Material management (MM)

Material Management, History of Material Management, Functions of Material Management, Scope of Material Management, Aim of Material Management, Objectives of Material Management, Parameters related to Material Management, Activities involved in Material Management, Main departments of Material Management, MPL, PPC, Material and production planning and control, Stores and warehouse, Procurement, SCM Supply chain management, Inventory control, Techniques of Inventory control, ABC analysis, EOQ (Economic Order Quantity) Model, Inventory turnover Ratio, other inventory cost, Types of inventory cost, Challenges of Material Management

1. MATERIAL MANAGEMENT Kamal Joshi

2. Objectives of the Presentation: To explain the concept, aim & functions of material management To understand the activities of main departments involved in Material management To explore control measures in Material management

3. Material Management:

4. M aterials management is defined as a concept in an organization which plans and control distinct materials, their supply, their flow from the stage of raw materials to the stage of finished goods and handover goods to customers as per the needs of customers in right time. A scientific technique comprising of planning, organizing & control of materials from their initial purchase to their final destination. Material Management:

5. Material Management’s concept was used in W W -I . B efore W orld War-I people were unaware of the importance of Materials Management, Inventory Control, and Supply Chain Management. Establishment of Indian Stores Department in 1922 was the precursor of Material Management adoption in India. In the corporate sector, TISCO was the first one to establish a central purchase department. History of Materials Management

6. Scope of Material Management:

7. Functions of Material Management:

8. Important functions of materials management are planning, purchasing and controlling. The enhanced productivity is its aim and is used to perform the following: To decrease the cost To enhance profitability In production streamline In proper utilization of materials In transportation In distribution Aim of the Material Management:

9. Enhancing sales via sales promotion ( Maximization of benefit ) Enhancement in service of customers Globalization of the sales of product Meeting the transformations in technology Having a good employer and employee relationship Decrease in manufacture cost and other costs Objectives of social responsibilities Objectives of Material Management:

10. P arameters related to materials management : Many industries buy the materials and do the following activities with them in a step by step manner: Transport materials into a plant Transform materials into parts Gather parts into furnish goods Sell products or goods to customers Transport products to customers

11. Planning Inventory planning Purchasing Storage Inventory control Supply of materials Transportation of materials Handling of materials Activities involved in Material Management:

12. Main Departments of Material Management:

13. What we learned so far.....

14. Material & Production Planning & Control

15. Material & Production Planning & Control Cont.....

16. Material & Production Planning & Control Cont..... According to  Ray Wild , production planning is defined as follows: " Production Planning is concerned with the determination, acquisition and arrangement of all facilities necessary for future operations."

17. Procurement:

18. Supply Chain Management:

19. Warehouse:

20. Material Store:

21. Inventory Control: Water Tank Analogy for Inventory

22. Inventory Control Techniques:

23. Inventory Control Techniques: ABC Analysis:

24. EOQ (Economic Order Quantity) Model: EOQ = square root of (2 x D x S/H) D - D emand S - Order/Purchase Cost H - S torage cost per uni t

25. EOQ (Economic Order Quantity) Conti.......

26. Inventory Turnover Ratio:

27. Types of Inventory Cost:

28. Challenges of Material management implementation: Inaccurate or partial B OM listing Engineering requisition issues Purchase order inaccuracies I naccurate inventory levels Inventory adjustments Data integrity issues . (H a ving multiple data sources )