Aspects of Materials Management

§ 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


Standardization of materials
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

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