The document provides an overview of various topics related to materials management. It discusses functions of materials management like materials planning, purchasing, inventory control, and transportation. It outlines advantages like lower material costs and risk minimization. Challenges include vendor selection, storage costs, and demand forecasting. Key departments in materials management are materials planning, purchasing, stores, and inventory control. Material handling equipment is used to move, store, and dispose of materials efficiently. Other topics summarized include line balancing, material requirements planning, purchasing management, store management, and inventory management.

1. MATERIAL MANAGEMENT
PRESENTED BY : :
Lakshita Asawa

2. MATERIAL MANAGEMENT
Materials management involves planning,
programming, organizing, directing,
controlling, and coordinating the various
activities concerning the materials. The
production managers found it necessary to
develop an organized body of knowledge on
this subject. The resulting set of related
disciplines is known as materials
management.

3. Functions of Materials Management
• Materials planning and programming
• Raw material purchase
• Receiving, store keeping, and warehousing
• Issuing of material
• Inventory control
• Value engineering
• Transportation of materials
• Vendor development
• Vendor rating
• Disposal of scrap and surpluses

4. Advantages or benefits of Material
Management
• Material cost can be lowered .
• Controlling of indirect cost
• Risk of inventory loss minimized
• Reduction in loss of time of direct labor
• Cost of material used in different
department ascertained
• Control of manufacturing cycle
• Material congestion in storage places
avoided
• Improvement in delivery of the product.

5. Challenges of Material Management
• Selection of appropriate vendors.
• Land and storage cost increase.
• Difficulty in forecasting demand
accurately.
• Scarce capital for investment in
materials inventory.
• Diversification of product lines.
• Optimizing time and quantity for
products.
• Management of information.

6. Main depts. Of M M
• Material Planning
• Purchase
• Stores
• Inventory control

7. MATERIAL HANDLING
Material handling involves short distance
movement within the confines of a building
or between a building and a transportation
vehicle.
It utilises a wide range of manual, semi
automated and automated equipments and
includes consideration of the protection,
storage, and control of materials through
their manufacturing, warehousing,
distribution consumption and disposal.

9. Advantages of Material Handling
System
• A good Material Handling System minimises the
movement of material.
• It eliminates unproductive handling of materials like
rehandling etc.
• It reduces idle machine capacity.
• It reduces the idle time of labour.
• Increases safety of the operators.
• The quality of materials is maintained due to minimum
human touches, elimination of breakages etc.
• It helps in providing better customer services like:
 Reduced operating cost.
 Better quality products.
 Timely production.

10. LINE BALANCING
• What is Line Balancing?
Everyone is doing same amount of work.
Doing the same amount of work to production
requirement.
Variation is ‘smoothed’
No one overburdened
No one waiting

11. Assembly Line Balancing :
Line Balancing is the procedure in which tasks
along assigning each task the assembly line
are assigned to work station so each has
approximately same amount of work.
Unbalance line & it’s effect :
1. High work load in some stage
2. High variation in output
3. Restrict one piece flow
4. Maximizes idle time
5. Poor efficiency

14. MATERIAL REQUIREMENT PLANNING
• MRP is a technique for determining the quantity
and timing for the acquisition of dependent items
needed to satisfy master schedule requirement.
• BASIC INPUTS FOR MRP :
1. Production structure or Bill Of Material.
2. Master Production Schedule for final analysis.
3. Economic Order Quantity.
4. Beginning Inventory.

15. MATERIAL HANDLING
EQUIPMENT
•MATERIAL HANDLING EQUIPMENT IS
USED FOR THE MOVEMENT,
STORAGE,PROTECTION,CONSUMPTION
AND DISPOSAL OF MATERIAL WITHIN A
FACILITY OR AT A SITE.

16. EQUIPMENTS
• CONVEYERS- EQUIPMENT USED TO MOVE MATERAILS
OVER A FIXED PATH B/W SPECIFIC POINTS
• CRANES- EQUIPMENT USED TO MOVE MATERIAL OVER
VARIABLE PATHS WITHIN A RESTRICTED AREA.
• INDUSTRAIL TRUCKS-EQUIPMENT USED TO MOVE
MATERIAL OVER VARIBLES PATHS,WITH NO RESTRICTION
ON THE AREA COVERED BY THE MOVEMENT.
• FORK LIFT-MOST COMMON EQUIPMENT IN MATERIAL
HANDLING

17. OPERATION MANAGEMENT
• Operation management is strategic function in
organisation that add value to customer and
allow business to successfully produce goods
& deliver services.
• Operational decision determine how well
there goods and services meet the needs of
the organisation target market &
consequently whether the organisation will be
able to survive in the long term.

19. PURCHASING MANAGEMENT
• The purchasing department plays a vital and unique
position in the organisation of an industrial concern.
• The objective of the purchasing function is to ensure
continuity of supply of raw material , sub-contracted
items & spare parts.
 Purchase at Right Price
 Right Quality
 Right Time
 Right Source
 Right Quantity

20. • The purchase system may be classified into :
Pre purchase system (making requisition,
selection of supplier)
Ordering system (reference no. , price &
discount, shipping instruction , signature of
material manager)
Post purchase system (follow-up procedure,
receipt &checking invoices , continuous
monitoring )

22. STORE MANAGEMENT
The Purchased materials are to be
stored/warehouses and issued for production as
and when required.
FUNCTION OF STORES MANAGEMENT :
To receive goods & equipment and to check them
for identification.
To record receipt of goods.
To correct positioning of all material and supplies
in the store.
To prevent unauthorized person to enter into the
store.
To ensure that required materials are located
easily.

23. Stores System :
1. Receipt System : Proper document of items
which are received at stores , Details on pending
order be arranged in chronological order of
dates.
2. Stocking system : At the time of receiving the
items at the store necessary arrangement
should be made to check the quality , quantity &
weight of the items before they are accepted for
stocking in the stores.
3. Issue System : Accounts of issue to internal and
external division are needed to be maintained.
This helps to timely replinish stocks.

25. INVENTORY MANAGEMENT
• The term Inventory refers to stock of goods kept for
sale by the firm.
• Effective Inventory Management requires an effective
control system for inventories.
• The following are the important tools & technique of
inventory management & control:
 Re-order point
 Economic order quantity
 ABC Analysis
 Inventory Turnover Ratio
 Ageing schedule of Inventory.

27. THANK YOU
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