material mangmt

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MATERIALS Management

Submitted by Nimisha AMBA T2

MATERIALSAny commodity used directly or

indirectly in producing a product or service – considered as the life blood of any organisation

REASONS FOR POPULARITY OF MATERIALSThe amount spent on materials is

higher than other inputsMaterials offer considerable scope for

reducing cost and improving profitImproving return on investment

depends on the effective utilisation of materials.

Materials add value to productQuality of end product depends on

materials

•Materials management assumes responsibility for whatever happens in purchasing, storing, inventory or any other area connected with materials.•Need for preservation of scarce resources for posterity•Increasing demand for ensuring environmental safety•The efficiency of any organisation depends upon the availability of right materials, in right quantity, at right time and at right price.•Materials are life-blood of man’s development

MATERIALS MANAGEMENTMaterials management is the

management of the flow of materials into an organization to the point, where, those materials are converted into the firm’s end product(s)

Bailey & Farmer

The executive who engage in materials management are concerned with three basic activities: buying, storage of materials and movement.

FOCUS OF MATERIAL MANAGEMENTTo procure right materials

◦In Right Quantity◦Of Right Quality◦At Right Time◦From Right sources◦At Right prices

5 R’s, principles of purchasing

OBJECTIVES OF MMPRIMARY OBJECTIVES

SECONDARY OBJECTIVES

PRIMARY OBJECTIVES Buying the best item at the lowest cost Reduction in inventory cost and High

inventory turnover Maintaining the flow of production Maintaining the consistency of quality Low cost acquisition and possession Cordial relationship with suppliers Maintaining good records Contribution towards competitiveness

SECONDARY OBJECTIVESReciprocal relationsNew material and productsEconomic make-or-buyStandardizationProduct improvementInterdepartmental harmonyProduct improvementForecastsacquisitions

IMPORTANCE OF MMLower price for materials and

equipmentsFaster inventory turnoverContinuity of supplyReduced lead timeReduced transportation costsLess duplication of effortsPersonnel development

CLASSIFICATIONS OF MM

1)maintenance management2)stores management3)inventory management

The function of production management, that is concerned with day to day problem of keeping the physical plant in good working condition.

IMPORTANCE OF MAINTENANCE MANAGEMENTTo establish a competitive edgeQuality assuranceTo control costfor proper maintenance of

equipment

Impact of poor maintenanceProduction capacityProduction costsProduct and service qualityEmployee or customer safetyCustomer satisfaction

Objectives of maintenance managementMinimizing the loss of productive timeMinimizing the repair timeMinimizing the loss due to production

stoppagesMaximize efficiencyMinimize accidentsTo minimize the total maintenance costTo improve the quality of products

Types of maintenanceBreak down maintenancePreventive maintenancePredictive maintenanceRoutine maintenancePlanned maintenance

Break down maintenance: it occurs when equipments or machines fail

and must be repaired on an urgent basis.Preventive maintenance:

Maintenance activities under taken before the machines or equipments fail. Aims to minimize the possibility of unanticipated or major break downs.

Predictive maintenance:Modern approach to preventive maintenance

using sensitive instruments to predict anticipated failure of machines and equipments

Routine maintenance: this includes activities such as periodic

inspection, cleaning, lubrication and repair of production equipments after their service life.

Planned maintenance:maintenance activities that are carried out

according to a predetermined schedule. Also known as scheduled maintenance or productive maintenance.

STORES MANAGEMENTStores :

◦it is the building where inventories are kept

Storage :◦it is the function of receiving, storing

and issuing materials.◦It is connected with the physical

handling and well-being of the stocks.

IMPORTANCE OF STORES1. Ready accessibility of major materials

permitting efficient service to users.2. Efficient space utilization and flexibility of

arrangement.3. A reduced need for materials handling

equipment.4. Minimization of materials deterioration5. Ease of physical counting

STORES LAYOUTStores layout:

◦It is a fundamental factor in determining the efficient performance of stores department.

Storage system:◦A satisfactory storage system

comprises between the use of space and the use of time.

3 basic ways of locating stock:• Fixed location• Random location• Zoned location

Fixed location: it means that, goods of a particular type have a

position in the store assigned to them exclusively. It means that while stock can be found immediately without a complex system for recording its position, there can be considerable waste of space, because when stocks of any 1 item are low the space left cannot be filled.

Random location: ◦it means that items can be stored in any

storage position which is available.Zoned location:

◦It means that goods of a particular product group are kept in a given area. They may be randomly stored in a zoned location or stored according to fixed location.

Types of stores layout:

1. Comb type layout: keeping stock on one side of the aisle in which case the layout is called comb type.

2. Tree type layout: goods may be placed on either side of the aisle in which case the method is called tree type layout.

THANK YOU…….