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Materials Control

Why necessary?

Materials form an important part of the cost of a product and, therefore, proper control over material is necessary from the time orders are placed with the suppliers till they are actually consumed in plant and office operation, or have been sold as merchandise. An efficient system of materials control will lead to a significant reduction in production cost.

Control over materials is also necessary to assure a steady supply of each item of materials. In the absence of quantity-on-hand information regarding each item, there is a constant danger of material being stored, in too small a quality which may result in a heavy loss consequent upon stopping of the whole assembly line, or in too large quantity resulting in serious obsolescence losses.

Materials control defined

Materials control may be defined as the systematic control over the procurement, storage and usage of material so as to maintain an even flow of materials control involves efficient functioning of the following operations:

(i) Purchasing of materials

(ii) Receiving of materials

(iii) Inspection of materials

(iv) Storage of materials

(v) Issuing of materials

(vi) Maintenance of inventory methods

(vii) Stock audit