Definition
It is concerned with planning, organizing and
controlling the flow of materials from their initial
purchase through internal operations to the service
point through distribution.
Secondary
Forecasting
Inter-departmental
harmony
Product improvement
Standardization
Make or buy decision
New materials & products
Favorable reciprocal
relationships
MATERIALS PLANNING
significance
Over ordering/under ordering
Poor planning for materials leads to
emergency, and increase tranporataion
cost
National economy
Price trends
Credit policies
Direct and indirect taxes
International market conditions
Demand for item
Total procurement lead time
Transporatation loses
Rejection rate
Storage capacity
Plant utilization
Seasonal factors
Delegation of power
Location of pant and location of suppliers
Materials Budgeting
benefits
Material control
Stores Management
Functions
Receive raw materials and account for
them
Provide proper storage
To meet the demands of consuming
departments by proper issues
To minimise obsolence,surplus
Stores layout
Nearness to point of use
Good accessability for material handling
equipment
Flexibility for future expansion
Efficient utilization of floor and height
Clear identification
Install good lighting to prevent theft
Permit first in first out
Storage system
Fixed Location
Particular type goods have a position in the
store assigned to them exclusive only
On the basis of
supplier
similarity of item
size and frequnecy of use
joint issue of items
Random location
Can be stored any storage position
Zone location
_particular product group are kept in given area
comb type layout
tree type layout
Stock verification
Low point inventory
- when the stock is lowest
- minimize the time
Continuous inventory
-52 equal groups ans assign one of them to
be physically counted each week
- planned and worked without shutdown
- detecting and eliminating the causes weekly
Fixed inventory
Shutting down
Seasonal business
Principles of classification
Basis of classification should remain
unchanged
Classification must cover entire items and
allow reasonable scope for extension
Easily adopted fot non specialist
methods
Raw material
Component
Spare parts
Tools
Packing materials
Finished goods
Hardware
Motors