Material Planning and Control -

Wednesday, May 26, 2010

Material Planning and Control

Material Planning and Control

Material planning is the important activity of materials managements. The importance of material planning in production management e need no explanation because in its absence production is not possible. Moreover it affects the efficiency of all machines, money & marketing division of an industry.

Material planning is a process of developing a purchasing procedure. It is concern with determining requirements of raw materials, ancillary parts and components for the production program in advance.

It is essential to know how much quantity is required for procurement of raw materials. On the basis of available information the procurement program is developed & financial provision is made. A material planning is also essential to place the orders well in advance so that delivery at right time is ensured.

Thus materials planning activity acts as a effective link between the purchasing or procurement & the manufacturing function. It require the knowledge of

1. Bill of material quantity, quality & specification of material

2. Production of Assembly schedule.

3. Supply lead times & dependability.

4. Manufacturing capacity.

5. Overall economy.

One of the techniques of material planning is bill of material explosion. Material planning through bill of material explosion is shown below in Fig.

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