Material Management by 3l7Z72aU

VIEWS: 24 PAGES: 115

									Material Management

           Prof. Dr. Basavaraj K. Nanjwade M. Pharm., Ph. D
                    Department of Pharmaceutics
                 KLE University College of Pharmacy
                 BELGAUM-590010, Karnataka, India.
                   E-mail: nanjwadebk@gmail.com
                     Cell No.: 00919742431000
There are thousand reasons for failure, but only one way to success,
                        ‘HARD WORK’
                Contents
Definition

Objective and importance

Principles of material management

Functions of material management

Materials – Quality and Quantity
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Contd..

                   Contents
Value analysis

Purchasing

Vendor development

Buying techniques

Purchasing cycles and procedure

Advantages of material management
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                  Definition

    It is defined as an organizational concept,
    which has the authority and responsibility of
    all activities, concerned with the flow of
    materials in the organization.




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         Objectives and importance
• Efficient use of the working capital.
• Lowering inventory investment and increasing
  the inventory turnover.
• Responding to the market changes related to
  any product.
• Ensuring the cooperation of all departments.
• Providing best services to the king of the
  market i.e customer.
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        Principles of material handling

• Least handling is the best handling.

• Lengths and number of move to be
  minimized.

• Unit loads

• Minimize the distance.
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               Principles of material handling
• The design of the container.e.g. shippers
  are used for storing finished bulk. & for
  raw materials as per the property of
  materials they are stored- plastic
  containers ( light weight containers)

• Re-handling and back tracking of the
  materials should be avoided.

• The materials handling service should not
  interfere with the production flow.
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               Classes of materials

• Raw materials:- These are materials that
  are used in the product which is in an
  unprocessed condition.

• Purchased Parts:- These are the items
  used in the assembly of the product.



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               Classes of materials
• In-progress materials:- They are called
  ‘work in progress’ inventories. These
  goods require further processing.

• Finished materials:- These are fully
  manufactured goods, inspected and ready
  for delivery to the customers.

• Supplies:- These are consumable goods
  used in the process of manufacturing.
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       Functions of material management




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           Materials-Quality & Quantity
•    Four factors affecting the purchase of raw
     materials are
  1) Quality :- The suitably of an item to
     accomplish the intended work.
     The raw materials should satisfy the
     following requirements.
i. Efficiency of the material.
ii. Cost and the shelf –life.
iii. For equipments, power consumption and
     power requirement.
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                         Quantity

•      From the inventory point of view, quantity
       standards are decided on the following
       parameters;
i.     Maximum inventory
ii.    Minimum inventory
iii.   Standard order
iv.    Reorder point
 3)    Price
 4)    Delivery Date
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                  Value Analysis
•    Definition:- It is a systematic study of every
     element for it’s cost in a part, material or service to
     make certain that it performs it’s function at the
     lowest possible cost.
• Benefits of value analysis:-
i. Decrease in existing cost of the product or service.
ii. Unnecessary expenditure is identified and
     eliminated.
iii. Product value improves for new materials and
     processes.
iv. More profits.
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                    Value ratio

Mathematical representation of the value can be
   done as                      Function
              Value =           Total cost

Reasons for unnecessary costs:-
i. Lack of information
ii. Lack of ideas
iii. Changed circumstances
iv. Wrong beliefs, habits and attitudes
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                Value Analysis Technique


  In this technique (n) number of questions are
  applied, like:-
o what must I do?
o What else does the item do?
o What does it cost?
o What else will the job do?
o What will be alternative costs?

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                       Purchasing
Centralized :- the purchasing           Decentralized:-      different
  procedure of materials for              department purchase their
  different department is done            requirement      seperately.
  together      from       one            This is basically seen in
  purchasing       department.            large organizations.
  This is seen in small
  organizations.                        Advantages
                                         Flexible purchasing system
Advantages                               Procurement is faster
 Efficient system
 Bargaining       capabilities
  increased
 Good raw material obtained
  at lower price
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               Vendor development
      The supplier or the person who sells the
      required materials or services for the
      production is known as a vendor.

      The purchase of raw materials/service from a
      specific vendor is known as the vendor
      development.

       There are four stages of vendor development:-
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           Four stages of vendor development

      Stage          Name                          Development
                Survey stage               Identifying the potential
          1st                              sources of suppliers.
                                           Seeking information.
                                           Provisional vendors list.
                Enquiry stage              Analysis of information in
          2nd                              standard enquiry format.
                                           Accreditation, FDA
                                           approval, ISO certification.
                                           Personal visits.
                Negotiations and           Quality control
          3rd   selection stage            specifications, clarification,
                                           credit, quantity discounts.
                Experience and             Performance appraisal,
          4th   evaluation stage           Quality, delivery time.


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                1) Survey stage

The following sources are considered for information
• Trade directories :- e.g.
  Yellowpages.eindiabusiness.com
• Trade journals:- e.g. Pharmatimes
• Telephone directories
• Supplier’s catalogue
• Salesmen
  Other ways are like interchanging of information
  with other companies, tracing of public tenders and
  advertisements in the press.
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                 2) Enquiry stage
      After getting the information of the suppliers,
      detailed analysis of the supplier is being
      carried out. A comparison is being made
      between the different suppliers on basis of the
      following points:-

a.    Technological competition,
b.    service competition,
c.    price competition,
d.    delivery time.
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               2) Enquiry stage

The following aspects can be verified by the first
 hand visit:-
Internal facilities of the vendor
Financial adequacy, stability and reputation of
 the vendor
Location of vendor’s factory
After sales service
Industrial relations

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        3) Negotiation and selection stage

• The vendors who clear the enquiry stage are
  selected and negotiations are being carried out
  with them.

• The various aspects such as credit, quantity
  discount, quality specifications are being
  discussed.


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       4) Experience and evaluation stage

• The buyer evaluates and appraises the
  performance of the vendor.
• The objective is to improve the performance
  of the vendors.
  Few ways of evaluating a vendor are:-
o Categorial method
o Weighted point method
o Cost ratio method

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                           Categorial method
The buyer sets up some category on which the evaluation of the vendor is done. Specimen
of supplier’s evaluation form is given below.
                                             Grading

       Factors            Always        Usually           Seldom          Never
                        9   8    7     6 5 4            3    2   1          0

 Supplies are as per
 quantity selected
 Deliveries are on
 time

 Rigorous follow up
 is not necessary
 Willing to
 accommodate when
 production schedules
 are suddenly
 changed
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               Weighted point method
Here the rating points are divided between quality,
delivery and price.

For eg         quality – 50 points
               delivery- 30 points
               price – 20 points so total is 100 points.

The rating can be obtained by following equation.


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                Weighted point method
Quantity rating = (no. of lots accepted/ no. lots
                    received) ×rating points

Delivery rating = (no of lots delivered on time/ no
                  of lots delivered) × rating points

Price rating =(least offer received/ supplier’s offer)
               × rating points

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               Buying techniques
 Purchasing of material , machinery and services
 is done by purchasing department.

For buying the material company has to pay up a
price, the value that a seller sets on his goods in
the market is called as the price of that good.

Price is one of the greatest variables in the
purchasing of material.
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          How is the purchasing done????

• Quotations :- It is a kind of an inquiry done to
  know whether the vendor can supply the desired
  material and at what price.
• They are not the purchase order. They just contain
  all the details including freight, taxes and many
  other costs.
• The highly used quotation techniques are
• Spot quotations
• Floating a limited enquire
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           How is the purchasing done????

• Spot quotations:- this is basically used for the small
  items not related to the technical purpose.

  The prospective buyer goes to the market and gets the
  quotations from the different suppliers.

• Floating a limited enquire:- this method is used when the
  value of the purchase is small. In this technique the
  reliable vendors are called upon and asked to provide the
  quotations.
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          How is the purchasing done????
• Tenders:-
             It is a written letter or a published document
  that is aimed at finding the price for procuring certain
  materials.

   Tenders are invited from recognized firms. A few
   types of tenders are:
   # single tender
   # Open tender
   # Closed tender or limited tender
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          How is the purchasing done????
• Single tender:- It is invited from one reliable
  supplier. This kind of tender is floated only when
  the itms are required urgently.

• Open tender:- Also known as ‘ press tender’. This
  is used when the value of item to be purchased is
  very high. It is used to locate more suppliers.
  In this tender procured, a small amount of the
  deposit money is taken from the supplier so that
  they do not withdraw from the submitted rates.


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          How is the purchasing done????
• Closed tender or limited tender (Negotiations):-
  It is done to arrive at the mutual understanding
  between the supplier/vendor and the buyer.




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          How is the purchasing done????
What’s the need for negotiation?
@ prices are related to large volumes or to a large value.
@ terms and conditions are required for large volumes.
@ contract is desired for a longer period.
@ variations in quantity to be purchase are possible.
@ when supplies or services can be obtained from only
 one source.
@ when no acceptable quotations are received from the
 other vendors.

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          How is the purchasing done????
   Process of negotiations:- It is a kind of win-win situation.
   Both the parties try to benefit to the maxima through the
   negotiation.
   It is not a kind of bargaining but a mutual understanding
   between the two parties.




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          How is the purchasing done????
•   Discounts:- They are cash concessions offered by the vendor to
    the buyer, in order to enhance the volume of the business
    opportunities.
              Reasons for offering discounts?????
              ! When there is a bulk purchase.
              ! When the bills are cleared immediately.
              ! And also to maintain the good rapo with
                the buyer
Types of discounts:-
1) Volume contracts.
2) Deals
3) Discounts
4) Consignment terms
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          How is the purchasing done????
# Volume contracts:- This kind of discount is offered
 proportionate to the volume of material ordered.

# Cash discount:- Cash discount is given on the basis of
  the time of the payment done by the purchaser. The
  normal credit period is 90 days.

# Cumulative discount:- It is a method of offering the
 discount on the basis of actual purchases and appropriate
 to the quantity range in a year.

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              Purchasing cycle and procedure
•  The purchasing department of the company is
   responsible for the purchase of all the raw materials as
   well as the requirements.
The following steps are followed in the purchasing cycle.
1) Recognition of need and receipt of requisition: The
    requisition includes the following information:-
   - Name
   - Quality and quantity specifications
   - Date by which material is required
   - Place at which material is to be delivered
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          Purchasing cycle and procedure
2) Selection of potential sources of supply
3) Making request for quotation
4) Receipt and analysis of quotations
   - material specifications and quality
   - price of the material
   - taxes
   - terms of payemeny
   - place of delivery
   - delivery period
   - gurantee period
   - validity of tender
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          Purchasing cycle and procedure
5) Selection of right source of supply
6) Issuing the purchase order
7) Follow-up of the order
8) Receipt of materials,reports and analysis
9) Checking and approving of vendor’s invoice for
  payment
10) Closing of completed order
11) Maintenance of record and file
   Purchasing cycle flow chart has been given in the
  following slide.
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                                            Spell out of specifications &
          Need recognition                  requirements

                                                   Official requisitions

                                 Check specifications,
Specifications                                                              Purchase
                                 prices/supplies
file                                                                        records

               Inquiry tender                  Select suppliers             Supplier’s
                                                                            record

               Quotations & analysis prices and terms, negotiations, finalisation

                                         Purchase order for supply


                                                  Suppliers’ acceptance
                  Follow-up
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  • Contd ….

                             Delivery of materials


  Checking of invoice        Materials & reports,
  with purchase order        analysis


                                 Payment made




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        Example of Materials and People Flow




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                    Location of Stores :
 Store should be located adjacent to the manufacturing area.

It depends up on nature and value of items to be stored and
  frequency with which items are received and issued


  Objectives :
   Minimum wastage of space
   Maximum ease of operation
   Minimum handling cost
   Minimum other operational cost
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               Facilities of Store

Inspection center
Quarantine room
Washing room
Centralized weighing department
Adequate space


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               Functions of stores

   General function :
 Maintenance of Stock (materials and tools)

 Maintenance of hygiene, sanitation, and
  pest control

 Maintenance of material handling
  equipment
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               Functions of stores
     Specific functions :
Receiving & recording of raw materials
Quarantine storage – Sampling & approval by QC
Positioning & Storage
Issuing & recording of materials
Receiving & Dispatching of finished goods
Distribution

     Optional functions :
Dispensing, Maintenance of weights & measures
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         Material handling system

Right Definition :
                  Material handling uses the right
 method to provide the right amount of the right
 material at the right place, at the right time, in
 the right sequence, in the right position, in the
 right condition, and at the right cost.



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        Material handling system

Involves handling, storing, and controlling material
• The raw materials, in-process materials and
  finished goods are moved from one place to
  another in the plant.
• Adds value through time and place utility
• Impacts space requirement, profits, quality, safety,
  and productivity
• On an average, 20% of production cost is spent on
  material handling system
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          Twenty Principles of Material Handling


1. Planning principle. Plan all material handling
    and storage activities to obtain maximum overall
    operating efficiency.


2. System principle. Integrate as many handling
    activities as is practical into a coordinated system
    of operations, covering vendor, receiving, storage,
    production, inspection, packaging, warehousing,
    transportation. etc.

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         Twenty Principles of Material Handling


3. Material flow principle. Provide an operation
  sequence and equipment layout optimizing
  material flow.

4. Simplification principle. Simplify handling by
  reducing, eliminating, or combining unnecessary
  movement and/or equipment.

5. Gravity principle. Utilize gravity to move material
   wherever practical.
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         Twenty Principles of Material Handling



6. Space utilization principle. Make optimum
  utilization of space .

7. Unit size principle. Increase the quantity, size,
  or weight of unit loads or flow rate.

8. Mechanization principle. Mechanize handling
  operations.


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         Twenty Principles of Material Handling



9. Automation principle. Provide automation to
  include production, handling, and storage
  functions.

10. Equipment selection principle. In selecting
  handling equipment, consider all aspects of the
  material being handled.



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         Twenty Principles of Material Handling



11. Standardization principle. Standardize handling
  methods as well as types and sizes of handling
  equipment.

12. Adaptability principle. Use methods and
  equipment that can best perform a variety of
  tasks and applications where special purpose
  equipment is not justified.


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         Twenty Principles of Material Handling


13. Dead weight principle. Reduce ratio of dead
  weight of mobile handling equipment to load
  carried.

14. Utilization principle. Plan for optimum utilization
  of handling equipment and manpower.

15. Maintenance principle. Plan for preventive
  maintenance and scheduled repairs of all
  handling equipment.
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         Twenty Principles of Material Handling


16. Obsolescence principle. Replace obsolete
  handling methods and equipment when more
  efficient methods or equipment will improve
  operations.

17. Control principle. Use material handling
  activities to improve control of production
  inventory and order handling.



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         Twenty Principles of Material Handling



18. Capacity principle. Use handling equipment to
  help achieve desired production capacity.

 19. Performance principle. Determine
  effectiveness of handling performance in terms
  of expense per unit handled.

20. Safety principle. Provide suitable methods and
  equipment for safe handling.


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      Handling of materials must be performed

    Safely
    Efficiently
    At low cost
    In a timely manner
    Accurately (the right materials in the right
     quantities to the right locations)
    And without damage to the materials


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       Risks associated with improper handling
• Increase in cost of raw material and finished
  products
• Delay in production schedule and long
  production cycle
• Waste of machine time and personnel time
• Increase in in-process inventories
• Damage or loss of material and employee safety
  liabilities
• Employee frustration and reduced morale
• Customers dissatisfaction

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       Selecting Material Handling System

  Systematic Approach

    1. Define the problem




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       Selecting Material Handling System

2.       Analyze the problem
   Observe activities
  Obtain layouts, flow patterns, schedules, etc.
  Obtain information on existing material handling
      equipment
  Analyze situation by Twenty Principles of Material
  Handling, and/or forms
  Can activities be combined, simplified,
  eliminated???

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       Selecting Material Handling System

3.        Identify possible solutions
    Organize meeting with:
    material handlers
    machine operators
    supervisors
    support engineers
4.        Evaluate alternatives
          Meet again to rate alternatives
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      Material Handling Equipment

 Five categories:
 1. Industrial trucks
 2. Automated guided vehicles
 3. Monorails and other rail guided vehicles
 4. Conveyors
 5. Cranes and hoists

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               Industrial Trucks

Two basic categories:
1. Non-powered
     – Human workers push or pull loads


2. Powered
     – Self-propelled, guided or driven by human
     – Common example: forklift truck


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       Nonpowered Industrial Trucks
             (Hand Trucks)




      (a) Two-wheel hand truck,                (b) four-wheel dolly,
               (c) hand-operated low-lift pallet truck

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                     Powered Trucks




                            Capacities from 450 kg up to 4500 kg
           Power sources include on-board batteries and internal combustion motors

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                Powered Trucks
•Designed to pull
one or more trailing
carts in factories and
warehouses, as well
as      for     airport
baggage handling

•Powered by on-
board batteries or IC
engines


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       Automated Guided Vehicles
  An Automated Guided Vehicle
  System (AGVS) is a material
  handling system that uses
  independently operated, self-
  propelled      vehicles guided
  along defined pathways in the
  facility floor

• Types of AGV:
   – Driverless trains
   – Pallet trucks
   – Unit load AGVs

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      Driverless Automated Guided Train

 • First type of AGVS to
   be introduced around
   1954
 • Common application
   is moving heavy
   loads over long
   distances in
   warehouses and
   factories without
   intermediate stops
   along the route

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                  AGV Pallet Truck

• Used to move palletized
  loads               along
  predetermined routes
• Vehicle is backed into
  loaded pallet by worker;
  pallet is then elevated
  from floor
• Worker drives pallet truck
  to AGV guide path and
  programs destination

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                Unit Load Carrier
• Used to move unit
loads from station to
station
• Often equipped for
automatic
loading/unloading of
pallets and pans using
roller conveyors,
moving belts, or
mechanized lift
platforms


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                AGVs Applications
1. Driverless train operations - movement of large
   quantities of material over long distances
2. Storage and distribution - movement of pallet loads
   between shipping/receiving docks and storage racks
3. Assembly line operations - movement of car bodies
   and major subassemblies (motors) through the
   assembly stations
4. Flexible manufacturing systems - movement of
   work parts between machine tools
5. Miscellaneous


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               Rail-Guided Vehicles
• Self-propelled vehicles that ride on a fixed-rail
  system
• Vehicles operate independently and are
  driven by electric motors that pick up power
  from an electrified rail

• Fixed rail system
  – Overhead monorail - suspended overhead
    from the ceiling
  – On-floor - parallel fixed rails, tracks
    generally protrude up from the floor
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               Overhead Monorail




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                   Conveyor Systems
•        Large family of material transport equipment
         designed to move materials over fixed paths,
         usually in large quantities or volumes


      1. Non-powered :
       Materials moved by human workers or by gravity
       2. Powered :
       Power mechanism for transporting materials is
         contained in the fixed path, using chains, belts,
         rollers or other mechanical devices
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               Conveyor Types

•    Roller
•    Skate-wheel
•    Belt
•    In-floor towline
•    Overhead trolley conveyor


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      Roller                        Skate-wheel                             Belt




                                                          Overhead trolley conveyor
         In-floor towline
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                Cranes and Hoists
Handling devices for lifting, lowering and transporting
  materials, often as heavy loads
• Cranes
   – Used for horizontal movement of materials
• Hoists
   – Used for vertical lifting of materials
• Cranes usually include hoists so that the crane-
  and-hoist combination provides
   – Horizontal transport
   – Vertical lifting and lowering
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                      Hoist




                                     Load



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Bridge Crane         Gantry Crane                 Jib Crane




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          Salvaging and Disposal of
              Scrap and Surplus

     The words ‘Scrap’ and ‘Surplus’
     symbolize waste and to that extent these
     account for the loss of profits.

     Scrap is commonly used for waste of all
     kinds.


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These occur for the following reasons:

Mistakes in procurement
Wrong planning decisions
Wasteful processes in production
Inevitable waste during the adjustment of
 the equipment
Overall absence of efficiency


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Disposal of scrap, surplus, recyclable, obsolete
 materials is one of the most important area of
 materials management, but often overlooked or
 considered minor.

Popular due to increased public awareness of
 environment, government legislation, better
 recognition of opportunities it offers in return.

 e.g. paper files and forms are recyclable item
  that can be sold to recycle company.
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       The following measure are adopted and
       monitored for handling scrap:

 1. Controlling of surplus and scrap
 2. salvaging or converting the waste for
    advantageous use.
 3. Disposal of the surplus and scrap to the
    best advantage.


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     The production department primarily controls the first
     function by proper design, while purchase
     department handles the second and third functions.

    Waste materials in pharmaceutical industry:

• Empty drums, packing materials, card boards,
  aluminium caps, bottles etc. these are non-
  recoverable rejects.
• Spoiled materials during production. In a few
  instances, these may be recoverable.
• Worn-out parts of equipments (examples are
  punches and dies), old equipment (due to expiry of
  life) and obsolete equipment (due to technology
  change).
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    Salvage :
    It is defined as the processing of materials
    (items) for advantageous use or disposal of
    company property, which is no longer
    economically useful in its present position.

  Salvage operation :
 Waste materials are properly collected and
  stored at one place continuously, so that these
  can form a separate batch in production.
 Recoverable materials are stored in a scientific
  way as other items stored.
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 Materials are stored in terms of quality or size or
  specifications.
 Waste is invested for suitability to recover or avoid them.

 Salvaging operation are possible under the following
  conditions:
 Evidences from laboratory tests and assays that the drug
  products meet all applicable standards of identity, strength,
  quality and purity.

      Evidence from inspection of premises that the drug
    products and their associated packing were not subjected to
    improper storage condition, as a result of the disaster or
    accident.

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                   Disposal

    Disposal of scrap, waste and surplus
  materials can be effected by several way :

 Surplus material should be returned to the
  original supplier. Alternatively a customer who
  needs them should be explored.
 As a social obligation, some material are
  defected or broken before selling them as scrap.
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                   Disposal

 Materials may be sold by inviting quotations
  from potential buyers or through various
  contracts such as fixed price contract, varying
  price contract, specific bids and negotiations.

• It is worth considering that scrap like any other
  material represents money and to that extent it
  has a value.


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           Unit lode, Pelletization and
                 Containerization
 Unit load is a set of items (raw material, semi
  finished parts, finished product) to be move
  together, like:
 A set of cartons on a pallet
 A set of products in a container

   In a unit load, parts are
    In something (In a carton)
    On something (On a pallet)
    Grouped by something (wrapped, strapped)
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        Reasons for using unit loads in material handling



   Multiple items
   handled
   simultaneously
   Required number
   of trips is reduced
   Loading/unloading
   times are reduced
   Product damage is
   decreased           (a) Wooden pallet, (b) pallet box, (c) tote box
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 Pallets :
  Style and Size based on:
 Shipping and receiving restrictions
 Size and weight of items on the pallet
 Space restrictions
 Equipment used to move the pallet
 Cost, supply, and maintenance
Aisle widths, door sizes, stacking heights

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 Types of Pallets :




 Materials used :                     • Plastic
• Softwood                              • Steel
• Hardwood                            • Aluminium
• Paper
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Containerization :

  Different types of containers are used according to
  the type of material.
e.g
  Boxes, cartons, cases, sacks, bales, pallets,
  drums, barrels, crates, cable drums, machinery,
  and processed timber
 Tank containers for bulk liquids and dangerous
  goods.
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        TRAINING AND DEVLOPMENT

• Training and development may be defined as an
  attempt to improve current or future performance
  of employees through learning, usually by
  changing the employees attitude or increasing
  his/her skills and knowledge.




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            TRAINING AND DEVLOPMENT
•         Training and development program - Steps :
      I. Explain the trainee what is the job, how is the
            job done and why is it done (relevance).
      II. Show how the job should be done
            (demonstration).
      III. Allow the trainee to do the job (practice).
      IV. Follow up by explaining what was done
            correctly and what was done incorrectly.
            Correction always should be made as
            privately as possible (feedback).
    19 July 2012     KLE College of Pharmacy, Nipani.   95
        TRAINING AND DEVLOPMENT

•        Training and development program –
         Methods :

          I.   On-the job training

          II. Off-the job training



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        TRAINING AND DEVLOPMENT
I.       On-the job training :
         Majority of industrial training are on-the job
         training, because it is related to the
         productivity.

         On-the job training refers to methods that are
         applied at the workplace, while the employee
         is actually working.



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        TRAINING AND DEVLOPMENT
II.      Off-the job training :
         This method is commonly used for the
         training of employees.

        Off-the job training refers to methods that are
        applied away from workplace.




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               JOB ANALYSIS



• Job analysis is defined as a process of collecting
  and studying information relating to the
  operations and responsibilities of a specific job.




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                     JOB ANALYSIS
• Process of job analysis :
                        Defining uses of job analysis


                          Information collecting

                          Information processing




               Job description                 Job specification

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                 JOB ANALYSIS
• Uses of job analysis :

     • Personnel planning

     • Training and development

     • Work scheduling

     • Performance appraisal

     • Job evaluation

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               JOB ANALYSIS

• Job Description :
  is defined as a combination of          statement
  containing the work to be performed and the
  essential working conditions of a particular job.

• Job specification :
  may be defined as a statement of human
  qualities and other desirable characteristics
  required for discharging the assigned job.

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               JOB ANALYSIS
                Job Analysis

Job description                         Job specifications
Job title                                           Education
Job place                                           Experience
Job summary                                         Training
Machines, tools and equipment                       Judgment
Materials and forms used                            Initiative
Working condition                                  Responsibilities
Hazards                                            Physical effort
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                   JOB DESIGN
• Job design involves conscious efforts to
  organize tasks, duties and responsibilities into a
  unit to achieve objectives.

• Job design involves three steps.
     – Specifications of individual tasks.
     – Specification of the methods of performing each
       tasks.
     – Conversion of tasks into specific jobs to be assigned
       to individuals.

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                       JOB DESIGN

• Mechanisms of job design :
    Understanding the nature of job is important,
    because it determines the skill requirement in
    performing a job.

               Skill variation, responsibility and growth
    Low                                                     High
                   Enlargement and enrichment



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                 Job enlargement

      It involves performing of a variety of jobs or
       operations at the same time. It is mainly
       intended to enlarge the job horizontally.

      It avoids monotony, as a result of high degree
       of specialization, but the basic nature of job
       remains same. Therefore, it has limited role in
       motivating employees. There is a need for up-
       gradation of authority and responsibility.


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                 Job enrichment


      It acts as an additional motivating factors to
       other models described earlier in job design.
       This factor attracted more attention, both in
       academic circles as well as in practice.
       Therefore, it requires a detailed study.




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                Job enrichment


 Job enrichment is concerned with designing of
  job in terms of the following :
   • Work content provides greater variety.
   • Levels of knowledge and skills are higher.
   • More autonomy and responsibility in terms of
     planning, directing and controlling is given to
     workers for their own performance.
   • Work experience becomes meaningful.


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        BLUE AND WHITE-COLLAR JOBS

• A position that involves mainly physical labor.
  With the decline in manufacturing and an
  increase in harmonization agreements, the term
  blue collar is now rarely used.

• Blue collar refers to the blue overalls traditionally
  worn in factories in contrast to the white shirt
  and tie supposedly worn by an office worker,
  known as a white-collar worker.

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               LABOR WELFARE
• Labor Welfare means working out things for the
  well-being of the labors. Knowing there wants
  and enabling them to fullfill there wants.


• Labor welfare is the voluntary efforts of employer
  to establish within the existing industrial system,
  working and sometimes living and cultural
  conditions of the employee beyond what is
  required by law.

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         Advantages of material management

• It eliminates unproductive handling of the
  materials like back-tracking, rehandling
  etc.

• It reduces idle machine capacity and thus
  ensures better turnover on investment.

• It reduces considerably the idle time of the
  workers.
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         Advantages of material management
• The quality of the materials is also maintained
  through minimum human touches, elimination of
  breakages, etc.

• Every inch of the factory space is properly
  utilized.

• The issue of materials is also facilitated.

• It helps in maintaining effective production
  planning and control.
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         Advantages of material management
• Reduced operating                   costs         and   timely
  production.

• Greater job satisfaction on the part of both
  the workers and the employer.




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               References

• CVS Subrahmanyam; Pharmaceutical
  Product and Management, Published by-
  Vallabh Prakashan, Page no :- 260 – 282

• S.C. Saksena; Business Administration
  Management, Published by- Sahitya
  Bhawan, Page no :- 262 – 263, chapter
  20.
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