Purchase & Materials Management ppt.

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The presentation explaining the Materials Cycle.

ASSIGNMENT 1 THE MATERIALS CYCLE Purchase & Materials Management

The Receiving Process Submit to Purchasing Department, the user & accounting department The Receiving Clerk In Charge

Inspecting the Material Quality Control Head in Charge

Return Policy If the Material is Rejected

Quality Problems

Inventory Control If the material passes inspection

[object Object],[object Object],Inventories Inventories solve materials management problems but there are strong incentives for maintaining minimum stocks. Materials should be made available when needed Balance the cost of carrying stock against cost of possible shortages Every minor delay in every minor component would cause a serious shortage. Production rates of components and subassemblies always have to be perfectly synchronized. To avoid defects in scheduling & errors in forecasting.

The Final Stage THE MATERIAL CYCLE IS COMPLETE

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Purchasing is the formal process of buying goods and services. The purchasing process can vary from one organization to another, but there are some common key elements. The process usually starts with a demand or requirements this could be for a physical part (inventory) or a service. A requisition is generated, which details the requirements (in some cases providing a requirements speciation) which actions the procurement department. A request for proposal (RFP) or request for quotation (RFQ) is then raised. Suppliers send their quotations in response to the RFQ, and a review is undertaken where the best offer (typically based on price, availability and quality) is given the purchase order.

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1. ASSIGNMENT 1 THE MATERIALS CYCLE Purchase & Materials Management

2. The Receiving Process Submit to Purchasing Department, the user & accounting department The Receiving Clerk In Charge

3. Inspecting the Material Quality Control Head in Charge

4. Return Policy If the Material is Rejected

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