THE IMPACT OF EFFICIENT MATERIAL MANAGEMENT IN MANUFACTURING COMPANY
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Material management is the branch of logistics that deals with the tangible component of supply chain specially, this covers the acquisition of spare parts and replacement quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping and warehousing the said parts. It is the planning, directing, controlling and coordinating those activities which are concerned with material and inventory requirement from the point of their inception to their introduction into the manufacturing process, it beings with the determination of material quality and quantity and ends with its issuance to per the schedule and at the lowest cost. Material management can deal with campus planning and building design for the movement of materials or with logistics that deals with the tangible components of a supply chain.
The goal of material management is to provide a unbroken chain of components for production to manufacture goods on time for the customers base. The material department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the organization using the correct carrier, material is generally measured by accomplishing on time delivery to the customer from the supply base, attaining a freight budget, inventory shrink management and inventory accuracy. The material department is also charged with the responsibility of managing new launches.
In some companies, materials management department is also charged with the procurement of materials by establishing and managing supply base. Other companies the procurement and management of the supply base is the responsibility of a separate department, the purchasing department is their responsibility for the purchase price, variance from the supply base. In large companies with multitudes of customer charges to the final product over the course to the final product over the course of a year these may be a separate logistics department that is responsible for all new acquisition launches and customers changes. This logistics department ensures that the launch material are procured for production and then transfer the responsibility to the plant material management. These are no standard for material management that are practiced from organization to organization. Most companies use Enterprise Resource Planning (ERP) system such as System Applications Products (SAP), Oracle, Business Planning and Control System (BPCS) Manufacturing Accounting and Production Information Control System (MAPIVS) and other system to manage materials control afford. Small concern that do not have or cannot afford EPR system use a form of spread sheet application to management material. Some other construction project use Barcode and Global Positing System (GPS) Material management System like Tranckum.
Material Management is not a science and depending upon the relevance and importance the organization officials place upon controlling material flow. The level of expertise changes some companies like materials management on a level whereby there is a logistic director, other companies see the importance level as managing at the plant level by hiring an inventory manager and still other companies employ the concept that the supervisors in the plant are responsible accompanied by the planners. Because there are no standard, there is only practices of any particular business sector, that are widely used for example the generation or release to the supply base comes in many forms from the level that requires sending facsimiles and Portable Document Format (PDF) files. The Electronic Data Interchange (EDI) in formation exchange to the ultimate practice of a supplier web base site.
1.1.1 HISTORY OF SKANA ALUMINUM INDUSTRY, OWERRI
Max aluminum industry is a private owned enterprise. The company leadership is dynamic and has strong worth and experience in commodity processing business with a proven track record of building growth and success. Skana Aluminum Industry is named after the tribal name for killer whales, Skana means killer demon, supernatural power, killer whales are known for their intelligence, strength in numbers and swift powerful movement like a killer whale the investor of Skana aluminum company look to move swiftly in numbers to revive a business that can be great asset to the mid west and to wis consin. With large capital commitment for year one and two the leadership team projects and extensive customer base with the potential for global exports, Skana aluminum project continuous a long history of aluminum manufacturing company and the establishment of the branded “MIRRO” cookware product line in 1918. In 1983 the company was sold to Newel Rubber main and today lives on a Skana aluminum. The revitalization of the company places an emphasis on producing aluminum coil and blanks in the open market. The art of aluminum manufacturing is bred in the talented employees of this community. Incorporated in 2009 Skana’s objective is to purchase, rehabilitate and operate the shattered willing mill bringing it back to life. We are continuing the legacy of aluminum manufacturing on the lake shore by building a company a community and friends.
1.1.2 FIRST LEADER OF SKANA ALUMINUM COMPANY
Thomas R. Teswedie Snr, utilized his business skills and peoples skills to climb the corporate ladder through sales to chairman and CEO of Skana Aluminum of Sheboygan Wiscosin, Mr. Testwuide Snr, ran Skana Aluminum from 1971 until the sale of the company in 1988 during his time as the president, chairman and chief executive officer of Skana Aluminum, Mr. Testwuide Snr, led the company through two major subsidiary purchases of Prairie Malt Ltd of Saskatcheiran, Canada and CUC Malt Ltd of Nanying, China. During his career, Mr. Testwide Snr, has been recognized on an international scale for his business success. In 1994 he was the recipient of Winsconsin manufacturer of the year grand award and in 1996 he was the receipt of outstanding foreign investment Award, Nanjing, China. Mr. Testwuide Snr, has served on various industry, bank and charitable boards of director including. Barley Malt Institute, U.S. Brewer Association, Wisconsin manufacturer and commence security, financial service, bank and St. Nicholas Hospital. Mr. Testwuide Sr was a member of Young Professionals Organization until 1995. Currently, Mr. Testwuide Sr. is active with multiple business organizations including chairman and CEO of Plymouth Foam Products and chairman of the Board of Torginol, Inc as well as others most recently, Mr. Testwuide Sr. led a group of investors to purchase out if receivership and re-commission the Knoening and Vitas Aluminum Compoany now operating under the name Skana Aluminum Company in Manitowoc Wisconsin. Mr. Testwuide Sr. is serving as the chairman and CEo of the aluminum mill and will return 75-100 jobs to the community during 2010.
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