Materials Management is the strategy that manages the use, storage and delivery of materials to ensure that the right amounts of inputs are available when required by the operations manager. It involves the planning, organizing and controlling of an organisation’s materials.
The process of materials management includes:
Inventory is the goods and materials held as stock by an organisation.
A Production plan is an outline of the activities undertaken to combine resources or inputs to create goods or services, which is the output.
A Master production schedule is the first stage to be undertaken in materials planning. It details what is to be produced and when. A Master Production Schedule should include:
This is followed by a Materials requirements plan. This involves developing an itemized list of all materials involved in production to meet the specified orders. A Materials Requirement Plan should include:
Inventory Control ensures that costs are minimized and that the operations system has access to the right amounts of inputs when required.
Just In Time Approach is a materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in the operations process.
Movements of inputs from suppliers to an operation system are referred to as a supply chain. It is important for an organisation to have a structured and effective supply chain to be successful.
Producers should, where possible, know their suppliers personally and develop mutual trust. Producers should also be aware of or have back up suppliers in the event that the current supplier is not able to provide what is needed by the organisation.
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