What is Material Control? Discuss its Objectives, Advantages and Basic Requirements.

MATERIAL CONTROL:

Material forms important part of cost of production of a product. It is therefore essential for proper control of material and its supplies during the production. Proper control will bring efficiency in business. Material control is defined as the regulation of functions of organization relating to procurement, storage and usage of materials in such a way as to maintain an even flow of production without excessive investment in material stock. Material involves control over its purchase, storage and usage. Handling of material is of great importance in case of manufacturing concerns.

Objectives of Material control:

There should be continuous availability of material in factory to enable production without any disruption.

There should be no over stocking of material. It helps in minimizing losses like theft, spoilage.

Material should be purchased at the lowest possible cost keeping in consideration the quality that is required.

Purchase of material should be of appropriated quality keeping in consideration the finished good.

Material should be properly stored in order to avoid deterioration.

The management should be informed about the cost of material and the stock available.

Advantages of Material control:

It helps in continuous flow of material which helps in preventing delays.

Reduction of capital investment in stock of materials.

It helps in reducing the cost of material storage and issue.

It reduces loss and wastage’s of material like material theft, spoilage etc.

Introduction of perpetual inventory control system helps in ascertaining the cost of closing stock.

It facilitates purchase of material at nominal prices.

It helps in formulating material purchase policies.

Basic Requirements of Material control:

Following are the basic requirements of good system of material control:

There should be proper coordination among all departments of organization like purchasing, receiving, testing etc. Purchase of material should be centralized.

Standard forms should be used for receipt, issue and .transfer of material. In order to have economy in purchasing a proper budget should be prepared.

In order to have proper check on material purchase and supplies a system of internal check should be introduced. A well organized system of storage should be introduced in order to avoid deterioration, wastage etc.

Introduction of perpetual system of inventory will enable management to find out the quantity and value of material at any time required.

Minimum and maximum limit of materials should be fixed.

There should be proper system of material issue so that there will be delivery of material at right time and at in right quantity.

The management should be informed about the cost of material and the stock available.