45726306 integrated material management

8/12/2019 45726306 Integrated Material Management

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Integrated Material Management.Integrated Material Management.

Group 2

Rucha Puri

Shweta TelangVishal JadhavRavi ShindeManoj JoshiChinthu V.air


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AgendaAgenda

What is Material Management ?What is Material Management ?

Steps in Material Management.Steps in Material Management.

What is integrated MaterialWhat is integrated MaterialManagement (IMM) ?Management (IMM) ?

Details of steps in IMM.Details of steps in IMM.


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What is Material Management?What is Material Management?

Materials managementMaterials managementis theis the

branch of logistics that dealsbranch of logistics that deals

purchasing or acquisition of sparepurchasing or acquisition of spare

parts, ordering such parts and theparts, ordering such parts and the

standards involved in ordering,standards involved in ordering,

shipping, and arehousing the saidshipping, and arehousing the said

parts.parts.


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Inventory Management

WarehouseManagement

Accounting

Accounting

Requirement

Production(Internal Procurement)

Material RequirementsMaterial Requirements

PlanningPlanning

GoodsIssue

TransferPosting

Purchasing(Eternal Procurement)

Goods Recei!t

"ales and #istri$ution

Invoice

%erification

Invoice

#emand#emand"toc&s"toc&s

'orecast'orecast

Overview: Procurement CycleOverview: Procurement Cycle


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Material Requirements PlanningMaterial Requirements Planning

M!" (Material !equirements "lanning)M!" (Material !equirements "lanning)

determines#determines#

$ What material is neededWhat material is needed

$ %o much of the material is needed%o much of the material is needed

$ When the material is neededWhen the material is needed

&b'ectives# nderstand the role,&b'ectives# nderstand the role,

impact and activities associated ithimpact and activities associated ithM!" (Material !equirements "lanning)M!" (Material !equirements "lanning)


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Integrated Material ManagementIntegrated Material Management

In Integrated Material Management ,In Integrated Material Management ,

all the steps in material managementall the steps in material management

are automated to serve customer theare automated to serve customer the

best ith minimum inventor at anbest ith minimum inventor at angiven time.given time.

Integrated material managementIntegrated material management

helps tohelps to$ avoid duplication.avoid duplication.

$ Multiple data entr.Multiple data entr.

$ *void !edundanc of data.*void !edundanc of data.


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Basic unctions o IMMBasic unctions o IMM

"rovides platform for placing all"rovides platform for placing all

related data on Materialsrelated data on Materials

"rovides relevant people ith"rovides relevant people ith

complete and accurate datacomplete and accurate data

&ptimi+ing the service level&ptimi+ing the service level

Minimi+ing costs and capital locupMinimi+ing costs and capital locup -he I/ "icture 0 Material 1lo-he I/ "icture 0 Material 1lo


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!te"s in IMM!te"s in IMM

Determination of !equirementsDetermination of !equirements Source DeterminationSource Determination 2endor Selection "urchase &rder2endor Selection "urchase &rder

"rocessing"rocessing /oods !eceiving and Inventor/oods !eceiving and Inventor

ManagementManagement

Invoice 2erificationInvoice 2erification "ament to 2endor"ament to 2endor


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!te"s in IMM!te"s in IMM

3.3. Determination ofDetermination of!equirements!equirements

4.4. SourceSource

DeterminationDetermination5.5. 2endor Selection2endor Selection

"urchase &rder"urchase &rder"rocessing"rocessing

6.6. /oods !eceiving and/oods !eceiving andInventorInventorManagementManagement

7.7. Invoice 2erificationInvoice 2erification

8.8. "ament to 2endor"ament to 2endor

3.3. Sales and productionSales and production

4.4. 9ualit management ,9ualit management ,1inance1inance

5.5. 9ualit management ,9ualit management ,1inance1inance

6.6. Warehouse , 1inance ,Warehouse , 1inance ,"roduction"roduction

7.7. 1inance , 9ualit1inance , 9ualitmanagementmanagement

8.8. 1inance1inance

!te"sIntegration


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#etermination o Requirements#etermination o Requirements

Determination of !equirementsDetermination of !equirements

$ Materials requirements are identifiedMaterials requirements are identified

either in the user departments or viaeither in the user departments or via

materials planning and control.materials planning and control.

$ -o calculate requirement sstem-o calculate requirement sstem

requires bill of material.requires bill of material.


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Bill o materialBill o material

* formall structured list of the* formall structured list of the

components that mae up a product.components that mae up a product.

-he list contains-he list contains

$ the component,the component,

$ 9uantit of component9uantit of component


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$%am"le o BOM$%am"le o BOM

:;port Sales:;port Sales

&rder&rder

3


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Requirement calculationRequirement calculation

lue "enlue "en

3< "=3< "=

!efill!efill 3


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Requirement calculationRequirement calculation*ross and &et*ross and &et

lue "enlue "en

3< "=3< "=

!efill!efill 3


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&et Requirement&et Requirement

Stoc on handStoc on hand

7


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!ource #etermination!ource #etermination

$ !19 0 !equest for 9uotation!19 0 !equest for 9uotation

$ Sources of suppl based on past ordersSources of suppl based on past orders

and e;isting longerterm purchaseand e;isting longerterm purchase

agreementsagreements

-his speeds the process of creating-his speeds the process of creatingrequests for quotation (!19s).requests for quotation (!19s).


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!ource determination!ource determination

>et !equirement>et !equirement

7


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/endor !election/endor !election

2endor Selection and =omparison of2endor Selection and =omparison of

9uotations9uotations

$ compare a number of differentcompare a number of different

quotations and select the proper vendor.quotations and select the proper vendor.


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/endor !election/endor !election

SourceSource !ate!ate 9ualit9ualit

ScoreScore

ServiceServicescorescore

&verall&verall!ating!ating

=omment=omment

!am "ens pvt!am "ens pvt

limitedlimited7


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Purchase

Order

RFQRFQ Release

Order

Identify

Supplier

Release

Procedure

llocate and

Process

Re!uisition

Planned

Order

"RP"RPPurchase

Re!uisition

"anual

Creation

Processing PurchaseProcessing Purchase

RequisitionsRequisitions


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"urchase &rder "rocessing"urchase &rder "rocessing

$ *fter selecting vendor "urchase order is*fter selecting vendor "urchase order is

created and given to vendor. ased oncreated and given to vendor. ased on

requirement scheduling agreement isrequirement scheduling agreement ismade.made.

Purchase order for Bipasha pens

Order no '(',0112343

Item 5uantity #ate

Reill 0( '06('62((7

By,I8M Batch 29 *rou" 2


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Purchasing

#ocu$ent

Purchasing

#ocu$ent %endor%endor

#eli&ery#eli&ery

'oods

Receipt

'oods

Receipt

In&oiceIn&oice

%erification%erification Pay$entPay$ent

Purchasing to "ayment "rocessPurchasing to "ayment "rocess


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*oods recei"t*oods recei"t

/oods !eceipt/oods !eceipt

$ /oods from vendor are received and/oods from vendor are received and

based on need sampled for qualit @based on need sampled for qualit @

testing.testing.$ &nce found correct in qualit and&nce found correct in qualit and

quantit then invoiced is sent to financequantit then invoiced is sent to finance

department.department. *oods Recei"t notePurchase order '(',0112343

Item Oty #ate o recei"t

Reill ;( '96('62((4


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PaymentPayment

"ament #"ament #

$ 1inance department after checing price1inance department after checing price

variance releases pament.variance releases pament.

Released or "ayment

Rs69(( Bi"asha Pen and in-s


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ccounts Paya(leccounts Paya(le

ccounts Paya(le

PurchaseOrders

'oodsReceipt

Pay$ent )ransactions

Pay$ent Progra$

In&oiceReceipt*In&oice

%erification

Balance

sheet Profit

& Loss(P/L)


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Integrated Material ManagementIntegrated Material Management

Procure$ent

+arehouse

+are

houseQuality

Pay$entPay$ent

PlanningPlanning

In&entory

"g$t

In&entory

"g$t

Sales orSales or

ProductionProduction

Controlling


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Than! "ouThan! "ou

45726306 integrated material management

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