Aspects of

Materials
Management
 Agenda
§ Codification of materials

§ Standardization of materials

§ Material handling

§ Store management
 Codification of Materials
It is also called as Identification of material

Useful in operation department

Record of each of the item

Proper stock-taking a good identification is of

immense help

Proper codification of inventories item

 Codification by Group
Classification
What do we mean by coding
For instance, 010237 inventory kind of gasket

E.g. classification of materials in an inventories

Ø 01-Raw material
Ø 02-purchase components
Ø 03-spare part
Ø 04-tools
Ø 05-other supplies
 Codification by Group
Classification
Based on ‘shape’ of items
Ø 1….Wire
Ø 2….Tubing
Ø 3….Rod
Ø 4….Bar
Ø 5….Sheet
Ø 6….strip
Like that the material of construction, Group of
classification, particular item code be coded
Nine digit code identify the finished product
 Codification by Group
Classification
Mnemonic Coding Method
Ø Number and alphabet used
Ø E.g. SH 015 60 mean
‘ a shunt, 150 amps., 60 m V.’

Hybrid system of coding

Ø Group classification and mnemonic codes
Ø E.g. PI 1 1015
‘pipe, Vinyl hosepipe, 10mm.ID*15mm ED.’
 Characteristics of Good
Coding System
Ø Flexibility

Ø Precision

Ø Brevity

Ø Comprehensiveness
 Standardization of
Materials
Codification helps in the standardization of
item in the inventory

Reducing the variety of inventory to workable

minimum
Standardization of materials
Advantages
Ø Purchase cost will be lower
Ø Less stocks need to be maintained for current
consumption as well as for safety stock
Ø Paper work reduce
Ø Streamlining the material planning process
 Material Handling
Important activity
Problem link closely with
III. Number of item in the inventory
IV. Their location
V. The space availability
VI. The layout of the store and production floor
VII. The packaging or container require
 Material Handling
Consideration of material handling procedure
II. How much it loaded to be moved?
III. Characteristic (physical, chemical) of item to be
handled?
IV. Layout the store and production area?
V. Store house for the production plan?
VI. Existing material handling?
VII. Different alternative material handling
equipment?
VIII.Implementation of material handling equipment
either reduction or increase labor power?
 Material Handling
Material handling equipment /accessories
§ Hand truck
 Material Handling
Pulley blocks
 Material Handling
Roller Conveyors
 Standardization of
Materials
Fork lift truck
 Material Handling
Overhead electric cranes

III. Floor-controlled
IV. Cab-controlled
 Material Handling
Belt conveyors
 Material Handling
Pneumatic or vacuum lift
 Stores Management
Receiving and inspection
II. checking
III. Preparing documents

Issues

Stock records
VIII.Daily detail
IX. Stock at each location
X. Allocation of stock
 Stores Management
Stores accounting(cost price, average price,
market price, standard price)

Storage arrangement

Stock taking
Thank you