Materials are of
pivotal significance in the manufacturing of a product. No production is
possible without use of materials. Moreover materials form an important part of
the cost of a commodity and therefore proper control over its procurement
issuer movement and use are necessary. So proper and effective management of
materials is the necessity of the hour. Materials management may this be
referred to an activity having all control over the materials used and the
commodities produced by the concern.
Ammer defines it as the process by which an organization is
supplied with goods and services that it needs to achieve its objectives. The
materials management begins with the supplier and ends when the materials is
either consumed or incorporated into some product. The executives who engage in
materials management are concerned with three basic activities, buying storage
of materials and movement .
Lee and Dobler define material management as a confederacy
of traditional materials activities bound by a common idea the idea of an
integrated management approach to planning acquisition, conversion flow and
distribution of production materials from the raw materials state to the
finished product state.
Thus materials management covers all aspects of materials
and material supply necessary for converting raw materials and ancillary into
the desired finished products. It is therefore concerned with planning and
programming of materials and equipment with redesign value analysis , with
marketing research for purchases, with procurement of all materials including
capital goods, packing and packing materials with stores and inventory control
with transportation costs of materials with materials handling and operation
research of materials.
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