What is Material Control?
Material Control is one of the important techniques adopted by the management of the organisation. Management have control over cost of production process. In a very simple sense of view- “Material Control” means to have control over the case and cost of material. But, in a broad sense material control refers to the process which ensures continuous supply of right quantity and right quality of material to the production and at the same time making minimum investment in material cost.
So, material Control includes control over purchasing, storing, issuing and using of material so that we can have minimum possible cost of material.
In other words, we says that Material control is a system on which ensures that right quality of material is available in the right quantity at the right time and right place with the right amount is called Material Control.
Material Control can be performed in 3 stages:-
- Purchase Control
- Store Control
- Issue Control
Needs/Importance/ Objectives of
Material Control:
For the sake of clarification some of the most important Needs/importance and objectives of material control can be discussed under following heads.
i. Uninterrupted supply of material:
Material Control ensures continuous supply of materials to production department So, that production is not held up due to non-availbility of any material for the above purpose, quantities of different kinds of materials required are estimated in advance keeping in view the production schedule and kept in stock.
ii. Avoiding unnecessary blockage:
Material control aims at purchasing right quantity of material and keeping them in stock for each material a maximum quantity to be kept in stock is prefixed. Under no circumstances, we should not stock the material above it’s maximum level so fixed up. As a result we can avoid unnecessary blockage of working capital in the material. The funds so saved can be utilised on same or other profitable purposes.
iii.Ensuring reasonable price for material:
Material control aims at purchasing material at reasonable price. Therefore, the purchase department will have to be very careful while selecting the source of supply. At the same time it is to be remembered that quantity of material should not be neglected for sake of low price. We should purchase that quality of material which is suitable for our product.
iv. Minimum wastage:
Material Control ensures minimum wastage of material during their storage or use in the production. The storekeeper exercises maximum control over abnormal wastage of material in the store such as leakage and theft of material by inspect or making the material expose to excessive heat, light, coolness etc. Similarly, the production workers are properly trained to make better use of material at the time of use in production.
v. Avoiding spoilage and absoloscence:
Sometimes materials are purchased in excess quantity and soon they become absolate due to change in fashion, style etc. As a result, such material becomes absolate, similarly spoilage of material may occur due to defective procedure of issue. Material control controls at avoiding absoloscence and spoilage by purchasing right quantity of material and adopting proper issue of material.
vi. Adhequate availability of information about material:
The management needs different information regarding material for taking different decissions. Such as production planning, purchase planning, disposal of wastage and scrap and absolate material etc. Under material control different records are maintained from which we can supply necessary information to management.