Introductionto Materials Management
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Introduction Materials management
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Introductionto Materials Management
- 1. Introduction to Materials Management Producción I IITI MC. Ma. del Pilar C. León Franco
- 5. Operating environment Operation Management Government Regulation as environment, safety, product liability Economy: Influence the demand for a company´s products Competition Foreign competitors. Customer: -A Fair Price -Higher quality products and service -Delivery time -Better pre-sales and after-sales service -Product and volume flexibility Quality: Exceeds the customers´expectations
- 11. Manufacturing strategy Delivery Lead time Engineer to order Make to order Ship Assemble Manufacture Inventory Delivery Lead time Make to stock Design Ship Assemble Manufacture Purchase Ship Assemble Manufacture Inventory Delivery Lead time Ship Assemble Manufacture Inventory Delivery Lead time Assemble to Order
- 12. The supply chain Concept S U P P L I E R Manufacturer Distrubution System C U S T U M E R Dominate flow of demand and design information Dominat flow of products and services Physical Supply Manufacturing Planning and Control Physical Distribution
- 21. Conflicts in Traditional Systems Low High Few Many Low High IMPLICATION Low Inventories Fewer Fixed Costs Inventories Low Investment and Costs Finance Long Production Runs to production High Level Production Disruptions Low Production Cost Production Service High Product Availability Custumer High Revenues Marketing OBJETIVE FUNCTION
- 42. Materials Management $1,000 $500 $ 900 $200 $200 $100 90 100 20 20 50 10 Gross Profit Total Cost of Goods Sold Factory Overhead Direct Labor Direct Material Cost of Goods Sold Revenue (sales) Porcent of Sales Dollars
- 43. Materials Management $1,000 $450 $ 840 $200 $190 $160 84 100 20 19 45 16 Reorganized materials managmen department, direct material can be reduce by 10% and direct labor by 5% Gross Profit Total Cost of Goods Sold Factory Overhead Direct Labor Direct Material Cost of Goods Sold Revenue (sales) Porcent of Sales Dollars
- 44. Example 100 % 60 % 95 % 25 % 10 % 5 % 90 % 100 % 25 % 10 % 55 % 10 % Gross Profit Total Cost of Goods Sold Factory Overhead Direct Labor Direct Material Cost of Goods Sold Revenue (sales) Porcent of Sales Dollars