Page 11 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes  Directly by making full use of every opportunity for reducing stocks at all stages.

 Indirectly by efficiently coordinating the processes from customer order processing
to purchasing processing.

 Market-oriented purchasing, on the one hand, and a comprehensive approach to
planning, controlling, and handling the flow of materials and goods, using logistical
instruments, on the other hand, is thus the two pillars of Integrated Materials
Management.
The two of them used in combination have the power to make a substantial contribution in
improving company profits.



Caselet Materials Management Plans Promote Sustainability

any business and institutional campuses have cluttered, noisy, and oftentimes
inefficient service environments. Delivery trucks compete with pedestrians,
Mloading docks are in plain sight, trash dumpsters sprout up, and lobbies,
hallways, and stairwells are cluttered with unplanned storage.
Most owners understand the importance of efficient materials management, but they
rarely think about these systems as opportunities to promote sustainability. However,
with forethought and creativity, these systems can reduce energy use and carbon emissions,
minimize traffic congestion, streamline operational flows, and enhance esthetics.
For instance, materials management plans can include developing a better circulation
infrastructure. Service points can be clustered to reduce the number of loading docks and
track parking, thus reducing redundancy and increasing effectiveness. An effective
materials management program can also resolve “island” approaches to shipping,
receiving, and vehicle movement, a situation where each building developed its own
system for vendors, logistics, and delivery. Solutions can include creating a new central
loading location, as well consolidating service areas and docks from separate buildings
into one.
Developing better campus circulation infrastructure also means reevaluating truck delivery
and service vehicle routes. Vehicle type, size, and schedules are studied to make these
more compatible with surrounding neighborhoods. This will reduce truck traffic, creating
a safer environment for pedestrians and a more attractive environment for other uses.

Reevaluating solid and hazardous waste removal, storage, and recycling is another aspect
of an effective materials management plan. This includes creating efficient waste
management guidelines and increased recycling initiatives.
Source: http://enr.construction.com/opinions/viewPoint/archives/081002.asp

Self Assessment

Fill in the blanks:

7. Material contributes to the quality of the…………… .
8. The margin between the values of raw materials and the finished products is known as the
………………… by production.

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