Material Management

MATERIAL MANAGEMENT

Material managament

is  a coordinating function responsible for planning and controlling material flow. Its objectives are as follows :

1. Maximize the use of the firm’s resources.    
2. Provide the required level of customer service.

The cycle of material management :

Resource Extraction
is a Choosing raw materials for the production process

Material Processing

The process of extracting to provide raw materials for the production process.

Product, Design, and manufacturing

Use a 4w + 1 h :         

What (What kind of stuff that will be made)

When (When in the production of goods will)

Who (who will Produced)

Where (where the goods will be produced)

How (How many in the production of goods will)

Distribution and Retail

The activities involved in moving goods, beginning of the production proses, and the end of the production process to the customer. the actifity involved are as follows transportation,distribution inventory, warehousing, packaging, material handling, order entry.

Purchase and use

The stages in which the customer purchase and use of a product.

Production Planning System

A system of planning using various processes, a machine, equipment, skill labor and materials to produce a product. there are five major levels in production planning system :

1. strategic business plan
2. production plan (sales operations plan)
3. master production schedule
4. master requirements plan
5. puchasing and production actifity control

Material Requirements Planning

Is a planning activities of a material to all components and raw material  when needed according to the timetable primary production. the activity in material Requirements Planning :

• Master production schedule
• Incentory records
• Bill of Material

Manufacturing Just in time

Eliminate or dispose of all the waste and make continuous improvements to the productivity.its purpose is to provide added value to the user, providing it with the number of components at the right time and place.

Economic Order Quantitiy (EOQ)

Is the quantitiy order of the most economical to purchase carried out on each time a purchase in order to effectively and efficiently in production costs and storage.eoq is very important because when booking/purchase should be made and how much the amount that must be requested in order to be effective and cost efficient.