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MATERIAL HANDLING
TYPE
BASIS
USE
ABC
Annual
Inventory Control
Consumption Value
VED
Criticality
Component of an item
FSN
Consumption
pattern of an items
For maintenance
levels of spare parts
To Control
Obsolescence
ABC ANALYSIS
ABC
classification
is
basic
analytical
A-ITEMS
B-ITEMS
Sr. no.
1.
Very strict control
Moderate control
2.
No safety stock
Low safety stock
3.
Frequent ordering Once in four months
C-ITEMS
Low control
High safety stock
Bulk ordering once
4.
or weekly deliveries
Weekly
control Monthly reports
in six months
Quarterly
control
5.
statements
Maximum
reports
Follow
up and expediting
up
and
expediting
exceptional cases
value Minimum
value
6.
7.
analysis
analysis
As many sources as Two or more reliable Two reliable sources
possible for each sources
8.
item
Accounts forecast in Estimate
material planning
9.
Minimization
surplus(review
based
10.
11.
surplus
obsolete items
items
every 15 days)
Individual posting
Small group posting
Central purchasing Combination
Group posting
Decentralized
and storage
purchasing
purchasing
12.
13.
middle Management
Minimum
clerical
be
delegated
Percentage of Units
65.09 85.38
fully
Percentage of Cost
75.73 93.45
100
90
80
70
60
50
Percentage
of Cost
40
30
20
10
0
0
10
20
30
40
50
60
70
VED ANALYSIS
80
90
100
CLASSES
V-ITEM
E- ITEM
D- ITEM
Constant control
A Items
Moderate stock
Nil stock
B Items
C Items
up
Moderate stock
High Stocks
Moderate stock
Moderate stock
MATERIAL MANAGEMENT
Materials management as a discipline deals with
the entire range of functions such as conservation, utilization, quality,
cost and smooth flow of materials. These activities include materials
planning, purchasing, storekeeping, transportation, materials handling
management
discipline
in
any
Right
Source
Right
Price
Right
Quality
Right
Quantity
Right
Delivery