Materials Management

• Forecasting


  Is where past data and trends are used to predict future demands so decisions can be made on material requirement
• Master production schedule


  Is a plan which describes what is to be produced, in what quantities , where and when.
• Materials Requirement plan ( MRP )


  is an itemised list of all materials involved in production to meet the orders
• Just in time 


  Is where the right amount of materials arrive just as they are needed for production.
• Automated-Production Line

  • Arranged in a sequence of machinery, and goods are added to it as it proceeds.
  • Improved Efficiency by:
  • Performs tasks quicker than humans
  • Reduced waste due to improved accuracy

  Improved Effectiveness By:

  • Increased Quality due to improved accuracy.
  • Business is able to meet customer demand
• Robotics

  • Programmable machines, capable of performing specific tasks

  Improved Efficiency By:

  • Performs tasks quicker than humans
  • Reduced wastage due to improved accuracy

  Improved Effectiveness By:

  • Increased Quality
  • Business meets customer demand
• Computer Aided Design ( CAD )

  • Digital design software that aids the creation, modification and optimisation of a design

  Improved Efficiency By:

  • Determine material requirements, preventing overstock and understock
  • Using fewer resources

  Improved Effectiveness By:

  • Ensuring the product meets customer demand
  • using 3D to view the product to get a realistic perspective
• Computer aided manufacture (cam)

  • Software and machinery which allows computers to direct and control the manufacturing process

  Improved Efficiency By:

  • Produced with fewer errors
  • Speeding up production

  Improved Effectiveness By:

  • can enhance product quality
• Artificial Intelligence (AI)

  • System or Machine that performs tasks that are done by humans

  Improve efficiency By:

  • Can identify errors in the product early, and correct it.
  • can monitor materials to ensure there is no overstocking or understocking.

  Improve Effectiveness By:

  • Improved quality of the product being produced
  • speed up and improve customer service
• Online Services

  • Allows a business to connect with their customers via social media

  Improves efficiency By:

  • Reduced costs of operating
  • Ability to monitor real-time data, helping manage materials.

  Improves Effectiveness By:

  • Increased accessibility, and increased customer satisfaction.
  • Ability to monitor Demand, Plan for materials and production needs.