MATERIAL MANAGEMENT

Name    : Gita Arbiana

Class     : D3-MLM (a)

NIM       : 223411022

SUMMARY

Management material

Ø   Materials Management manages some critical functions of an organisation, which include materials procurement or purchase order processing, inventory control, materials valuation and sub-contracting.

Materials, is one of the five factors of production which has characteristics such as: 

Ø  Needs are not certain; 

Ø  It determines the smoothness of the production process; 

Ø  The existence and non-existence / disadvantages accruing costs; 

Ø  Has the highest percentage in the Balance Sheet; 

Therefore, the supply of materials requires planning, control and systematic management so as to support the smooth production with efficient cost management.

Things that need to be considered in material management :

1. Material Supply Strategy 
2. Prime and Filling Needs Return Material Supplies 
3. General Material Control and Parts (spare parts)
4. Planning Needs Overhaul
5. Cost of Materials Management
6. Timely Inventory Control (Just in Time)
7. Supplies Safety (Safety Stock)
8. Material Requirements Planning
9. Distribution Requirements Planning
10. Inventory Surplus and Supplies Off
11. Standardization and Codification
12. Forecasting (forecasting)
13. Benchmark Performance Materials Management

PURPOSE OF MATERIAL MANAGEMENT :

•      To gain economy in purchasing

•      To satisfy the demand during period of replenishment

•      To carry reserve stock to avoid stock out

•      To stabilize fluctuations in consumption

•      To provide reasonable level of client services

Economy in material management

·         Containing the costs

·         Instilling efficiency in all activiti

Four basic needs Material management :
           

            1. To have sufficient material on hand when needed 
            2. To pay the price as low as possible, consistent and requirements withquality purchasesmaterials value? 
            3. To minimize inventory investment 
            4. To operate efficiently 

Basic principles of material management :

Ø  Effective management & supervisionIt depends on managerial functions of 

o   Planning

o   Organizing

o   Staffing

o   Directing

o   Controlling

o   Reporting

o   Budgeting

Elements of material management :

•Demand estimation

•Identify the needed items

•Calculate from the trends in Consumption during last2 years.

•Review with resource constraints

Functional areas of material management :

1. Purchasing

2. Central service supply

3. Central stores

4. The print shops

5. The pharmacy

6. Dietary& Linen services

Functions in Material Management: 

 In addition to functions related to the purchase and sale transactions, there are several useful functions for material transactions, such as:

1. Physical Inventory

2. Production / Assembly,.
3. Inventory Valuation,
4. Inventory Move
5. Replenishmen

Reports Material Management reports?

Despite the reports that you can create your own, there are some reports that are available for material management, such as:

1. Transaction Detail
2. Product Transaction Value
3. Product Transaction Summary
4. Replenish Report
5. Product Co