Use of Materials in Production - Materials Management Help

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.