MATERIAL MANAGEMENT

USE A RELEVANT SOFTWARE TO COLLECT

INFORMATION ABOUT MODERN
TECHNIQUE OF MATERIAL MANAGEMENT
LIKE JIT/SAP/ERP.
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 NAME = OMKAR PRAKASH JAMBHALE

 ENROLLMENT NO = 1901160190

 ROLL NO = 33

 SUBJECT = CONSTRUCTION MANAGEMENT

 GUIDED BY = MISS SABA HAWALDAR

 DEPARTMENT = CIVIL ENGINEERING.

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INDEX

SR NO TOPIC PAGE NO

1 INTRODUCTION 4

2 DEFINATION 5

3 IMPORTANCE 6

4 MRP 8

5 ERP 9

6 SAP 10
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INTRODUCTION

 Change is the law of nature and it is necessary to modify business

processes in order to keep evolving in this fast-paced world.Clearly,
the contemporary world is different from the traditional world in
many ways. Today, we have access to state-of-the-art machines,
advanced tools and cutting-edge technology. Hence, these have
brought a radical shift in the way businesses are managed. Many new
techniques and processes have been introduced for better
management of resources. In this post, we’ll delve into modern
techniques of material management.
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What is material management?

 In an organization, material management is concerned with handling

all activities related to the flow of materials. The overall process of
material management varies from one enterprise to another.
Generally, it includes material planning and control; purchasing of
raw materials; inventory planning & control; production planning and
waste management.
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Importance of Materials Management

 Material management holds a significant position in an organization. It is

equally important as compared to other functions such as
manufacturing, engineering, and finance.

 Material management ensures effective utilization of materials in order

to minimize any kind of material wastage at the time of movement or
storage of materials.

 It reduces any chance of late delivery.

 It controls the indirect material cost. A lack of controlling the materials

cost can increase the entire production’s cost.

 Material management helps in avoiding the loss incurred by direct labor.

 Modern Techniques for Materials
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Management
 Planning is an essential part of management processes. In this
modern era, excess or inadequate planning for materials
management can cause a threat to the organization. Thus, there is a
need to introduce certain techniques and methodologies to control
materials management. In general, two modern techniques for
materials management are prevalent in every kind of business.
 MRP (Material Requirement Planning)
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 In an organization, proper resource planning is pivotal to ensure

proper manufacturing processes and operations. Without such
planning, the organizations are liable to face various challenges
related to managing different supply chain areas such as production,
output, etc. In such situations, Material Resource Planning (MRP)
comes as handy.

 MRP refers to a planning technique that involves inventory planning

and control, project planning and scheduling. It allows managers to
estimate the quantity of raw materials needed for production and to
schedule delivery. It makes it easy for the managers to manage,
organize and assemble the materials.
 ERP (Enterprise Resource Planning)
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 ERP is a modified version of MRP, while MRP was only confined to

material planning ERP includes the planning of all enterprise-related
activities. It refers to business software required to efficiently
manage the resources within an organization. It provides the
materials manager with some effective and necessary tools that help
in the management of materials or other production resources. It has
a centralized database that simplifies workflows and reduces labor.
ERP was introduced after MRP when the organizations realized that
it’s necessary to manage their office operations too.
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SAP (Systems, Applications & Products
in Data Processing)
 SAP Project System (PS) is a project management software tool that
integrates with other components of the SAP Enterprise Resource Planning
(SAP ERP) system. The tool is an on-premises functional module, or
component, of the SAP ERP system and allows users to direct funds and
resources where needed and control each stage of the project to ensure
punctual delivery within budget. SAP PS enables users, such as project
managers, to establish a defined start and end date of the project and
separate it into its discrete elements and structures. Projects are organized
by structures, using a work breakdown structure, which enables separating
the main project into individual tasks and listing them in a hierarchical
structure, and by process, using work packages, which lists activities and
their features, such as start and finish dates. In addition, the network
function allows for activities and their relationships to be established.
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