kaulya_josh
New member
:SugarwareZ-299: Written words have an unfortunate tendency to convert genuine gratitude into stilled formality, however we feel this is the best way to express our appreciation for everyone concerned.
A special word of thanks to Prof. Patel for her co-operation and timely guidance and explaining the need of the project.
We also express our immense gratefulness to Mr. B. B. Khairnar of Altra Power Electricals for sharing valuable information with us.
Introduction
Material is the central item and the activity of any organization.
Organization is exists for material, works for material and due to material. The main purpose of any organization is to make profit. This profit or loss gets generated due to material.
The most important material functions are purchasing, material movement and stores, which are connected together organizationally. The material manager plays an important role in planning, purchasing, storing, transports of material and managing the waste material.
Storage is an unavoidable activity. It increases the value of the material by simply carrying it. No transformation of any type is to be done; a store plays a vital role in material management. In majority of manufacturing organizations material constitutes the major fraction of cost of 60% to 80%. Inventories block a substantial amount of raw material in the form of working capital in which has to be managed properly otherwise the organization will have to face heavy losses.
Characteristics of stores activity
The stores activity is, ‘non value adding process’. Material is stored as close as possible to the production area. This facilitates communication with the production line. With store material will be available at required location and at required time. For this reason management must pay the maximum attention to the storage and handling related activities.
The following are the advantages of Centralized stores organization:
· Effective and better supervision and controls are exercised.
· Personnel requirement is less. So there is cost reduction in manpower.
· Better and efficient layout of stores.
· Inventory checks are better.
· Stores maintenance is better.
· Fewer redundant and obsolete items.
· This gives better security arrangements.
Advantages of decentralized stores organization:
(1) Reduce material handling and associated work.
(2) Convenient for every department to draw material.
(3) Less risk of loss by fire, etc.
(4) There is less chance of production stoppage. This is due to nearby easy and prompt availability of material and production shops.
Factors of stores layout
(1) Type of materials used: Type will decide method or equipment for storing and handling the material.
(2) Variety of materials stored: Small and simpler method less denser method.
(3) Speed at which the material has to move: Fast moving material lower density storage. Slower moving material higher density storage.
(4) Location of supplier: Located close to plant so there are frequent deliveries, distant suppliers, Large stock of these goods in which material are stored.
(5) Location of customer: Geographically spread storage, region wise.
Storage System
Physical System: The design of proper storage system is very important for easy location, proper identification and speedy issue to the consuming department. The commonly followed system for physically controlling stores materials are closed stores system, open stores system and random access stores system. A single firm can follow a combination of these systems depending upon the nature of the production operation materials.
Closed storage system: In such system all material are physically stored in closed
A special word of thanks to Prof. Patel for her co-operation and timely guidance and explaining the need of the project.
We also express our immense gratefulness to Mr. B. B. Khairnar of Altra Power Electricals for sharing valuable information with us.
Introduction
Material is the central item and the activity of any organization.
Organization is exists for material, works for material and due to material. The main purpose of any organization is to make profit. This profit or loss gets generated due to material.
The most important material functions are purchasing, material movement and stores, which are connected together organizationally. The material manager plays an important role in planning, purchasing, storing, transports of material and managing the waste material.
Storage is an unavoidable activity. It increases the value of the material by simply carrying it. No transformation of any type is to be done; a store plays a vital role in material management. In majority of manufacturing organizations material constitutes the major fraction of cost of 60% to 80%. Inventories block a substantial amount of raw material in the form of working capital in which has to be managed properly otherwise the organization will have to face heavy losses.
Characteristics of stores activity
The stores activity is, ‘non value adding process’. Material is stored as close as possible to the production area. This facilitates communication with the production line. With store material will be available at required location and at required time. For this reason management must pay the maximum attention to the storage and handling related activities.
The following are the advantages of Centralized stores organization:
· Effective and better supervision and controls are exercised.
· Personnel requirement is less. So there is cost reduction in manpower.
· Better and efficient layout of stores.
· Inventory checks are better.
· Stores maintenance is better.
· Fewer redundant and obsolete items.
· This gives better security arrangements.
Advantages of decentralized stores organization:
(1) Reduce material handling and associated work.
(2) Convenient for every department to draw material.
(3) Less risk of loss by fire, etc.
(4) There is less chance of production stoppage. This is due to nearby easy and prompt availability of material and production shops.
Factors of stores layout
(1) Type of materials used: Type will decide method or equipment for storing and handling the material.
(2) Variety of materials stored: Small and simpler method less denser method.
(3) Speed at which the material has to move: Fast moving material lower density storage. Slower moving material higher density storage.
(4) Location of supplier: Located close to plant so there are frequent deliveries, distant suppliers, Large stock of these goods in which material are stored.
(5) Location of customer: Geographically spread storage, region wise.
Storage System
Physical System: The design of proper storage system is very important for easy location, proper identification and speedy issue to the consuming department. The commonly followed system for physically controlling stores materials are closed stores system, open stores system and random access stores system. A single firm can follow a combination of these systems depending upon the nature of the production operation materials.
Closed storage system: In such system all material are physically stored in closed