MATERIALS CONTROL

PROF. DHAVAL BHATT

WHAT IS MATERIALS CONTROL?

• Materials is the first and most important element of cost. Materials cost
constitutes a prime part of the total cost of production for a
manufacturing firms.
• Materials control basically aims at efficient purchasing of materials, their
efficient storing and efficient use or consumption.
• In simple terms, it is a system which ensures that right quality of material
is available in the right quantity at the right time and at the right place
with the right amount of the investment.
WHY MATERIALS CONTROL?

• Availability of Materials:
• The materials should be available of all types in the factory as and when it is required so that
the production may not held up for the need of such material.
• No Excessive Investment in Materials:
• There should not be excessive investment in materials. Overstocking must be avoided.
Investment must not tied up funds that could be better used in other activities.
• Reasonable Price:
• While Purchasing it is seen that it is purchased at lower prices. But quality should not be
sacrificed at the cost of lower price.
WHY MATERIALS CONTROL? (CONT. )

• Minimum Wastage:
• There should be minimum possible wastage of materials.
• No Excessive Investment in Materials:
• There should not be excessive investment in materials. Overstocking must be avoided.
Investment must not tied up funds that could be better used in other activities.
• Reasonable Price:
• While Purchasing it is seen that it is purchased at lower prices. But quality should not be
sacrificed at the cost of lower price.