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Materials Management Basics

Materials management is concerned with planning, organizing, directing, and controlling the flow of materials from initial purchase through internal operations and distribution to customers. The goals are to maintain low prices, high inventory turnover, continuity of supply, and consistency of quality while fostering favorable supplier relations and good records. Materials are generally classified as raw materials, work in progress, finished goods, spares, consumables, and scrap.

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Aakash Singh
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82 views10 pages

Materials Management Basics

Materials management is concerned with planning, organizing, directing, and controlling the flow of materials from initial purchase through internal operations and distribution to customers. The goals are to maintain low prices, high inventory turnover, continuity of supply, and consistency of quality while fostering favorable supplier relations and good records. Materials are generally classified as raw materials, work in progress, finished goods, spares, consumables, and scrap.

Uploaded by

Aakash Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Introduction to Materials Management

The substance or substances out of which a thing is or can be made. Something, such as an idea or information, that is to be refined and made or incorporated into a finished effort: material for a comedy. Tools or apparatus for the performance of a given task: writing materials. A person who is qualified or suited for a position or activity: The members of the board felt that

she was vice-presidential material.

It is concerned with planning, organizing, directing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution.

Controlling Directing Staffing

Organizing

Planning

Enterprise
Finished-goods Storage
Orders Purchasing Rawmaterial Storage Transformatio n Processes

Customers

Suppliers

Distribution

Receiving

In-process Storage

Low Prices
High Inventory Turn over

Continuity of Supply
Consistency of Quality

Favorable Supplier relations


Good Records

New materials development Make-Buy Decision

Standardization

Forecast

General classification - Raw materials - WIP materials - Finished Goods - Spares - Consumables - Scrap materials

Transportation cost Inspection cost Insurance cost Interest on capital Losses due to deterioration or damage Packing cost Storage cost Govt. taxes

CEO

VP Marketing

VP Materials

VP Finance

Manager Purchase

Manager Traffic

Manager Stores

Manager Inventory

Manager Disposal

Buyer

Chaser

Receipt

Incoming

Dispatch

Store Keeper

Analyst

Supervisor Disposal

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