2. PRODUCTION MANAGEMENT & MATERIAL
MANAGEMENT
2014-2015

3. GROUP MEMBERS ROLL NO.
TEPILLA GERSHAM 26
PAVITHRA MUDALIYAR 29
SIDDHI PATANKAR 31
JYOTI PATIL 32
RITU YADAV 50

4. INTRODUCTION
Storage is an unavoidable activity. It increase
the value of the material by the simply carrying it.
No transformation of any type is to be done.
Stores, has the vital role to play In a majority of
manufacturing organization material constitutes
the major fraction of cost, like 60 to 80% of total
cost. This cost in inventories substantial. Material
has to be provided quickly to right person and at
right time and right place when ever required.

6. MEANING
A warehouse is a point in a material
management where a firm stores or holds raw
materials, semi finished goods, or finished goods
for varying periods of time. In the macro
economics system, warehousing performs a vital
functions. It creates time utility for raw material,
industrial goods and finished goods. This
warehousing function continuous to be
increasingly important as companies and the
industries use customer services as a dynamic,
value-adding competitive tool.

8. DEFINITION
Warehousing is that part of firms logistics
system that stores products at and between point
of origin and point of consumption and provides
information to management of the status,
condition, and disposition of items being stored.

9. TYPES OF WAREHOUSING
PRIVATE WAREHOUSE :
Private warehousing facility is owned
and managed by same enterprise that owns the
merchandise handled and stored at the facility.
This facility may be owned or leased as per the
decisions about strategy, which best fits the
financial aspect to the firm.

10. ADVANTAGES OF PRIVATE WAREHOUSING
:
 Flexibility to design to specifications.
 Greater direct control on warehousing activities.
 Housing of other offices.
 As companies trained employees handle the
goods, there is no error or handling damages.
 If the volume is sufficient, this may workout
cheaper.
 For some force private warehouse may not be
available in some strategic locations.

11. DISADVANTAGES OF PRIVATE
WAREHOUSE :
 Lack of geographical flexibility.
 Prohibitive costs may preclude some firms generating
enough capital to build or buy a warehouse.
Permanent liability.
Cost of material handling, machinery and equipment.
• Cost of manpower.
• Office and other facilities expenses.
• Insurance premium

12. •Public warehouse
It is operated as an independent business
offering arrange of services such as storage, handling
and transportation. On the basis of fixed and variable
free. They generally offer relatively standardized
services to all clients.
Cost involved-
• rent of the space hired,
• Payment of charges towards use of other facilities.

13.  Advantages of public warehousing
1) Less expensive and fixed cost are distributed among
many distributors.
2) Offer greater operating and management expertise.
3) Public warehousing have lower variable cost as
compare to the private sector.
4) The are more flexible as the offer different plans to
different customers.
5) Facilities can be given up when not required.
6) It is easy to ascertain the storage cost

14.  Disadvantages of public warehousing
1) Effective communication may be a problem.
2) Socialized services may not always be available in
the desired location.
3) Space may not be available were and when needed.

15. Contract warehousing
There is a long term contract singed Between the
company and the party providing warehousing
services. The long terms contract could help in lower
the cost. it is flexible. It also provides the additional
services such as transportation, order processes
customer services , etc.

16. Co-operative warehouse
These warehouse are owned, by managed and
controlled by cooperative societies. They provide
warehousing facilities at the most economical rates to
the members of their society.

17. Basic components of a warehouse
1) Space-space allows for the storage of goods when
demand and supply are unequal.
2) equipments- warehouse equipments helps in product,
movement, storage and tracking.
3) people- the most critical components of warehousing.
Space and equipments are nothing without people.

19. Functions of stores
1) Receive the material
2) Store the material properly
3) Remove the material when required
4) Deliver the material to right place
5) Keep the records perfectly in disciplines
6) Maintain good housekeeping
7) Keep proper control
8) Manage the people in perfect discipline
9) Avoid keeping surplus materials
10) Verification of stocks at regular intervals
11) Co-ordination and corporation.
12) Mixing of material
13) Maintaining good housekeeping,-
14) Arranging transport

20. Objectives of warehouse material
1) To facilitate smooth and balanced flow of raw material.
2) To maintain optimum stock of material.
3) To achieve optimum utilization of storage space.
4) To reduce usage of handling materials.
5) To provide codification of stores items for easy
recognition.
6) To enable flexibility.
7) To facilitate quantity purchase at discount prices.
8) To keep the accounts of all goods kept it stores.
9) To prevent theft, damage, wastage etc
10) To maintain the income of all materials.

21. Types of material stored
1) Raw material stores
2) Component stores
3) Consumable material stores
4) Semi finished goods stores
5) Finished goods stores
6) Inward goods stores and transit stores
7) Holding stores
8) Spare parts stores
9) Inflammable material stores
10) Tools stores
11) Stationery stores

22. Warehouse organization
 The warehouse organization is very important in the
work place. With the organized warehousing the
material is able to control. Hence the well organized
warehousing helps in the well considered work. It also
saves the and the expenses required.

23. Machines used warehouse

24. Centralization of warehousing
1) Effective and better supervision and control are
exercise.
2) Personnel requirement is less. So there is cost
reduction in manpower.
3) Better and efficient layout of stores.
4) Inventory checks are better.
5) Stores maintenance is better.
6) Fewer redundant and obsolete.
7) This gives better security arrangements.

25. Decentralization of warehousing
1) Reduced material handling and associated work.
2) Convenient for every department to draw material.
3) Less risk for loss by fire etc.
4) There is less chance of production stoppage. This is
due to near by, easy and prompt availability of
materials to material shops.

26. Rationale for warehousing
1) Achieve transportation economies.
2) Achieves production economies.
3) Take advantages of quality discounts.
4) Accomplish least total logistic cost.
5) Maintain steady source of suppliers.
6) Support customers service policies.
7) Meet changing demand condition.
8) Reduce time and space distance.

27. Need for warehousing
1) Conventional approach
a) protection against delay and uncertainty against
transportation.
b) Availability of products on desired time and on desired
place.
c) Provide adjustment between the time of production
and use of the products.
d) Serve as reservoirs of goods.

28. Modern approach
1) Movement of production.
2) Relation between warehousing and
producer/consumers etc.
3) Reduction of time and cost

29. Principles of warehousing
1) Provision for easy receipts, storage and distribution of
materials.
2) Minimum handling and transportation of materials.
3) Good handling of equipments and tools.
4) Optimum utilization of space
5) Flexibility to suit the changing stores.
6) Protection against waste, damage, etc.
7) Clear identification of materials and location of items in
a specific manner.
8) Scrap or disposal stores.
9) Stationery items stores
10) Packing of material stores.

31. Quality Decisions
1) Presence synergies
2) Inventory synergies
3) Location flexibility
4) Scale economies

32. Problems due to inefficient warehousing
1) Failure to locate store rooms properly and inefficient
available storerooms space which increase the store
cost.
2) Difficulty to locating materials.
3) Overstocking and the resulting cost.
4) Inventory carrying cost due to waste, damage, etc.
5) Problem in material control and time involved in
supply materials when needed.

33. Problems related warehousing

34. Importance of warehousing
1) Ready associability of important materials which
provides efficient service to the users.
2) Efficient utilization of cubic space in the store area.
3) Flexibility in arranging the storage of goods in the
warehouse.
4) Minimization of the risk, damage, wastage, etc
5) Easy of physical counting at the time of the manual
stock checking.

36. conclusion
 We conclude here with the view that warehousing
is very important at all the work place.
which reduces the time and required expenses. It
also protect the goods and services by wastage,
damage, etc
warehousing results in the low risks and the low
accidents. Hence warehousing is the important factor
of all the work place.