inventory management & selective control/abc analysis
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CHETANA’S BACHELOR OF MANAGEMENT STUDIES
SUBJECT: Production Management and Material Management
TOPIC: Inventory Management & Selective Control/ABC Analysis
Group no. 8
Under The Guidance Of:Prof. Viju Navare
MEANING AND DEFINITION
FUNCTIONS OF INVENTORY
•SMOOTHING OUT IRREGULARITIES IN SUPPLY
•BUYING OR PRODUCING IN LOTS OR BATCHES
•TO MEET SEASONAL OR CYCLICAL DEMAND
•TO TAKE ADVANTAGE OF PRICE DISCOUNTS WHILE BUYING ITEMS
•TO MAINTAIN CONTINUITY TO OPERATIONS IN PRODUCTION PROCESS
FUNCTIONS OF INVENTORY
INVENTORY MANAGEMENT AND CONTROL
Because of high cost involved in inventories, their proper management and control assume considerable importance. In fact, the management of inventory is given such an importance, that, it is often treated synonymous with materials management.
FACTORS INFLUENCING INVENTORY MANAGEMENT AND CONTROL
•Type of Product
•Type of Manufacture
•Volume of Production
BENEFITS OF INVENTORY MANAGEMENT CONTROL
PROCESS OF INVENTORY MANAGEMENT AND CONTROL
STEP 1. DETERMINATION OF OPTIMUM INVENTORY LEVELS AND PROCEDURES OF THEIR REVIEW AND ADJUSTMENT
STEP 2. DETERMINATION OF THE DEGREE OF CONTROL THAT IS REQUIRED FOR THE BEST RESULTS
STEP 3. PLANNING AND DESIGN OF THE INVENTORY CONTROL SYSTEM
S T E P 4 . P L A N N I N G O F T H E I N V E N T O RY C O N T R O L O R G A N I Z AT I O N
SELECTIVE INVENTORY CONTROL
ADVANTAGE OF ABC ANALYSIS
LIMITATIONS OF ABC ANALYSIS
MINIMUM-MAXIMUM TECHNIQUE
TWO-BIN TECHNIQUE
V-E-D ANALYSIS
F-S-N ANALYSIS
H-M-L ANALYSIS
MATERIAL REQUIREMENTS PLANNING (MRP-1)
Material Requirements Planning is a computer based information system designed to handle ordering and scheduling of dependent-demand inventories.
OBJECTIVES OF MRP
MANUFACTURING RESOURCES PLANING OR MRP-II
When the capabilities of closed-loop MRP are extended to integrate financial, accounting, personnel, engineering and marketing information along with the production planning and control activities of basic MRP system, the resulting broad-based resource coordination system is known as manufacturing resource planning or MRPII.
MRP SYSTEM INPUTS
• MASTER PRODUCTION SCHEDULE (MPS)
• BILL OF MATERIAL FILE OR PRODUCT STRUCTURE FILE
• INVENTORY STATUS FILE
MRP SYSTEM OUTPUTS
• PRIMARY OUTPUTS
• SECONDARY OUTPUTS
THANK YOU