Page 14 - DMGT525_MATERIALS_MANAGEMENT

Unit 1: Materials Management: An Introduction

 Implementing plans for the reduction of overhead expenses; Notes
 Routine coordination between invoice checking and credit control; and
 Exchanging information and data for the purpose of planning and control.

Self Assessment

Fill in the blanks:
11. Materials management as a company’s ……………… system is of great importance in
industrial management.
12. Costs for materials and overheads can be effectively ……………… just as much inventories
by means of cooperation and sufficiently intensive communication.
13. ………………… is absolutely necessary between Materials Management and design
development in the interest of advantageous materials costs and low level of capital being
tied up in inventories.
14. The task of ………………. and ………………. are closely related.
15. From the importance of materials management to the company’s …………….. and
…………….. comes the necessity for coordination with materials management & finance
and accounting.



Case Study Business Process & Materials Management at

Lamprell Energy Services

amprell instigated an initiative to review, and where necessary upgrade, the
business processes within their Contracts and Purchasing Departments. Chris Hand,
LSenior Quantity Surveyor, was given the responsibility of leading this project, and
absolute (an independent business and technology solutions provider based in Dubai)
was appointed to assist in the evaluation process, and identify the appropriate technological
tools and systems required that would further consolidate Lamprell’s position as an industry
leader.
One area which both parties felt could be significantly improved was the materials
procurement process – with the Matrix materials management system being the
recommended solution. A demonstration was given to senior Lamprell management,
followed by a review of procedures and discussions with key personnel to establish how
Matrix would seamlessly integrate with the existing systems, as well as bespoke software
that was under development.
The decision to proceed only took four days, and the installation process commenced
immediately with the initial version of the software. A tight schedule was imposed on the
installation of Matrix, but with the enthusiasm of the Lamprell staff and the cooperation of
management, the time taken from being given the go ahead to producing the first purchase
order was an impressive thirty-two days.
Reflecting on the project, Chris Hand is very positive: “The implementation of Matrix has
been a great success. Every aspect went smoothly with minimum business disruption and
Contd...

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