Followers

Tuesday 17 July 2012

CHAPTER 1: INTRODUCTION TO MATERIAL MANAGEMENT =)


Material management include all activities in the flow of material from the supplier to the consumer. 
Such activities includes physical supply, operations planning and control, and physical distribution.
There are 2 types of output will be produce:
      1) Goods (tangible) - physical object, something can touch, feel or see.
      2) Services (intangible) - performance of some useful function such as banking, medical care, restaurant, and social services


1.0 Operating Environment (GECCQ)


    1.1 Factors affecting operating environment
        1) Government - register company to establish, follow government regulation, limit number of export (TEUs - twenty equivalent units), safety and taxation.
        2) Economy - economy recession or inflation and population, labor.
        3) Competition - competed  with each other company, internet business competitor.
        4) Customer - much more demanding. Characteristics & selection customer expect in the product and services they buy are: 
                  ~ a fair/reasonable price
                  ~ high quality products and services
                  ~ delivery lead time
                  ~ better resale and after sale services
                  ~ product and volume flexibility
        5) Quality - provide quality that not only meet customers's high expectation but exceed them.


    1.2 Order Qualifier and Order Winner


        1.  Order Qualifier – customer requirement based on price, quality, delivery.
        2.  Order Winner – competitive characteristics, or combination of characteristics that persuade a customer to choose company’s product or services.




    1.3 Manufacturing strategy


       1.3.1 Delivery lead time


           1) Engineer to order (ETO) - customer specification require unique engineer design, long 
                delivery lead time
           2) Make to order (MTO) - manufacturer doesn't start to make the product until a order is received, delivery time is reduced. 
           3) Assembly to order (ATO) - product are made from standard component that manufacturer 
              can inventory and assembly according to order, delivery lead time is reduce further.
           4) Make to stock (MTS) - supplier manufacturer the goods an sell from finished goods inventory, delivery lead time is shortest.  

1.4 The Supply Chain Concept






1.0                
1.5 WHAT IS MATERIAL MANAGEMENT?

     1)  Material management is a coordinating function responsible for planning and controlling material flow.
     2) Objective:
         ~maximize the use of the firm resources
         ~provide the required level of customer services



 1.6 PHYSICAL SUPPLY OR DISTRIBUTION (TDWPMO)
    • Transportation
    • Distribution inventory
    • Warehousing
    • Packaging
    • Material handling 
    • Order entry


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