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CH Manoj Surya
MEANING:
Material is one of the Five M’s of an industrial organization.
To Get
1. The Right Quality
2. Right Quantity of Supplies
3. At the Right Time
4. At the Right Place
5. For the Right Cost.
IMPORTANCE :
Scope for reducing cost and improving profit.
Amount spent on inputs higher then other inputs.
Material cost Percent in total cost varies from one industry to another.
percentage of manufacturing groups
above 75 construction, electrodes, tea
65-75 wool, sugar, jute, cotton, yarn,
vehicles, furniture
55-65 cotton textiles, ship building, cables,
electricity generators
45-55 chemicals, cement, pharmaceuticals,
electronics, tyre, machine tools
35-45 fertilizers, steel, cigarettes, transportation,
newspaper, aircraft .
1. Low prices:
2. Continuity of supply 1. New Materials & Products
3. Consistency of Quality 2. Economic Make-or-Buy
4. Low Payroll Costs 3. Standardization
5. Favorable Supplier Relations 4. Product Improvement
6. Development of personnel 5. Interdepartmental Harmony
7. Low Cost Acquisition & Possession 6. Forecast
8. Good Records
9. Continuity of Supply
PURPOSE OF MATERIAL MANAGEMENT
Director/Manager of Materials