Materials management can deal with
campus planning and building design for the movement of materials or with
logistics that deal with the tangible components of a supply chain. This includes
the acquisition of spare parts and replacements, quality control or purchasing
and ordering such parts and the standards involved in ordering, shipping and
warehousing.
In any integrated Materials
management environment, planning for getting the materials is the starting
point for the whole Material Management function. The procurement function is
set by materials planning and the subsequent material function rolling.
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| Source: wikipedia |
Material planning is a scientific way
of determining the needs of the industry with raw materials, consumables, spare
parts and various other materials needed to meet the given production plan for
a definite time. Material planning is
inferred from the planning of the overall organizational planning and hence it
is a part of the main organizational plan. Process planning is used through the
incorporation of computer aided tools to enhance the evaluator impact of the
design and manufacturing functions. Algorithms and expert systems are
incorporated in the software tools used. The materials related implication is
examined that influence design for manufacturing issues.
To analyze the sensitivity of the
effectiveness of the process plans with respect to changing attributes of
material properties use of generative process planning software tools are used.
There is a shift in regard to cost and production rates of process plans
regarding exploring of variations in specific material properties. The effect
of changes in material properties with respect to the design of a specific
product that is prismatic and is produced exclusively by machining processes is
analyzed by the research.
The three process plans that have
been developed illustrate the importance of consideration of alternate work
materials without impacting the product functionality, in attempts to decrease
production cost, increase quality, and increase throughput. The results for the
three process plans show their effectiveness as related to the utilization of
product, process, and system level parameters such as surface finish, heat
treated condition of the material, geometry, material hardness, melting point,
production quantity, cutting tools, cutting fluids, cutting conditions, and
machine tools. The machining cost, tool cost, production rate and throughput is
included in the criteria for effectiveness.
There are various factors affecting
Material planning namely macro factors and micro factors.
Macro factors include all the global
factors like price trends, business cycles, government’s import and export
policies, etc. Banks follow the guidelines only while extending financial
support to a business entity as credit policy of the government is a crucial
factor.
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| Source: dataworksinc.com |
Micro factors are the factors
existing within the organization like corporate policy on Inventory holding,
production plan, investments, etc. Lead time of procurement, acceptable
inventory levels, working capital, seasonality, delegation of power are micro
factors for some of factors for any organization.
For planning materials, there are
various techniques for some period of time. The commonly used are Materials Requirement
Planning (MRP) and Requirement based on past consumption. Materials requirement
planning is the initial stage of the annual production plan of the
manufacturing concern. After the annual production plan is determined by the
firm then the overall material needed to meet the production plan is worked
out. It contains the detailed analysis of the materials and quantities needed
for use, materials with quantities available for use and hence needing procurement,
the actual lead time of procurement, etc.
There is always a situation where
some parts of an assembly are available and some others are not available and
bills of materials are explored. As per the production plan it includes all the
quantifying all the materials or components needed. Bills of materials are a
list displaying the code, nomenclature of an item, its quantity, the location
of use and also the estimated price of each component. A series of bills of
materials together in a matrix form forms an explosion chart and this makes
combination of the various components.
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