Material Control: Meaning, Objectives, Necessity and

Importance!

Meaning:
Material control is the main component of the process of material management.

Control over materials is of utmost importance for smooth and uninterrupted

functioning of an organisation.

A few definition of the term are given as under:

“Material control is a systematic control over purchasing, storing and consumption of
materials, so as to maintain a regular and timely supply of materials, at the same time,
avoiding overstocking.”

“Material control refers to the management function concerned with acquisition,

storage, handling and use of materials so as to minimise wastage and losses, derive
maximum economy and establish responsibility for various operations through physical
checks, record keeping, accounting and other devices. ”

In simple words, material control refers to the various measures adopted to reduce the
amount of loss of materials at the time of receiving, storing and issuing the raw
materials. Material control in practice is exercised through periodical records and
reports relating to purchase, receipt, inspection, storage and issuing direct and indirect
materials. Proper control over material can contribute substantially to the efficiency of a
business.

Objectives of Materials Control:

The following are the main objectives of materials control:
(a) To enable uninterrupted production:
The main object of material control is to ensure smooth and unrestricted production.
Production stoppages and production delays cause substantial loss to a concern.

(b) To ensure requisite quality of materials:

The quality of finished products depends mainly on the quality of raw materials used. If
quality of the raw materials is not up to desired standards, the end product will not be of
desired quality which affects the sale of the product in the market resulting in loss of
profits as well as goodwill of the concern. It is of vital importance to exercise strict
control and supervision over the purchases, storage and handling of materials.

(c) To minimise wastage:

The loss of material may occur on account of rust, dust, dirt or moisture, bad and
careless handling of materials, poor packing and many other reasons. The causes
responsible for such losses must be brought to light and utmost efforts should be made
to minimise the wastage of raw materials. This is possible only by introducing an
efficient materials control system.

(d) To fix responsibility:

A proper system of materials control also aims at fixing responsibility of operating units
and individuals connected with the purchase, storage and handling of materials.

(e) To provide information:

Another objective of materials control is to provide accurate information regarding
material cost and inventory whenever needed by management.

Necessity and importance of material control:

In a productive undertaking the need of materials control arises on account
of the following reasons:
1. For keeping the stock of raw materials within limits in the stores i.e., to avoid
overstocking and understocking of raw materials, materials control is significant.

2. It ensures proper storage of materials. For the proper preservation and safety of
materials, adequate storage facilities are to be provided. With the help of proper storing
of materials, quantity of materials as and when required can be issued to various jobs.

3. For knowing proper cost of production, control over materials is indispensable.

4. Certain techniques and methods are developed under the system of materials control
thereby ensuring optimum utilisation of materials.

5. In order to undertake continuous checking of materials, the necessity of a proper

system of materials control cannot be ignored.
6. A well managed system of materials control ensures the availability of different kinds
of materials without delay.

As already pointed out while explaining the scope of material management that it
includes purchases of materials, storekeeping and inventory control etc.

Functions of Material Handling:

Following are the important functions of material handling:

(i) To select machines/equipment and plant layout to eliminate or minimize material

handling requirements. To select most efficient, safe and appropriate material handling
equipment, which can fulfill material handling requirement at minimum cost?

(ii) To minimize the material handling cost by way of:

(a) Minimization of movement of semi finished items during the production process.

(b) Planning movement of optimum necessary places in one unit.

(c) Minimization of distance moved.

(d) Increasing speed of material handling operation through mechanization.

(e) By elimination/ minimization of back tracking and duplicate handling.

(f) By utilization of gravity for material handling.

(g) To employ mechanical aids instead of manual labour to accelerate material

movements.

Objectives of Material Handling:

The common hand shovel and the baskets were the only material handling tools, until
some years ago, but now due to increasing demand for sophisticated handling
equipment, material handling system has been revolutionized all over the world.
The main objective of the efficient materials handling is to decrease the costs. Materials
handling equipment does not come under the production machinery but is an auxiliary
equipment which can improve the flow of materials which in turn shall reduce the
stoppages in production machines and thus increases their production.

In brief followings are the objectives:

(1) Cost reduction by:
(i) Decreasing Inventory level

(ii) Utilizing space to better advantage

(iii) Increasing productivity.

(2) Waste Reduction by:

(i) Eliminating damage to material during handling

(ii) Being flexible to meet specific handling requirements of different nature.

(iii) Making proper control over stock during in and out handling.

(3) Improve Working Conditions by:

(i) Increasing productivity per man-hour

(ii) Increase in machine efficiency through reduction of machine down time

(iii) Smoothing out workflow

(iv) Improving production control.

(4) Improve Working Conditions by:

(i) Providing safe working conditions

(ii) Reducing worker’s fatigue

(iii) Improving personal comfort

(iv) Upgrading employees/workers to productive work.

(5) Improve Distribution by:
(i) Decreasing damage to products during handling and shipping.

(ii) Improving location of storage facilities.

(iii) Increasing the efficiency of shipping and receiving.

(v) Value engineering and value analysis.

(vi) Disposal of scrap and surplus materials.

Objectives of Materials Management:

Materials management contributes to survival and profits of an enterprise by providing
adequate supply of materials at the lowest possible costs.

The fundamental objectives of materials management activities can be:

(i) Material Selection:
Correct specification of material and components is determined. Also the material
requirement in agreement with sales programme are assessed. This can be done by
analysing the requisition order of the buying department. With this standardisation one
may have lower cost and the task of procurement, replacement etc. may be easier.

(ii) Low operating costs:

It should endeavor to keep the operating costs low and increase the profits without
making any concessions in quality.

(iii) Receiving and controlling material safely and in good condition.

(iv) Issue material upon receipt of appropriate authority.

(v) Identification of surplus stocks and taking appropriate measures to produce it.

The outcome of all these objectives can be listed as given below:

(i) Regular uninterrupted supply of raw-materials to ensure continuity of production.

(ii) By providing economy in purchasing and minimising waste it leads to higher

productivity.
(iii) To minimise storage and stock control costs.

(iv) By minimising cost of production to increase profits.

(v) To purchase items of best quality at the most competitive price.

Organization of Materials Management Department:

To facilitate planning, direction, control and co-ordination of various activities related
to material in an enterprise there should be a separate department of materials
management. The organisational structure of the department can be.

There can be more sub-sections of the department but in general, materials manager
controls the four major sections and is responsible for reporting to the president of the
organisation.