it is a presentation of operation management

1. MATERIAL MANAGEMENT
AT
RASHTRIYA CHEMICALS & FERTILIZERS LTD

2. PRODUCTS BY RCF

3. Materials Planning at RCF
IT determines the requirement of all kinds of materials to meet the production
needs economically
Factors that influence materials planning at RCF are:
Macro Factors:
• Price Trends
• Import Policy Of The Government
• Credit Policy
Micro factors:
• Corporate Objectives
• Working Capital
• Seasonality
• Delegation Of Powers
• Communication Systems

4. Materials Budgeting at RCF
The Process of Preparing Material Budgets at RCF
Inventory of
Requirements
material in
of material
hand Process of preparing
materials budget in terms
Amount of of quantity and money
Inventory Forecast of value of materials to be
material to be
Target price procured for a given
purchased
period of time.
Purchase Actual
Budget Purchases
Material Control: Function of maintaining
Variance constantly availability of all kinds of materials
Report for required for the manufacture of products.
Control

5. Purchase Management at RCF
Purchasing is the act of buying an item at a price.
Buying raw materials of the right qualities, in the right quality at the right time,
at the right price, and from the right source.
Determination
Recognition of Description of Selection of
of Price and
Need Requirement Source
Availability
Order Checking The
Placing the Follow Up and
Acknowledgem Invoice and
Order Expediting
ent Approval
Purchasing Cycle of RCF

6. Receipts at RCF
FOR MATERIALS
Receipts to be Made Against Valid Purchase Orders
Purchase Order Copies to be Provided to Divisions
Checks to be Made By Stores on Receipt
Material and Documents to be Visually Inspected Before Unloading

7. Stores at RCF
• Periodic stock verification is taken Three time’s
Stock Verification in a year.
• Classification is done on basis of Chemicals &
Classification Fertilizers material.
Codification • 9 Digit Alphanumeric code.
Materials Handling • Material oriented systems.
• Conveyers, Elevators and Hoists, Industrial
Types of Materials
Trucks, Auxiliary Equipments, Miscellaneous
Handling Equipment Handling Equipments.

8. Inventory Management at RCF
Inventory management involves administration, policies and procedures to
reduce in inventory cost.
Factors Influencing
• Type of Product
• Volume of Production
Inventory Control Techniques
• Always better control (ABC) classification
inventory control system
• Fixed Order Quantity System