MATERIAL MANAGEMENT

BY: SHOBHIT KUMAR

 INTRODUCTION
 Material management is the basic function of the
business that adds value directly to the product.
 Material management is concerned with the activities
such as purchasing, production and inventory
control, material handling, packaging, and
distribution.
 It is also described as the process by which an
organization is supplied with goods and services that
its needs to achieve its objectives
 It is defined as the management of the flow of materials
into an organization to the point where the materials
are converted into the firm’s product.
 OBJECTIVES OF MATERIAL
MANAGEMENT
 Low Prices ( In terms of purchasing the raw material)
 High inventory turnover ( To check out the stock according to
the production and customer order)
 Low cost acquisition and possession ( If material is handled
and stored efficiently their real cost is lower)
 Continuity of supply ( Proper planning of raw material so that
material can reach at the time)
 Consistency of Quality ( Desired quality of material when
required and at low cost)
 Favorable supplier’s relations ( Develop cordial relations with
suppliers for smooth flow of material)
 Development of personnel ( Train the persons that are in the
field of material management in order to increase the
operational efficiency)
 OBJECTIVES OF MATERIAL
MANAGEMENT
• Reciprocal relationship (Mutual understanding and effective
relationship should be there.)
• New materials and product ( Engineers and Manufacturing
managers are responsible for this)
• Standardization ( Standard material should be used and with
proper standards as set)
• Product improvement ( This is the objective of the engineering
department to make development in the product design)
• Interdepartmental harmony ( Feeling of belongings and prevent
disputes, duties are clearly defined)
• Forecasts. ( Keeping efficient recording and prompt reporting
of the material)
 FUNCTIONS OF MATERIAL
MANAGEMENT
 To minimize the cost of production
 Reviving and controlling the material safely and in good
conditions.
 To procure and provide materials of desired quality when
required at the lowest possible overall cost of the concern.
 Issue of the material
 To trace out the new supply
 Store and stock control
 Value engineering
 Receiving and issuing of material
 Transportation and handling of material

 
 SCOPE OF MATERIAL
MANAGEMENT
 Planning function ( Long term material requirement)
 Production control ( Material required and parts, issue of work orders)
 Purchasing ( Quality & in time, selection of suppliers, delivery)
 Inventory and store control ( Availability of raw material, keeping records of
stock)
 Receiving and stores ( Receiving and inspect time to time)
 Shipping and Physical distribution ( Distribution of finished goods in
time, packing of the product, dispatching the finished goods by Rail,
Roads, Ship and by Air and their receipt)
 Material handling ( Proper handling of material an the raw and finished
goods are in a good condition)
 Traffic ( It is concerned with the incoming and the out going of the
material, how the finished goods can reached the customers either by
rail, road, by air or by delivery vans)
FACTORS PROVIDING THE ECONOMY IN
THE MATERIAL MANAGEMENT
 Volume of purchases
 Nearness to source of materials
 Design and engineering of the product
 Inspection
 Make or Buy decision
 Disposal of scrap