Materials Control: Procurement and External Transportation

Topics: Inventory, Material, Raw material Pages: 10 (2779 words) Published: October 6, 2012
MATERIALS – is one of the principal “m’s” of industry, worry controllers, annoy sales managers, plague purchasing agents, haunt production managers, and harass stock-keepers.

MATERIAL MANAGEMENT – is a continual struggle between too much and too little,, too soon and too late. In sum, materials management is concerned with controlling the kind, amount, location, movement, and timing of the various commodities used in and produced in industrial enterprise.

Industrial materials can be divided into six main classes:
A.Raw Material – are materials used in the product which in an unprocessed condition. Ex. Metal bars, tubes, flat stock, castings, forgings, leather hides, cloth, and commercial chemicals. B.Purchased Parts – item used in the assembly of the product which are obtained from outside sources. Ex. Bolts, nuts, screws, bearings and gears.

C.In – Process Material – material used upon which work has been performed to change its form, size, or physical or chemical characteristics. Ex. Machine-tap blank turned from a bar, a shoe upper cut from a leather hide and a sandblasted and painted castings. D.Finished Products – good completely manufactured and inspected, ready for a shipment to a customer. Ex. Completed machine tap, a finished pair of shoes, and a decorated cast-aluminum vase. E.Supplies – Consumable materials used in the manufacturing process which do not become a part of the product. Ex. Grinding wheels, taps, drills, belting sand paper, oils, sawdust, plating supplies, lumber, shipping cartons, stationary and pencils. F.Equipment Items – expendable parts of machines and other physical facilities. Ex. Jigs, Fixtures, fittings, valves, fuses and fluorescent lamps.

Effective control of materials embraces four phases:
A.Procurement – Purchasing
B.External Transportation – receiving, traffic, and shipping C.Internal Transportation – materials handling
D.Inventory Control – stores keeping

A.Purchasing Agent – the title of the Vice- President
-Will do a fully automatic process in which relatively little labor on the product is required. A.Purchasing Department – is a responsibility of the plant manager, since most of the purchasers are made for the manufacturing divisions. B.Manufacturing Services Manager – consolidated the external transportation, inventory control, and internal transportation activities. -Is a responsibility of the plant manager.

C.Traffic Manager – handled all external transportation.
-Generally reporting to the plant manager or to the purchasing department. D.Stock Control Supervisor and Materials – handling supervisor. -Is responsible for inventory control and internal transportation.

The purchasing function of the enterprise is the laiason agency which operates between the plant organization and the outside vendors on all matters of procurement.

Purchasing Agent is made of responsible for maintaining the four major procurement factors of quality, quantity, time, and price. Quality – refers to the kind of goods desired as established by specifications emanating usually from the product-engineering department. Quantity – the quantity of the purchase will generally be determined directly or indirectly from the production and the material requirements set forth by the routing division of production control, and the time allowed for delivery is linked with the production schedules of the scheduling division. Quality, Quantity, and Time are generally established for the purchasing department. More specifically, as to the activities of the purchasing agent and his staff, they are expected to: 1.Know and maintain records showing possible materials and substitutes, sources of supply, prices, and quantities available. 2....
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