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Material Management

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Biki Sonar
Biki Sonar

Material management is the planning, organizing, and controlling of materials from initial purchase through destination to maintain an even production flow without excessive stock. The objectives are to obtain materials at the right quality, quantity, time, place and cost. Material management aims to gain purchasing economies, satisfy demand during replenishment, carry reserve stock to avoid outages, stabilize consumption fluctuations, and provide reasonable client services. The functional areas include purchasing, central supply services, stores, print shops, pharmacy, and dietary and linen services.

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By , Biki Sonar UNIVERSAL BUSINESS SCHOOL Material management
Definition: Material management is an approach for planning, organizing, and controlling all those activities principally concerned with the flow of materials into an organization in such a way as to maintain an even flow of production without excessive investment in material stock Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.
The 5 Rs of Material management 1. The Right quality 2. Right quantity of supplies 3. At the Right time 4. At the Right place 5. For the Right cost AIM OF MATERIAL MANAGEMENT !
PURPOSE OF MATERIAL MANAGEMENT To gain economy in purchasing To satisfy the demand during period of replenishment To carry reserve stock to avoid stock out To stabilize fluctuations in consumption To provide reasonable level of client services
Objective of material management Primary Right price High turnover Low procurement Continuity of supply Consistency in quality Good supplier relations Development of personnel Secondary Forecasting Inter-departmental harmony Product improvement Standardization Make or buy decision New materials & products
1. To have adequate materials on hand when needed. 2. To pay the lowest possible prices, consistent with quality and value requirement for purchases materials. 3. To minimize the inventory investment. 4. To operate efficiently. Four basic needs of Material management
Basic principles of material management 1. Effective management & supervision It depends on managerial functions of Planning Organizing Staffing Directing Controlling Reporting Budgeting 2. Sound purchasing methods 3. Skillful & hard poised negotiations 4. Effective purchase system 5. Should be simple 6. Must not increase other costs 7. Simple inventory control programme
Elements of material management 1. Demand estimation 2. Identify the needed items 3. Calculate from the trends in Consumption during last 2 years. 4. Review with resource constraints
Functional areas of material management 1. Purchasing 2. Central service supply 3. Central stores 4. The print shops 5. The pharmacy 6. Dietary & Linen services
Material Management

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Material Management

  • 1. By , Biki Sonar UNIVERSAL BUSINESS SCHOOL Material management
  • 2. Definition: Material management is an approach for planning, organizing, and controlling all those activities principally concerned with the flow of materials into an organization in such a way as to maintain an even flow of production without excessive investment in material stock Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination.
  • 3. The 5 Rs of Material management 1. The Right quality 2. Right quantity of supplies 3. At the Right time 4. At the Right place 5. For the Right cost AIM OF MATERIAL MANAGEMENT !
  • 4. PURPOSE OF MATERIAL MANAGEMENT To gain economy in purchasing To satisfy the demand during period of replenishment To carry reserve stock to avoid stock out To stabilize fluctuations in consumption To provide reasonable level of client services
  • 5. Objective of material management Primary Right price High turnover Low procurement Continuity of supply Consistency in quality Good supplier relations Development of personnel Secondary Forecasting Inter-departmental harmony Product improvement Standardization Make or buy decision New materials & products
  • 6. 1. To have adequate materials on hand when needed. 2. To pay the lowest possible prices, consistent with quality and value requirement for purchases materials. 3. To minimize the inventory investment. 4. To operate efficiently. Four basic needs of Material management
  • 7. Basic principles of material management 1. Effective management & supervision It depends on managerial functions of Planning Organizing Staffing Directing Controlling Reporting Budgeting 2. Sound purchasing methods 3. Skillful & hard poised negotiations 4. Effective purchase system 5. Should be simple 6. Must not increase other costs 7. Simple inventory control programme
  • 8. Elements of material management 1. Demand estimation 2. Identify the needed items 3. Calculate from the trends in Consumption during last 2 years. 4. Review with resource constraints
  • 9. Functional areas of material management 1. Purchasing 2. Central service supply 3. Central stores 4. The print shops 5. The pharmacy 6. Dietary & Linen services