Aspects of Materials Management

Agenda Codification of materials

Standardization of materials

Material handling

Store management

Codification of MaterialsIt is also called as Identification of material

Useful in operation department

Record of each of the item

Proper stock-taking a good identification is of immense help

Proper codification of inventories item

Codification by Group ClassificationWhat do we mean by coding For instance, 010237 inventory kind of gasket

E.g. classification of materials in an inventories 01-Raw material02-purchase components03-spare part04-tools05-other supplies

Codification by Group ClassificationBased on ‘shape’ of items1….Wire2….Tubing3….Rod4….Bar5….Sheet6….stripLike that the material of construction, Group

of classification, particular item code be codedNine digit code identify the finished product

Codification by Group Classification

Mnemonic Coding MethodNumber and alphabet used E.g. SH 015 60 mean ‘ a shunt, 150 amps., 60 m V.’

Hybrid system of coding Group classification and mnemonic codesE.g. PI 1 1015 ‘pipe, Vinyl hosepipe, 10mm.ID*15mm ED.’

Characteristics of Good Coding System Flexibility

Precision

Brevity

Comprehensiveness

Standardization of Materials

Codification helps in the standardization of item in the inventory

Reducing the variety of inventory to workable minimum

Standardization of materialsAdvantages

Purchase cost will be lower Less stocks need to be maintained for current

consumption as well as for safety stockPaper work reduceStreamlining the material planning process

Material HandlingImportant activityProblem link closely withI. Number of item in the inventoryII. Their locationIII. The space availabilityIV. The layout of the store and production floor V. The packaging or container require

Material HandlingConsideration of material handling procedureI. How much it loaded to be moved?II. Characteristic (physical, chemical) of item to

be handled?III. Layout the store and production area?IV. Store house for the production plan?V. Existing material handling?VI. Different alternative material handling

equipment?VII.Implementation of material handling

equipment either reduction or increase labor power?

Material HandlingMaterial handling equipment /accessories Hand truck

Material HandlingPulley blocks

Material HandlingRoller Conveyors

Standardization of MaterialsFork lift truck

Material HandlingOverhead electric cranes I. Floor-controlledII. Cab-controlled

Material HandlingBelt conveyors

Material Handling

Pneumatic or vacuum lift

Stores Management

Receiving and inspection I. checking II. Preparing documents

Issues

Stock records I. Daily detailII. Stock at each locationIII. Allocation of stock

Stores ManagementStores accounting(cost price, average price,

market price, standard price)

Storage arrangement

Stock taking

Thank you