stores management (material management)

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Today, in modern industry , equipment and machinery are a very important part of the total productive effort than was the case years ago. Moreover, with the development of special purpose and sophisticated machines, equipment and machinery cost a lot more and therefore, their idle or down time become much more expensive. For this reason, it is vitally important that the plant machinery should be proper managed. Activity connected with receiving and distributing materials in a scientific and systematic manner with a view to save them from all kinds of damage. In an organization bustling with materials needs, the systems design should not only permit matching of present requirements with the existing supplies, But also take care of the future growth potential and demands. The management of inputs and outputs flow will require a good deal of consideration of physical factors for the proper storage of materials and, depending upon their characteristics and volume of transactions, the reporting, accounting and verifying systems should also be devised. The very nature of the storage system, to act as a buffer between procurement and various other consuming departments, stress the need for a strategy to gear up the timely receipts, storage, upkeep, handling, accounting, issues and disposals.

Systematic co-ordination and combinations of efforts in preserving the materials, which would result in optimum efficiency with minimum of expenditure

FUNCTION OF STORES Organization the function will require proper guidance, regulation and control so that material are arranged in such a manner as to enable easy storage, minimized pilferages, proper identification and quick retrievals, with minimum waste of time and efforts. For this purpose, stores location and layout must be considered and the job analyses must be done for the personnel involved to discharge their duties in an effective manner The following routine activities:1. Establish, maintain and update a rationalized system of codification. 2. Analyze the consumption and issues from stock records for establishing norms. 3. Highlight abnormal consumption, accumulation, obsolescence and surpluses. 4. Arrange for periodic reviews, physical verification and ensure proper accountal. 5. Supervise for smooth functioning.

STORES LOCATION AND LAYOUT Storage system has to accommodate the inflow of inputs of materials and boughtout components from outside sources, the in-process inventories and outflow of finished goods to customers. Choosing the most suitable storage system means dealing with a number of interacting, and often conflicting factors. The de3gree of mechanization affects layout, while scarcity of space affects height. The need for rapid over picking means an easy accessibility to stock, but it weighs against space economy. Any storage system is, therefore, a compromise between the use of space and the use of time.

There are three basic ways of storing: 1. Fixed location, 2. Random location, and 3. Zoned location. The first means that while stock can be found immediately without a complex system of recording, there can be a considerable waste of space. The second system means space is better utilized, but good and elaborate records have to be kept about the location of materials. Zonal location means that goods of a particular product group are stored in a given area. They may be randomly stored in a zoned location or stored according to fixed location.


1. Functional stores. Depending upon the use to which material is put.      Raw material store Finished goods store Work in progress store Refrigerated store Flammable material store

2. Physical stores Depending on the size and location.  Centre store  Department store  Transit store


1. Centralization and 2. Decentralization

Although centralization helps to ensure economy, effect better control and reduce manpower needs, it creates some difficulties in rendering service to various work centers scattered in different locations. It is suitable for a small installation, but even then various stock-keeping units have to be provided. Decentralized storehouse is advantageous to workshops laying scattered in wide areas so that various stores may be kept near the production shop-floors. Reversal of flow wastes money and counter-flow is likely to result in congestion and accidents.

Classification and Codification Classification and codification is to know basic nature and characteristics of materials used in an enterprise and classify them in board categories, and then to group and sub-group them in logical progression of kinds, types, sizes. As for example, raw materials, semi-processed materials, mechanical (products and equipment), electrical, chemicals, laboratory, office (equipment and supplies) etc. can be classified, grouped and sub- grouped. After the rod classification as to their nature and use, a code or symbol is allotted to each of them. The code or symbol so allotted

should be simple, flexible and it should be easily adoptable in order to exploit the full advantage of codification.

The following systems of codification are commonly found: 1. 2. 3. 4. 5. 6. Alphabetical system, Numerical system, Decimal system, Combined Alphabetical and Numerical system, Brisch system, and Kodak system.

MERITS AND DEMERITS OF CODIFICATION Codification not only helps accurate identification, prevent duplication and reduce varitieties, but also helps mechanical recording, accounting, pricing and costing of materials. Locating and indexing for inspection are also made easier. But codification is beneficial, it should not be supposed that it does not suffer from demerits. The main demerits are that often codes are misunderstood and when there is a mistake, finding out the exact code is rendered difficult. Moreover, when large numbers are coded in one group, this leads to confusion.

TYPES OF STORE EQUIPMENT The range of industrial MH equipment is quite varied, each type designed for intra- depot or project-base facilities handling. There are two basic types: powered and non-powered, each type designed to cover specific areas of operations.

Pallets. A pallet is especially designed platform built to dimension to suit fork-lift operations. These are made of hard-woods, though in some operations, steel pallets are also used. Supplies are loaded on pallets, transported and stored in warehouses. Fork-lift trucks. By a pair of projecting forks (arms) which can slide up and down, the fork are inserted below the platform of the pallet, then raised to clear the ground up to a height of 3 meters. Fork-lifts are versatile and have vertical as well as lateral movement.

Cranes. Crane is a power driven, self-propelled unit fitted with a boom mounted on a mobile chassis. The boom can be operated independently without movement of the chasis. Cranes are usually fitted with pneumatic tyres or caterpillar wheels for outdoor operation.

Conveyors. A conveyor is a device to move materials along a definite path and used for moving bulk materials over long distances. The selection of the right conveyor system is very important. Roller conveyors are powered, consisting of a set of rollers with a driving mechanism incorporated in the system.

Elevator. It consists of an endless chain or belt running over to terminal pulleys or sprocket – wheels fixed at different levels in the vertical plane .

Movable ramps. These are use for loading and unloading in trucks , wagons etc and are constructed permanently or fabricated for mobile operations .

Hand trolley. These are two wheelers used in connections with skid platforms and plats and when fully elevated , a few centimeter from the floor the lifting bar assumes a fixed positions.

Tractors. Where it is uneconomical to use forklift trucks for transport and movement over a long distance , a tractor should be used. A tractor can handle a trailer or a train of trailers.

Selection of materials handling equipments require concentration of and attaining of proper balance between the following factors :-

1) Production problem 2) The capabilities of handling equipments available. 3) The human elements involved.

The ultimate aim is to arrive at the lowest cost per unit of materials handled.

THE PRODUCTION PROBLEM FACTORS ARE a. Volume of production obtained b. Class of material to be handled c. The layout of plants and building facilities.

THE CAPABILITIES OF HANDLING EQUIPMENTS AVAILABLE ARE : a. Adaptability : the load carrying and movement characteristics of the equipment should fit the material handling problem. b. Flexibility : wherever possible, the equipment should have the flexibility to handle more than one materials , class or size c. Load capacity : equipments selected should have enough load carrying characteristics to do the job effectively. d. Power : the equipment should have enough power available to do this job . e. Speed : the speed of movements of the handling equipments should be as high as possible within the limits of production process and plant safety f. Space requirements : the required to install or operate materials handling equipments is also an important consideration. g. Supervision required : the degree of automation in a handling equipment decides the amount of supervision required. h. Ease of maintenance : equipments selected should be capable of easy maintenance at reasonable cost. i. Environment : equipment selected must conform to any environmental regulations. j. Cost : the cost of the equipments (capital investment ) is an obvious factor in the selection.

The various kinds of costs to be considered in addition to the initial purchase price of the handling equipment are: a. Operating Costs b. Installation Costs c. Maintenance Costs d. Power Requirements e. Insurance Requirements f. Space Cost g. Depreciation Cost h. Salvage Value i. Time Value of money invested j. Opportunity Cost

(iii) The human elements/factors cannot be overlooked in the selection of materials handling equipment. They are: a. The capabilities of the available manpower to operate the equipment. b. Safety of personnel (those who operate it or come in contact with it)

By – manohar and alok (omega )

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