Material Management

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Material Management

• Prof. Dr. Basavaraj K. Nanjwade M. Pharm., Ph. D
• Department of Pharmaceutics
• KLE University College of Pharmacy
• BELGAUM-590010, Karnataka, India.
• E-mail nanjwadebk_at_gmail.com
• Cell No. 00919742431000

There are thousand reasons for failure, but only
one way to success, HARD WORK
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Contents

• Definition
• Objective and importance
• Principles of material management
• Functions of material management
• Materials Quality and Quantity

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Contents
Contd..

• Value analysis
• Purchasing
• Vendor development
• Buying techniques
• Purchasing cycles and procedure
• Advantages of material management

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Definition

• It is defined as an organizational concept,
  which has the authority and responsibility of all
  activities, concerned with the flow of materials
  in the organization.

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Objectives and importance

• Efficient use of the working capital.
• Lowering inventory investment and increasing the
  inventory turnover.
• Responding to the market changes related to any
  product.
• Ensuring the cooperation of all departments.
• Providing best services to the king of the market
  i.e customer.

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Principles of material handling

• Least handling is the best handling.
• Lengths and number of move to be minimized.
• Unit loads
• Minimize the distance.

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Principles of material handling

• The design of the container.e.g. shippers are
  used for storing finished bulk. for raw
  materials as per the property of materials they
  are stored- plastic containers ( light weight
  containers)
• Re-handling and back tracking of the materials
  should be avoided.
• The materials handling service should not
  interfere with the production flow.

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Classes of materials

• Raw materials- These are materials that are used
  in the product which is in an unprocessed
  condition.
• Purchased Parts- These are the items used in the
  assembly of the product.

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Classes of materials

• In-progress materials- They are called work in
  progress inventories. These goods require
  further processing.
• Finished materials- These are fully manufactured
  goods, inspected and ready for delivery to the
  customers.
• Supplies- These are consumable goods used in the
  process of manufacturing.

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Functions of material management
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Materials-Quality Quantity

• Four factors affecting the purchase of raw
  materials are
• 1) Quality - The suitably of an item to
  accomplish the intended work.
• The raw materials should satisfy the
  following requirements.
• Efficiency of the material.
• Cost and the shelf life.
• For equipments, power consumption and power
  requirement.

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Quantity

• From the inventory point of view, quantity
  standards are decided on the following
  parameters
• Maximum inventory
• Minimum inventory
• Standard order
• Reorder point
• 3) Price
• 4) Delivery Date

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Value Analysis

• Definition- It is a systematic study of every
  element for its cost in a part, material or
  service to make certain that it performs its
  function at the lowest possible cost.
• Benefits of value analysis-
• Decrease in existing cost of the product or
  service.
• Unnecessary expenditure is identified and
  eliminated.
• Product value improves for new materials and
  processes.
• More profits.

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Value ratio

• Mathematical representation of the value can be
  done as Function
• Value
  
• Reasons for unnecessary costs-
• Lack of information
• Lack of ideas
• Changed circumstances
• Wrong beliefs, habits and attitudes

Total cost
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Value Analysis Technique

• In this technique (n) number of questions are
  applied, like-
• what must I do?
• What else does the item do?
• What does it cost?
• What else will the job do?
• What will be alternative costs?

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Purchasing

• Centralized - the purchasing procedure of
  materials for different department is done
  together from one purchasing department. This is
  seen in small organizations.
• Advantages
• Efficient system
• Bargaining capabilities increased
• Good raw material obtained at lower price

• Decentralized- different department purchase
  their requirement seperately. This is basically
  seen in large organizations.
• Advantages
• Flexible purchasing system
• Procurement is faster

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Vendor development

• The supplier or the person who sells the
  required materials or services for the production
  is known as a vendor.
• The purchase of raw materials/service from
  a specific vendor is known as the vendor
  development.
• There are four stages of vendor
  development-

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Four stages of vendor development
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1) Survey stage

• The following sources are considered for
  information
• Trade directories - e.g. Yellowpages.eindiabusine
  ss.com
• Trade journals- e.g. Pharmatimes
• Telephone directories
• Suppliers catalogue
• Salesmen
• Other ways are like interchanging of
  information with other companies, tracing of
  public tenders and advertisements in the press.

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2) Enquiry stage

• After getting the information of the
  suppliers, detailed analysis of the supplier is
  being carried out. A comparison is being made
  between the different suppliers on basis of the
  following points-
• Technological competition,
• service competition,
• price competition,
• delivery time.

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2) Enquiry stage

• The following aspects can be verified by the
  first hand visit-
• Internal facilities of the vendor
• Financial adequacy, stability and reputation of
  the vendor
• Location of vendors factory
• After sales service
• Industrial relations

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3) Negotiation and selection stage

• The vendors who clear the enquiry stage are
  selected and negotiations are being carried out
  with them.
• The various aspects such as credit, quantity
  discount, quality specifications are being
  discussed.

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4) Experience and evaluation stage

• The buyer evaluates and appraises the performance
  of the vendor.
• The objective is to improve the performance of
  the vendors.
• Few ways of evaluating a vendor are-
• Categorial method
• Weighted point method
• Cost ratio method

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Categorial method

• The buyer sets up some category on which the
  evaluation of the vendor is done. Specimen
• of suppliers evaluation form is given below.

Grading
Factors Always 9 8 7 Usually 6 5 4 Seldom 3 2 1 Never 0
Supplies are as per quantity selected
Deliveries are on time
Rigorous follow up is not necessary
Willing to accommodate when production schedules are suddenly changed
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Weighted point method

• Here the rating points are divided between
  quality, delivery and price.
• For eg quality 50 points
• delivery- 30 points
• price 20 points so
  total is 100 points.
• The rating can be obtained by following
  equation.

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Weighted point method

• Quantity rating (no. of lots accepted/ no. lots
• received) rating
  points
• Delivery rating (no of lots delivered on time/
  no
• of lots delivered)
  rating points
• Price rating (least offer received/ suppliers
  offer)
• rating points

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Buying techniques

• Purchasing of material , machinery and
  services is done by purchasing department.
• For buying the material company has to pay up
  a price, the value that a seller sets on his
  goods in the market is called as the price of
  that good.
• Price is one of the greatest variables in the
  purchasing of material.

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How is the purchasing done????

• Quotations - It is a kind of an inquiry done to
  know whether the vendor can supply the desired
  material and at what price.
• They are not the purchase order. They just
  contain all the details including freight, taxes
  and many other costs.
• The highly used quotation techniques are
• Spot quotations
• Floating a limited enquire

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How is the purchasing done????

• Spot quotations- this is basically used for the
  small items not related to the technical purpose.
• The prospective buyer goes to the market and
  gets the quotations from the different suppliers.
• Floating a limited enquire- this method is used
  when the value of the purchase is small. In this
  technique the reliable vendors are called upon
  and asked to provide the quotations.

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How is the purchasing done????

• Tenders-
• It is a written letter or a
  published document that is aimed at finding the
  price for procuring certain materials.
• Tenders are invited from recognized firms. A
  few types of tenders are
• single tender
• Open tender
• Closed tender or limited tender

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How is the purchasing done????

• Single tender- It is invited from one reliable
  supplier. This kind of tender is floated only
  when the itms are required urgently.
• Open tender- Also known as press tender. This
  is used when the value of item to be purchased is
  very high. It is used to locate more suppliers.
• In this tender procured, a small amount of
  the deposit money is taken from the supplier so
  that they do not withdraw from the submitted
  rates.

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How is the purchasing done????

• Closed tender or limited tender (Negotiations)-
  It is done to arrive at the mutual understanding
  between the supplier/vendor and the buyer.

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How is the purchasing done????

• Whats the need for negotiation?
• _at_ prices are related to large volumes or to a
  large value.
• _at_ terms and conditions are required for large
  volumes.
• _at_ contract is desired for a longer period.
• _at_ variations in quantity to be purchase are
  possible.
• _at_ when supplies or services can be obtained from
  only one source.
• _at_ when no acceptable quotations are received from
  the other vendors.

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How is the purchasing done????

• Process of negotiations- It is a kind of
  win-win situation. Both the parties try to
  benefit to the maxima through the negotiation.
• It is not a kind of bargaining but a mutual
  understanding between the two parties.

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How is the purchasing done????

• Discounts- They are cash concessions offered by
  the vendor to the buyer, in order to enhance the
  volume of the business opportunities.
• Reasons for offering
  discounts?????
• ! When there is a bulk
  purchase.
• ! When the bills are
  cleared immediately.
• ! And also to maintain
  the good rapo with
• the buyer
• Types of discounts-
• Volume contracts.
• Deals
• Discounts
• Consignment terms

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How is the purchasing done????

• Volume contracts- This kind of discount is
  offered proportionate to the volume of material
  ordered.
• Cash discount- Cash discount is given on the
  basis of the time of the payment done by the
  purchaser. The normal credit period is 90 days.
• Cumulative discount- It is a method of
  offering the discount on the basis of actual
  purchases and appropriate to the quantity range
  in a year.

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Purchasing cycle and procedure

• The purchasing department of the company is
  responsible for the purchase of all the raw
  materials as well as the requirements.
• The following steps are followed in the
  purchasing cycle.
• Recognition of need and receipt of requisition
  The requisition includes the following
  information-
• - Name
• - Quality and quantity specifications
• - Date by which material is required
• - Place at which material is to be delivered

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Purchasing cycle and procedure

• 2) Selection of potential sources of supply
• 3) Making request for quotation
• 4) Receipt and analysis of quotations
• - material specifications and quality
• - price of the material
• - taxes
• - terms of payemeny
• - place of delivery
• - delivery period
• - gurantee period
• - validity of tender

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Purchasing cycle and procedure

• 5) Selection of right source of supply
• 6) Issuing the purchase order
• 7) Follow-up of the order
• 8) Receipt of materials,reports and analysis
• 9) Checking and approving of vendors invoice for
  payment
• 10) Closing of completed order
• 11) Maintenance of record and file
• Purchasing cycle flow chart has been given in
  the following slide.

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Spell out of specifications requirements
Need recognition
Official requisitions
Check specifications, prices/supplies
Specifications file
Purchase records
Suppliers record
Select suppliers
Inquiry tender
Quotations analysis prices and terms,
negotiations, finalisation
Purchase order for supply
Suppliers acceptance
Follow-up
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• Contd .

Delivery of materials
Materials reports, analysis
Checking of invoice with purchase order
Payment made
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Example of Materials and People Flow
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Location of Stores

• Store should be located adjacent to the
  manufacturing area.
• It depends up on nature and value of items to be
  stored and
• frequency with which items are received and
  issued

• Objectives
• Minimum wastage of space
• Maximum ease of operation
• Minimum handling cost
• Minimum other operational cost

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Facilities of Store

• Inspection center
• Quarantine room
• Washing room
• Centralized weighing department
• Adequate space

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General function
Functions of stores

• Maintenance of Stock (materials and tools)
• Maintenance of hygiene, sanitation, and pest
  control
• Maintenance of material handling equipment

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Specific functions
Functions of stores

• Receiving recording of raw materials
• Quarantine storage Sampling approval by QC
• Positioning Storage
• Issuing recording of materials
• Receiving Dispatching of finished goods
• Distribution
• Optional functions
• Dispensing, Maintenance of weights measures

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Material handling system

• Right Definition
• Material handling uses
  the right method to provide the right amount of
  the right material at the right place, at the
  right time, in the right sequence, in the right
  position, in the right condition, and at the
  right cost.

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Material handling system

• Involves handling, storing, and controlling
  material
• The raw materials, in-process materials and
  finished goods are moved from one place to
  another in the plant.
• Adds value through time and place utility
• Impacts space requirement, profits, quality,
  safety, and productivity
• On an average, 20 of production cost is spent on
  material handling system

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Twenty Principles of Material Handling

• 1. Planning principle. Plan all material handling
  and storage activities to obtain maximum overall
  operating efficiency.
• 2. System principle. Integrate as many handling
  activities as is practical into a coordinated
  system of operations, covering vendor, receiving,
  storage, production, inspection, packaging,
  warehousing, transportation. etc.

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Twenty Principles of Material Handling

• 3. Material flow principle. Provide an operation
  sequence and equipment layout optimizing material
  flow.
• 4. Simplification principle. Simplify handling by
  reducing, eliminating, or combining unnecessary
  movement and/or equipment.
• 5. Gravity principle. Utilize gravity to move
  material wherever practical.

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Twenty Principles of Material Handling

• 6. Space utilization principle. Make optimum
  utilization of space .
• 7. Unit size principle. Increase the quantity,
  size, or weight of unit loads or flow rate.
• 8. Mechanization principle. Mechanize handling
  operations.

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Twenty Principles of Material Handling

• 9. Automation principle. Provide automation to
  include production, handling, and storage
  functions.
• 10. Equipment selection principle. In selecting
  handling equipment, consider all aspects of the
  material being handled.

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Twenty Principles of Material Handling

• 11. Standardization principle. Standardize
  handling methods as well as types and sizes of
  handling equipment.
• 12. Adaptability principle. Use methods and
  equipment that can best perform a variety of
  tasks and applications where special purpose
  equipment is not justified.

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Twenty Principles of Material Handling

• 13. Dead weight principle. Reduce ratio of dead
  weight of mobile handling equipment to load
  carried.
• 14. Utilization principle. Plan for optimum
  utilization of handling equipment and manpower.
• 15. Maintenance principle. Plan for preventive
  maintenance and scheduled repairs of all handling
  equipment.

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Twenty Principles of Material Handling

• 16. Obsolescence principle. Replace obsolete
  handling methods and equipment when more
  efficient methods or equipment will improve
  operations.
• 17. Control principle. Use material handling
  activities to improve control of production
  inventory and order handling.

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Twenty Principles of Material Handling

• 18. Capacity principle. Use handling equipment to
  help achieve desired production capacity.
• 19. Performance principle. Determine
  effectiveness of handling performance in terms of
  expense per unit handled.
• 20. Safety principle. Provide suitable methods
  and equipment for safe handling.

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Handling of materials must be performed

• Safely
• Efficiently
• At low cost
• In a timely manner
• Accurately (the right materials in the right
  quantities to the right locations)
• And without damage to the materials

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Risks associated with improper handling

• Increase in cost of raw material and finished
  products
• Delay in production schedule and long production
  cycle
• Waste of machine time and personnel time
• Increase in in-process inventories
• Damage or loss of material and employee safety
  liabilities
• Employee frustration and reduced morale
• Customers dissatisfaction

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Selecting Material Handling System
Systematic Approach
1. Define the problem
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Selecting Material Handling System

• 2. Analyze the problem
• Observe activities
• Obtain layouts, flow patterns, schedules, etc.
• Obtain information on existing material handling
  equipment
• Analyze situation by Twenty Principles of
  Material Handling, and/or forms
• Can activities be combined, simplified,
  eliminated???

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Selecting Material Handling System

• 3. Identify possible solutionsOrganize meeting
  with
• material handlers
• machine operators
• supervisors
• support engineers
• 4. Evaluate alternatives Meet again to rate
  alternatives

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Material Handling Equipment

• Five categories
• Industrial trucks
• Automated guided vehicles
• Monorails and other rail guided vehicles
• Conveyors
• Cranes and hoists

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Industrial Trucks

• Two basic categories
• Non-powered
• Human workers push or pull loads
• Powered
• Self-propelled, guided or driven by human
• Common example forklift truck

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Nonpowered Industrial Trucks (Hand Trucks)
(a) Two-wheel hand truck, (b) four-wheel dolly,
(c) hand-operated low-lift pallet truck
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Powered Trucks
Capacities from 450 kg up to 4500 kg Power
sources include on-board batteries and internal
combustion motors
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Powered Trucks

• Designed to pull one or more trailing carts in
  factories and warehouses, as well as for airport
  baggage handling
• Powered by on-board batteries or IC engines

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Automated Guided Vehicles

• An Automated Guided Vehicle System (AGVS) is a
  material handling system that uses independently
  operated, self-propelled vehicles guided along
  defined pathways in the facility floor
• Types of AGV
• Driverless trains
• Pallet trucks
• Unit load AGVs

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Driverless Automated Guided Train

• First type of AGVS to be introduced around 1954
• Common application is moving heavy loads over
  long distances in warehouses and factories
  without intermediate stops along the route

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AGV Pallet Truck

• Used to move palletized loads along predetermined
  routes
• Vehicle is backed into loaded pallet by worker
  pallet is then elevated from floor
• Worker drives pallet truck to AGV guide path and
  programs destination

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Unit Load Carrier

• Used to move unit loads from station to station
• Often equipped for automatic loading/unloading
  of pallets and pans using roller conveyors,
  moving belts, or mechanized lift platforms

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AGVs Applications

1. Driverless train operations - movement of large
   quantities of material over long distances
2. Storage and distribution - movement of pallet
   loads between shipping/receiving docks and
   storage racks
3. Assembly line operations - movement of car bodies
   and major subassemblies (motors) through the
   assembly stations
4. Flexible manufacturing systems - movement of work
   parts between machine tools
5. Miscellaneous

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Rail-Guided Vehicles

• Self-propelled vehicles that ride on a fixed-rail
  system
• Vehicles operate independently and are driven by
  electric motors that pick up power from an
  electrified rail
• Fixed rail system
• Overhead monorail - suspended overhead from the
  ceiling
• On-floor - parallel fixed rails, tracks generally
  protrude up from the floor

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Overhead Monorail
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Conveyor Systems

• Large family of material transport equipment
  designed to move materials over fixed paths,
  usually in large quantities or volumes
• 1. Non-powered
• Materials moved by human workers or by gravity
• 2. Powered
• Power mechanism for transporting materials is
  contained in the fixed path, using chains, belts,
  rollers or other mechanical devices

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Conveyor Types

• Roller
• Skate-wheel
• Belt
• In-floor towline
• Overhead trolley conveyor

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Skate-wheel
Roller
Belt
Overhead trolley conveyor
In-floor towline
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Cranes and Hoists

• Handling devices for lifting, lowering and
  transporting materials, often as heavy loads
• Cranes
• Used for horizontal movement of materials
• Hoists
• Used for vertical lifting of materials
• Cranes usually include hoists so that the
  crane-and-hoist combination provides
• Horizontal transport
• Vertical lifting and lowering

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Hoist
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Bridge Crane
Gantry Crane
Jib Crane
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Salvaging and Disposal of Scrap and Surplus

• The words Scrap and Surplus symbolize waste
  and to that extent these account for the loss of
  profits.
• Scrap is commonly used for waste of all kinds.

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• These occur for the following reasons
• Mistakes in procurement
• Wrong planning decisions
• Wasteful processes in production
• Inevitable waste during the adjustment of the
  equipment
• Overall absence of efficiency

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• Disposal of scrap, surplus, recyclable, obsolete
  materials is one of the most important area of
  materials management, but often overlooked or
  considered minor.
• Popular due to increased public awareness of
  environment, government legislation, better
  recognition of opportunities it offers in return.
• e.g. paper files and forms are recyclable item
  that can be sold to recycle company.

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• The following measure are adopted and monitored
  for handling scrap
• Controlling of surplus and scrap
• salvaging or converting the waste for
  advantageous use.
• Disposal of the surplus and scrap to the best
  advantage.

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• The production department primarily controls the
  first function by proper design, while purchase
  department handles the second and third
  functions.
• Waste materials in pharmaceutical industry
• Empty drums, packing materials, card boards,
  aluminium caps, bottles etc. these are
  non-recoverable rejects.
• Spoiled materials during production. In a few
  instances, these may be recoverable.
• Worn-out parts of equipments (examples are
  punches and dies), old equipment (due to expiry
  of life) and obsolete equipment (due to
  technology change).

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• Salvage
• It is defined as the processing of materials
  (items) for advantageous use or disposal of
  company property, which is no longer economically
  useful in its present position.
• Salvage operation
• Waste materials are properly collected and stored
  at one place continuously, so that these can form
  a separate batch in production.
• Recoverable materials are stored in a scientific
  way as other items stored.

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• Materials are stored in terms of quality or size
  or specifications.
• Waste is invested for suitability to recover or
  avoid them.
• Salvaging operation are possible under the
  following conditions
• Evidences from laboratory tests and assays
  that the drug products meet all applicable
  standards of identity, strength, quality and
  purity.
• Evidence from inspection of premises that
  the drug products and their associated packing
  were not subjected to improper storage condition,
  as a result of the disaster or accident.

87
Disposal

• Disposal of scrap, waste and surplus materials
  can be effected by several way
• Surplus material should be returned to the
  original supplier. Alternatively a customer who
  needs them should be explored.
• As a social obligation, some material are
  defected or broken before selling them as scrap.

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Disposal

• Materials may be sold by inviting quotations from
  potential buyers or through various contracts
  such as fixed price contract, varying price
  contract, specific bids and negotiations.
• It is worth considering that scrap like any other
  material represents money and to that extent it
  has a value.

89
Unit lode, Pelletization and Containerization

• Unit load is a set of items (raw material, semi
  finished parts, finished product) to be move
  together, like
• A set of cartons on a pallet
• A set of products in a container
• In a unit load, parts are
• In something (In a carton)
• On something (On a pallet)
• Grouped by something (wrapped, strapped)

90
Reasons for using unit loads in material
handling

• Multiple items handled simultaneously
• Required number of trips is reduced
• Loading/unloading times are reduced
• Product damage is decreased

(a) Wooden pallet, (b) pallet box, (c) tote box
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• Pallets
• Style and Size based on
• Shipping and receiving restrictions
• Size and weight of items on the pallet
• Space restrictions
• Equipment used to move the pallet
• Cost, supply, and maintenance
• Aisle widths, door sizes, stacking heights

92

• Types of Pallets
• Materials used
• Softwood
• Hardwood
• Paper

• Plastic
• Steel
• Aluminium

93

• Containerization
• Different types of containers are used
  according to the type of material.
• e.g
• Boxes, cartons, cases, sacks, bales, pallets,
  drums, barrels, crates, cable drums, machinery,
  and processed timber
• Tank containers for bulk liquids and dangerous
  goods.

94
TRAINING AND DEVLOPMENT

• Training and development may be defined as an
  attempt to improve current or future performance
  of employees through learning, usually by
  changing the employees attitude or increasing
  his/her skills and knowledge.

95
TRAINING AND DEVLOPMENT

• Training and development program - Steps
• Explain the trainee what is the job, how is the
  job done and why is it done (relevance).
• Show how the job should be done (demonstration).
• Allow the trainee to do the job (practice).
• Follow up by explaining what was done correctly
  and what was done incorrectly. Correction always
  should be made as privately as possible
  (feedback).

96
TRAINING AND DEVLOPMENT

• Training and development program Methods
• On-the job training
• Off-the job training

97
TRAINING AND DEVLOPMENT

• On-the job training
• Majority of industrial training are on-the
  job training, because it is related to the
  productivity.
• On-the job training refers to methods
  that are applied at the workplace, while the
  employee is actually working.

98
TRAINING AND DEVLOPMENT

• Off-the job training
• This method is commonly used for the
  training of employees.
• Off-the job training refers to methods
  that are applied away from workplace.

99
JOB ANALYSIS

• Job analysis is defined as a process of
  collecting and studying information relating to
  the operations and responsibilities of a specific
  job.

100
JOB ANALYSIS

• Process of job analysis

Defining uses of job analysis
Information collecting
Information processing
Job description
Job specification
101
JOB ANALYSIS

• Uses of job analysis
• Personnel planning
• Training and development
• Work scheduling
• Performance appraisal
• Job evaluation

102
JOB ANALYSIS

• Job Description
• is defined as a combination of statement
  containing the work to be performed and the
  essential working conditions of a particular job.
• Job specification
• may be defined as a statement of human
  qualities and other desirable characteristics
  required for discharging the assigned job.

103
JOB ANALYSIS

• Job Analysis
• Job description Job
  specifications
• Job title
  Education
• Job place
  Experience
• Job summary
  Training
• Machines, tools and equipment Judgment
• Materials and forms used
  Initiative
• Working condition
  Responsibilities
• Hazards
  Physical effort

104
JOB DESIGN

• Job design involves conscious efforts to organize
  tasks, duties and responsibilities into a unit to
  achieve objectives.
• Job design involves three steps.
• Specifications of individual tasks.
• Specification of the methods of performing each
  tasks.
• Conversion of tasks into specific jobs to be
  assigned to individuals.

105
JOB DESIGN

• Mechanisms of job design
• Understanding the nature of job is important,
  because it determines the skill requirement in
  performing a job.
• Skill variation, responsibility
  and growth
• Low
  High
• Enlargement and enrichment

106
Job enlargement

• It involves performing of a variety of jobs or
  operations at the same time. It is mainly
  intended to enlarge the job horizontally.
• It avoids monotony, as a result of high degree of
  specialization, but the basic nature of job
  remains same. Therefore, it has limited role in
  motivating employees. There is a need for
  up-gradation of authority and responsibility.

107
Job enrichment

• It acts as an additional motivating factors to
  other models described earlier in job design.
  This factor attracted more attention, both in
  academic circles as well as in practice.
  Therefore, it requires a detailed study.

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Job enrichment

• Job enrichment is concerned with designing of job
  in terms of the following
• Work content provides greater variety.
• Levels of knowledge and skills are higher.
• More autonomy and responsibility in terms of
  planning, directing and controlling is given to
  workers for their own performance.
• Work experience becomes meaningful.

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BLUE AND WHITE-COLLAR JOBS

• A position that involves mainly physical labor.
  With the decline in manufacturing and an increase
  in harmonization agreements, the term blue collar
  is now rarely used.
• Blue collar refers to the blue overalls
  traditionally worn in factories in contrast to
  the white shirt and tie supposedly worn by an
  office worker, known as a white-collar worker.

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LABOR WELFARE

• Labor Welfare means working out things for the
  well-being of the labors. Knowing there wants and
  enabling them to fullfill there wants.
• Labor welfare is the voluntary efforts of
  employer to establish within the existing
  industrial system, working and sometimes living
  and cultural conditions of the employee beyond
  what is required by law.

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Advantages of material management

• It eliminates unproductive handling of the
  materials like back-tracking, rehandling etc.
• It reduces idle machine capacity and thus ensures
  better turnover on investment.
• It reduces considerably the idle time of the
  workers.

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Advantages of material management

• The quality of the materials is also maintained
  through minimum human touches, elimination of
  breakages, etc.
• Every inch of the factory space is properly
  utilized.
• The issue of materials is also facilitated.
• It helps in maintaining effective production
  planning and control.

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Advantages of material management

• Reduced operating costs and timely production.
• Greater job satisfaction on the part of both the
  workers and the employer.

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References

• CVS Subrahmanyam Pharmaceutical Product and
  Management, Published by- Vallabh Prakashan, Page
  no - 260 282
• S.C. Saksena Business Administration Management,
  Published by- Sahitya Bhawan, Page no - 262
  263, chapter 20.

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