6. Material Mgt.

Materials Management ▓

Materials mgt. deals with controlling and regulating the flow of material in relation to changes in variables like demand, prices, availability, quality, delivery schedules etc.

Functions of M. Mgt. 1. 2. 3. 4. 5. 6.

Planning and programming for MM Stores and Stock ctrl. Receiving and issue of the material. Transportation and material handling of the material. Value engineering Disposal of scrap and surplus materials.

Objectives of M.Mgt. Material selection.  Lower operating costs by providing material at low costs.  Receiving and ctrling material safely and in good condition.  Issue material upon receipt of appropriate authority.  Identification of surplus stocks and taking appropriate measures to reduce it. 

Outcomes of the objectives Regular uninterrupted supply of raw materials to ensure continuity of prod’n.  By providing economy in purchasing and minimizing waste it leads to higher productivity.  To minimize storage and stock ctrl costs.  By minimizing cost of prod’n to increase profits.  To purchase items of best quality at the most competitive price. 

Duties/responsibilities of M.Mgt. 

2. 3. 4. 5.

PURCHASING:- It buys materials in amts authorized by requisitions received from prod’n ctrl and stores deptt. Its main tasks are:Selection of suppliers and issue of purchase order. To speed up the delivery of materials from the suppliers. Acting as a liaison b/w suppliers and other depts. of the enterprise. To look for new products, materials and suppliers that can contribute to company’s profits.

2. Prod’n Ctrl. Determining reqd.s of materials and parts to be purchased and mfr’d.  Schedules prod’n and purchasing processes of parts and material.  Issues work order to mfrg deptt. And purchase order to suppliers. 

3. Inventory and Stores Control 

It keeps detailed and up to date record of inventory, an order status and potential demand for each prod’n part and material.

4. TRAFFIC:It ctrls inbound shipments of purchased materials and shipment of finished goods to consumers.

5. Physical Distribution:-

Finished goods are moved from the prod’n line to the warehouse and finally to customer