pom ch-19
TRANSCRIPT
PRODUCTION AND OPERATIONS
MANAGEMENT
Chapter 19INTRODUCTION TO
MATERIALS MANAGEMENT
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
Management
Why Materials Management?
Materials is one of the five M’s of an industrial organisation .
Materials offer considerable scope for improving profit.
Materials form an important form of current assets in any organisation.
Value addition is the margin between the raw material value and finished goods value.
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
Management
Suppliers and materials management account for more than 50 percent of total value.
Quality of the finished product depends on quality of materials used.
Conservation of materials and their availability for posterity is one of the planks of social responsibility of business.
Exploring new sources of supply is a challenge for material management executives.
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
Management
Materials Management
Material management involves organising, and co-ordinating all management functions that are responsible for every aspect of materials, storage, and transformation.
Buying, storage, and movement of material are the three basic objectives of materials management.
Optimum investment in inventory is the prime objective of materials management.
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
Management
Development of personnel is very important for long-term growth of a firm.
Engineering groups are primarily responsible for standards of specifications.
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
ManagementImportance of Materials Management
1. Lower prices for materials and equipment
2. Faster inventory turnover
3. Continuity of supply
4. Reduced lead time
5. Reduced transportation costs
6. Less duplication of efforts
7. Elimination of buck-passing
8. Reduced materials obsolescence
9. Improved supplier relationships and better records, and information
10. Better interdepartmental cooperation
11. Personnel development
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
Management
Materials Management Information System (MMIS)
MMIS provides on-line information on stock level, work-in- process; finished goods, and stores and spares.
Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat
Chapter 19Introduction to Materials
ManagementMaterials Management Organisation
Organisation for Materials Management