MATERIAL

MANAGEMEN
T
CONTENT
 Definition

 Aim of material management

 Objective of material management

 Function of material management

 Techniques of material planning

DEFINITION OF MATERIAL MANAGEMENT
o Material management organizing &
coordinating all management function
that are responsible for every aspect of
material, storage & transformation.

o Material management is a scientific

technique, concerned with planning,
organizing & control of flow of materials
form their initial purchase to
destination.
AIM OF MATERIAL MANAGEMENT
o To get
o The right quality
o Right quantity of supplies

o At the right time

o At the right place

o For the right costs

OBJECTIVE OF MATERIAL MANAGEMENT
o Buying, storage and movement of
material are the 3 basic objectives of
Material management.
o Optimum investment in inventory is the
prime objective of material management.

o Main objective divided into 2 categories:-

i. Primary objective
ii. Secondary objective
OBJECTIVE OF MATERIAL MANAGEMENT CONT.

o Primary objectives:-
i. Lower prices
ii. High inventory turnover
iii. Low cost acquisition & possession
iv. Continuity of supply
v. Consistency of quality
vi. Favorable supplier relations
OBJECTIVE OF MATERIAL MANAGEMENT CONT.

o Secondary objectives:-
i. Reciprocal Relations
ii. New materials and products
iii. Economic make or buy
iv. Standardization
v. Product improvement
vi. Inter departmental harmony
vii. Forecasts
viii. acquisitions
FUNCTION OF MATERIAL MANAGEMENT
o Materials planning and control:-
 Based on the sales forecast and production
plans. The materials planning and control
is done.

 This involves estimating the individual

requirements of parts, preparing materials
budget, forecasting the levels of inventories,
scheduling the orders and monitoring the
performance in relation to production and
sales.
FUNCTION OF MATERIAL MANAGEMENT CONT..

o Purchasing :-
 This includes selection of source of supply
finalization, placement of purchases order,
follow-up, maintenance of smooth relations
with suppliers, approval of payments to
suppliers, evaluating and rating suppliers.
FUNCTION OF MATERIAL MANAGEMENT CONT..

o Stores Management:-
 This involved physical control of materials
preservation of stores, damage through
timely disposal and efficient handling,
maintenance of stores records, proper
location and stocking.

A store is also responsible for the physical

verification of stocks and recording than
with book figure.
FUNCTION OF MATERIAL MANAGEMENT CONT..

o Inventory control:-
 Inventory generally refers to the materials
in stock.

 It is also called the idle resource of an

enterprise.

 Inventories represent those items, which

are either stocked for sale or they are in the
process of manufacturing or they are in the
form of materials, which are yet to utilized.
Thank
you