PRODUCTION AND

OPERATIONs
MANAGEMENT

MATERIALS
MANAGEMENT
MODULE 4
P R E S E N T E D B Y : G E N D E R J H O N L . C A B A T A Y
D I E T H E R B . C A B I L E S
 MATERIALS
MANAGEMENT

4.1 INTRODUCTION AND MEANING

4.2 SCOPE OR FUNCTIONS OF MATERIALS MANAGEMENT
4.3 MATERIAL PLANNING AND CONTROL
4.4 PURCHASING
4.6 INVENTORY CONTROL OR MANAGEMENT
4.7 STANDARDIZATION
4.8 SIMPLIFICATION
4.9 VALUE ANALYSIS
4.10 ERGONOMICS (HUMAN ENGINEERING)
4.11 JUST-IN-TIME (JIT) MANUFACTURING
4.11.1 SEVEN WASTES

PRODUCTION AND
OPRATIONS
MANAGEMENT
PRODUCTION AND
OPRATIONS
MANAGEMENT

4.1 INTRODUCTION
AND MEANING
Materials management is a
function, which aims for
integrated approach towards the
management of materials in an
industrial undertaking.
 Materials management is defined as
“the function responsible for the
coordination of planning, sourcing,
4.2 SCOPE OR FUNCTIONS OF
moving, storing and comtrolling materials
MATERIALS MANAGEMENT
in an optimum manner so as to provide a
pre decided service to the customer at a
minimum cost”.
PRODUCTION AND
OPERATIONS
MANAGEMENT
 Production and
Operations
Mangement

FUNCTIONS OF MATERIAL MANAGEMENTS

1. MATERIAL PLANNING AND CONTROL

2. PURCHASING
3. STORES MANAGEMENT
4. INVENTORY CONTROL OR MANAGEMENT
5. STANDARDIZATION
6. SIMPLIFICATION
7. VALUE ANALYSIS
8. ERGONOMICS
9. JUST-IN-TIME (JIT)
PRODUCTION AND
OPERATION
MANAGEMENT

4.3 MATERIAL PLANNING AND CONTROL

Materials planning is
the way to plan for any
material which is going
to serve the end
customers need within
the specific time &
money.
 FUNCTIONS OF MATERIAL PLANNING AND CONTROL:

01 02 03

REQUIRED ESTIMATION BUDGETING INVENTORY FORECASTING

Determine the exact amount of each
material required for a given product or
period based on prouction schedules and
sales estimates.
Setting aside money for Estimate future supply levels
material purchases in by taking lead times and
accordance with needs usage trends into account.
assessment and cost
analyses.
 FUNCTIONS OF MATERIAL PLANNING AND CONTROL:

04 05

ORDER SCHEDULING PERFORMANCE MONITORING

Plan orders with suppliers in advance to
guarantee that supplies arrive when
needed and prevent stock outs and
wasteful storage expenses.
Keeping an eye on how
material utilization fits into
plans and budgets, spotting
irregularities, and making
adjustments when needed.
 PRODUCTION AND
OPERATIONS
MANAGEMENT

4.4PURCHASING

Purchasing is an important function of

materials management. In any
industry purchase means buying of
equipment, materials , tools, parts etc.
PRODUCTION AND
OPERATIONS
MANAGEMENT

OBJECTIVES OF PURCHASING:

To avail the materials, suppliers and To ensure the continuous flow of

equipments at the minimum possible production.
cost.

To increase the asset turnover. To develop an alternative source of

supply.
PRODUCTION AND
OPERATIONS
MANAGEMENT

OBJECTIVES OF THE PURCHASING DEPARTMENT:

To establish and maintain the good To achieve maximum integration

relations with the suppliers. with other department of the
company.

To train and develop the personel. Efficient record keeping and

mangement reporting.
PARAMETERS OF PURCHASING

01 RIGHT PRICE
02 RIGHT QUALITY

03 RIGHT TIME

04 RIGHT SOURCE

05 RIGHT QUANTITY

06 RIGHT ATTITUDE

07 RIGHT CONTRACTS

08 RIGHT MATERIAL
09 RIGHT TRANSPORTATION
10 RIGHT PLACE OF DELIVERY
4.5 STORES MANAGEMENT

Stores play a vital role in the operations of

company. It is in direct touch with the user
departments in its day-to-day activities
 FUNCTIONS OF STORES:
1 2

To receive raw materials, To provide adequate and

components, tools, proper storage and
equipments and other preservation to the
itmes and account for various items.
them.

3 4 5 6
To meet the demands of To minimize
To highlight stock To assist in verification
the consuming obsolelescences, surplus
accumulation, and provide supporting
departments by proper and scrap through proper
discrepancies and information for effective
issues and account for the codification, preservation
abnormal consumption purchase action.
consumption. and handling.
and effect control
measures.
Inventory control is a planned approach
of determining what to order, when to
order, how much to order and how
much stock so that the costs associated
with buying and storing are optimal
without interrupting production and
sales.
5 ADVANTAGES OF INVENTORY MANAGEMENT

IMPROVES
ACCURACY

REDUCES COST

IMPROVES COSTUMER
SERVICE

IMPROVES BUSINESS
PLANNING

SAVES TIME
Standardization means producing maximum variety
of products from the minimum variety of materials,
parts, tools and processes.
The concept of simplification is closely related to
standardization. SIMPLIFICATION is the process of
reducing the variety of products manufactured.
4.9 VALUE ANALYSIS

Value analysis is concerned with the cost

added due to inefficient or unnecessary
specifications and features. It makes its
contribution in the last stage of product
cycle, namely, the maturity stage.
4.10 ERGONOMICS (HUMAN
ENGINEERING)

Human engineering focuses on

human beings and their interaction
with products, equipment faculities
and environments used in the work.
OBJECTIVES OF
HUMAN
ENGINEERING:

To enhance the efficiency effectiveness with

which the activities is carried out so as to
increase the convenience of use, reduced
errors and increase in productivity.

To enhance certain desirable human values

including safety reduced stress and fatigued
and improved quality of life.
PRODUCTION AND
OPERATIONS MANAGEMENT

4.11 JUST-IN-TIME MANUFACTURING

Just-in-time (JIT)
manufacturing is a
philosophy rather than a
technique. By eliminating
all waste and seeking
continuous improvement, it
aims at creating
manufacturing system that is
response to the market
needs.
 PRODUCTION AND
OPERATIONS
MANAGEMENT

THANK YOU

FOR
LISTENING

GENDER JHON L. CABATAY

DIETHER B. CABILES