CBM 113 LESSON 4 Flashcards
a total concept having its definite organization to plan and control all types of materials, its supply, and its flow from raw stage to finish stage.
MATERIAL MANAGEMENT
It can be defined as the function of the business that is responsible for coordination ofplanning, sourcing, purchasing, moving and storing materials
MATERIAL MANAGEMENT
Material management
strives to ensure that the
material cost component of
the total cost Be the least.
SCOPE OF MATERIAL
MANAGEMENT
In order to achieve this (Material Management), the control is exercised in the following fields: What are they?
- Materials Planning
- Purchasing
- Store Keeping
- Inventory Control
- Receiving, Inspection and Dispatching
- Value Analysis, Standardization and Variety Reduction
- Materials Handling and Traffic
- Disposal of Scrap and Surplus, Material Preservation
It is also called procurement department buys
materials based on the purchase requisition
from user departments and store departments
and annual production plan.
PURCHASING
DEPARTMENTS
It support operations by serving as the primary
buyer of goods and services in a private sector
company, government agency, educational
institution or another type of organization.
PURCHASING
DEPARTMENTS
a scientific technique of determining in
advance the requirement of raw
materials, ancillary parts and components, spares etc. ad directed by
the production program. It is the overall
planning activity
MATERIAL
PLANNING
Material planning is concerned with
answering three basic questions :
- (What) materials are required
- (How) many are required
- (When) are they ready
WHAT ARE THE FOUR BASIC PURCHASING ACTIVITIES?
- Selecting suppliers
- Expediting delivery from suppliers
- Acting as a liaison between suppliers and
other company department - Looking for new product, materials and
suppliers that can contribute to company
objectiveness.
What are the different PURCHASE SYSTEM?
- Forward buying
- Tender Buying
- Blanket Order System
- Zero Stock
- Rate Contract or rate of agreement
- Reciprocity
- System Contract
- Stock level
- Cost
This is were retailers purchase units during a particular period
Forward buying
It invites bids for a project accept a formal offer.
Tender Buying
a purchase order the campus end user makes with its supplier
that contains multiple delivery dates over a period of time, negotiated to take
advantage of predetermined pricing.
Blanket Order System
This has no on hand inventory
Zero Stock
It is procurement cost reduction strategy aimed at
standardizing procurement prices for commonly procured, homogenous and price
varying inputs.
Rate Contract or rate of agreement
A practice of exchanging things with business to other business for mutual
benefits
Reciprocity
These are exclusive contracts with designated suppliers for specific
commodities of goods or services, with pricing and others agreement
System Contract
This is where production parts and materials are checked against blueprints and
specifications.
Stock level
A material handling section is responsible for the transport of materials to
various departments.
Cost
FIVE BASIC TRAFFIC
ACTIVITIES
- Selecting common or charter carriers and routing for
dispatch/shipments as required - Tracing in-bound shipments of materials
- Auditing invoices from carriers and filing claims for
refunds or excess charges or for damage shipments
when required - Developing techniques to reduce transportation cost
- Packaging of finished products, labeling, and loading of
end product in the trades. Finally, the disposal of scraps
and surplus must be done periodically to release the
capital locked in those items
This Maintains physical stocks of non-production
items to be drawn on as needed for operations
or maintenance.
NONPRODUCTION
STORES
Manages inventories of non-production
materials and prepares purchase requisition for
needed materials when stocks from to the reorder point.
Keeps record and maintains control.
NONPRODUCTION
STORES
Its goal is to divert as much solid waste as possible, and to minimize
other methods such as incineration that harm the environment.
INTEGRATEDWASTE
MANAGEMENT
What are the Benefits of integrated
waste Management
- Conservation of energy and natural resources,
reduction of greenhouse gas emissions and reduction
in landfills and incineration disposal. - Growing the markets for more environmentally
responsible products - Strengthening and expansion of both local and national
economies.
