to the presentation of

Welcome
Uranus

Introduction to

Materials Management

Group profile
Name
Atiqul Islam Md. Kamrul Hasan Snehasish kumar Das Arif Hasan Pranti Sarkar

Roll No
07 27 28 31 46

Mirsadul Abrar Mozammel Hoque

Farhan Noor

49 47
91

To be covered
Definition Origin of the materials management The materials manager Basic principles Objectives

Purpose
Components Basic needs Aim

Area
Function Importance

Definition:
Managing materials in a way that ensures : Maximisation of prodution Reduction in cost Increase in profit margin

It is a service function affectining the flow of materials in a manner which it helps in conserving the material cost, best utilization of materials and maintaining the quality of both incoming and outgoing materials.

Origin of Materials Management:

It was during and after the world war 1st that supplys to many of the manufacturing organizations got disrupted. The shortage during the war and heavy inventories build up during the great depression of 1930s. Both contributed to a better realization of inventories problem. This only helped to understand the importance of material management. The concept of Material Management was strengthen with the research papers published by Harvard University.

The Materials Manager

A materials manager is a person who is capable of managing materials in a manner in which he ensures the maximum return on capital & reduces the inventory cost. He must have specialized knowledge and personal qualification which adds to: Education Training

experience

Mirsadul Abrar
Roll no: 49

Basic principles of materials management

Effective management & supervision Skillful negotiations Effective purchase system It should be simple

Must not increase other costs

Simple inventory control program.

From the management point of view , the key objectives of MM are :

To buy at the lowest price , consistent with desired quality and service To maintain a high inventory turnover

To maintain continuity of supply

To maintain the specified material quality level To develop alternate sources of supply to promote a competitive atmosphere in performance and pricing.

Md. Kamrul Hasan

Roll No: 27

Primary Objectives

Provision of materials

Minimization of Inventories

Economic Procurement Proper storage Proper issue & distribution

Inventory control Storage accounting Assuring high capital turnover ratio

Secondary Objective

Coordination Value analysis Location of new sources of supply Variety reduction and simplification Standardization and quality control Development of skill and knowledge

Pranti Sarkar

Roll no: 46

Quality assurance

Standards

Material flow

Areas of concentration

Lead time reduction

Reduce manufacturing cost

Purpose of Materials 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

Mozammel Hoque
Roll no: 47

Components of Materials Management

Valuation
Logistics Invoice Verification

Service Master MRP

Foreign Trade/ Customs

Materials Management (MM)

Purchasing Material Master

Inventory Management.

Physical Inventory

Service Entry Sheet

Product Catalog

January 2008

18

Farhan Noor Roll No: 91

Four basics needs of Materials Management :

To have adequate materials on hand when needed To pay the lowest prices, consistent with quality and value requirement for purchases materials To minimize the inventory investment

To operate efficiently

Aim of materials management to get

The right quality Right quantity of supplies At the right time At the right place For the right cost

Arif Hasan
Roll No: 31

Materials budgeting, planning, procurement

Scheduling, purchasing & programing

Receiving & inspection

A r e a

Inventory control

Storage & warehousing

Materials handling & traffic Dispatch & shipping Disposal

Functions..

Willl be added

Functions of Materials Management

Snehasish Kumar Das

Roll No:28

Some of Important problems solved by Materials Management:

Inventory problem

Improving productivity of materials

Waste management

Pilferage

Materials management has been an indispensible art of management. It helps the organization to sustain its growth in the market and gain competitive advantage.

If you have any please raise your voice.