material management in industries,..

1. Presented by :-
Mr. Shankar S.Yelmame
M.Pharm 1st yr (QAT)
Amrutvahini College of pharmacy,
Sangamner
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2.  Introduction
 Objective & importance
 Principles of material management
 Functions of material management
 Purchasing
 Vendor development
 Types of Materials
 References
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3. Definition
It is an organizational concept, which has the
authority & responsibility of all activities,
principally concerned with the flow of materials in
the organization.
OR
The International Federation of Purchasing and
Materials Management accept the definition of
materials management given below.
“According to it, materials management is a total
concept having its definite organization to plan and
control all types of materials, its supply, and its flow
from raw stage to finished stage so as to deliver the
product to customer as per his requirements in time."
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4.  The prime objective of the pharmaceutical
manufacturing operations is-to produce finished
pharmaceutical pdts from active, inactive raw
materials and various packaging material.
 The quality of finished products is depend upon
the quality inputs - hence material management is
very important.
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5. Primary
(i) Efficient materials
planning
(ii) Buying or Purchasing
(iii) Procuring and receiving
(iv) Storing and inventory
control
(v) Supply and distribution
of materials
(vi) Quality assurance
(vii) Good supplier and
customer relationship
(viii) Improved departmental
efficiency
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6. Secondary
(i) Efficient production scheduling
(ii) To take make or buy decisions
(iii) Prepare specifications and standardization of materials
(iv) To assist in product design and development
(v) Forecasting demand and quantity of materials
requirements
(vi) Quality control of materials purchased
(vii) Material handling
(viii) Use of value analysis and value engineering
(ix) Developing skills of workers in materials management
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7.  To procure right materials
-In Right Quantity
-Of Right Quality
-At Right Time
-From Right sources
-At Right prices
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8. 8

9. Centralized :- the purchasing
procedure of materials for
different department is done
together from one
purchasing department. This
is seen in small
organizations.
Advantages
 Efficient system
 Bargaining capabilities
increased
 Good raw material obtained
at lower price
Decentralized:- different
department purchase
their requirement
separately. This is
basically seen in large
organizations.
Advantages
 Flexible purchasing
system
 Procurement is faster
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10.  Vendor is a person who sells & supplies his products.
 An intelligent purchasing process involves the rational
selection of sources from which materials can be
obtained. Considerable efforts are needed in
identifying, developing & evaluating the prospective
suppliers.
 Factors to be considered in developing a vendor –
- Quantity required to be purchased.
- Time available for making such purchases.
- If the material be required repeatedly or
occasionally.
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11. Volume of the purchase of required materials.
 Industry producing the required materials.
Commercial viability of the materials.
 For the purchase of items that are of repetitive
nature, a detailed evaluation procedure of
suppliers is adopted
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12. Need recognition
Spell out of specifications &
requirements
Official requisitions
Check specifications,
prices/supplies
Select suppliers
Quotations & analysis prices and terms, negotiations,
finalization
Purchase order for supply
Suppliers’ acceptance
Specifications
file
Purchase
records
Supplier’s
record
Enquiry tender
Follow-up
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Delivery of materials
Materials & reports, analysis
Payment made
Cont…
Checking of invoice
with purchase order

14. The various types of materials to be managed are:
(i) Purchased materials: They are raw materials,
packaging materials
(ii) Work in process (WIP) materials: These are semi-finished
and finished parts and components lying on
the shop floor.
(iii) Finished goods: These are the final products either
waiting to be assembled in the assembly lines or in
stores which are stocked for final delivery waiting
to sell.
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15.  Supplier’s name –in companies approved vendor
list.
 all RM should be checked for-a)
Name of supplier
b) Name of the product
c) Batch numbers
d) Date of mfg and expiry
e) Qty received & no. of containers
f) Condition of containers and materials
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16.  All containers should be clean externally-if any
damage-informed to QC Dept.
 Should be protected from contamination during
storage.
 The materials received should be taken into account
only after all the relevant documents are available-(e.g.
bills,invoice,customs or excise gate passes,certificate
of analysis etc.)
 Sampling in specific sampling booths by Q.C. person
and stored in sampled material quarantine.
 Materials in the storage area should be appropriately
labelled. label should bear –
a) Name & internal code no. of the product
b) Batch no. given by supplier and also given by
receiver after analysis & release
c) Status of material
d) Retest & expiry date of the product
e) Appropriate special storage conditions
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17.  Materials should be dispensed only by designated
persons, following written procedure ,to ensure that the
correct materials are accurately weighed or measured
into clean and properly labelled container
a) Correct name & category(IP/BP/USP)
b) Correct wt.
c) Batch no. of the product
 All dispensed materials must be recorded in a register
in chronological order of date and time.The record
should have –
a) Name of pdt & batch no.
b) Time and date of starting and completion of the
dispensing activity
c) Name of weigher and checker of the dispensed
materials.
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18. 1) Primary packaging materials:Materials which
come in direct contact with the medicinal product.
e.g.bottles,ampoules,vials,foils etc
2) Secondary packaging materials: Materials
which come in direct contact with the primary
packaging materials. e.g.labels,carton etc.
3) Printed packaging materials: all PM which have
any thing printed on it;even error medical literature sent
along with finished pdt is also put in this category.
e.g.labels, cartons,foils etc.
4) Tertiary & other packaging materials: All other
PM other than those covered in the above three
categories.
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19.  Intermediate & bulk product may be defined as the
material , which has started processing but not yet
got converted into the finished saleable product.
 Intermediate & bulk product storage is the
responsibility of the production dept.
Examples.
 Granulated materials ready for compression
 Compressed tablets for coating or packaging.
 Filtered or unfiltered liquids for oral or injectables.
 These pdts should be kept under appropriate
storage condition of temp, relative humidity, class
of air etc.
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20.  Finished products are products which are in
marketable pack.
 Should be held in quarantine until their final
release, after which they should be stored.
 Each batch should be tested against its
specifications and then released for distribution or
sale.
 Products faiing to meet the established
specifications should be rejected.
 Reprocessing may be performed,if feasible,but the
reprocessed product should meet all specifications.
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21.  Materials at any stage, which have been tested
against a set of predefined specification and found
not meeting the specifications fully. We can deal
with such material mainly in two ways:
a) Reprocess and retest the materials to see whether
it meets our specific requirements
b) Destroy or send it to the supplier.
 Clearly marked as such and stored separately in
restricted areas.Such areas in industry are normally
painted red in colour.
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22.  Products which are already distributed or sold,
may be required at times to be recalled from
market for various reasons .e.g. substandard
quality detected after the product was distributed,
damage of goods during transit.
 Such recalled products should be clearly identified
and stored separately in a secure area until a
decision is taken on their fate.
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23.  Pharmaceutical products can be returned from
market for various reasons. e.g.quality problems,
accidental damage of goods etc.
 physically examine the condition of the goods
returned.
 Ask Q.C. dept. to evaluate the quality.
 If it is possible to reprocess and recover-may
considered for relabelling, repacking & resaling
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24.  Reagents made up in the lab should be prepared according
to written procedures and appropriately labelled.such labels
should indicate following information.
a) Name of the reagent
b) Nominal concentration
c) Standardisation factor
d) Shelf life
e) Date when re-standardisation is required.
f) The storage conditions.
g) Name/signature and date of the person who has prepared
and standardised the reagent.
A register be maintained giving details of the reagents
made,standardised,restandardised & used and destroyed if any.
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25. Pharmaceutical manufacturing operations generate lot of waste
materials. These materials can be classified in two categories:
a) Trash : which do not have any resale value and may be
disposed off by proper method depending upon the nature
of the trash.
b) Scrap : which do have a resale value and may be sold to
scrap dealers,after proper segregation.
Before disposal of these materials,they can be segregated in
different categories:
1) Paper
2) Aluminium foils
3) Plastic
4) Glass
5) Metallic containers.
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26.  May be available in the form of official reference
standards.
 Reference std. prepared by the producer should be
tested, released and then stored in the same way as
official standards.
 They should be kept under the responsibility of a
designated person in a secure area.
Rodenticides, insecticides, fumigating agents and
sanitising materials fall under this category, these
materials should not be permitted to contaminate
equipment, raw materials, packaging materials, in-process
materials or finished products.
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27.  It reduces considerably the idle time of the workers.
 The quality of the materials is also maintained
through minimum human touches, elimination of
breakages, etc.
 Every inch of the factory space is properly utilized.
 It helps in maintaining effective production
planning and control.
 Reduced operating costs and timely production.
 Greater job satisfaction on the part of both the
workers and the employer.
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28. 1. Pharmaceutical Quality Assurance by Manohar
A.Potdar , Nirali Prakashan, page no. 4.1-4.18
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