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Material Management
1.
2. Before MM & After MM
Scope of MM.
Process of MM.
MM Revolves around
5M’s
Why MM is Necessary?
Focus of MM.
Objectives of MM
Main depts. Of MM.
Functions of MM.
a. Production Control
Function (Water Tank
Analogy)
b. Inventory Control
c. Material Handling
Systems
a. JIS
b. SCM
c. WMS
Challenges for MM
implementation. Q & A Section
Thank You
4. The scope of material management varies from company
to company include material planning, organizing and
control, production planning, organizing and control,
purchasing function, inventory control function and
stores/warehouse management function.
ManagementMaterial +
Internal
Operations
Distribution on
Service Points
Purchasing
Materia
l
Management
Control
Organizin
g
Planning
5. Consumpti
on & End
Usage
Issuance &
Distribution
Purchasin
g
Receivin
g
Quality
Control
Warehousi
ng &
Storage
Inventor
y
Control
Productio
n
Start
6.
7. • Smooth the flow of production.
• Reduction in inventories, storage space and handling
cost.
• Saving Labor Time.
• Better utilization of resources.
• Reduction in wastage/damage of material.
• To take advantage of price discounts.
• To meet the demand during the replenishment period.
• To keep pace with changing market conditions.
12. Functions involved in MM (Cont.)
1.Production Control:
The function of production control aims at directing and regulating the movement
of goods through the entire manufacturing cycle.
Department involves in this function are:
a) Purchasing department
b) Receiving department
To acquire the required materials
• In the right quantity
• Of the right quality
• From right source
a) Raw material inventory department
b) Production department
• At the right time
• At right price / cost
13. Advantages-
Centralization
Bulk Quantity Discount
Concentrated volume
Avoid duplication
Specialization of purchase
team
Lower transportation costs
Uniformity in purchasing
policies.
Common supply baseAdvantages-
Decentralization
Closer knowledge of
requirements
Local sourcing
No heavy investment is
required
Quick Order placing
Disadvantages-
Centralization
High initial investment
Delay in materials from deliveries
to end user.
Not suitable, if branches are
located at different geographical
locations.
Defective materials can not be
replaced timely.Disadvantages- Decentralization
Lose of discount on bulk buying.
lacks of specialization in purchasing.
Inappropriate/Duplication in quantity
procured
Less chances of effective control.
Lack of proper coordination among
depts.
Centralized Purchasing- purchasing department located at
the firm’s corporate office makes all the purchasing decisions.
Decentralized Purchasing- individual, local purchasing
departments, such as plant level, make their own purchasing
decisions.
18. Functions involved in MM (Cont.)
• Managing material physical
movement through and out of
the firm.
• The primary objectives of the
material handling is to move
material to required location in a
timely and cost effective way.
In social psychology, reciprocity is a social rule that says we should repay, in kind, what another person has provided us. That is, people give back the kind of treatment they have received from you. By virtue of the rule of reciprocity, we are obligated to repay favors, gifts, invitations, etc. in the future.
Analogy means comparison between two things
Put away: Internal logistics process from receipt of a load to when it is stocked in its final destination within a warehouse.
Picking: order preparation operation is one of a logistics warehousing’ s process