1. INTEGRATED APPROACH TO
MATERIAL MANAGEMENT
Soumya K.R
M.Sc IF
3rd semester
CUSAT

2. INTRODUCTION
MATERIALS MANAGEMENT(MM)
INCLUDES
PLANNING
SOURCING
PURCHASING
MOVING
STORING AND
CONTROLLING MATERIALS

3. OBJECTIVES OF MM
MATERIAL SELECTION
OPERATING COST
CONSISTENT QUALITY
CONTINUITY IN SUPPLY
LOW COST OF POSSESSION
HIGH INVENTORY TURNOVER
VENDOR-VENDEE RELATIONS
STANDARDISATION
SCIENTIFIC SYSTEMS & RECORDS

4. INTEGRATED MATERIAL
MANAGEMENT
1. INVENTORY CONTROL
2. PURCHASING
3. STORES MANAGEMENT
4. MATERIALS PLANNING & CONTROL

5. 1. INVENTORY CONTROL
IDLE RESOURCE OF AN ENTERPRISE
THIS INVOLVES PYSICAL CONTROL
MATERIALS PRESERVATION OF
STORES, MINIIMISATION OF
OBSOLESCENCE AND DAMAGE
THROUGH TIMELY DISPOSAL AND
EFFICIANT HANDLING

6. 2.PURCHASING
SELECTION OF SOURCES OF SUPPLY
FINALISATION OF TERMS OF PURCHASE
PLACEMENT OF PURCHASE ORDERS
FOLLOWUP
MAINTANACE OF SMOOTH RELATIONS
WITH SUPPLAIERS
EVALUATING AND RATING SUPPLAIERS

7. Purchase parameters
Right place of Right material
delivery Value analysis
Right quality
Price Rejections and
stdisation specifications
communication
Right sources
Vendor rating Right attitude
Purchase Training
research SWOT analysis
Materials Right quantity
intelligens EOQ &
inventory
Right contracts models
Legal aspects
Right Right price
transportation Right time
Negotiation
Cost analysis of Re-order point
Learning curve
transportation & Lead time
logistics analysis

8. TYPES OF PURCHASING
SYSTEM
1. PRE-PURCHASE SYSTEM
2. ORDERING SYSTEM
3. POST- PURCHASE SYSTEM
1.PRE-PURCHASE SYSTEM
 REQUISITION
 TRAVELLING REQUISITIONS
 ENQUIRIES

9. 2.ORDERING SYSTEM
PURCHASE ORDER REFERENCE NUMBER.
DESCRIPTION OF THE MATERIALS AND
DETAILED SPECIFICATIONS.
QUANTITY REQUIRED AND DELIVERY
SCHEDULE & DETAILED
TERMS,CONDITION
PRICE AND DISCOUNTS.
LOCATION WHERE THE MATERIALS ARE
TO BE SHIPPED
SIGNATURE OF THE MATERIALS MANAGER.

10. 3.POST-PURCHASING SYSTEM
FOLLOW-UP
RECEIPT
INVOICE CHECKING

11. 3.STORES MANAGEMENT
FUNCTIONS OF STORES
 TO RECIEVE RAW MATERIALS, COMPONENTS, TOOLS
etc. AND ITACCOUNT THEM.
 TO PROVIDE ADEQUATE AND PROPER STORAGE AND
PRESERVATION TO THE VARIOUS ITEMS.
 TO MEET THE DEMANDS OF THE CONSUMING
DEPARTMENTS BY PROPER ISSUE AND ACCOUNT FOR
THE CONSUMPTION.
 TO MINIMISE OBSOLESECENS,SURPLUS ect.

12.  TO HIGHLIGHT STOCK ACCUMULATION,
DISCREPANCIES AND ABNORMAL
CONSUMPTION.
 TO ENSURE GOOD HOUSE KEEPING .
 TO ASSIST IN VERIFICATION AND PROVIDE
SUPPORTING INFORMATION.
TWO SYSTEMS
 RECEIPT SYSTEM
 PHYSICAL SYSTEM

14. FUNCTONS OF M.PLANNING &
CONTROL
• INVOLVES ESTIMATING THE INDIVITUALS
REQUIREMENTS OF PARTS,PREPARATING
MATERIALS BUDGET,FORECASTING THE LEVELS
OF INVENTORIES,SCHEDULING THE ORDERS
AND MONITORING THE PERFORMANCE IN
RELATION TO PRODUCTION AND SALES.
TYPE OF MATERIALS PLANNING
• MACRO FACTOR
• MICRO FACTOR

15. THANK YOU