Materials Management

▓ Materials mgt. deals with controlling and

regulating the flow of material in relation
to changes in variables like demand,
prices, availability, quality, delivery
schedules etc.
Functions of M. Mgt.
1. Planning and programming for MM
2. Stores and Stock ctrl.
3. Receiving and issue of the material.
4. Transportation and material handling of
the material.
5. Value engineering
6. Disposal of scrap and surplus materials.
Objectives of M.Mgt.
 Material selection.
 Lower operating costs by providing
material at low costs.
 Receiving and ctrling material safely and
in good condition.
 Issue material upon receipt of appropriate
authority.
 Identification of surplus stocks and taking
appropriate measures to reduce it.
Outcomes of the objectives
 Regular uninterrupted supply of raw
materials to ensure continuity of prod’n.
 By providing economy in purchasing and
minimizing waste it leads to higher
productivity.
 To minimize storage and stock ctrl costs.
 By minimizing cost of prod’n to increase
profits.
 To purchase items of best quality at the
most competitive price.
Duties/responsibilities of
M.Mgt.
 PURCHASING:- It buys materials in amts
authorized by requisitions received from prod’n
ctrl and stores deptt. Its main tasks are:-
2. Selection of suppliers and issue of purchase
order.
3. To speed up the delivery of materials from the
suppliers.
4. Acting as a liaison b/w suppliers and other depts.
of the enterprise.
5. To look for new products, materials and suppliers
that can contribute to company’s profits.
2. Prod’n Ctrl.
 Determining reqd.s of materials and parts
to be purchased and mfr’d.
 Schedules prod’n and purchasing
processes of parts and material.
 Issues work order to mfrg deptt. And
purchase order to suppliers.
3. Inventory and Stores
Control
 It keeps detailed and up to date record of
inventory, an order status and potential
demand for each prod’n part and material.
4. TRAFFIC:-
It ctrls inbound shipments of purchased
materials and shipment of finished goods
to consumers.
5. Physical Distribution:-
Finished goods are moved from the prod’n
line to the warehouse and finally to
customer