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Introduction to Materials Management

This document discusses materials management in production and operations. It explains that materials management involves organizing and coordinating all functions related to materials, including buying, storage, and transformation. The objectives of materials management are optimum inventory investment and efficient buying, storage, and movement of materials. An effective materials management information system provides online information about stock levels. The organization of a materials management department is also discussed.

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Pratish Porwal
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60 views8 pages

Introduction to Materials Management

This document discusses materials management in production and operations. It explains that materials management involves organizing and coordinating all functions related to materials, including buying, storage, and transformation. The objectives of materials management are optimum inventory investment and efficient buying, storage, and movement of materials. An effective materials management information system provides online information about stock levels. The organization of a materials management department is also discussed.

Uploaded by

Pratish Porwal
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

PRODUCTION AND OPERATIONS MANAGEMENT Chapter 19

INTRODUCTION TO MATERIALS MANAGEMENT

Chapter 19 Introduction to Materials Management

Why Materials Management?


Materials is one of the five Ms of an industrial organisation . Materials offer considerable scope for improving profit. Materials form an important form of current assets in any organisation. Value addition is the margin between the raw material value and finished goods value.
Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Himalaya Publishing House

Chapter 19 Introduction to Materials Management

Suppliers and materials management account for more than 50 percent of total value. Quality of the finished product depends on quality of materials used. Conservation of materials and their availability for posterity is one of the planks of social responsibility of business. Exploring new sources of supply is a challenge for material management executives.

Himalaya Publishing House

Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Materials Management

Chapter 19 Introduction to Materials Management

Material management involves organising, and coordinating all management functions that are responsible for every aspect of materials, storage, and transformation. Buying, storage, and movement of material are the three basic objectives of materials management. Optimum investment in inventory is the prime objective of materials management.

Himalaya Publishing House

Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Chapter 19 Introduction to Materials Management

Development of personnel is very important for long-term growth of a firm. Engineering groups are primarily responsible for standards of specifications.

Himalaya Publishing House

Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Importance of Materials Management


1. 2. 3. 4. 5. 6. 7. 8. 9.

Chapter 19 Introduction to Materials Management

Lower prices for materials and equipment Faster inventory turnover Continuity of supply Reduced lead time Reduced transportation costs Less duplication of efforts Elimination of buck-passing Reduced materials obsolescence Improved supplier relationships and better records, and information 10. Better interdepartmental cooperation

11. Personnel development


Himalaya Publishing House Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Chapter 19 Introduction to Materials Management

Materials Management Information System (MMIS)


MMIS provides on-line information on stock level, work-in- process; finished goods, and stores and spares.

Himalaya Publishing House

Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

Materials Management Organisation

Chapter 19 Introduction to Materials Management

Organisation for Materials Management

Himalaya Publishing House

Production and Operations Management By K. Aswathappa & K. Shridhara Bhat

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