Day: February 10, 2022

1. It is rigidly defined. Its value is always definite. 2. It is easy to calculate and easy to understand. Hence it is very popular. 3. It is based on all the observations; so that it becomes a good representative. Read More …

A single value which can be considered as typical or representative of a set of observations and around which the observations can be considered as Centered is called an ’Average’ (or average value) or a Centre of location. Since such Read More …

Primary data is data that you collect yourself using such methods as: direct observation – lets you focus on details of importance to you; lets you see a system in real rather than theoretical use (other faults are unlikely or Read More …

The adequate help of cost and stores accounting by way of providing up to-date, reliable and required data to the materials control department enables it to base it forecasts on the data so supplied. The cost and stores accounting are Read More …

A budget is a co-ordinated financial estimate of the income and expenditure of an organization related to a specified future period. It may be defined as “Budget is a plan of action quantified in money terms for some future period” Read More …

Though for every organization guidelines cannot be provided in a limited treatise like the present one but some of the general guidelines can be given which can be kept into mind and effectively used by a materials planner for effective Read More …

The under mentioned two techniques are usually used for materials planning: 1. Bill of Materials Technique, and 2. Past consumption Analysis Technique. Bill of Materials Technique A bill of materials indicates the name, part, and usage of each component and Read More …

Main job of purchasing personnel is to get materials when needed and pay for them as little as possible considering quality, quantity and other requirements and prices trends. It is the efficiency of the purchasing personnel which makes the real Read More …

Production planning is an area for top management decisions through which production plans, programmes and targets are spelled out. Production planning process starts well before the completion date so that sufficiently long time is given to the management to enable Read More …

Manufacturers that plan, manage, and control their materials management and purchasing functions can significantly improve cash flow, profits, and customer satisfaction. A strategic purchasing plan can achieve these results. Establishing an effective strategic purchasing plan requires a manufacturer to undertake Read More …