Contents Pages
1. introduction to materials management

2.

Linkage of Production System with Inventory

3.

Materials Control Through JIT System

4.

Material Requirement Planning (MRP)

5.

Inventory Control

6.

Work-in-Process Inventory

7.

Spare parts Management

8.

Purchasing

9.

Materials Handlings

10. Store-Keeping

11. Stores Accounting

12. Materials Cost Reduction Techniques

13. Evaluating Materials Management Performance & MIS

14. Computerized Materials Management System

15. Studies and Business Games

Introduction to Materials Management
Meaning
It deals with purchasing and storage of materials so as to provide optimum customer service consistent with efficient operation at minimum inventory investment. Inventory in an organization is analogous to water level in a bath tub. The level increases if rate of outflow is less than inflow. A perfect synchronization of rate of outflow with rate of inflow through a suitable control mechanism will ensure a minimum water level just enough to meet requirements.

2.

Relationship with Productivity

Productivity in manufacturing sector in India has declined at a rapid rate during 1960 to 1980. The rate of declined in engineering industries has been much higher than other industry, more so in the case of non-electrical machinery and transport equipment where the rate of decline is as high as 1.6% per annum. This is despite the fact that labour productivity in these industries has been growing at an impressive rate of 3-4% per annum. Among other measures in arresting this decline, better inventory management and reduction in cash holdings are verysignificant.

2

Materials Management

Productivity = ____ Values of Goods & Services produced___ Inputs(Labour + materials + Capital + Energy+…) As nearly 70% of the total cost of production in manufacturing organizations is constituted by Materials Cost, a small % reduction in this cost is going to