Possible Reasons for Low Material Production


0
  1. Lack of integrated system approach – different functional managers tends to look at materials related decisions from their own narrow segmented sub system view point. For instance, production manager may want to minimize stock out while finance manager may like to minimize inventories. Many material management problems may be due to designers prescribing costlier material with too much variety and non standard dimensions.

 

S.O.S. – Surplus Obsolete and Scrap material. Every time handling is not good, it may affect the cost.

 

Long retrieval – Poor storage functions as lot of items deal in Storage that is location problem due to unable to locate the item. There is no standard code cut down waiting for improving   the system.

 

  1. In decision making related to materials, ignoring invisible (hidden) cost in preference to visible costs.
  2. Uncertain supply / demand environment. Just in case environment. Source of uncertainty could be demand lead time, inflation, non availability, quality problems etc. just in case environment a dependable source of supply can be a great asset to Materials Management function.
  3. Lack of scientific decision making – Using models of inventory planning and control.

Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

53 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format