It determines materials needs, decides whether to produce or buy materials externally, purchases materials, receives and inspects materials, stores materials properly, maintains optimal inventory levels, distributes materials efficiently, transports materials, disposes of surplus materials, researches new materials, and manages waste. The objectives of materials management are to maintain records, dispose of surplus efficiently, ensure consistent immediate flow of high quality materials while preserving materials, reducing wastage and inventory investment, improving the firm's market strength, image, and overall financial position.

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    Materials management controls the procurement, storage, movement, and consumption of materials within an industrial enterprise. It determines materials needs, decides whether to produce or buy materials externally, purchases materials, receives and inspects materials, stores materials properly, maintains optimal inventory levels, distributes materials efficiently, transports materials, disposes of surplus materials, researches new materials, and manages waste. The objectives of materials management are to maintain records, dispose of surplus efficiently, ensure consistent immediate flow of high quality materials while preserving materials, reducing wastage and inventory investment, improving the firm's market strength, image, and overall financial position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    423 views15 pages

    Introduction of Material Management

    Uploaded by

    Narayana Reddy
    Materials management controls the procurement, storage, movement, and consumption of materials within an industrial enterprise. It determines materials needs, decides whether to produce or buy materials externally, purchases materials, receives and inspects materials, stores materials properly, maintains optimal inventory levels, distributes materials efficiently, transports materials, disposes of surplus materials, researches new materials, and manages waste. The objectives of materials management are to maintain records, dispose of surplus efficiently, ensure consistent immediate flow of high quality materials while preserving materials, reducing wastage and inventory investment, improving the firm's market strength, image, and overall financial position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    MATERIALS

    MANAGEMENT
    DEFINITION by Bethel:
    Materials Management is a term used to indicate
    controlling the kind, amount, location, movement
    and timing of the various commodities used in
    and produced by the industrial enterprise.
    Materials Management controls the procurement,
    storage, amount, movement and consumption of
    materials that can be used by a company for
    production process. It covers various aspects
    of materials and supplies the necessary
    materials when required for converting them
    into finished products.
    Functions of Materials Management:
    vMaterials Planning
    vMake-or-buy decision
    vPurchasing
    vReceiving and inspection
    vStorage
    vInventory control
    vDistribution of materials
    vTransportation
    vDisposal of surplus, obsolete and scrap
    materials
    vDeveloping new sources of supply
    vImport substitution
    vMaterials Research
    vWaste management

    v
    Materials Planning:
    Determines the needs of the consumers in
    advance translates sales projection into
    production requirements and makes accurate
    estimation of materials that are required for
    production.
    v
    v
    v
    v
    Make-or-buy decision:
    Decides which items can be produced at the
    home plant and which should be obtained from
    the outside sources based on the cost
    available for the production.
    Purchasing:
    Provides constant supply of raw materials,
    parts, components and consumables to meet the
    target of the production.
    Receiving and inspection:
    Collects materials and inspects them to ensure
    their quality. This helps to decide whether the
    materials should be accepted or not for
    further production.
    Storage:
    • Provides right place to store
    • Uses proper methods of preservation
    • Proper security against theft and
    malpractices.
    • wastage of materials while storing
    them will be minimum.
    Inventory control:
    Maintain optimum investment in inventories and
    also ensures supplying materials.
    Distribution of materials:
    Ensures the fastest and efficient supply of
    materials to the customers.
    Transportation:
    Ensures efficient transportation of incoming
    and outgoing materials.
    Disposal of surplus, obsolete and scrap
    materials:
    Analyze the requirement of materials and
    select the most economical channel to dispose
    off the materials that are surplus and not
    control.
    Materials Research:
    Analyze all the factors such as economic
    analysis, market analysis, price analysis,
    transportation analysis, lead-time analysis etc.
    that affects the functions of the materials
    management.
    objectives of Material Management

    Maintenance of records
    Disposal of surplus materials Immediate flow of materials

    Reduction of wastage of materials
    Consistency of Quality

    Objectives of Material Management

    Preservation of materials
    Improve cooperative image

    Reduce inventory investment Improves firm’s strength in the market
    Reduce inventory investment

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