Material Management: What's Exactly It is, It's Objectives and Characteristics? Unleash Your Know how to Succeed in Practical Applications in Industry!

Abstract

‘Materials Management’ is a term used to connote “controlling the kind, amount, location, movement and timing of various commodities used in production by industrial enterprises”.

Materials Management is the planning, directing, controlling and coordinating those activities which are concerned with materials and inventory requirements, from the point of their inception to their introduction into the manufacturing process.It begins with the determination of materials quality and quantity and ends with its issuance to production to meet customer’s demand as per schedule and at the lowest cost.

Materials Management deals with controlling and regulating the flow of material in relation to changes in variables like demand, prices, availability, quality, delivery schedules etc.

Thus, material management is an important function of an organisation covering various aspects of the input process, i.e., it deals with raw materials, procurement of machines and other equipment necessary for the production process and spare parts for the maintenance of the plant. Thus in a production process materials management can be considered as a preliminary to transformation process.

It involves planning and programming for the procurement of material and capital goods of desired quality and specification at reasonable price and at the required time.

It is also concerned with market exploration for the items to be purchased to have up-to -date information, stores and stock control, inspection of the material received in the enterprise, transportation and material handling operations related to materials and many other functions. In the words of Bethel, “Its responsibility ends when the correct finished product in proper condition and quantity passes to the consumer.”

Material Management

Definitions:

“Materials management is the planning, directing, controlling and coordination of all those activities concerned with inventory and materials requirements from the point of their inception to their introduction into the manufacturing process.” By L.J.D.Bose.

“Materials management is the function responsible for the coordination of planning, sourcing, moving, storing and controlling of planning, sourcing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost.”

Materials management is the integrated functioning of the various sections of an organisation dealing with the supply of materials and allied activities in order to achieve maximum coordination.” By N.K.Nair.

Objectives of Materials Management:

Materials management contributes to survival and profits of an enterprise by providing an adequate supply of materials at the lowest possible costs.

The fundamental objectives of materials management activities can be:

(i) Material Selection: Correct specification of material and components is determined. Also the material requirements in agreement with the sales programme are assessed. This can be done by analysing the requisition order of the buying department. With this standardisation one may have lower costs and the task of procurement, replacement etc. may be easier.

(ii) Low operating costs: It should endeavour to keep the operating costs low and increase the profits without making any concessions in quality.

(iii) Receiving and controlling material safely and in good condition.

(iv) Issue material upon receipt of appropriate authority.

(v) Identification of surplus stocks and taking appropriate measures to produce it.

Characteristics of Material Management:

1. Functions of Industrial Management

Materials Management is an important function of industrial management. It is difficult to anticipate smooth functioning of industrial management without proper arrangements for raw materials, components and supplies.

2. Specific Process of Management

Materials Management is one of the important processes of managing. Under this process, planning, organising, direction and control are undertaken for the proper use of materials.

3. Integrated Approach

Materials Management is an integrated system. It is not physical, it is also human, social and cultural. It involves producers, consumers, suppliers, technologists and the government.

4. Wide Process

According to P.R. Gokarn, “ Materials management covers the whole range of functions involved in converting raw materials and ancillary supplies into finished products.”

In its field purchasing, materials handling, warehousing, external and internal transportation, management and control of inventories are included.

5. Universal Function

Materials Management is universal in all manufacturing activities. It is concerned with all departments of a manufacturing organisation.

6. Object

The basic goal of materials management is to obtain materials at the lowest possible price with good quality and continuity of supply. It also coordinates towards common goals of the organisation.

7. Optimum Use

Materials Management emphasises on the optimus use of material and supply of required materials at the proper time.

8. Regulations of Material Cycle

Materials Management provides a basis to the materials cycle. It is considered to be regularised and balanced when the institution is able to obtain required materials at minimum cost.

9. ‘Specialist’ Function

Materials Management is the staff function. Responsibilities of proper supply of materials are entrusted to specialists.

10. Art and Science

Materials Management is an art as well as science. It is science because under it a variety of mathematical and statistical techniques and computers are widely used. But these tools are used on the basis of experience and applied knowledge. Hence, it is art too.

Conclusions

Materials management works within the supply chain to ensure that a company can predict and fulfill its material requirements. Among the objectives of materials management are to purchase goods and services at an appropriate time, at the right quality and quantity, at the best price, and from an appropriate source.

Functions of Material Management

• Material Planning and Control.
• Purchasing.
• Stores Management.
• Inventory Control or Management.
• Standardization.
• Simplification.
• Value Analysis.
• Ergonomics.

References 

Materials and Logistics Management by L. C. Jhamb

Handbook Of Materials Management by Gopalkrishnan

Introduction To Materials Management reference book by Tony Arnold

Materials & Logistics Management reference book By Dr. Kasande

Materials Management: Procedures, Text & Cases by A. K. Datta

Purchasing & Materials Management by Gopalakrishnan

Materials and Logistics Management reference book by 

Saroj Kumar