Sunday, June 8, 2008

MATERIAL MANAGEMENT

MATERIAL MANAGEMENT

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

According to bethel, “Material management is a term used to connote controlling the kind, amount, location, moment and timing of various commodities used in and produced by the industrial enterprise”.



Objective of material management

1. To select right type of material.
2. Ensure the supply of material at minimum possible cost.
3. Maintain a continuous flow of material so that production doesn’t get interrupted.
4. Provides material of right quality in right quantity at appropriate time to ensure the production of high quality product.
5. Maintain records of purchases, stores etc.
6. Implement scientific inventory controlling technique to reduce inventory investment.
7. Avoid wastage and pilferage of material.
8. Issue materials on the instruction of component authority.
9. Identification of surplus stocks and taking appropriate measures to reduce it.

Function of material Management

1. Planning and programming of material: material management determines the needs of consumer in advance and makes exact estimation of various materials that are required for production.
2. Purchase of material: It ensures continuous supply of materials to achieve the goal of production. Purchasing of material should be done after market research.
3. Inventory control: it maintains the sufficient inventory level to meet the customer needs.
4. transportation: It mange’s the proper handling and transportation of in coming and outgoing material.
5. Stock accounting: It maintains the record of materials to determine the recorder level.
6. Material economics: It helps to reduce the cost incurred while purchasing, tendering, packaging, handling, moving, storing and inspecting materials.
7. Waste Management: it minimizes the wastage of material by determining the cause for the rejection of materials.

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