Material Planning and Control

Material planning and control is crucial and is influenced by both broad and specific factors.

Influencing Factors:

Macro Factors (External): * Price Trends: Fluctuations in material costs. * Business Cycles: Economic booms/recessions. * Government Policy: Import regulations, trade policies.

Micro Factors (Internal): * Plant Capacity: Production capacity utilization. * Rejection Rates: Defect levels in production. * Lead Times: Time between order and delivery. * Inventory Levels: Current stock on hand. * Working Capital: Funds available for operations. * Delegation & Communication: Clear processes and information flow.

Process of Material Planning and Control:

• Driven by sales forecasts and production plans. Involves:
  • Estimating component needs.
  • Creating material budgets.
  • Predicting inventory levels.
  • Scheduling purchase orders.
  • Monitoring performance against targets.