Mba 2nd Sem Mlm Notes (Materials Management)

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Materials Management INTRODUCTION Putting in the simplest terms materials management is about moving the materials within an organization. What do “materials” mean? Materials can basically be defined as those objects or things that are to be moved in order to produce goods. Material is one of the 5M’s that a manager has at his command, the other being Men, Machine, Methods and Money. Materials could be in the form of raw materials, paperwork, messages or information etc. So materials can be both tangible and intangible. You see the newspaper boy delivering the newspaper to your doorstep everyday or the milkman delivering the milk packets to you. These are tangible materials. There is also some material moved when you watch a movie on…show more content…
3) Inventory control: This function is responsible for the location and storage of materials so that they remain available at the minimum cost and quickest time. 4) Store keeping: This function is responsible for the receipt and issue of the materials. The materials are stored in such a way that minimum handling is required and wastage is minimal. 5) Material handling: This function aims at minimizing handling and provision of equipments for handling materials. This function is crucial for minimizing space requirements, effective distribution and for providing better working space. 6) Warehousing: This function is responsible for the storage facilities for the materials, weighing facilities, materials handling equipments, material distribution facilities, fire fighting instruments etc. 7) Standardization and simplification: This function selects items of great demand and sets the standards for quality, raw material, sizes and performance of any product. 8) Organization & appraisal of materials: This function helps in effective functioning by proving smooth flow. It provides coordination and avoids delays and wastages Management of materials embodies various costs. Since the ultimate aim of materials management is to reduce the costs of materials and hence the final product, it is worth seeing what these costs are. Let us take a glimpse of what these costs are: [pic] Source: Shah N.M. (1996), An Integrated Concept of Materials Management An integrated materials

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