Management In A Manufacturing Company

CHAPTER IWO
LITERATURE REVIEW
2.1    Concept of Material Management
According to Apic dictionary material management means the grouping of management functions supporting the complete cycle of material flow from the purchase awl internal control of production, material is to the planning and control of work in process to the warehousing slipping and distribution of the finished products. The core of this concept is “material flow. This material flow has 3 phases upstream physical supply from the purchase, internal flow planning & control work in process and downstream flow the distribution of finished product.
Authors have attempted to define the word material management among them are Bret (2002) defines it as the line of responsibility which begins with the selection of suppliers and ends when the material is delivered to its point of used:-    Integrated authors of material management carter R. I. (2005) sees it us a concept which brings together under one manager the responsibility for determining the manufacturing requirements, scheduling the manufacturing process and procuring strung arid dispensing materials. As such it is concerned with and controls activities involved in the acquisition production of a finished gotxL Defined also by year inner Harvard business review (2006) as the line of responsibility which brings with selection of suppliers and ends when the materials am delivered to its point of use.
Therefore materials can be defined as one of the major assets of most manufacturing farm depending upon the firm and the type of industry.
2.2    Types of Materials
The various forms in which materials can be managed and controlled by manufacturing organization are as follows:
a.    Raw Materials: and boug.ht in items these are processed and value added to them to provide the required finished items.
b.    Work-in-Progresses: Those material have been part processed that are not yet in form, requited by the customer.
c.    Finished good/production:- They are completely manufactured products which are ready for sales.
d.    Service materials:- These arc materials that do not directly enter into production but arc used Ii service and maintenance operation. This type of materials is also maintained by mot firms supplier, which include of ace cleaning materials (so Api etc) and plant maintained spare parts and fuel, bulb.
e.    Bought in item:- These are products that are finished good in their own right but form part of another product and as suck ate usually bought and incorporated into the manufacture of the product which they constitute apart without author modification.
2.3     Materials control and handling
Material control is the process of ensuring stock held by the organization is supplied to those parts of the operation that requires them i.e. production sales, distribution engineering etc bearing in mind the factors of time, location quality quantity and cost Robet (2003). He explained that material is responsible for ensuring that the right quality and quantity of materials is available when and whore required at the sane time capital must nut be tied up unduly nor must there be undue loss from deterioration and obsolesce. A good system of material control requires.
    Department coordination in purchasing inspecting receiving, storing and issuing of materials
    Efficiency in storing suitable accommodation with safeguards against, pilferage waste deterioration etc.
    Centralization of purchasing under a buyer
    Planning and scheduling materials requirement and preferable control by budget
    Stock taking procedure must be-efficient
    Stand ardying whenever possible.