Introduction and Scope of Materials Management

Materials management is a unified approach to handling materials in industry, aiming for cost reduction and efficiency. It covers all stages and departments.

Core Goals:

• Minimize costs related to materials.
• Ensure efficient movement and handling.
• Guarantee timely material availability.

Key Functions:

Material Planning & Control: * Forecasting needs, scheduling procurement (MRP), capacity planning.

Purchasing: * Supplier selection, negotiation, procurement, expediting.

Stores Management: * Receiving, storage, issuing, record-keeping, security.

Inventory Control: * Optimal stock levels, tracking, ABC analysis, safety stock, optimization.

Standardization: * Defining material standards for consistency and efficiency.

Simplification: * Reducing material variety for easier handling.

Specifications: * Creating detailed technical requirements for materials.

Value Analysis: * Analyzing function and finding cost-effective alternatives.

Ergonomics: * Designing for human comfort, safety and efficiency.

Just-in-Time (JIT): * Minimizing inventory by procuring only when needed.

In essence: Materials management strategically oversees all material-related activities to optimize resources and reduce costs within an industrial context.