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Materials management ppt

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Christian James Mingoy
Christian James Mingoy

This document discusses materials management and its key activities and functions. It defines materials management as the process of planning, organizing, and controlling the flow of materials through an organization. The main activities involved include materials requirements planning, purchasing, inventory control, expediting, transportation, and materials handling. Effective materials management can improve productivity, reduce costs, ensure quality, and smooth production schedules.

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prepared by; Cadorna, Camille O. Calawod, Janica V.` Bela-ong, Mary Grace P. Sawit, Andria V.
- process of management concerned with planning, organizing and controlling of the flow of materials to, through, and out of an organization in an integrated fashion MATERIALS MANAGEMENT
- any commodity used directly or indirectly in producing a product or service - considered as the lifeblood and heart of any manufacturing system. MATERIALS
a. PURCHASED MATERIALS - these are the raw materials, components, spare parts, and items that are used and usually do not appear in the end product b. WORK-IN PROCESS MATERIALS - these are materials that are in the semi-finished stage. CLASSIFICATIONS
CLASSIFICATIONS - these are the final products which are ready for final delivery or distribution - these are the consumable goods. c. FINISHED GOODS d. SUPPLIES
a.) Materials Requirements Planning b.) Purchasing c.) Inventory Control d.) Expediting e.) Transportation f.) Materials Handling ACTIVITIES INVOLVED IN MATERIALS MANAGEMENT
-encompasses the identifying, quantifying and scheduling the acquisition of materials and equipment. - necessary function in any organization as inventory of materials involved about 60% of the total investment of the organization a. MATERIALS REQUIREMENTS PLANNING
MATERIALS REQUIREMENTS PLANNING FLOWCHART MASTER PRODUCTION SCHEDULE BILL OF MATERIAL *Product Structure *Procurement Source *Lead Time MATERIALS REQUIREMENTS PLANNING INVENTORY RECORDS FILE *Current Inventory Levels *Receipts & Withdrawals Purchasing Production Scheduling Shipping Receiving OUTPUT *Forecast Demand *Customer Orders
-holds the responsibility for procuring goods for the project in alignment with the specifications, standardization and in compliance with the project schedule and budget. Functions: 1.to select proper supplier for the materials requisitioned, before placing an order. 2. to negotiate about the price of the materials from the supplier. 3. to assure the quality of materials and should not be compromised with the cost. b. PURCHASING
4. the materials should be purchased in right quantity and quality at proper time and at cheapest cost as possible. 5. to set proper purchase policy and procedures Importance: * 50% to 60% of sales turnover is spent on the purchase of various materials * every 1% saving achieved in purchasing results to about 5% profit for an organization.
- method where all stocks of goods are properly and promptly issued, accorded and preserved in the best interest of the firm. - monitor the stock of goods used for production, distribution and captive (self) consumption. c. INVENTORY CONTROL
- a physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. Functions: * to meet anticipated demand * to smooth production requirements * protect against stock outs * to help hedge against price increase * to permit operations INVENTORY
- Inventory Control can help the business be more profitable by identifying the types of inventory in the warehouse in terms of profitability - liquidating those unwanted inventory, and understanding the carrying cost such as storage, insurance, tax, etc. to minimize the cost incurred. IMPORTANCE
- the continuous monitoring as well as ascertaining and maintaining the flow and supply of materials to prevent stock outs and stoppage of production. factors affecting expediting: * insufficient or zero inventories * failure of materials handling devices * uncertainty in demand and production quantity. d. EXPEDITING
- involves the using of the safest and most economical means to transport the materials to the site where they are needed Modes of Transportation -aviation -land transport -ship transport -pipeline e. TRANSPORTATION
- system of transport where by two or more models are used to transport the same loading unit in an integrated manner. - continuous movement of goods by more than one means of transport. INTERMODAL TRANSPORT MULTIMODAL TRANSPORT
- the movement of materials at the lowest possible cost through the use of proper method and equipment. - applies the movement of raw materials, parts in process, finished goods, packing materials, and disposal of scraps. Importance: * reduces delays and damage * promotes safety and improve working conditions * promotes productivity * control inventory * reduces total cost of production as materials handling uses about 20%-25% of total manufacturing cost. f. MATERIALS HANDLING
-industrial trucks - automated guided vehicles - monorails and other guided vehicle - conveyors - cranes and hoist MATERIALS HANDLING EQUIPMENT
- The Construction Industry Institute concluded that the labor productivity could be improved by 6% and can produce 4-6% in additional savings. - reduces the overall cost of materials - better handling of materials - reduction in duplicated orders - materials will be onsite when needed - improvement in project schedule - quality control - better relationship with suppliers - reduces materials surplus - better cash flow management Why firms have implemented Materials Management System?
Materials management ppt

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Materials management ppt

  • 1. prepared by; Cadorna, Camille O. Calawod, Janica V.` Bela-ong, Mary Grace P. Sawit, Andria V.
  • 2. - process of management concerned with planning, organizing and controlling of the flow of materials to, through, and out of an organization in an integrated fashion MATERIALS MANAGEMENT
  • 3. - any commodity used directly or indirectly in producing a product or service - considered as the lifeblood and heart of any manufacturing system. MATERIALS
  • 4. a. PURCHASED MATERIALS - these are the raw materials, components, spare parts, and items that are used and usually do not appear in the end product b. WORK-IN PROCESS MATERIALS - these are materials that are in the semi-finished stage. CLASSIFICATIONS
  • 5. CLASSIFICATIONS - these are the final products which are ready for final delivery or distribution - these are the consumable goods. c. FINISHED GOODS d. SUPPLIES
  • 6. a.) Materials Requirements Planning b.) Purchasing c.) Inventory Control d.) Expediting e.) Transportation f.) Materials Handling ACTIVITIES INVOLVED IN MATERIALS MANAGEMENT
  • 7. -encompasses the identifying, quantifying and scheduling the acquisition of materials and equipment. - necessary function in any organization as inventory of materials involved about 60% of the total investment of the organization a. MATERIALS REQUIREMENTS PLANNING
  • 8. MATERIALS REQUIREMENTS PLANNING FLOWCHART MASTER PRODUCTION SCHEDULE BILL OF MATERIAL *Product Structure *Procurement Source *Lead Time MATERIALS REQUIREMENTS PLANNING INVENTORY RECORDS FILE *Current Inventory Levels *Receipts & Withdrawals Purchasing Production Scheduling Shipping Receiving OUTPUT *Forecast Demand *Customer Orders
  • 9. -holds the responsibility for procuring goods for the project in alignment with the specifications, standardization and in compliance with the project schedule and budget. Functions: 1.to select proper supplier for the materials requisitioned, before placing an order. 2. to negotiate about the price of the materials from the supplier. 3. to assure the quality of materials and should not be compromised with the cost. b. PURCHASING
  • 10. 4. the materials should be purchased in right quantity and quality at proper time and at cheapest cost as possible. 5. to set proper purchase policy and procedures Importance: * 50% to 60% of sales turnover is spent on the purchase of various materials * every 1% saving achieved in purchasing results to about 5% profit for an organization.
  • 11. - method where all stocks of goods are properly and promptly issued, accorded and preserved in the best interest of the firm. - monitor the stock of goods used for production, distribution and captive (self) consumption. c. INVENTORY CONTROL
  • 12. - a physical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state. Functions: * to meet anticipated demand * to smooth production requirements * protect against stock outs * to help hedge against price increase * to permit operations INVENTORY
  • 13. - Inventory Control can help the business be more profitable by identifying the types of inventory in the warehouse in terms of profitability - liquidating those unwanted inventory, and understanding the carrying cost such as storage, insurance, tax, etc. to minimize the cost incurred. IMPORTANCE
  • 14. - the continuous monitoring as well as ascertaining and maintaining the flow and supply of materials to prevent stock outs and stoppage of production. factors affecting expediting: * insufficient or zero inventories * failure of materials handling devices * uncertainty in demand and production quantity. d. EXPEDITING
  • 15. - involves the using of the safest and most economical means to transport the materials to the site where they are needed Modes of Transportation -aviation -land transport -ship transport -pipeline e. TRANSPORTATION
  • 16. - system of transport where by two or more models are used to transport the same loading unit in an integrated manner. - continuous movement of goods by more than one means of transport. INTERMODAL TRANSPORT MULTIMODAL TRANSPORT
  • 17. - the movement of materials at the lowest possible cost through the use of proper method and equipment. - applies the movement of raw materials, parts in process, finished goods, packing materials, and disposal of scraps. Importance: * reduces delays and damage * promotes safety and improve working conditions * promotes productivity * control inventory * reduces total cost of production as materials handling uses about 20%-25% of total manufacturing cost. f. MATERIALS HANDLING
  • 18. -industrial trucks - automated guided vehicles - monorails and other guided vehicle - conveyors - cranes and hoist MATERIALS HANDLING EQUIPMENT
  • 19. - The Construction Industry Institute concluded that the labor productivity could be improved by 6% and can produce 4-6% in additional savings. - reduces the overall cost of materials - better handling of materials - reduction in duplicated orders - materials will be onsite when needed - improvement in project schedule - quality control - better relationship with suppliers - reduces materials surplus - better cash flow management Why firms have implemented Materials Management System?