MATERIALS MANAGEMENT

– Procedure Involved in Public Sector

Undertakings and Private Sector
Companies

N.Ramesh, M.Jeeva Balan,

Sr.Manager-Purchase, Sr.Manager-Purchase,
BEML Limited, Bangalore IFB Industries, Bangalore
 *Sales
*Marketing
*Finance &
*Research
Accounts &Development
*Audit *Product
*Safety Design

Manufacturing
Industry
*Quality *Planning
*Maintenance *Purchase
*Human
Resources
*Stores
*Security *PPC

*Production
 Process Flow
Sales Orders
Demand
P I Program / P I R Management Stock Transfer
Requirements

MRP Run

Planning Results /
Procurement Proposals

External Internal

In-House Production
Purchasing Procedures Processes

Spares
Stock and Sales
PLANNING – THE HEART OF AN ORGANISATION
VARIOUS SUB FUNCTIONAL AREAS OF PLANNING DEPT.

METHODS
PLANNING

PRODUCTION TOOL
ENGINEERING
CONTROL

PLANNING

INDUSTRIAL
EDP ENGINEERING

FACILITIES
PLANNING
 PLANNING

Study of drawings, Material requirement Planning,

METHODS PLG
Process Planning, Finalisation of Bill of Material

INDL. ENGG. Study of Process Sheets & Drawing for Time estimation of
every part of the product to ascertain the Labor hours

TOOL ENGG. Tool Design / Planning and fabrication of required Jigs & Fixtures

PROD. CONTROL Generation of Production Orders and material loading to Shop

FACILITIES PLG. To consolidate the required facilities to meet the production

 PURCHASE DEPARTMENT
TYPES OF PROCUREMENT
Indirect Procurement
Direct Procurement

Service
Procurement
 PURCHASE DEPARTMENT
Various Sections in Purchase
Raw Materials Team Mechanical Team Electrical Team

Imports Team Non Project Team

 PURCHASE PROCEDURE - OVERVIEW

• Approved Purchase Requisition (PR)

• Selection of Sources
• Mode of tendering (Types)
• Issue of tender
• Pre-bid meeting
• Evaluation of offers (Technical & Commercial)
• Techno-commercial discussion (Negotiation)
 PURCHASE PROCEDURE - OVERVIEW

• Proposal for placement of Purchase order

• Release of Purchase order PO1 PO2
• Purchase Orders for additional requirements
• Retendering
• Purchase Progression
• Pre-dispatch Inspection
• Receipt & Acceptance of items
 The Steps of Global Logistics
Customs Clearance
for Export
2 3 4
Handling
Loading Outbound
1 Preliminary
Transportation
5
Packing
6
Insurance
Main
Customs International
Clearance Transportation 7
Duties

11 10 9 8

Unloading Final Handling

Transportation Inbound
 STORES DEPARTMENT
Various types of stores:
• Receiving Stores (RS)
• Holding Project Stores (PS)
• Raw Material Stores (RMS)
• Paints & Chemical Stores
• Industrial Gases Stores
• Tooling,Hardware and Consumable Stores
• Salvage Stores (SCS)
• Rejected Stores
• Shipping and Dispatch Stores
STORES DEPARTMENT