Operations Management
Unit-4
Secondary objectives of materials management: secondary objectives are limited in number or in scope as primary objectives. Since they represent the materials management contribution to the achievement of primary objectives of some other departments, they can vary widely from industry to industry. 1. Reciprocal relations: when a company deliberately buys as much as possible from its own customers it is said to practice reciprocity. 2. New materials and products: engineering and manufacturing managers are always interested in new products and materials that will help them more efficiently and there by achieve one of their objectives. 3. Economic make or buy: make or buy decisions are generally made by committees consisting of departmental heads. The purchasing manager should spot the need for a make or buy decision and refer it to the committee for action. 4. Standardization: The fewer the need to be controlled the simpler and more efficient does the materials management process become. Engineering groups are primarily responsible for standards for specifications. 5. Product improvement: This is the most important primary objective of engineering department but purchasing department can assist the engineering department. 6. Inter departmental harmony: materials department management deals with almost all departments in the company. It can greatly contribute to the success of every other dept at the same time, the success of materials mgmt dept depends on co-operation from the personnel of other departments. 7. Forecasts: in order to manage materials better some conception of the future outlook for prices, cause and general business activity is necessary. 8. Acquisitions: business acquisitions and mergers are common. Acquisition is taken as one of the ways of business expansion. It is no easy job to identify a possible candidate or company for eventual merger.
Importance of materials management: Efficient management of
Secondary objectives of materials management: secondary objectives are limited in number or in scope as primary objectives. Since they represent the materials management contribution to the achievement of primary objectives of some other departments, they can vary widely from industry to industry. 1. Reciprocal relations: when a company deliberately buys as much as possible from its own customers it is said to practice reciprocity. 2. New materials and products: engineering and manufacturing managers are always interested in new products and materials that will help them more efficiently and there by achieve one of their objectives. 3. Economic make or buy: make or buy decisions are generally made by committees consisting of departmental heads. The purchasing manager should spot the need for a make or buy decision and refer it to the committee for action. 4. Standardization: The fewer the need to be controlled the simpler and more efficient does the materials management process become. Engineering groups are primarily responsible for standards for specifications. 5. Product improvement: This is the most important primary objective of engineering department but purchasing department can assist the engineering department. 6. Inter departmental harmony: materials department management deals with almost all departments in the company. It can greatly contribute to the success of every other dept at the same time, the success of materials mgmt dept depends on co-operation from the personnel of other departments. 7. Forecasts: in order to manage materials better some conception of the future outlook for prices, cause and general business activity is necessary. 8. Acquisitions: business acquisitions and mergers are common. Acquisition is taken as one of the ways of business expansion. It is no easy job to identify a possible candidate or company for eventual merger.
Importance of materials management: Efficient management of