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Material management

Materials management functions as materials planning and control, purchasing, inventory control, store keeping, material handling, warehousing, standardization & simplification and organization & appraisal of materials. 1) Materials planning and control: Material requirement lies at the core of successful material management. This function is at the core of all the material requirements in any manufacturing process. 2) Purchasing: This function identifies the sources of supply, does market research, call tenders and select suppliers, negotiate with them and makes available the raw materials

3) Inventory control: This function is responsible for the location and storage of materials so that they remain available at the minimum cost and quickest time. 4) Store keeping: This function is responsible for the receipt and issue of the materials. The materials are stored in such a way that minimum handling is required and wastage is minimal. 5) Material handling: This function aims at minimizing handling and provision of equipments for handling materials. This function is crucial for minimizing space requirements, effective distribution and for providing better working space.

6) Warehousing: This function is responsible for the storage facilities for the materials, weighing facilities, materials handling equipments, material distribution facilities, fire fighting instruments etc. 7) Standardization and simplification: This function selects items of great demand and sets the standards for quality, raw material, sizes and performance of any product. 8) Organization & appraisal of materials: This function helps in effective functioning by proving smooth flow. It provides coordination and avoids delays and wastages.

An integrated materials management system helps in taking judicious decisions that in turn leads to lower cost for materials. As our organization is having low inventory carrying costs, less stock outs etc. , it is bound to do well. Riordan has now become multidimensional in nature. Total materials management concept evolves to address this dimension and avoid conflicting objectives. Total material management helps in establishing accountability so that response to a problem is quick and appropriate. The material functions are accomplished in more coordinated ways with the help of this integrated approach.

When this happens there is increased communication for the need of materials and hence our company will get lower costs, better inventory turnover, reduce stock outs and other significant benefits MATERIALS FLOW The aim of our organization is to manage Men, Machines, Money, Methods and Materials effectively. The purpose of this coordination is production of superior goods at minimal costs. Flow of materials from vendor/supplier to the warehousing/customer and the organization is abounded in information flow.

Materials and information both are extremely important and both should be readily available at a time when needed. The effectiveness of the materials flow is dependent on decision-information. Our organization will be able to control these two flows easily and effectively and finally it will definitely render goods products at a low cost and also would be able to offer good service. ADVANTAGES TO THE COMPANY Materials Management will serve core objectives and many secondary objectives. The core objectives are: • Proper, cost effective material procurement.

• Proper storage of materials so as to minimize wastages and material hold • Making available the material TIMELY. Besides these primary objectives a materials management system indirectly fulfills many secondary objectives also. Some of these secondary objectives are: • identifying new or better sources of supply • Development and sustenance of relationships with the vendors • Creating a standardized quality of the products • Performing the value analysis of inventory. This can be related to the cost of materials.

• Creating a smooth flow of materials and information among the various sections of materials management system. SUITABILITY OF THE WEST BUILDING STORE Stores play a vital role in the effective operations of a company. Incoming materials and supplies, in process goods, and finished goods are important assets to a business enterprise. In a majority of manufacturing organizations, materials constitute the major fraction of cost, i. e. , 40 to 80% of total cost. The cost of capital blocked in inventories is substantial.

Since production and consumption cycles rarely match, the success of our company in the business, besides other factors, depend largely on the process of efficient storage and material control of these assets in order to provide uninterrupted supply to the points of use or consumption and the store is the place for the operation of this process. Our company is concerned with carrying the right kind of materials or goods in right quantity neither in excess nor in short supply and also keeping it safe against any kind of deterioration, pilferage or theft.

Stores is the custodian of the organization’s money, as money is locked up in stocks. PROPOSED SETUP The suitability of the stores building is a crucial decision which has to be taken with utmost care as the process of relocation, once the facilities are installed and made operational, may be an expensive exercise. The present proposed building i. e. , the West Building is suitable in all respects as its optimal location will result in the following advantages: • Minimization of total transportation, handing and other related costs.

• Minimization of delays in providing materials and goods to the point of use. • Maximization of effectiveness of stores operations. • Conservation of efficiency of human, machine and equipment. • Better Facility planning. • Lending flexibility and adaptability to the company’s futuristic outlook. There are three kinds of items which are normally be procured to start functioning the new company’s warehouse. a) Raw materials used in production. b) Semi-finished goods part way through production process or work in progress.

c) Finished goods awaiting sale. In general, the problem of inventory is, if too much of stock is kept then it amounts to wasted cost. On the other hand, if too little stock is kept then it leads lost sales. Therefore, the ideal situation is to have stock at desired levels. Like any stock, inventory has inflow and outflow. Stock inflow is from new production or receipt of material from suppliers. Stock outflow is finished goods to customers or use of materials in the production process.

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