Basics of Logistics Chapter 2 PDF

Basics of Logistics Chapter 2 MATERIALS MANAGEMENT Dr. Maha Morssi MATERIALS MANAGEMENT  Materials Management is the process of management which co-ordinates, supervises and executes the tasks associated with the flow of materials to, through, and ou...

Basics of Logistics Chapter 2 MATERIALS MANAGEMENT Dr. Maha Morssi MATERIALS MANAGEMENT  Materials Management is the process of management which co-ordinates, supervises and executes the tasks associated with the flow of materials to, through, and out of an organization in an integrated fashion.  There is maximum utilization, conservation, elimination of wastes, and thus avoidance of unnecessary delays. Objectives of materials management  Economical procurement of materials  Issuance and timely distribution  Store accounting  Record keeping  Stores control  Looking at new supply sources  Development of Suppliers/ Vendors  Coordinating smooth flow of materials Materials Planning  This is a scientific technique of determining in advance, the requirements of raw materials, ancillary parts and components, spares, etc. given by the production programme.  The overall management planning and control system is a broad perspective within which material planning functions, and materials budgeting are an exercise translated in money terms for its effective functioning, control as well as execution.  The actual planning starts with the information gathered from the annual sales forecasts, production and general business forecast. Forecasts  Forecasts provide the means for satisfying locational needs, and the general business forecasts provide the means to estimate in advance the trends in prices, wages and costs of other services. Procurement of Materials  It provides the right materials, at the right price, of right quality and quantity at the right time and, from a right source.  Objectives of procurement: To maintain a continuous supply of materials to support production as well as the schedule Avoidance of duplication of purchases, wastes, obsolescence and delays Adopting proper standards of quality on the basis of suitability Procurement of materials at the lowest possible cost, at the same time ensuring that it is consistent with quality and service requirements Maintenance of the company’s competitive position in the market Material Handling and Storage Systems  Every operation in materials management involves the raising, lowering or moving an item, which is termed as materials handling. The management of materials handling activities brings about a host of specialty disciplines and responsibilities like mechanical, electrical, hydraulic means and electronic devices. Types of material handling equipments  Pallets: Specially designed platform, which is built to dimension to suit forklift operations. Types of material handling equipments  Forklift trucks: Move loads of master carton horizontally and vertically. The master cartons are stacked upon the pallet, which forms a platform. Types of material handling equipments  Cranes: These are power 􂀓 driven, self 􂀓 propelled units fitted with a boom mounted on a mobile chassis. Types of material handling equipments  Conveyors: These enable straightforward transportation as rehandling before each and every activity is eliminated. Types of material handling equipments  Elevators: Contains an endless chain or a belt which runs over two-- terminal pulleys or sprocket-- wheels fixed at different levels on a vertical plane. Types of material handling equipments  Tractors: Used as a substitute for forklift trucks, which are uneconomical for long distance movements. Types of material handling equipments  Twolines: Consist of either in-floor or overhead mounted drag devices and are used in combination with four-wheel trailers on a continuous power basis.  Containerization  Unifies a number of shipments, which then move as individual units. Used to handle bulk commodities as well as merchandise. Benefits include door-to-door shipment, reduced freight costs, higher labour productivity, lesser documentation, reduced warehousing costs, environmental control and better utilization of capital equipment. Material Storage Systems  The storage system in a warehouse has a key role to play in the total cost and the efficiency of warehouse operations.  Selecting a storage system for a specific application depends upon the following factors: - Nature of the product: Products, which have a higher risk of contamination, will have to be isolated from other product groups. For example hazardous chemicals can cause damage to other products. - Configuration: While uniform products may be stored in stacks or in an enclosure, products, which are in odd shapes and sizes, need more space. - Perishability: Perishable products are stacked in such a manner that consignments, which come in first, are distributed first. - Product variety: When a variety of products are stored together, there needs to be segregation for easy identification for storage and retrieval. THANK YOU