What's the Characteristics of Material Management? Make JIT Decision in Cognizance to Characteristics!

Abstract:

Materials management is a critical component of the supply chain. At its core, materials management is responsible for ensuring that materials are available at the right place, at the right time, and in the right quantity. This is no small task, and it requires a range of processes, systems, and people to get right. 

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.

Keywords

Characteristics of Material Management, Industrial Management, Material Cycle, Integrated Approach

Learning Outcomes 

After undergoing this article you will be able to understand the following:

Characteristics of Material Management

1. Functions of Industrial Management

2. Specific Process of Management

3. Integrated Approach

4. Wide Process

5. Universal Function

6. Object

7. Optimum Use

8. Regulations of Material Cycle

9. ‘Specialist’ Function

10. Art and Science

An Introduction to Characteristics of Material Management:

The five primary objectives are:

Right time: 

Obtaining materials at the right time to meet supplier and production demand is crucial for any organisation. Ensuring the availability of materials at the right time can reduce inventory-related risks.

Right material: 

This process also aims to procure the right materials at the necessary time. Having the right materials may result in a better quality of finished products and higher profits.

Right amount: 

Procuring goods in sufficient quantity can reduce unnecessary costs related to storage and organisation. The material can meet the demand and at the same time, reduce excessive stock holding.

Right price: 

Securing materials at a reasonable and affordable price is another key objective. Minimising procurement costs is an effective way to increase the profits of an organisation.

Right sources: 

It is important to procure materials from the right source for achieving consistent results. The right source can be a vendor or supplier who delivers the desired quality and quantity of materials at the right price.

The characteristics of material based on the objectives to be met are as follows:

Purchasing

Transportation

Quality control

Cost

JIT inventory management

Standardization

Supply chain management

Value analysis

Good supplier relations

Material handling

Materials management

Cost optimization

Distribution

Inventory control

Material planning

Storage

Inventory optimization

Stores management

Disposal management

Inventory management

Material Appraisal

Material supply chain

Planning

Procurement

By awareness of true character of material, it is easy to do the tasks like

Continuous improvement is critical to the success of materials management, and organizations should regularly review their processes and make changes to improve efficiency.

Materials management can help organizations reduce costs, improve customer satisfaction, and enhance their competitive advantage

The Characteristics of Material Management are explained briefly below:

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:

The functions of materials management are critical to the success of any organization that relies on a complex supply chain. By managing the flow of materials, optimizing materials logistics processes, and working closely with other functions within the organization, materials managers can ensure that materials are available when and where they are needed. 

Therefore it is important to know the characteristics of material management.

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