10OBJECTIVES Materials Management- basic introduction Materials Management- importanceMaterials Management- various functionsMaterials Management- hospital operationsMaterials Management & SCMMaterials Management & ITRole of Physician in Materials ManagementSupply chain managersInventory Management & SCM
11Introduction Materials Management is a basic part of any organization. Life blood of any manufacturing or service organization.In India known as an Integrated Activity.Plays a vital role in developing our economy.Requires time-to-time controlling.Lions share in the total cost of a product.
12Evolution In olden days, materials are taken for granted. By the end of 1950s, the concept of materials function became important.Recognized as separate department from past 40 to 45 years.Indian industry realized its importance from 1970s.
13Hospitals Materials are defined as the equipment, apparatus and supplies procured, stocked and utilized by an organization.Management means bringing together the available resources so as to achieve a specific objective.Hospitals Materials Management is the art and science of planning, organizing and controlling the flow of materials from their initial purchase, internal operations to the distribution at the service points.
14DefinitionAccording to IFPMM, Materials Management is defined as a total concept of any organizational structure whose core responsibility is to maintain systematic flow and control of materials from identification of the needs through customer delivery.
15Scope Starts with planning and purchasing. Ends with social responsibility of customers.Effects ROI & profitability.
201 Primary Functions Material Planning & Control Purchasing Storing & Stock KeepingInventory
21Material Planning & Control Basic interrelated managerial functions.Known as Siamese twins.Planning is pre-operational activity.Control is post-operational activity.P&C is based on sales forecast and production plans.
22DefinitionMaterials Planning and Control is a scientific technique of determining in advance the various requirements of materials, spares, equipments, etc as directed by the production programme.
23PurchasingPurchasing is defined as the act or process of buying or exchange of goods and services.
24Stores & Stock Management The stores and stock management comprises of all activities of carrying inventories of all goods handled by any organization ensuring optimal supply and customer service.
25Inventory ControlInventory is defined as those goods which are procured, stored and used for the day-to-day functioning of any organization.
26Secondary Functions Quality of materials. Delivery and storage. Transportation and handling of materials.Control of wastage.Disposal of surplus, obsolete and scrap material.
27Materials Management & Hospitals Objectives Survival & Growth.Maximum service to customers.Advancement to employees.Technological lead over the competitors.
28Integrated Concept What do you know about materials management? What is Rheochrematics?What is integration and interrelation?What is the main reason?
29Advantages of Concept Better Accountability. Better Coordination. Better Performance.Adaptability to Programming.
30Benefits of ConceptReliable and accurate performance for desired results.Strict adherence to plans and schedules.Timely and optimum materials procurement.Optimum inventory turnover.Good vendor-vendee relations.
31Materials Manager’s Decisions Reduce lead time.Informing suppliers.Contract with suppliers.Maintaining multiple suppliers.Control access to storage areas.Dispose of inactive stock.
38InventoryInventory is defined as the materials and supplies that a business or institution carries either for sale or to provide inputs or supplies to the production process.(OR)Inventories are known as the stock of materials of any kind stored for future use, mainly in the production process.
39Purpose To facilitate production operations. To help during the lead time.To act as a precautionary measure.To meet various contingencies.
40Inventory ManagementInventory Management is defined as the planning and designing of procedures to maintain an optimum level of the idle sources for a predetermined service level.
41Objectives Maximum customer service. To reduce the financial investment.Operating Efficiency.Minimum Inventory Investment.
42General Classification Based on functionsBased on usage
43Function Based Lot size inventory Fluctuation inventory Anticipation inventoryTransportation inventory
44Usage Based Raw materials Work-in-progress Finished goods Consumables Packaging materialsSpare parts