Name : Nishit Bhrambhat

Class : SYBCOM
Roll No. : 29
Subject : Operation Management

MATERIALS PLANNING
Materials Planning is a part of
Production Planning
 Materials planning is a part of production
planning.

 Production planning is an area for top

management decisions through which
production plans, programmes and targets
are spelled out.
 For an effective inventory control production
plans should be converted into materials plans.

 In the integrated materials management,

production and materials planning get a pride
of place.

 It enables the management to the future

materials needs, necessary capital for meeting
out needs and external difficulties which may
come in the way of fulfilling the future
materials demands.
Need for Material Planning

 Planning is the essence of any project.

 Planning motivates people and serves as an

effective control device.

 Materials planning cannot be an exception.

 The materials planning is done in order to
keep the production department active and
alive.

 Kingdom should not be lost for want of a nail.

 Materials planning does help in effectively

moving the whole organization in the right
direction.
 Materials planning is based on certain
feedback information and reviews.

 Materials planning is done at all stages and at

all levels of the management.

 The top management is usually engaged in

planning for non-programmed decisions.
 The middle-order management engages
itself in planning for programmed decisions
which are usually of routine nature .

 Sales forecasting, production programming

and materials planning are interconnected.

 There should be proper feedback information

and periodic review in order to have better
material planning.
Materials Planning Defined

 P. Gopalakrishnan and M. Sundaresan, “is the

scientific way of determining the requirement
of raw materials, components, spares and
other items that go into meeting production
needs within the economic investment
policies.”
 materials planning is a function and is a
system which evolves methodology to plan
the requirements of materials in a scientific
manner.

 It is positively related with production which

follows market conditions and sales forecasts.