GROUP 2

Integrated Material Management

Definition

It covers all aspects of material costs, materials supply and utilization

All the concerned Depts. – Materials, Design, Production, Quality, Accounts etc. have to work in close co-ordination with each other.

It performs the following functions

Integrated Material

Management

Materials Planning &

Control

Vendor Development & Evaluation

Purchasing

Receiving, Inspection &

Warehousing Inventory Control

Standardize

Value Engg.

Issue & Dispatch

Disposal Of Scrap And Surplus

Case Study

Dubai Palm Jumeirah Island

Material Planning And Control

Material Planning & Control

Raw Material

Sand Rocks

Human Resources

Skilled

Unskilled

Machines

Material Planning And Control

Raw Material Sand - From bottom of the Persian Gulf Rocks – Blasted from 16 quarries

Human Resources Skilled - Hired world's specialist contractors from

Belgian and Dutch Unskilled - Approx. 40000 Asian workers

Machines

Vendor Development & Evaluation

Vendor Development can be defined as any activity that a Buying Firm undertakes to improve a Supplier's performance and capabilities to meet Buying Firms' supply needs

Vendors should be valued partners in business development and work should be done with a spirit of mutual co-operation to meet business objectives

Advantages of Vendor Development

Regular sourceLong term business partnerConsistent quality Optimum price Timely or just-in-time delivery Adequate quantity

Vendor Development & Evaluation

Vendor Development ProcessEstablish mutually beneficial relationshipsProvide necessary technical assistance in form of

Project engineeringHelp vendors financially

EvaluationMeet ISO 9000 requirementsVendor Rating System.Compare prices, delivery reliability, delivery date

adherence and quality of the item.

Purchasing

Intricate decisions areWhat to buyWhen to buyWhere to buyHow much to buyHow much to payHow much to stock

Purchase Guidelines

To deal with Approved / Regular VendorsTo follow Quality System procedures as per ISO

9001- 2000To evaluate and develop vendors on the basis

of vendor’s background, quality of products/services and reliability.

To derive maximum cost benefit by : Consolidating requirements Strategic negotiations Using techniques such as Reverse Auction

Reverse Auction

A reverse auction is a type of auction in which the roles of buyers and sellers are reversed.Sellers compete to obtain business, and prices typically decrease over time.On closing of the bid process, the lowest bid price is registered. It saves time as it is very fast as auction is liveHelps in cutting costs

Receiving

Receipt of goods in a nominated locationUnloading Storage of the goods unloaded Weighing of the goods received Documentation for receipts of goods Documentation for the storage of goods Communication to all concerned about the

receipt of the goods

Dispatching - Just In Time

It is a manufacturing philosophy that attempts to produce with shortest possible lead time, lowest possible level of inventory, and lowest possible waste

It is continuous process it seeks eliminating raw material stock and finished goods stock

Inspection

Ensures counterfeit detection and preventive processes arein place assuring product quality and consistencyTechniques are - visual inspection,engineering review, testing

Inventory Control

Inventory control means keeping track of your stock

Knowing how much was sold and how much is left

Let’s you know when to order more fuelLet’s you keep records of losses and gainsGives you consumption rates of high demand

and low demand

Standardization

It is a belief that the market has the ability to understand and chart a valid future direction through the use of collective wisdom, to understand the impact of change and to adjust to that changeISO is an international organization for

standardization.Assurance that organization follows certain standards

in production of goods and servicesThere is need for standardization

Standard

Device Independence

Avoidance of vendor lock-in

Minimize cost

Interoperability

Long term preservation

Application independence

Value Engineering

It is an analysis of function of a project or a service, performed by qualified agency or contractor personnel

It is directed at lowering direct and life cycle costs, without affecting performance, reliability, quality and safety

It seeks to eliminate unnecessary costs, while maintaining or improving the functionality of the project

Future

Dubai plans to construct 3 more islands on line of Palm Jumeirah

E-Everything

E-tenderingE-biddingE-specificationsE-layoutsE-cashE-negotiation

Radio Frequency Identification(RFID)

RFID refers to the set of technologies that use radio waves for identifying objects or people

Advantage Does not require direct contact or line-of-sight scanning Scan an entire pile of stock in one go Reduces staff time as items can be checked on the

conveyor belt

Green Supply Chain Management

Improve AgilityIncreases AdaptabilityPromotes Alignment

Thank You