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Material Management Overview and Benefits

The document discusses material management, which involves acquiring, receiving, evaluating, warehousing, and distributing goods and supplies. The objectives of material management include selecting materials, lowering costs, receiving materials safely, issuing materials appropriately, identifying surplus stocks, ensuring continuous supply, providing purchasing economy, minimizing storage costs, and purchasing quality items at competitive prices. The functions of material management are material planning, purchasing, receiving, inventory control, waste management, storekeeping, transportation, inspection, cost reduction, disposal, and distribution. Costs include wastage, inventory carrying costs, ordering costs, handling and storage costs, inspection costs, transportation costs, packing costs, labor overheads, duties and taxes, raw materials costs, and insurance. Benefits are

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Neha Soni
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6 views10 pages

Material Management Overview and Benefits

The document discusses material management, which involves acquiring, receiving, evaluating, warehousing, and distributing goods and supplies. The objectives of material management include selecting materials, lowering costs, receiving materials safely, issuing materials appropriately, identifying surplus stocks, ensuring continuous supply, providing purchasing economy, minimizing storage costs, and purchasing quality items at competitive prices. The functions of material management are material planning, purchasing, receiving, inventory control, waste management, storekeeping, transportation, inspection, cost reduction, disposal, and distribution. Costs include wastage, inventory carrying costs, ordering costs, handling and storage costs, inspection costs, transportation costs, packing costs, labor overheads, duties and taxes, raw materials costs, and insurance. Benefits are

Uploaded by

Neha Soni
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 PPT, PDF, TXT or read online on Scribd

POM Unit 9th

By Neha Soni

Material management(Def.)
A process encompassing acquisition, shipping, receiving, evaluation, warehousing and distribution of goods, supplies and equipment Materials management is the management of the flow of materials into an organization to the point, where, those materials are converted into the firms end product(s)
Bailey & Farmer

Objectives of material management


1. 2. 3. 4. 5. Material selection Low operating costs Receiving material safely & in good condition Issue material upon receipt of appropriate authority Identification of surplus stocks & taking appropriate measures to reduce it. 6. Regular uninterrupted supply of raw materials to ensure continuity of production 7. Providing economy in purchasing & minimizing waste 8. To minimize storage & stock control costs 9. To minimize cost of production to increase profits 10. To purchase items of best quality at the most competitive prices.

Functions of material management


1. 2. 3. 4. 5. 6. 7. Material planning Purchasing and outsourcing Receiving Stores Inventory control Waste management Storekeeping and warehousing

Functions of Material management


Codification Transportation and material handling Inspection and quality control Cost reduction Disposal of surplus / obsolete material Distribution

Cost Involved In MM
Wastage, pilferage Inventory carrying cost Inventory ordering cost Handling and storage cost Inspection & testing cost Transportation & freight costs Packing costs

Cost Involved In MM
Labor & other overheads Duties & taxes Manufacturing cost Raw Materials cost Insurance

Benefits of MM
Material cost can be lowered ( Sales price can be brought down to a reasonable level) Controlling of indirect cost (such as materials movement) Risk of inventory loss minimized (theft, pilferage ) Reduction in loss of time of direct labor Cost of material used in different department ascertained

Benefits of MM
Control of manufacturing cycle Material congestion in storage places avoided Improvement in delivery of the product

THANK YOU

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