A STUDY OF MATERIAL MANAGEMENT IN

RANE AUTOMOTIVE INDUSTRY

PROJECT DONE

GUIDED

BY

BY

K.HEMNATH

Mr. SENTHILNATHAN

DEFINITION
It

is concerned with planning, organizing

and controlling the flow of materials from
their initial purchase through internal
operations to the service point through
distribution.

AIM OF MATERIAL MANAGEMENT

To get

The Right quality

Right quantity of supplies

At the Right time

At the Right place

For the Right cost

OBJECTIVE OF MATERIAL MANAGEMENT

Primary objectives

Secondary objectives

PRIMARY OBJECTIVES

Right price
o High turnover
o Low procurement and storage cost
o Continuity of supply
o Consistency in quality
o Good supplier relations
o Good information system
o

SECONDARY OBJECTIVES
Forecasting
o Inter-departmental harmony
o Product improvement
o Standardization
o Make or buy decision
o New materials & products
o Favorable reciprocal relationships
o

NEED FOR MATERIAL MANAGEMENT

o

To have adequate materials on hand when

needed

To pay the lowest possible prices, consistent

with quality and value requirement for
purchases materials

To minimize the inventory investment

To operate efficiently

SCOPE OF MATERIAL MANAGEMENT

1. PURCHASING OF MATERIALS
o

Materials should be of right quality-Fighting competition, Increase in market

share, Increasing awareness,Development of tools for measuring quality,
Lasting impression created byquality

Purchasing in right quantity-Supply pos, EOQ most adv & least costly; Max qua
permissible by fin res

Purchasing at a proper time-Seasonal products: crop season, Repeatedly per

items: reorder level

Purchasing at a right price-total cost S.P, competitive strength; quality,

durability, time, place, service

Purchase at a right place-Centralized purchasing policy, Min redistribution cost

Purchase from the right source of supply-Continuity of supply, Main of quality,

Timely delivery,Quality of service

2. STORAGE (STORE KEEPER)

Weight & quality are inspected

Classified as R.M, semi-fini goods, fini goods, spare parts,

electrical goods, engineering goods, chemical items 7

Stored properly, quality is maintained, proper safeguard against

theft; cold storage facility, safety tanks, underseal

Storage should be scientific- Diff groups, coding of items,

preparing of index showing code no & place or room noor godown
no or cupboard no; maximum use of space available, reduces
wastage &cost, protects quality, makes the item easily traceable

Bincard

3. INVENTORY CONTROL

For maintaining the continuity of production & sale, minimizing the

stockout cost, controlling the investment of working capital in stock
inventory control is essential, for scientific storing

Techniques like EOQ, min & max stock levels, reorder level, ABC
analysis, stock register 5

4. CLEARING & FORWARDING

Railway station, Airport- Undergoing the required procedure &

completing necessary procedure

Railway or Steamer- Clearing & forwarding sec observes necessary

formalities for dispatch

Import

Export-

forwarding agents

Lengthy

&

complicated

procedure:

Expert

5. MATERIALS HANDLING

After arrival at fact sent for checking the weight,

Inspecting the quality, Storerooms, Issued to factory
when needed for production, Shifted from one process
to

another

during

production

assembly, Finished goods 7; Cost

process,

Case

of