Materials Management
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INTRODUCTION
Materials are an important determinant of the total cost of production, as it constitutes around 50% to 60% of total cost. Materials as our input in production system are receiving attention of the industrialists from 1900 onwards. Since the beginning of 20th century, materials have been occupying a place of importance among the M’s of Materials, Money, Man, Machine and this will continue to be so in the years to come.
Materials management is one of the areas covered by the whole process of management. The effective use of all manpower is looked after by the personnel management. But for a balanced growth and efficient running of the enterprise, it is necessary that materials cost, materials supply and materials utilization are so controlled that they lead to ➢ The maximization of production, ➢ The reduction in the cost of production and distribution, ➢ The maximization of the margin of profit.
Materials management helps in reduction materials cost, preventing a large amount of capital being locked up for a longer period and improving the capital turnover ratio. Materials management today is a distinct area of industrial management and plays a vital role in production and productivity. This concept aims at cost reduction, as a result of integrated approach towards the management of materials at all stages viz., planning, purchasing, receiving, stocking and disposal.
Materials management is concerned with the planning and programming of materials and equipments, market research for purchase, pre-design value analysis, procurement of all materials including capital goods, raw materials, components and assembles, finished material, packaging and packing of material, inventory control etc.
Materials management is a body of knowledge which helps the manger to improve the productivity of capital by reducing materials costs, preventing large amounts of capital being locked up for long periods and
INTRODUCTION
Materials are an important determinant of the total cost of production, as it constitutes around 50% to 60% of total cost. Materials as our input in production system are receiving attention of the industrialists from 1900 onwards. Since the beginning of 20th century, materials have been occupying a place of importance among the M’s of Materials, Money, Man, Machine and this will continue to be so in the years to come.
Materials management is one of the areas covered by the whole process of management. The effective use of all manpower is looked after by the personnel management. But for a balanced growth and efficient running of the enterprise, it is necessary that materials cost, materials supply and materials utilization are so controlled that they lead to ➢ The maximization of production, ➢ The reduction in the cost of production and distribution, ➢ The maximization of the margin of profit.
Materials management helps in reduction materials cost, preventing a large amount of capital being locked up for a longer period and improving the capital turnover ratio. Materials management today is a distinct area of industrial management and plays a vital role in production and productivity. This concept aims at cost reduction, as a result of integrated approach towards the management of materials at all stages viz., planning, purchasing, receiving, stocking and disposal.
Materials management is concerned with the planning and programming of materials and equipments, market research for purchase, pre-design value analysis, procurement of all materials including capital goods, raw materials, components and assembles, finished material, packaging and packing of material, inventory control etc.
Materials management is a body of knowledge which helps the manger to improve the productivity of capital by reducing materials costs, preventing large amounts of capital being locked up for long periods and