Introduction; The term “Materials” refers to the raw materials used for production, subassemblies and fabricated parts. It may define as “anything that can store stock or stockpiled”. The terms “materials” and “stores” are sometimes used interchangeably. However, both terms differ. The term “stores” has a wider meaning and includes not only the raw material’s used in production but also other items held in stock in the storeroom, such as components, tools, patterns, maintenance material’s, consumable stores, etc.
Here are explain; What does Materials? Introduction, Meaning, Control and Objectives.
It also includes stock of finished goods and partly finished goods. “Consumable” stores are items used in, production but do not become a part of the finished product, such as oil, grease, sandpaper, soap, and other cleaning materials, etc. Material is a chemical substance or mixture of substances that constitute an object. The material can be pure or impure, living or non-living matter. They can classify based on their physical and chemical properties, or on their geological origin or biological function.
Materials science is the study of materials and their applications. Raw material can process in different ways to influence their properties, by purification, shaping or the introduction of other material’s. New material can produce from raw material by synthesis.
Meaning of Materials:
The term “Material” refers to the raw material used for production, subassemblies and fabricated parts. Material control is the main component of the process of material management. Control over material is of utmost importance for the smooth and uninterrupted functioning of an organization.
A few definitions of the term is given as under:
“Material control is a systematic control over purchasing, storing and consumption of materials, so as to maintain a regular and timely supply of materials, at the same time, avoiding overstocking.”
“Material control refers to the management function concerned with the acquisition, storage, handling and use of materials so as to minimize wastage and losses, derive maximum economy and establish responsibility for various operations through physical checks, record keeping, accounting, and other devices.”
In simple words, material control refers to the various measures adopted to reduce the amount of loss of material at the time of receiving, storing and issuing the raw material. Material control in practice is exercised through periodical records and reports relating to purchase, receipt, inspection, storage and issuing direct and indirect material. Proper control over material can contribute substantially to the efficiency of a business.
Concept and Objectives of Materials Control:
Material form an important part of the cost of a product and, therefore, proper control over material is necessary. No cost accounting system can become effective without proper and efficient control of the material. Materials control basically aims at efficient purchasing of material, their efficient storing and efficient use or consumption.
Material or inventory control may define as,
“Systematic control and regulation of the purchase, storage and usage of materials in such a way that maintains a smooth flow of production and at the same time avoids excessive investments in inventories. Efficient material control cuts out losses and wastes of materials that otherwise pass unnoticed”.
The broad objectives of material control are below:
- It eliminates the problem of understocking and, therefore, the material of the desired quality will available when the need for efficient and interrupt production.
- The material will purchase only when the need exists. Hence, it avoids the chances of over-stocking.
- By purchasing material at the most favorable prices, the purchase is able to make a valuable contribution to the reduction in cost.
- Material is protecting against loss by fire, theft; handling with the help of proper physical controls.
- Issues of material are properly authorizing and accounting for.
- Vouchers will approve for payment only if the material has been receiving and is available for issue.
- Material is, at all times, charge as the responsibility of some individual.
Objectives of Materials Control:
The following are the main objectives of materials control:
To the availability of Materials:
There should be a continuous availability of all types of materials in the factory so that the production may not be held up for want of any material. Minimum quantity of each material is fixing to permit production to move on schedule.
To reasonable Price:
While purchasing materials, it is seen that it is purchasing at a reasonably low price. Quality is not to sacrifice at the cost of the lower price. The material purchase should be of that quality alone which is need.
To enable uninterrupted production:
The main object of material control is to ensure smooth and unrestricted production. Production stoppages and production delays cause substantial loss to a concern.
To ensure the requisite quality of materials:
The quality of finished products depends mainly on the quality of the raw material used. If the quality of the raw material is not up to desired standards, the end product will not be of the quality of the desires which affects the sale of the product in the market resulting in loss of profits as well as the goodwill of the concern. It is of vital importance to exercise strict control and supervision over the purchases, storage, and handling of material.
To minimize wastage:
The loss of material may occur on account of rust, dust, dirt or moisture, bad and careless handling of material, poor packing and many other reasons. The causes responsible for such losses must be brought to light and utmost efforts should make to minimize the wastage of raw material. This is possible only by introducing an efficient materials control system. There should be minimum possible wastage of materials while these are being stored in the go-downs by storekeeper or used in the factory by the workers.
Wastage should allow up to a certain level known as the normal level of wastage and it should not exceed that level. Leakage or theft of material must avoid keeping the cost of production under control. Storekeeper and workers should train to handle the material in a scientific way to avoid the wastage. The storekeeper is to keep the stores neat and tidy to avoid the wastage due to rust, dust or dirt.
To fix responsibility:
A proper system of materials control also aims at fixing responsibility of operating units and individuals connected with the purchase, storage, and handling of material.
To provide information:
Another objective of materials control is to provide accurate information regarding material cost and inventory whenever needed by management.