...AND MATERIAL MANAGEMENT TOPIC: WAREHOUSING AND STORES MANAGEMENT Presenter Sr. No. | NAMES | ROLL NO. | 1 | | | 2 | | | 3 | | | 4 | | | GROUP NO: 07 INTRODUCTION Receiving and storing are important flow control activities in the materials management chain. In industries, materials have to be stock to meet the consumption requirements during the lead time or during extension of lead time due to delays by suppliers or due to unexpected increase in the consumption rate. WARE HOUSING Ware housing is not the simple act of storing materials, but rather a package of services which enables the smooth flow of materials through the production department without causing stoppage of production due to shortage of materials. STORE MANAGEMENT Store keeping is a primarily a service function in which the store keeper acts as a custodian of all items carried in the store. Store management should aim at providing the service as efficiently as possible with minimum possible cost. Store keeping may be defined as a function of receiving, storing and issue of raw materials, bought-out parts and components, spare parts, tools, consumables, supplies and stationery items etc. to the user departments. FUNCTIONS OF STORE MANAGEMENT * To receive raw materials, components, tools, equipments and other items and account for them. * To provide adequate and proper storage and preservation of various kinds of materials. ...
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...NATURE OF RAW MATERIAL MANAGEMENT PROBLEM IN THE NIGERIAN MANUFACTURING SECTOR There are critical problems associated with raw material management in manufacturing organizations in Nigeria today. These are rarely given adequate attentions due to inability of people involved to trace the problems to raw material management. This writer had in an empirical study traced the following problems to inefficiency in raw material/inventory management in Nigeria: 1. The inefficient use of production time, labour and other resources due to delays or incessant short down and interruptions during production have become inherent part of operations in many manufacturing organization in Nigeria. This often led to inability to meet customers’ order and eventual loss of market shares. Low capacity utilization and loss of revenue as consequence of these problems led to closure of many manufacturing firms in the country. 2. The poor liquidity position of many manufacturing concerns in Nigeria is a matter of concern to many shareholders and stakeholders alike. To hold too much stock than necessary will lead to capital lock-up in inventory of raw materials. The materials held idle in stores have values attached to them; and the likelihood is that the organization will never regain the money in them if they become obsolete and useless. 3. In many manufacturing concerns in Nigeria, there is inadequate provision of good quality manpower in stock maintenance and material management. This is...
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...MATERIALS MANAGEMENT Importance of materials management :- 1. Materials input is very important as excess material as inventory causes costs to the company and shortage of material results into stoppage of conversion process and subsequently shortage of finished goods leading to customer dissatisfaction 2. Out of 5Ms, that are inputs to a conversion process, material is substantial in terms of its contribution to product cost, and current assets. 3. 51.1% of product cost is on account of materials. Hence the largest contributor to product cost. This marks out materials function as the largest potential avenue for productivity improvement. 4. Materials account for 70% to 80% of working capital. Effective and efficient management of materials can reduce substantial burden on the finances of company. 5. Accounts payable are mostly to materials suppliers. Hence the importance in management of finance of the company. 6. Quality of the Input and product quality: When the companies become leaner and leaner, it is crucial that inputs should remain in the plant only as long as the Through Put Time demands, and the output product should be Right First Time. The quality of inputs plays a vital role in this situation. 7. Management of materials is crucial in a Just In Time company. Production process needs very strong materials management support to gear up to face challenges of current market 8. Materials management provides information about availability of new...
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...1. Assignment: Developing Good Business Sense Due Day 7 (Sunday, 4/21), posted into your Assignments Link • Resources: Ch. 12 of Introduction to Business • Read the Developing Good Business Sense activity on p. 394 of the text. • Answer Questions 1–4 from the activity in a 700- to 1,050-word paper in APA format. • Post your paper as an attachment. Written Assignment Grading Form for Good Business Sense Paper, Due in Week Eight |Content and Development |Points Earned | |70 Points |XX/70 | | |Additional Comments: | |All key elements of the assignment are covered in a substantive way. | | |The paper answer Questions 1–4 from the Developing Good Business Sense activity on p.| | |394 of the text. | | |The paper is 700 to 1,050 words. | ...
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...Operations and Materials Management BUS/210 July 15, 2012 Operations and Materials Management The three companies I analyzed all work together to towards the same goal yet they all have different approaches to reach that goal. For my three companies I chose a sports team, a facility service company, and a food and beverage company. These are three entity’s which work in the same building; each co-existing with the other yet each having their own best interest at heart. The first company is a sports team; the main input for this business is employees. If this company does not secure the best players, marketing team and management team it will not succeed. Just like with any company there are always variables to consider about the products your company is selling to the public. This is no different for a sports team whose commodity is people. This company uses its product (the team) to promote and sell itself. The players have to have ability, market ability, and public appeal. The team has to be able to build up enough community support to keep them in business even when they are not winning. To accomplish this they must be very heavily involved with the community. This company relies heavily on their marketing team whose job is to promote and get as much exposure as possible for its players so people will come and purchase tickets to see them play. The next company is the company whose purpose it is to control the operations at the facility. This company also relies...
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...Material Management Proposal OPS/HC571 December 12, 2011 Christopher Kelley Material Management Proposal Material management department is typically responsible for directing the supply chain. Material management is an umbrella department that has many other functions (e.g., central store, laundry and linen operations, and sterile processing). The core purpose of material management is to direct and control the movements of goods in an efficient manner through a hospital system (Langabeer, 2008). This material management proposal document will elaborate on the role materials management plays within a hospital and the role of operations managers in this process. This document will further identify possible constraints a hospital may experience in its supply chain, the potential effects and justification on implementing a new collaborative planning process, and provide suggestions on how to manage a hospital supplied during a disaster. Role of Materials and Operations Management The role of materials and operations management plays within a hospital system is vital to the success of any health care organization. According to Langabeer (2008) material management controls significant resources and have total expenditures, or spending at 50% of a hospital budget. Materials management not only directs and controls the supply chain of a health care organization it is responsible for managing the flow of goods throughout the hospital and carry out supply and resource logistics...
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...Week 8 Developing Good Business Sense Assignment 67/75 92% A- | Operations and Material Management in Business | | Heidi Belieu | BUS/210 | Robert Shereda | 11/4/2012 | Developing Good Business Sense- Why Do Operating Systems Differ? Many people take the way goods and services are provided to them for granted. They do not think about the nature of the operating system that produces the goods and services they receive. To improve your understanding of how OMM processes work, complete the following assignment. 1. Choose three companies and observe how employees do their tasks. These can be three different fast-food restaurants or three entirely different types of companies, such as a fast-food restaurant, department store, or the emergency room of a hospital. 2. Think about the differences in the operations involved in the input, operations, and output stages of these companies. Try to identify the nature of their operating systems. Are employees organized in different ways? If so, why? If possible, talk to the managers and employees in these operations to further your analysis. 3. What are the main kinds of OMM costs companies have? How does this affect their OMM operations? 4. How do companies design their operating systems to give them a competitive advantage? Operations and Material Management in Business | I will establish the differences in the operations involved in the input, operations, and output stages of three local businesses that I access almost...
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...TEN WAYS TO IMPROVE INVENTORY MANAGEMENT CFOs and other senior executives already know the importance of inventory management. And yet even the most attentive managers often find it difficult to get it right. In our work with clients, we've found that decision makers often rely on external benchmarks that seldom deliver expected insights. And they make operating assumptions that send them down the wrong path. Two of the classic misconceptions: improving the accuracy of sales forecasts is the best way to reduce inventory and beefing up customer service requires keeping more inventory on hand. The fact is, both assumptions can lead to inventory gluts or shortages. As most executives know, getting the right levels is vital since it not only controls costs but also serves as a barometer of a company's overall health. We've found that best in class supply organizations are able to improve inventory levels by between 20 percent and 50 percent by employing sophisticated analytical tools, resulting in savings for years. We typically ask clients 10 questions that take the pulse of a company's inventory health. They are designed to assess the effectiveness of inventory reduction processes as well as the sophistication and breadth of those efforts. Taking an Inventory Pulse Check 1) Are you able to break down your operating inventory into the three major categories when reporting levels—safety, replenishment and excess or obsolete stock? This breakdown makes it easier to make sound decisions...
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...manufacturing company. This company uses raw materials, such as carbon powder, iron, ash, and resin. It wants to develop an inventory management system that will have the following features: The system should store the current inventory levels for different raw materials in a file. If carbon powder is less than 500 lbs, then the system will check if orders are still pending on the shop floor. If pending orders are for more than 5,000 brake pads, then someone should order 2,000 lbs of carbon powder; otherwise, someone should order for 1,000 lbs of carbon powder. Similarly, perform the same check for other raw materials iron, ash, and resin. The list of all the raw-material vendors is available with Shemrock Inc. The system should read and store the vendor information and then, depending upon the raw material that is to be ordered, print out the purchase order for that raw material. The purchase order will contain the details of the raw material such as the name, quantity, total cost, and vendor address. Create a flowchart and pseudocode using control breaks that enable the user to print invoices for any raw material that is selected. submit a document containing the flowchart and the pseudocode Explain how you implemented the system and describe the logic steps of the system. follow the link given below to view Solution http://goo.gl/P1vAM Shemrock Inc. is a brake pad manufacturing company. This company uses raw materials, such as carbon powder, iron, ash...
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...INTRODUCTION In October 2005, top management of Southern Recreational Vehicle Company of St. Louis, Missouri, announced to relocate its manufacturing and assembly operations by constructing a new plant in Ridgecrest, Mississippi. The firm, a major producer of pickup campers and camper trailers, had experienced 5 consecutive years of declining profits due to production costs. The costs of labor and raw materials had increased alarmingly, utility costs had gone up sharply , and taxes and transportation expenses had steadily climbed upward. In spite of increased sales, the company suffered its first net loss since operations were begun in 1982. When management initially considered relocation, it closely scrutinized several geographic areas. The importance to the relocation decision were the availability of adequate transportation facilities, state and municipal tax structures, an adequate labor supply, positive community attitudes, reasonable site costs, and financial inducements. The management of Southern Recreational Vehicle Company was impressed by the efforts of the Mississippi Power and Light Company to attract “clean, labor-intensive” industry. Two weeks prior to the announcement, management of Southern Recreational Vehicle Company finalized its location plans. An existing building in Ridgecrest’s park was selected; initial recruiting was begun through the state employment office; and to lease or sell the St. Louis property were initiated . Among the inducements...
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...assets increased up to P12M as of 1983 which consisted of a dozen vehicles, a few pieces of real estate in the Central Luzon Region, an office, a modest amount of inventory and cash. The company’s product line started with pressed tablets, capsules, and some syrups. When the American principal does business with the company it leads them to become the leading inventor of raw materials in the country. David, himself was able to recover the mismanagement of the company under Rafael Buenaventura. In 1988, the American principal offered his plans to David of GPC engaging in the contract manufacturing of pharmaceutical products for both domestic and export markets. The proposed project was to compound locally all products that it will manufacture and sell, importing only the active ingredients and bulk materials that is unable to produce locally. Heavy locally available raw materials, health foods, fibers, food supplements, and other over-the-counter products. GPC was also reorganized in 1988 and it has several divisions; pharmaceutical distribution division, Agrovet Division, Cosmetics Division, Raw Materials Indenting Division, and contract manufacturing division. The...
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...– 09902787224 MATERIALS MANAGEMENT 1. What do you understand from integrated materials management? What are the obstacles encountered to make this approach effective? 2. Name the industry and the products for which materials requirement planning technique would be suitable than economic order quantities and explain why? 3. What do you understand from Materials Requirement Planning (MRP)? What are its advantages over conventional tools of inventory planning? Which types of industries have use of this technique ? 4. Why should purchase department participate in product development ? Explain to what extent it is practiced in Indian Industry ? 5. Describe the procedure to be followed for the purchase of an item until payment of the bill. Indicate the controls involved. 6. What are blanket orders ? What are their salient features ? For what type of items is this method of buying suitable ? 7. How will you organize buying of seasonal commodities? Explain giving examples ? 8. How does “Buying under risk” differ from “Buying under uncertainty” ? Give a comparative analysis of the two methods ? 9. What are the responsibilities of receiving stores ? What are the different types of materials received in the organization ? 10. What is pallet ? What are the different types of pallets used in the industry? Describe in brief the advantages of palletisation ? 11. Define logistics management. Explain briefly the benefits that can accrue...
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...face value of the coins being produced. In order to follow that unique cost ceiling, the researchers follow the concept of simultaneous design by being involved in initiatives to improve materials being used in both coins and dies. Then due to high inflation rate, the face value of the coin is exceeding the cost base of the raw material and with the help of using the concept of simultaneous design, the Royal Mint quickly mitigated the risk by changing the composition of the 2 Pound and 1 Pound coins to a steal core with an electroplated copper outer layer and has significantly reduced the unit cost and it added expected lifetime by using a less expensive metal base. II. Background The Royal Mint has a cost ceiling that the cost base of the material must be less than the face value of the coin being produced. In order to follow that unique cost ceiling, the Royal Mint implemented the Concept of Simultaneous Design to research on how to further improve the materials being used by both coin and die to extend its period of use and to mitigate the risk of high inflation rate of the raw materials. III. Key Problem Based on our findings, we found out that the Royal Mint is a “Asset-Intensive Business” because the minting industry requires a lot of assets like money, raw materials, and equipment to operate. Also, the Royal Mint can be...
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...Week 8 Knowledge Check Study Guide Concepts Mastery Operations and Material Score: 25 / 25 Questions 100% 1 2 25 100% 3 4 5 100% 6 7 8 Industry Standards 100% 9 10 E-commerce Systems 100% 12 13 14 100% 15 23 24 100% 16 17 18 Management Costs Three Types of Operating Systems Three Stage Process of Operation Material Management Efficiency and Effectiveness Effects on Profitability 11 Competitive Advantage 100% 19 20 21 22 Concept: Operations and Material Management Costs Mastery 100% Questions 1 2 25 1. Which of the following costs is associated with a firm’s operations and materials management function? A. The cost of the machinery, computers, tools, buildings, and equipment B. The cost of employee wages, including benefits C. The cost of work-in-process goods, semifinished products moving through the production process D. The stock value of finished products a company holds in inventory Correct: The Correct Answer is: A. “A firm’s materials management function is responsible for finding companies that supply high quality, low-cost raw materials and components” such as machinery, computers, tools, buildings, and equipment (Jones, 2007, p. 378). 2. According to Jones (2007), the semifinished goods and services that go through a company’s production process are called A. conversion ...
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...Advanced Variance Analysis: Calculation and Interpretation Subject: Professional 1 Strategic Management Accounting. Variance analysis is examinable both at Formation 2 (Management Accounting) and at Professional 1 (Strategic Management Accounting) levels. One main difference in syllabus between the two papers is that the Professional 1 (Strategic Management Accounting) syllabus includes ‘advanced’ variances, as follows: • • • • Materials mix & materials yield variances; Sales mix & sales quantity variances; Planning & operational variances; Market share & market size variances. Two issues which students need to master in order to score well in a question on advanced variance analysis are: 1. Accurate knowledge of the formulas. In my experience, examination candidates are much more likely to remember the formulas correctly if they understand the relationship between ‘advanced’ variances and ‘basic’ variances. Therefore, this will guide my approach to the examples in this article. 2. Ability to write a good quality narrative interpretation of the causes of the variances. The golden rule here is that it is not adequate to explain each variance in isolation. Thus, it is not enough to write (for example) ‘this company had an unfavourable market size variance because its actual market share was less than its budgeted market share’. You need to explain the apparent reasons why their actual market share was less than their budget market share, and...
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