Objectives Importance Functions of material management Purchasing Meaning Objectives Purchasing procedure Store keeping Meaning Objectives Functions JIT Material Management Meaning ID: 1020839
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1. Unit VMaterial Management – MeaningObjectivesImportanceFunctions of material managementPurchasing- MeaningObjectivesPurchasing procedureStore keeping –MeaningObjectivesFunctions JIT
2. Material Management- MeaningMaterial management is the planning, directing, controlling and co-ordination of all those activities concerned with material and inventory requirements, from the point of their inception to their introduction into manufacturing processAccording to N.K. Nair, “ it is the integrated functioning of the various sections of an organization dealing with the supply of materials and allied activities in order to achieve maximum co-ordination
3. Objectives of Materials ManagementLow pricesHigh inventory turnoverLow cost acquisition and possessionContinuity of supplyConsistency of qualityLow payroll costsFavorable supplier relationDevelopment of personnelGood records
4. Functions of Materials ManagementPlanning FunctionProduction ControlPurchasingInventory and Stores ControlReceiving and StoresShippingMaterial HandlingTraffic
5. Importance of Materials ManagementRegular supply of the material is ensured, reducing the chances of any interruption in production processProcurement costs and transportation cost associated with materials are checkedEfficient store and stock control minimizes waste of material Inspection of material at the time of procurement minimizes the possibility of finished product being rejected by the consumerTimely supply of raw material and other inputs can be assuredBetter utilization of labor, capital and equipment
6. Purchasing - MeaningPurchasing is the procuring of materials, supplies, machines, tools and services required for equipment, maintenance and operation of a manufacturing plan
7. To avail Materials, Supplies and Equipment at the Minimum possible costsEnsure continuous flow of productionIncrease asset turnoverDevelop alternate sources of supplyEstablish and maintain good relations with suppliersAchieve maximum integration with other departments of companyTrain and develop the personnelEfficient record-keeping and management reportingObjectives of Purchasing
8. Purchasing ProcedurePurchase RequisitionsPotential sources of SupplyIssue of Letters Inviting QuotationsReceipt and Analysis of QuotationsSelection of VendorPurchase OrderFollow-up and DeliveryPurchase order AmendmentsAnalysis of receiving ReportsForms used and records maintained in PurchasingScrutiny and approval of Invoices
9. Store Keeping- MeaningStorekeeping is a service to the production department. It is responsible for proper storage of material and then issuing it to respective departments on proper requisition. The various items such as raw materials, tools, work-in-process, spare parts, finished goods etc. are stored in the store room. The custodian of stores is generally known as storekeeper. The place where these items are kept is known as storeroom
10. Minimizing cost of production through minimizing cost on materialsMaintaining the value of MaterialServices to user DepartmentsEstablishing co-ordination with other departmentAdvising materials managerObjectives of Storekeeping
11. Functions of storekeepingReceiptStorageRetrievalIssueRecordsHousekeepingSurplus stockVerificationCo-ordination and co-operation
12. Types of Store keeping/STORESMain or Centralized storesCentral store with sub-storesBranch or Decentralized storesTool and miscellaneouswarehouses
13. JIT- MeaningJust in time (JIT) is an inventory management method whereby materials, goods and labor are scheduled to arrive or replenished exactly when needed in the production process. JIT inventory refers to an inventory management system with objectives of having inventory readily available to meet demand, but not to a point of excess where you must stockpile extra products.
14. Objectives of JITZero inventoryZero breakdowns100% on tine delivery serviceElimination of non-value added activitiesZero defects