Material management Flashcards
materials management
Activites involved in controlling inventory of raw materials, including the use of storage and delivery of materials
> enough inputs to create desired outputs
Forecasting
OM uses historical data and seasonal changes to predict the future production levels
improves efficiency:
>decrease liklihood of overordering, thus storing excessive amounts of materials
improves effectiveness
increase ability to meet demand
increase customer satisfaction
Forecasting ADV
increases OM ability to prepare systems for predicted demand
increases effectiveness and efficiency, being able to plan and decrease waste
Forecasting DISADV
Variables can effect sale levels
Anticipated demand= inaccurate
Based on past data
Master production schedule
A plan which outlines what a business intends to produce in specific quantities with a specific time period
improves efficiency
>stops excessive production=optimises resources
> organised operations systems = minimal error
MPS ADV
increase OM knowing when materials are needed= better management of supply chain
increased supplier relations
MPS DISADV
expensive to implement
business might not be flexible to adapt easily
if inaccurate raw materials won’t be available
Materials requirement planning
Process that itemise types and quantities of materials required to meet production targets set
improves efficiency
>has exact materials, decrease halts in production, increases productivity
>exact materials= decrease in excess stock optimising resources
improve effectiveness
>ensures efficient materials to meet demand, increase customer satisfaction and sales
MRP adv
increase ability for OM to prepare operation systems for demand
increase efficient/effective as able to plan for levels of production
>no waste
allows OM to roster apropraite number of employees, decrease labour production costs
MRP DISADV
if inaccurate, raw materials aren’t avalia
