Aspects of Aspects of Materials Materials

ManagementManagement

Agenda §Codification of materials

§Standardization of materials

§Material handling

§Store management

Codification of MaterialsIt is also called as Identification of material

Useful in operation department

Record of each of the item

Proper stock-taking a good identification is of immense help

Proper codification of inventories item

Codification by Group Classification

What do we mean by coding For instance, 010237 inventory kind of gasket

E.g. classification of materials in an inventories Ø01-Raw materialØ02-purchase componentsØ03-spare partØ04-toolsØ05-other supplies

Codification by Group Classification

Based on ‘shape’ of itemsØ1….WireØ2….TubingØ3….RodØ4….BarØ5….SheetØ6….stripLike that the material of construction, Group of

classification, particular item code be codedNine digit code identify the finished product

Codification by Group Classification

Mnemonic Coding MethodØNumber and alphabet used ØE.g. SH 015 60 mean ‘ a shunt, 150 amps., 60 m V.’

Hybrid system of coding ØGroup classification and mnemonic codesØE.g. PI 1 1015 ‘pipe, Vinyl hosepipe, 10mm.ID*15mm ED.’

Characteristics of Good Coding System

ØFlexibility

ØPrecision

ØBrevity

ØComprehensiveness

Standardization of Materials

Codification helps in the standardization of item in the inventory

Reducing the variety of inventory to workable minimum

Standardization of materialsAdvantages

ØPurchase cost will be lower ØLess stocks need to be maintained for current

consumption as well as for safety stockØPaper work reduceØStreamlining the material planning process

Material HandlingImportant activityProblem link closely withIII. Number of item in the inventoryIV. Their locationV. The space availabilityVI. The layout of the store and production floor VII. The packaging or container require

Material HandlingConsideration of material handling procedureII. How much it loaded to be moved?III. Characteristic (physical, chemical) of item to be

handled?IV. Layout the store and production area?V. Store house for the production plan?VI. Existing material handling?VII.Different alternative material handling

equipment?VIII.Implementation of material handling equipment

either reduction or increase labor power?

Material HandlingMaterial handling equipment /accessories§ Hand truck

Material HandlingPulley blocks

Material HandlingRoller Conveyors

Standardization of Materials

Fork lift truck

Material HandlingOverhead electric cranes

III. Floor-controlledIV. Cab-controlled

Material HandlingBelt conveyors

Material Handling

Pneumatic or vacuum lift

Stores Management

Receiving and inspection II. checking III. Preparing documents

Issues

Stock records VIII.Daily detailIX. Stock at each locationX. Allocation of stock

Stores ManagementStores accounting(cost price, average price,

market price, standard price)

Storage arrangement

Stock taking

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