Production improvement - materials management, Project Management

1. Reciprocal Relations: When  a company deliberately buys  as much  as possible  from its own  customers  it is  said  to practice reciprocity. In consumer goods industries reciprocity is not a  problem as the sales  are spread among  many  users. In  producer goods  industries  however  reciprocity is a fact of business  life.

2. New  Materials  and Products: Engineering  and manufacturing  managers  are  always  interested in new  products  and materials that will  help  them more efficiently and thereby achieve one   of  their  primary objectives. The  purchasing department  can  help  because  it  deals regularly with the  suppliers  responsible for the new  developments.

3. Economic  Make  or Buy : Make  or buy  decisions  are generally  made  by committees consisting  of departmental  heads. The  purchasing manager should  spot the  need for a make  or buy  decisions  and refer it to   the committee for actions.

4. Standardization: The  fewer the  items  that  need be  controlled the simpler  and more  efficient  does  the materials management  process become.  Thus it is  to the  interest of the materials  personnel  to promote standardization and simplification  of specifications.

5. Production  Improvement: This  is the most  important  primary objective of  engineering department  but the  purchasing  department  can assist  the engineering department.  Their  economic  knowledge can supplement the technical  skills  of the engineers  on programmes to boost profits  through  product   change.

6. Inter Department   Harmony: Materials management  department  deals with about  almost  all departments  in the company. It  can greatly contribute  to the success of every other department  and  at the same time the success of materials  management  department  depends  on cooperation from the personnel  of the  other department.

7. Acquisitions: Business  acquisitions and mergers are common. Acquisitions  is taken as one  of  the ways  of business  expansion. It  is no easy job to identify a possible  candidate  for acquisition  and then  to make  the necessary overtures for eventual merger.

Posted Date: 2/25/2013 7:00:42 AM | Location : United States

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