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It is the scientific way of determining the

requirements of
rawmaterials,components,spares,and other
items that go into meeting the production
needs within economic investment.








If the material has to be purchased in a scientific

manner.

Proper planning helps in purchasing of right qty and

quality.

Proper material planning leads to optimum use of

resources

Effective material planning is nescessary for efficent

material planning mgmt.
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c
 items are required?

‘

 are required?

c  are they required?
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rvoid crisis management.

Works proactively.

Provides effective steps for manufacturing, purchasing

and delivering activities.

Helps to know the prices and cost.

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an generate output problems.

Time consuming and costly.

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Ô. Seasonality Ô. Price trends
2. Working capital 2. Import policy
3. Dilegation of powers 3. redit policy
4. ommunication 4. Demand for items
systems 5. Direct and indirect
5. orporate objectives taxes
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onstraints regarding import policy of

government, foreign exchange, credit
availibilty.

Sales forecast become less reliable

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plan which products are to be produced and in what

quantities and ensure that they are able to meet
current and future customer demand

omputerisation is very nescessary as it saves time and

effort.

over the lead time anticipated.

 
 
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How much is required at a time.

When the quantities are required to meet demand.

Shelf life of stored materials.

Inventory status records.

Bills of materials.

Planning Data.
?



Schedule showing how much material will be required

for production and how much material must be
bought to meet this production requirement. The
purchase depends on both expected usage of materials
and inventory levels.






It helps the material management department to
plan its purchases.(long term, short term)

It helps in understanding the controllable and
uncontrollable elements that cause budget
variance.

ash for procuring materials can be clearly
projected. (year or month )
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It makes use of supplementary data

which adjust variable cost in
accordance with the production levels
actually experienced.
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Estimation of coming prices

Plans for a specific timing of purchases.

Inventory investment and associated risk can be

reduced.

Provides maximum purchasing lead time.

Reduction in expediting cost and purchase work load

Suppliers relationship can be improved.

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?aterial control is a systematic control over the

purchasing storing and using of material to
minimizing the possible cost. In every manufacturing
concern materials constitute an important factor of
production. It is an important element of cost &
covering 60-70 percent of the total cost of the
production.




 

Regular supply of material

No possibility of overstocking and under stocking

?inimum Wastage

Getting material at reasonable prices

  

 



|ead the ?aterials (Purchasing, Warehousing,

Dispatch) and Planning Departments

Develop and implement supply chain strategies

Ensure continuity of material supply

|ooks after quality or timing issues on orders.

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?aterial control cycle comprises of all of those

procedures which are necessary for the provision of
materials for manufacturing process with a minimum
investment and at lowest cost possible
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Determining needs

Preparing requisitions

Receiving purchased material and finished parts

Inspecting and delivering the materials

Entering receipts in records

issuing for production

Recording the issue in records

Entry of Receiving and issuing transactions

 

-?anufacturing organizations, whatever their

products, face the same daily practical problem -
that customers want products to be available in a
shorter time than it takes to make them. This
means that some level of planning is required.-

ompanies need to control the types and

quantities of materials they purchase, plan which
products are to be produced and in what quantities
and ensure that they are able to meet current and
future customer demand, all at the lowest possible
cost. ?aking a bad decision in any of these areas
will make the company lose money