Incoming Material Control

Embed Doc
Copy Link
Readcast
Collections

CommentGo Back

Download

Incoming material control

Incoming materials

are the raw materials, standard items,subcontracted parts etc.These include:- direct materialsRaw materialsSemi finished componentsBought out componentsSubassemblies, assembliesIndirect materials,Once the product design, development is completed , productspecifications are prepared, so now need of incoming material arisesand so order is placed after preparing bills of materials

Purchasing

means simply buying.

Procurement

means obtain something by care and effort.

Procurement of incoming material

means to obtain material withcare and effort so it is useful and not purchased unnecessarily.Purchasing is the most imp function involved with procurement of incoming material.4 imp functions of purchasing department related to procurement of incoming material are:-1. sets policies regarding quality of purchased products2. Identifies suitable suppliers(vendors)3. pass relevant product specifications and product information tovendor 4.Monitor vendor performance.

NEED OF INCOMING MATERIAL CONTROL:-

The goods that don’t meet our specifications and goods which we don’t requireneeds to be prevented from entering the production process as they causeproductions problems and delays and also these goods reduce the quality of finished products.

Vendor(seller):-

a firm which

supplies

to an organization is a vendor.

Role of a good vendor or a supplier:-

1)Supply goods of adequate quality.2)Supply goods on time3)Offer a low price4)Provide good service5)Other customers experience of vendor should be good i.e vendors imagein market should be good.

Pattern of incoming material control routine(purchasingprocedure)

A.purchase analysisB.Vendor selection and order placementC.Material receipt and material examinationD.Material disposal

A.

Purchase analysis .

Whenever a department needs an item (material), it informs the purchasingdepartment. Purchasing department has a

purchase requisition form

which isto be filled by the department which needs the material. Purchase requisitionform is a guide to purchasing department as the purchase requisition formcontains the following data:-~ What material is required and of what quality?~ Quantity of material to be purchased.~ Date by which the material is required.~ Place at which the material should be delivered.Purchase requisition form is first sent to the stores department to check whether the item is available in stores.

B.

Vendor selection and order placement.

This process consists of selecting a right vendor (supplier).For items which arepurchased frequently, the buyer usually has a few preferred suppliers from whomhe purchases regularly. But for purchasing new items, reference may be made toone or more of the following information from which right vendor and his addressmay be obtained.a)Catalogues,

b)

Trade Journalsc)Advertisements,d)Trade exhibitions and fairs,

e)

Trade directories.

Request for quotations

is made on prescribed quotation form to all the selectedvendors.

This request is not the purchase but it is an enquiry to know

whether the vendor can supply the desired material by specified date and if so then at what rate. Quotation form contains following table

nodescriptionquantityunitpricediscountTotal net priceQuotation form has printed on its terms and conditions under which the buyer would like to purchase the materialAfter receiving a number of quotations from different suppliers (vendors) they arestudied and

comparative statement of rates

and other terms and conditionsmentioned in the quotations is prepared.

The comparative statement serves a good guide in selecting the rightvendor. The other important points which help in selecting the right vendor are-

~ will the vendor maintain the quality?~will vendor supply material in time?~does the vendor have adequate facilities to handle the contract?~How far the vendor’s plant is situated? Etc etc.Order placement:- after selecting right supplier

a purchase order

is dispatchedto him. The purchase order is kind of authority given to the vendor to supply thematerial and the bill to the company. The

purchase order form

is filled andgiven to the vendor to inform him which material to be purchased and of howmuch quantity with full material description and also the price. After placing theorder the purchase service section maintains contact with the vendor in order tokeep him informed about the delivery date and time to be met by him or to find if he is facing any difficulty at any stage till material reaches to buyer .

C.Material receipt and material examination

Material supplied by the vendor is received by the receiving department whichunpacks the materials received and checks the quantities and conditions of thematerials. A copy of purchase order is present with the receiving department tocheck the materials received.A material receipt is

material received report

. It is prepared and is sent topurchase department to inform that these are goods received and also for themto check and compare it with the purchase order.A material receipt form is as under

of 00

Leave a Comment