1. iLearningCampus.com Understanding by doing and learning by talking

2. iLearningCampus.com Understanding by doing and learning by talking Material Management Overview

3. iLearningCampus.com Understanding by doing and learning by talking ■ Enjoy the complete series ■ Understand the Concepts ■ Take notes ► Have a Good Time !!

4. iLearningCampus.com Understanding by doing and learning by talking ►Material Management Overview Chapter 1

5. iLearningCampus.com Understanding by doing and learning by talking Chapter 1 ►Material Management Overview

6. iLearningCampus.com Understanding by doing and learning by talking Material Management ? ǂ Material Management is an end to end (E2E) scientific technique of planning, organizing and control of flow of materials from its purchase to final destination.

7. iLearningCampus.com Understanding by doing and learning by talking Water Tank Analogy Supply Rate Inventory Level Demand Rate Material Management

8. iLearningCampus.com Understanding by doing and learning by talking Aim of Material Management ■ Right source ■ Right Price ■ Right quantity ■ Right quality ■ Right time ■ Right place Right things at the Right time with Right control and procedure Maximizes economics in purchasing, production process and customer satisfaction

9. iLearningCampus.com Understanding by doing and learning by talking Purpose of Material Management ■ Maximizing Customer service. ■ Maximizing efficiency of purchasing and production. ■ Maximizing Inventory investment. ■ Maximizing profits.

10. iLearningCampus.com Understanding by doing and learning by talking Functions of Material Management ■ Material Planning ■ Material Sourcing ■ Transportation and material handling ■ Inspection and quality control ■ Codification ■ Storekeeping and warehousing ■ Standardization and evaluation of all products ■ Cost reduction through value analysis ■ Disposal of surplus/obsolete material ■ Distribution

11. iLearningCampus.com Understanding by doing and learning by talking Objectives of Material Management ■ Primary Objective ■ Secondary Objective ■ Efficient use of Working Capital ■ Economy of purchase ■ Lowering storage cost ■ Lowering inventory investment ■ Increasing the inventory turnover ■ Responding the market changes ■ Providing best services to the customers ■ Better supplier relationship ■ Good information system ■ Continuity of supply ■ Consistency in quality ■ Right price ■ Planning and forecasting ■ Make or buy decisions ■ New materials and products ■ Standardization ■ Product improvement ■ Inter-departmental harmony

12. iLearningCampus.com Understanding by doing and learning by talking Chapter 1 ►Material Management Overview

13. iLearningCampus.com Understanding by doing and learning by talking Overview - Procurement ► Procurement is a process of purchasing the material and/or services. ► It is executed through an agreement between a purchasing organization and the sourcing vendor. ► The terms of supply e.g. date of delivery, payment terms are agreed as per agreement.

14. iLearningCampus.com Understanding by doing and learning by talking Procurement business process Cycle

15. iLearningCampus.com Understanding by doing and learning by talking Request for quotation Purchase requisition Purchase Order Goods received Invoice verification Payment 7 Procure to Pay (P2P) business process cycle Quotation Outline agreement 6 8

16. iLearningCampus.com Understanding by doing and learning by talking Team – iLearning Campus