1. PRODUCTION MANAGEMENT & MATERIALMANAGEMENT2014-2015

2. GROUP MEMBERS ROLL NO.TEPILLA GERSHAM 26PAVITHRA MUDALIYAR 29SIDDHI PATANKAR 31JYOTI PATIL 32RITU YADAV 50 3. INTRODUCTIONStorage is an unavoidable activity. It increasethe value of the material by the simply carrying it.No transformation of any type is to be done.Stores, has the vital role to play In a majority ofmanufacturing organization material constitutesthe major fraction of cost, like 60 to 80% of totalcost. This cost in inventories substantial. Materialhas to be provided quickly to right person and atright time and right place when ever required. 4. MEANINGA warehouse is a point in a materialmanagement where a firm stores or holds rawmaterials, semi finished goods, or finished goodsfor varying periods of time. In the macroeconomics system, warehousing performs a vitalfunctions. It creates time utility for raw material,industrial goods and finished goods. Thiswarehousing function continuous to beincreasingly important as companies and theindustries use customer services as a dynamic,value-adding competitive tool. 5. DEFINITIONWarehousing is that part of firms logisticssystem that stores products at and between pointof origin and point of consumption and providesinformation to management of the status,condition, and disposition of items being stored. 6. TYPES OF WAREHOUSINGPRIVATE WAREHOUSE :Private warehousing facility is ownedand managed by same enterprise that owns themerchandise handled and stored at the facility.This facility may be owned or leased as per thedecisions about strategy, which best fits thefinancial aspect to the firm. 7. ADVANTAGES OF PRIVATE WAREHOUSING: Flexibility to design to specifications. Greater direct control on warehousing activities. Housing of other offices. As companies trained employees handle thegoods, there is no error or handling damages. If the volume is sufficient, this may workoutcheaper. For some force private warehouse may not beavailable in some strategic locations. 8. DISADVANTAGES OF PRIVATEWAREHOUSE : Lack of geographical flexibility. Prohibitive costs may preclude some firms generatingenough capital to build or buy a warehouse.Permanent liability.Cost of material handling, machinery and equipment. Cost of manpower. Office and other facilities expenses. Insurance premium 9. Public warehouseIt is operated as an independent businessoffering arrange of services such as storage, handlingand transportation. On the basis of fixed and variablefree. They generally offer relatively standardizedservices to all clients.Cost involved- rent of the space hired, Payment of charges towards use of other facilities. 10. Advantages of public warehousing1) Less expensive and fixed cost are distributed amongmany distributors.2) Offer greater operating and management expertise.3) Public warehousing have lower variable cost ascompare to the private sector.4) The are more flexible as the offer different plans todifferent customers.5) Facilities can be given up when not required.6) It is easy to ascertain the storage cost 11. Disadvantages of public warehousing1) Effective communication may be a problem.2) Socialized services may not always be available inthe desired location.3) Space may not be available were and when needed. 12. Contract warehousingThere is a long term contract singed Between thecompany and the party providing warehousingservices. The long terms contract could help in lowerthe cost. it is flexible. It also provides the additionalservices such as transportation, order processescustomer services , etc. 13. Co-operative warehouseThese warehouse are owned, by managed andcontrolled by cooperative societies. They providewarehousing facilities at the most economical rates tothe members of their society. 14. Basic components of a warehouse1) Space-space allows for the storage of goods whendemand and supply are unequal.2) equipments- warehouse equipments helps in product,movement, storage and tracking.3) people- the most critical components of warehousing.Space and equipments are nothing without people. 15. Functions of stores1) Receive the material2) Store the material properly3) Remove the material when required4) Deliver the material to right place5) Keep the records perfectly in disciplines6) Maintain good housekeeping7) Keep proper control8) Manage the people in perfect discipline9) Avoid keeping surplus materials10) Verification of stocks at regular intervals11) Co-ordination and corporation.12) Mixing of material13) Maintaining good housekeeping,-14) Arranging transport 16. Objectives of warehouse material1) To facilitate smooth and balanced flow of raw material.2) To maintain optimum stock of material.3) To achieve optimum utilization of storage space.4) To reduce usage of handling materials.5) To provide codification of stores items for easyrecognition.6) To enable flexibility.7) To facilitate quantity purchase at discount prices.8) To keep the accounts of all goods kept it stores.9) To prevent theft, damage, wastage etc10) To maintain the income of all materials. 17. Types of material stored1) Raw material stores2) Component stores3) Consumable material stores4) Semi finished goods stores5) Finished goods stores6) Inward goods stores and transit stores7) Holding stores8) Spare parts stores9) Inflammable material stores10) Tools stores11) Stationery stores 18. Warehouse organization The warehouse organization is very important in thework place. With the organized warehousing thematerial is able to control. Hence the well organizedwarehousing helps in the well considered work. It alsosaves the and the expenses required. 19. Machines used warehouse 20. Centralization of warehousing1) Effective and better supervision and control areexercise.2) Personnel requirement is less. So there is costreduction in manpower.3) Better and efficient layout of stores.4) Inventory checks are better.5) Stores maintenance is better.6) Fewer redundant and obsolete.7) This gives better security arrangements. 21. Decentralization of warehousing1) Reduced material handling and associated work.2) Convenient for every department to draw material.3) Less risk for loss by fire etc.4) There is less chance of production stoppage. This isdue to near by, easy and prompt availability ofmaterials to material shops. 22. Rationale for warehousing1) Achieve transportation economies.2) Achieves production economies.3) Take advantages of quality discounts.4) Accomplish least total logistic cost.5) Maintain steady source of suppliers.6) Support customers service policies.7) Meet changing demand condition.8) Reduce time and space distance. 23. Need for warehousing1) Conventional approacha) protection against delay and uncertainty againsttransportation.b) Availability of products on desired time and on desiredplace.c) Provide adjustment between the time of productionand use of the products.d) Serve as reservoirs of goods. 24. Modern approach1) Movement of production.2) Relation between warehousing andproducer/consumers etc.3) Reduction of time and cost 25. Principles of warehousing1) Provision for easy receipts, storage and distribution ofmaterials.2) Minimum handling and transportation of materials.3) Good handling of equipments and tools.4) Optimum utilization of space5) Flexibility to suit the changing stores.6) Protection against waste, damage, etc.7) Clear identification of materials and location of items ina specific manner.8) Scrap or disposal stores.9) Stationery items stores10) Packing of material stores. 26. Quality Decisions1) Presence synergies2) Inventory synergies3) Location flexibility4) Scale economies 27. Problems due to inefficient warehousing1) Failure to locate store rooms properly and inefficientavailable storerooms space which increase the storecost.2) Difficulty to locating materials.3) Overstocking and the resulting cost.4) Inventory carrying cost due to waste, damage, etc.5) Problem in material control and time involved insupply materials when needed. 28. Problems related warehousing 29. Importance of warehousing1) Ready associability of important materials whichprovides efficient service to the users.2) Efficient utilization of cubic space in the store area.3) Flexibility in arranging the storage of goods in thewarehouse.4) Minimization of the risk, damage, wastage, etc5) Easy of physical counting at the time of the manualstock checking. 30. conclusion We conclude here with the view that warehousingis very important at all the work place.which reduces the time and required expenses. Italso protect the goods and services by wastage,damage, etcwarehousing results in the low risks and the lowaccidents. Hence warehousing is the important factorof all the work place.