8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 1/6

PRODUCTION AND

OPERATIONSMANAGEMENT

Chapter 20

MATERIALS PLANNING

AND CONTROL

8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 2/6

Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 20

Materials Planning and

Control

What is materials planning?

Materials planning determines the requirement of all kinds

of materials to meet the production needs economically.

Factors that influence materials planning are: Macro factors: Price trends, business cycle, import

policy of the government, credit policy.

Micro factors: Corporate objectives, working capital,

Seasonality, Delegation of powers, communication

systems.

8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 3/6

Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 20

Materials Planning and

ControlMaterials Budgeting

The Process of Preparing MaterialBudgets

8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 4/6

Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 20

Materials Planning and

Control

Materials Budgeting: Process of preparing

materials budget or purchase budget in terms of 

quantity and money value of materials to be

procured for a given period of time.

8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 5/6

Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 20

Materials Planning and

Control

Material Control

Material Control: Function of maintaining

constantly availability of all kinds of materialsrequired for the manufacture of products.

8/7/2019 POM Ch-20

http://slidepdf.com/reader/full/pom-ch-20 6/6

Himalaya Publishing HouseProduction and Operations ManagementBy K. Aswathappa & K. Shridhara Bhat

Chapter 20

Materials Planning and

Control

Materials Control Cycle

Material control cycle comprises all procedures

which are necessary for the provision of materials for the manufacturing process with

minimum investment and lowest possible costs.