Primary objectives include efficient materials planning, buying or Purchasing, procuring and receiving, storing and inventory control, supply and distribution of materials, quality assurance, good supplier and customer relationship and improved departmental efficiency. Use of Drawing numbers: In many firms using complex drawings through which part numbers etc are drawn, use their drawing numbers as codes to identify an item. It will be well worth the time and effort. Also the material requirement in agreement with sales programme are assessed. Simple Numeric or Sequence System Numbers are assigned for classification. In order to improve upon the alphabetical system, and also to take advantage of the numerical system, this system allows alphabets to be retained to a limited extent and then uses the number codes. Stores are generally classified either by their nature or by their usage.
Next function is Make and buy decisions which are the policy decisions of the management. Where no such codes have been evolved so far, the organisation must develop a local code where ever a mix-up is feared. Stainless Steel -- 316 04. During the period of 1947 to 1960 there were huge developments in materials management. The items are grouped into suitable preliminary categories, such as assemblies, sub-assemblies, components and off the shelf items. In each group the relevant 'details are sequentially numbered. It is useful in requisitioning items or the operational departments, in placing of orders by the purchase department, in receiving and expediting the items on receipt from the supplier, in having a unique record of each of the items in stores and in work-in-process or in warehouse so as to facilitate the control over the inventory levels, and also in having a good control over the loss, deterioration, obsolescence, non-movement, or pilferage of the items in the inventory.
Mnemonic System It is an alphabetic system designed with an objective of easy memorization. There are many other advantages such as variety reduction and standardization etc. Thanks Hii Uma Codification Systematic concise representation of equipment, raw material, tools, spares, suppliers. It is a simple concept. The quality of material must be assured and should not be compromised with the cost of the material.
Scope of Materials Management Materials management is typically comprised of four basic activities: 1. He developed importance of sound procurement to company operation. Without it, the control over inventory by rigorous exercises such as inventory techniques is not very effective. According to management theorists, materials management is total conception of having its definite organization to plan and control materials, its supply, and its flow from raw stage to finished stage so as to deliver the product to customers as per their requirements in time. A larger use of technology and new organizational methods could supersede the classic way to consider a National Codification Bureau as an identification and codification entity, towards a control and managing activity. The codification of Roman law under Justin impacted various areasof Roman living; however, three specific areas were the mostrelevant.
Examples are guages, micro meters etc. It focuses on time planning, resources planning and planning of control systems. Alphabet code has 26 letters. These ledgers are generally in loose leaf form and for separate class of materials separate binders are used. Without it, confusion might prevail in the operational departments.
Under this method of classification, the various items of stores are divided into specific groups like construction materials, belting materials, consumable stores, spare parts and so on -Classification and codification of materials are steps in maintaining stores in a systematic way. Procuring or fabricating the tools as per their design drawings. To implement production as planned. The post-war period visualized the expansion of the value analysis technique which was originated by General Electric Company in 1947 on the assessment of which materials or changes in the specification and design would reduce overall product cost. Stores Ledger: Stores ledger is a record of stores, both in quantity and value. Judges have mor … e power and do not simply act as referees as in the United States in Jury trials.
Another secondary function is design and development of the product which is significant to promote sale. Moreover for a good quality control system a unique identification is a pre-requisite. Under this method of classification, the various items of stores are divided into specific groups like construction materials, belting materials, consumable stores, spare parts and so on. Here the first letter of each word of the materials is used for coding. It is also called mnemonic system. For instance, a bolt is listed as hardware item if this is listed in hardware catalogues and available with hardware suppliers. Color code Material Type of Material- 1.
Auxiliary Tools: There are the devices used for building up or tearing down products or machines. While this system is the easiest one to use, it does not help in scientific management of inventory. Other important primary function of material management is quality control of materials which is important to buy the right quality of materials. After 2000, purchasing approaches reveal a changing prominence towards the upgrading of quality of materials, supplier relationship, more co-operative approach, long-term strategies of cost management and database materials management systems for materials planning and utilization in industries to bring about overall improvement in production systems, in-cost reduction through economy and increased sales. Shubin in his business management, has suggested four steps for setting up of a store room and toolcrib system namely 1.