Materials Giri

8/10/2019 Materials Giri

1/21

Project on:-

Group members

Name Roll No

Marilyn John 08

Kartik Ramakrishnan 11

Sameer Nanjangud 20

Marianne Parackal 21

Giriraj yer !2

Ragha"endra #hatt !7

Prerna $uhan !%

1


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N$&'

(o)ic Page

no*

1* ntroduction to materials management + its &"olution 1

2* ,-jecti"es o. materials management 2

!* /endor de"elo)ment + &"aluation !

* riteria .or "endor de"elo)ment

* Pe)si 3storage + sales de)t*4 5

5* rom)ton Grea"es %

6* #*&*S*( 12

8* 7uestionnaire + .actors res)onsi-le .or selection o. "endors* 15

%* #i-liogra)hy 16

Preface

2


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Material is o. )rime im)ortance in any organiation9 no :ork can -e done:ithout the re;uired materials9 -e it the small )a)er sli)s :here an

im)rom)tu list is made or an )lanned layout o. )ositioning o. di..erent

com)le< machines is )re)ared e"erything re;uires materials*

n this )roject o. ours :e ho)e to incor)orate in a "ery -rie. -ut

su-stantial manner the im)ortance o. "endor de"elo)ment and e"aluation inany organiation* =e ho)e that this )roject o. ours hel)s e"ery as)iring

Materials Manager9 or the students :ho on their road to other goals are

.orced to encounter this "ery to)ic in their -road curriculum*

(he to)ics that are -rie.ly co"ered in this )roject are "endor de"elo)ment9

"endor e"aluation9 "endor>-uyer relationshi)9 history o. materials

management9 etc*

Acknowledgements

!


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(he num-er o. )eo)le :hom :e :ould like to thank is innumera-le and the

list could go on .or )ages9 -ut :e :ould like to s)eci.ically mention a .e:

names o. )eo)le :ho :ere o. )rime im)ortance to the com)letion o. this

)roject success.ully*

?irstly :ould like to thank our materials management )ro.essor9 Mr* yrus

Solina9 :ithout the su))ort o. :hom this )roject :ould ha"e ne"er

materialied*,ther names :hich ha"e to -e mentioned are@

14 Mr* Pra-hu9 the $e)uty Materials Manager9 #&S(*

24 Mr* $ian Pereira9 Asst* Sales Manager9 Pe)si*

!4 Mr* /asant Kulkarni9 Asst* #uyer9 rom)ton Grea"es*

Introduction to MATRIA!" MANAGMNT and its

e#olution:

Material is the central item and acti"ity o. any organiation* ,rganiations

e (C&R

PBRCAS& AN$ $SP,S(,N :as )u-lished in 1886* Since the

-eginning o. the t:entieth century there :ere se"eral mo"ements in the

e"olution o. )urchasing or materials management .unctions9 as de)icted

-elo:F

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3)re>1%!%4 31%0>%4 31%0>604 31%60>>4

#olution of Material Management o#er time


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)pansion of business b, ac.uisitions'

Regulating in#entor,'

/utting operating costs'

0alancing of ob%ecti#es'

1endor *e#elopment 2 #aluation:

Introduction:

(he .ield o. )urchasing9 :hich is a su-set o. materials management9 centers

on su))lier or "endor selection* ,ne o. the major challenges .or todays

)urchasing managers in any industry >-e it ser"ice or manu.acturing>is

selecting the right "endors .or their com)onents9 )arts and su))lies*Selection o. "endors includes determining the "endors and the amount o.

order to -e )laced on each "endor* hoosing the a))ro)riate "endors is

e


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50H o. the re"enue o. their end )roducts on )urchased )arts* Selection o.

"endors -ased on ;uality9 )rice9 deli"ery9 ser"ice and ca)acity generally

ensures -uyer satis.action*

(he initial )urchase )rice o. an item is only one element o. the total cost*

(here are other associated costs such as cost o. esta-lishing "endors9

trans)ortation and storage costs and costs o. recei"ing )oor ;uality material*om)anies try to achie"e a -alance -et:een )rice and ;uality material*

om)anies try to achie"e a -alance -et:een )rice and "alue o. a )urchased

)art or material during the ac;uisition )rocess* Bsually "endors are selected

-y their a-ility to o..er the -est cost or ;uality )ackage* 7uality le"el may -e

s)eci.ied to the "endors in a "ariety o. :aysF commercial standards9 design

s)eci.ication9 sam)les9 market grades9 -rand or trade names9 .unctional

s)eci.ications and tolerances* (here are se"eral other additional .actors that

need to -e considered as :ell :hile selecting "endors* ,ne o. the )ioneering

research results in "endor selection -y $ickson 31%%54 )ro"ides a

-enchmark on the trends in the im)ortance o. "endor selection* (he article

documented the multi>o-jecti"e nature o. "endor selection and ranked the

im)ortance )laced on 2! selection criteria -y 160 industrial )urchasing

agents and managers*

Summary o. $icksons 31%554 .indings*

Rank Factor Importance

1 7uality &


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20 Geogra)hical location A"erage

21 Amount o. )ast -usiness A"erage

22 (raining aids A"erage

2! Reci)rocal arrangements Slight

(here are se"eral methods a"aila-le to select "endors and to determine the

;uantities to -e ordered .rom the selected "endors* (hese methods can -e

-roadly classi.ied into descri)ti"e9 em)irical and o)timiation -ased

a))roaches* (he descri)ti"e methods select "endors -y e"aluating the

;ualitati"e .actors related to the "endors such as re)utation9 eu)on :ork :ithin

cost9 schedule9 and ;uality )arameters* /endors do not :ork this :ay* (hus9

it is im)ortant .or the )rocuring organiation to understand its limited a-ility

to control the market)lace and to de"elo) :ays in :hich to in.luence it*

/RITRIA +$R 1N*$R 1A!3ATI$N

Su))liers interest in de"elo)ing a )artnershi)

Rate the su))liers deli"ery )er.ormance

Su))liers )ricing against the market

Su))liers achie"ement o. de.ect .ree deli"ery

Su))liers cost sa"ing initiati"es

Dead time against industry norm

Su))liers a-ility to a"oid com)laints

Su))liers res)onse to ;uality )ro-lems

Su))liers certi.icate o. con.ormity

7uality o. deli"ery documentation

Acce)ta-ility o. )resentation

&..iciency o. su))liers administrati"e system

&..iciency o. su))liers sales o..ice

Su))liers looking>in )rocedures

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Su))liers track record

Su))liers assistance in sol"ing technical )ro-lems

Su))liers .le


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Pepsi(storage and sales department)

Introduction:

A "isit to Pe)si9 one o. the -iggest so.t>drink giants9 :as organied as )art o.

the schedule o. com)anies to -e studied .or their /endor de"elo)ment and

&"aluation )rocesses* ,ut o. Pe)sis many de)artments :e "isited the

storage and sales de)artment :here :e inter"ie:ed Mr* $ian Pereira9 :hoegrittys o. the "endor de"elo)ment )rocess*

Need for #endors:

(he storage and sales de)artment generally a))oints "endors to )ro"ide .or

the logistics and trans)ortation .acilities* /endors are )rimarily a))ointed .or

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fle))rinting* #esides this they also a))oint "endors .or )ro"ision o. ca)s9 t>

shirts9 gi.ts etc* As .ar as the sales and storage de)artment is concerned no

s)eci.ic rules are .ollo:ed in the selection o. "endors* (he "endor selection

)rocess is )urely need -ased* As and :hen the need arises they select

"endors .or the allotted jo-s* Cence there is no s)eci.ied limit to the num-er

"endors to -e a))ointed*

1endor selection process:

/endor selection is a critical and crucial decision that is to -e taken -y the

com)any* (hus there are many .actors to -e considered :hile selecting the

"endor* (he ;uality o. "endors also re.lects the re)utation o. the com)any

and .or this )ur)ose Pe)si .ollo:s a "ery stringent selection and e"aluation

method*

,ne o. the main criterions :hile selecting a "endor is ost* (he one :ho

o..ers the -est )rice is chosen* Some o. the other .actors are credi-ility o. the

"endor in the market and the ;uality o. their )roducts* A consistent and

e..icient a.ter>sales ser"ice is also an im)ortant attri-ute considered .or the

selection )rocedure* ,nce the "endor is selected and the order is )laced9 the

)roducts recei"ed are ins)ected and checked in order to a"oid any de.ecti"e

)ieces*

In#entor, le#el and lead time:

Generally "ery .e: "endors come into the )icture :hen it is the sales and

storage de)artment* (hus :hen circumstances arise :here a huge order is to-e )laced9 the jo- is mostly s)lit u) among t:o or more "endors* (his is

done in order to ensure that e"en i. one "endor is una-le to )ro"ide them

:ith the material9 they can )rocure the materials .rom the other "endors*

Another im)ortant as)ect to -e considered is the le"el o. in"entory* t is

ensured that the le"el o. in"entory is neither too high nor too lo:* Stock outs

generally dont take )lace* (here is al:ays a 10H>20H lead time )ro"ided*

1endor relations&ip:

/endor relationshi) can -e "aria-le or on a long>term -asis* As .ar as Pe)si

is concerned they -elie"e that there is a "ery high risk and cost in"ol"ed in

maintaining a long> term relationshi) :ith the "endors* Since "endor

de"elo)ment is )urely need>-ased9 "endors are a))ointed on contract -asis*

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12


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crompton greaves

/R$MPT$N GRA1"

Introduction:

rom)ton Grea"es is ndiaIs largest )ri"ate sector enter)rise in the -usiness

o. manu.acturing and marketing )roducts related to the generation9

transmission9 distri-ution and utiliation o. )o:er* t also e


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?rom )o:er systems to industrial systems + consumer )roducts to digital

telecommunications9 )eo)le at rom)ton Grea"es are constantly designing9

)roducing and marketing high technology electrical )roducts and ser"ices

that s)an the distance .rom need to .ul.illment*

=e "isited the /ikhroli )lant o. rom)ton grea"es ndia ltd* and met

Mr*/asant Kulkarni9 the asst* -uyer*

Need for #endors:

rom)ton grea"es on a :hole )roduces many di..erent )roducts like motors9

hea"y machines9 etc* all o. :hich contain many high )recision )arts* ?or all

o. this it -ecomes cost e..ecti"e .or G to outsource the )roduction o. some

o. these )arts9 there.ore the need .or "endors comes in* ,ne o. the e-earings9 as it is a "ery high )recision )roduct

and .or )roducing it :ould re;uire incurring huge ca)ital costs o. the

machines re;uired to manu.acture it*

1endor selection process:

Selection o. "endors is a "ery im)ortant )rocess .or any com)any9 as the

ultimate ;uality o. the )roducts the com)any manu.actures de)ends on the

;uality o. the in)uts* (here are s)eci.ic guidelines .or the selection o.

"endors9 laid do:n -y the com)any9 :hich are to -e .ollo:ed -y the -uyers

:hile selecting "endors* n general the major .actors considered are .irstly

;uality9 then cost and also .actors like the ser"ice )ro"ided -y the "endor* As

and :hen the materials are re;uired an order is )laced .or the )roduct*$e)ending on the )roduct9 the "endor selection )rocess is undertaken* ?or

e


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14 T&e respecti#e #endor is asked to rework on t&e part to meet t&e

specifications5 or

64 T&e part is accepted wit& or wit&out correction b, concession5 or

4 It is re-assigned for alternati#e applications5 or

84 Re%ected as unsuitable'

This process is referred to as non-conformity review and disposition*

$e)ending on the )er.ormance o"er a )eriod o. time a "endor is gi"en

)re.erence o"er others in .uture selections*

"tock out9 lead-time9 in#entor,:

(he in"entory le"els in the com)any are monitored e..iciently so as to

maintain the le"el e..ecti"ely* Stock outs o. necessary )roducts are "ery rare*

(he com)any has a s)eci.ic )olicy o. maintaining a s)eci.ic amount o. lead>

time9 there.ore :hen the stocks reach a certain in"entory le"el the order .or

the )roducts is generated and the le"el is retained*


n G the relationshi) o. a "endor :ith the com)any is de)endent on the

-uyer dealing :ith that s)eci.ic "endor* (he com)any as such does notmaintain any s)eci.ic codes to -e .ollo:ed as .ar as relationshi)s :ith

"endors is concerned9 -ut the )ro)rietorshi) su))liers get )re.erential

treatment as the num-er o. su))liers is limited9 and the )arts are o. high

)recision*

1


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B.E.S.T(Brihanmumbai electric supply and

transport){T>1engineering department.}

0''"'T

0ri&anmumbai lectric "uppl, and Transport4;T< engineering department=

Introduction:

(he #om-ay &lectric Su))ly and (rans)ort om)any :ere munici)alied

and came to -e kno:n as #om-ay &lectric Su))ly + (rans)ort

15


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Bndertaking* (he Bndertaking has com)leted 0 years o. its

munici)alisation on 6th August9 1%%6*

At )resent9 there are !!80 -uses carrying lakhs )assengers daily on !!

routes* S)ecial trans)ort arrangements are made and e


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(he most im)ortant .actor o. selection o. a "endor has traditionally -een

cost9 -ut in recent years as the ;uality o. ser"ice has come under immense

scrutiny9 attention is also -eing )aid to the ;uality o. the materials -eing

)rocured*

!e#els of inspection and #endor e#aluation:

At #&S( the incoming materials are ins)ected only at one le"el9 i*e* :henthey come in .rom the "endors* (he ns)ecting ,..icers do the ins)ection at

the store o. the #&S(* (he method o. ins)ection is that o. selecting random

sam)les .rom the incoming materials and testing them .or sta-ility and also

)er.orming "arious chemical and mechanical tests :here"er necessary* ,nce

the )roduct is a))ro"ed only then is it used on the -usses* . the res)ecti"e

)roducts do not meet the re;uired s)eci.ications9 they are .latly returned to

the "endor .or re:ork and modi.ication to meet the s)eci.ications or i. this is

not )ossi-le9 the materials are returned to the "endor :ho has to su))ly the

:hole lot again*#&S( is an organiation :here -ureaucracy and )olitics )lay a major role in

the day to day :orkings9 there.ore there is not much )ractical sco)e .or

"endor e"aluation and )rocesses such as these* #ut the organiation does

ha"e annual checks on their regular su))liers"endors9 grading them or

-lacklisting them .rom time to time*

In#entor, control and lead time:

(he #&S( or)oration .ollo:s the perpetual in#entor, s,stem9 thus

maintaining a sti)ulated su))ly o. the essential materials re;uired* (husim)lying that they ha"e a certain )re>determined -enchmark set9 -y :hich

the )urchase indent is raised :hen this le"el is touched* (he only :ay o.

increasing any lead>time is -y )roducing the )urchase order as ;uickly as

)ossi-le*


#&S( does not maintain any kind o. long>term relationshi) :ith any "endor9

e


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+actors responsible for t&e selection of #endors'

1* Per.ormance history

2* Production .acilities and

ca)acities*

!* Price*

* (echnical ca)a-ilities*

* ?inancial )osition*

5* Procedural com)liance*

6* ommunication system*

8* Re)utation and )osition in

the industry*

1%


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%* $esire .or -usiness*

10*Management and origin*

11*,)erating controls*

12*Re)airs ser"ice*

1!*Attitude*

1*m)ression*

1*Packaging a-ility*

15*Da-or relations record*

16*Geogra)hical location*

18*Amount o. )ast -usiness*

1%*(raining aids*

20*Reci)rocal arrangements*

>uestions

1* s there a limit on the ma< no* o. "endors to -e used .or a gi"en

method

2* =hat is the "endor selection method that your com)any undergoes

!* =hich is the most im)ortant thing in the selection o. a "endor

A"aila-ility9 lead time9 ;uantity9 )rice

* Co: much o. the re"enue o. the end )roducts is s)ent on )urchased

)arts

* =hat are the contingency )lans taken incase the material recei"ed

.rom the "endor is de.ecti"e

5* &m)hasis has no: s:ung to )re"ention o. de.ecti"e rather tan their

detection*Lyour "ie:s*

6* De"els o. ins)ection*

8* Are sal"aged + re:orked )arts ins)ected again

%* Co: is de.ecti"e material segregated and :hat are the arrangements

.or dis)osal o. those materials

10*=hat ;uality control )rocedure is used .or incoming su))liers

11*=hat action is taken incase o. a stock out or an emergencyre;uirement

12*#y getting the su))liers in"ol"ed in the )roduct de"elo)ment )rocess9

do you think it ill lead to inno"ation

1!*=hat kind o. a relationshi) do you share :ith your su))liers >

/aria-le or long term

1*s it necessary that the su))liers should -e o. S, certi.ied one

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0I0!I$GRAP?@

Material management9 -y S*$* A)hale9 3/i)ul Prakashan4*

:::*cysaidaho*org

:::*cglonline*com

:::*-estundertaking*com

Dogistics -y Raja Kalishlingam*

#usiness logistics Su))ly chain management -y #allou 3th

edition4*

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Materials Giri

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