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Material Management

The document discusses material and store management. It aims to provide materials at minimum cost through planning and controlling activities related to materials. It also discusses the objectives of material management such as keeping sufficient materials to help production and sales, minimizing costs and losses, and maximizing profitability. The functions of material management include material planning, purchasing, stores management, and inventory control. Purchasing involves getting goods and services at minimum cost from reliable sources through a purchasing procedure. Just-in-time is a Japanese philosophy aimed at meeting consumer demands with minimum delays by eliminating waste and seeking continuous improvement.

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Simranjeet Singh
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57 views4 pages

Material Management

The document discusses material and store management. It aims to provide materials at minimum cost through planning and controlling activities related to materials. It also discusses the objectives of material management such as keeping sufficient materials to help production and sales, minimizing costs and losses, and maximizing profitability. The functions of material management include material planning, purchasing, stores management, and inventory control. Purchasing involves getting goods and services at minimum cost from reliable sources through a purchasing procedure. Just-in-time is a Japanese philosophy aimed at meeting consumer demands with minimum delays by eliminating waste and seeking continuous improvement.

Uploaded by

Simranjeet Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MATERIAL AND STORE MANAGEMENT

 The material required for the production purposes are normally stored in
raw material warehouses.
 The aim of material management is to provide material with minimum
total cost.
 It is the planning and controlling those activities ,which are concerned
with materials.
 Advantages- a) Better co-ordination
b) Better performance
c) Better accountability
d) Better accounting

OBJECTIVES OF MATERIAL MANAGEMENT

 To keep sufficient materials to help perform production and sales


activities smoothly.
 To minimise investment in materials.
 To ensure continuous supply of materials.
 To reduce losses by theft and wastage.
 To make arrangements for sales of slow moving items.
 To minimize the production cost.
 To meet the production targets in time.
 To maximise profitability.
 Effective handling of materials.
 keeping inventory (raw materials) according to product demand.
 To maintain good relationship with the suppliers of materials.
 To bring good quality materials.
FUNCTIONS OF MATERIAL MANAGEMENT

a) Material Planning-
includes-
o Preparing budget
o Scheduling the orders
o Forecasting of individual requirements
o Monitoring the performance.
b) Material Purchasing-
o It plays an important role in the success of business.
o It involves more than 50% of capital expenditure by the firm
o The different parameters of purchasing are-
i) purchasing items with right price.
ii) purchasing items with right quality.
iii) purchasing items with right time.
iv) purchasing items with right suppliers.
v) purchasing items with right quantity.
c) Stores Management-
o It is responsible for proper storage of the material and then issuing
it.
o Storekeeping is to keep proper record of all the materials ,
stationery, furniture, tools etc.
d) Inventory Control-
o consists of a list of goods and materials available in stock.
o "Too much" and "Too little" balanced materials are to be avoided.
o It is important in the production-oriented enterprises.
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PURCHASING

It is getting goods and services at minimum costs from competent reliable


sources.

PURCHASING PROCEDURE
JUST- IN- TIME (JIT)

 It is Japanese Management Philosophy practiced since the early 1970s in


many Japenese Manufacturing organization.
 It was first developed within the Toyota manufacturing plants by Taiichi
Ohno
 It is a philosophy rather than a technique-by eliminating all wastes and
seeking continuous improvement.
 It is a means of meeting consumer demands with minimum delays.
 Toyota realized this is only successful -
i. if every individual is involved and committed to it.
ii. if the plant and processes were arranged for maximum output and
efficiency.
iii. if quality and production programs were scheduled to meet
demands exactly.
 The Japanese work ethics involves-
1) workers are highly motivated to seek constant improvement.
2) Companies focus on group effort which involves combining of
talents and sharing knowledge, ideas and the achievement of a
common goal.
3) it is not unusual for a Japanese employee to work 14-hours a day.
4) Employees tend to remain with one company throughout the course
of career span.

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