Objectives of materials management, Project Management

Assignment Help:

Objectives  of Materials Management:

1. Low  prices: Obtaining  the least possible  price  for purchased materials is the  most  obvious  purchasing  objectives and certainly one of the most important. If  the purchasing  department reduces the prices of the items  it buys  operating  costs  are reduced and profits  are enhanced.

2. High  Inventory  Turnover: When inventories are low in relation to  sales  less capital  is tied up  in inventories. This in turn  increases the efficiency with which  the company  capital  is utilized so  that  return on investments is  higher.

3. Low  cost  Acquisition and Possession: If  materials are handled and stored  efficiently  their  real cost is  lower. Acquisition  and possession  costs  are low  when  the receiving  and stores  departments  operate  efficiently.

4. Continuity of Supply : When  there are disruptions   in the  continuity of supply excess costs  are inevitable.  Production  costs go up excess expediting and transportation  costs  are likely  and  so on.  Continuity of supply is particularly important for highly automated processes where costs  are rigid and must  be incurred even when production stops  because of unavailability  of materials.

5. Consistency of Quality: As pointed  out earlier quality of the end  product depends  on materials  that go  into it  when materials purchases are homogeneous and in  primitive stage( e, g, sand  and gravel) quality is rarely a problem  for purchases  personnel.

6. Low  Payroll Costs :The objective of low payroll costs is  common  to every  organization. The  lower  the payroll  the higher the profits all other factors being equal. But  because  no department can do  its job without  a payroll  the objective of low payroll must be  viewed in its  proper  perspective.

7. Favourable Supplier Relationship :Maintaining  cordial  relations with  suppliers  benefits  the  buying company  in more  than one  way. In the first  place  a company with  good reputation in  supplier  relations is more likely  to attract customers  than the one  with a bad name. Secondly the product  development  and research  efforts  of suppliers are passed  on the  company  provided the latter  maintains good  relations with the  former.

8. Development of Personnel: If  you want  to plan for  year plant corn. If  you want to plan  for 30 years plant  a tree. But  if you want  to plan  to  for 100 years plant  men. So  goes  a Chinese proverb.  Every head  of every department should  understand this saying and take personnel  interest in  developing  the personnel working  under him.

9. Good Records: Good  records are considered a primary objective  of materials  management: particularly in the  procurement phase of the materials management. Buyers spend  company  money and can be  subjected to tremendous temptation.  Although perhaps 99%  of all buyers are above  corruption, the opportunity does exist. Good  recurs along with  well planned  administrative controls and periodic audits can  discourage corruption.


Related Discussions:- Objectives of materials management

Write short notes on earned value method, 1 Write short notes on Earned Val...

1 Write short notes on Earned Value Method (EVM) 2 What are the common features available in PM software packages? 3 A project should earn sufficient return on the investment

Describe the key characteristics of a good project, Question 1: a. How...

Question 1: a. How would you define a project? What are the different types of project that exist? (Please illustrate using a model with examples). b. Enumerate and descri

Manufacturer''s promotional activity, Explain how a manufacturer's promotio...

Explain how a manufacturer's promotional activity might vary depending upon the sort of distribution channel that operates. Distribution includes getting the right products to

Perform a status assessment of the project iteration, Perform a status asse...

Perform a status assessment of the first project iteration (IIP1). DO NOT GENERALISE. Assess each activity separately and specifically against the intended outcome stated in the it

Describe the major stages of hearts and minds programme, You should design ...

You should design a ‘hearts and minds’ programme associated with the implementation of a modern system for the recording and management of stock within a book-publishing company an

Result of management project to prevent false expectations, What would be t...

What would be the result of management project to prevent the development of false expectations? Into the initiation phase, the project management partners enter a temporary co

What is quality system , Quality System  The basis of our Quality System...

Quality System  The basis of our Quality System is the industry standards/ best practices and the guidance of the ISO 9001:2008 requirements. This ensures that both quality and

How to measures re-work for the product, Re-work effort (hours, as a percen...

Re-work effort (hours, as a percentage of the creative coding hours) Re-worked LOC (source lines of code, as a fraction of the total delivered LOC) Re-worked software compone

Risk management in the tqm framework, Risk Management  in the TQM Framewor...

Risk Management  in the TQM Framework   Total  Quality Management (TQM) is one of the widely used project management technique or approach. TQM mainly concentrates on process m

Tools and techniques of layout planning - templates, Tools and Techniques o...

Tools and Techniques of Layout Planning - Templates Templates are most commonly employed when preparing layouts. Templates are two dimensional (2D) or block templates consist

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd