Other functions of an organization Introduction

Every organization, big or small, depends on materials and services from other departments in an organization to varying extents. These materials and services are obtained through exchange of money and the physical arrangement of it all is called Materials Management or even Material Management.

Various materials used as inputs, such as raw materials, consumables & spares, are required to be purchased and made available to the shops / users as & when needed to ensure uninterrupted production. Therefore, efficient management of input materials is of paramount importance in a business organization for maximizing materials productivity, which ultimately adds to the profitability of the organization. All the materials related activities such as material planning & indenting, purchase systems & procedure, variety reduction through standardization & rationalization, reducing uncertainties in demand & supply, handling & transportation, inspection, proper storage & issue of materials to the internal customers, inventory management, vendor management & finally disposal of obsolete, surplus & scrap materials etc. taken together is termed as INTEGRATED MATERIALS MANAGEMENT

To carry out these functions efficiently, it is essential to have a very good supplier base, order booking process & inventory management system as well as expert MATERIALS MANAGEMENT (MM) professionals. Materials Management is a key business function that is responsible for co-ordination of planning, sourcing, purchasing, moving , storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost. In its process of managing , materials management has such sub fields as inventory management , value analysis, receiving, stores and management of obsolete , slow moving and non moving. Materials Management's scope is vast. Its sub functions include Materials planning and control, Purchasing, Stores and Inventory Management besides others. The various activities represent these four functions:

Planning and control Purchasing Value analysis and Physical distribution

The planning and control functions areinventory management , production planning and scheduling. Purchasing functions are buying, subcontracting, value analysis and follow ups.

Distribution functions are receiving , packaging, shipping, transportation andstorage, making it the Integrated Materials Management. Once the whole Materials Management function has been divided into its different sub-functions as above, the sub-functions too are divided into their functions which are usually seen to be as :
Purchasing

Administrative : Purchasing administration involves all the tasks associated with the management process, with emphasis on the development of policies , procedures, controls and the mechanics for coordinating purchasing operations with those of other departments.

Buying : It addresses to a wide gamut of activities such as reviewing requisitions , analyzing specifications, investigating vendors, interviewing sales people studying costs and prices and negotiating.

Expediting : This is basically the order follow up activity involving various types of vendor relationship work. Reviewing Order status, providing clarifications on transportation, writing and emailing vendors etc.

Special projects (Non routine) : In order to facilitate smooth purchasing in a highly competitive business environment , purchasing authorities have to keep building the capacity to do better by taking up as special projects activities such as vendor development, vendor registration, value analysis, market studies, system studies etc

Routine : Purchasing process or procedure involving routine or every day activities such as dealing specific purchase file , placing orders, maintaining records of commodities, vendors etc.

. Business organizations are group of people intentionally organized to accomplish an overall, common goal or set of goals

relationship between procurement and other functions of an organisation Many will agree, that main function of a business organisation is to maximise profits. This is true to a certain degree, but many well known and also profitable business organisations do some fundamental things very well. They are, 1. Having a solid product portfolio and sustaining the same with competitive quality and pricing. 2. having an eye on innovations and products for future need / requirements. 3. Keeping Human Resources / employees / suppliers/ buyers; happy and rewarding them for their performances. as regards to the employees- they are the people who make the organisation complete. so they should be handled with care. Give responsibilities and powers to execute it. If they do well; reward them. Invest in training. 4. Sustaining the above three points without fail. Resulting in profits. 5. Should have a good cash flow in the business, having enough General Reserves for innovations- new products- reward programmes, having a good credit rating with financial institutions. 6. Marketing, sales, sales-support and Finance functions should be handled carefully and there should always be room for rookie ideas to pour in. No harm in having fresh ideas. any company that does the above, are successful companies. You will find a lot of companies doing these simple things well. Hence their Balance sheet is always in "handsome Black".

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Cooperation between multiple departments in a company is essential for increased profits. Production departments and marketing or sales departments have different functions, but a similar overall objective. Both departments look to enhance sales and profits by supplying products that customers need or want. Marketing and sales support within the production department can help tie customer preferences to the production process. Read more:

Functions of various departments

Every organisation is made up of different department. Each department contributes to the running of the business. The most common departments are: Production Marketing & Sales Finance Human resource and in some cases, Information Technology departments

Production Department
The production department is responsible for converting inputs into outputs through the stages of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. There are five production sub-functions Production and planning. They will set the standards and targets at each stage of the production process. The quantity and quality of products coming off a production line will be closely monitored. Purchasing department This department will provide the materials, components and equipment required. An essential part of this responsibility is to ensure that stocks arrive on time and are of good quality The stores department The stores department are responsible for stocking all the necessary tools, , raw materials and equipment required to service the manufacturing process. The design and technical support department They are responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The works department This department is concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

Aims and functions of production department

Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively.

He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable.

Five production sub-fuctions

In a manufacturing company the production function may be split into five sub-functions: 1. The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach. 2. The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality. 3. The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerised stock control systems helps keep stcoks at a minimal but necessary level for production to continue unhindered. 4. The design and technical support department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved. 5. The works department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection. A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a product, process or service should do exactly what is expected of it

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The main role of production is to turn inputs (raw materials) into outputs (finished goods). Outputs refer to a finished product or service and inputs are the materials that are needed to manufacture certain goods. When a business completes this process they are able to achieve customer satisfaction by producing products that are ready to be used and fit for purpose.

The production department is responsible for ensuring quality is achieved in each item produced. They will need to carry out inspections and implement suitable quality initiatives. This is one of the major duties of this department because if mistakes are made on products, customer satisfaction will be decreased or if products are ruined during the production process it means that the company will have to throw "bad" products away (creating waste). Both aspects will lead the company to a loss of profit. Quality assurance will have to be carried out everyday on a number of occasions to ensure that the production process is working efficiently and effectively. For example Coca-cola will carry out approximately 200 inspection per day to ensure quality is being achieved and also to make sure all equipment is running well.

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The production department is the driving force turning the wheels of every manufacturing company because without it there are no goods to sell to customers. Along with producing the goods a manufacturer sells, the production department determines how much of those goods can be produced in a certain time frame. Read more: What Are the Duties of the Production Department? | eHow.com http://www.ehow.com/list_6765198_duties-production-department_.html#ixzz228ZRmSE2

Quality of Goods

The production department's main duty is to ensure the goods being produced meet the customer's quality expectations. Even though the quality assurance department inspects the goods through the manufacturing process, the production department has certain quality duties too. Each step measures the raw material to make sure it is within the tolerances recommended before it goes to the next step. This measurement is either done digitally or by the machine or production operator.

Production Scheduling

A production department can only manufacture or assemble so much product in a certain amount of time. It is the duty of the production department to maintain a production schedule so other departments know what is being produced and how long it takes to produce that quantity. The sales department relies heavily on this production scheduling to provide customers with a satisfactory time line of shipment for their purchases.

Coordinating Duties

Not all goods are produced on an assembly line. This is the last step in a long production process. The production department coordinates the production of each part of the assembled goods to ensure all parts are being produced in conjunction with each other. All

parts of an assembled product are formed from raw material. This process takes several steps from the production department to make sure each part of the product is being produced simultaneously or within the same time frame.

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WHAT IS THE FUNCTION OF DIFFERENT DEPARTMENTS IN PRIVATE AND PUBLIC ORGANISATION AND WHICH ORGNISATION IS USED
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PURPOSE OF ORGANISATION
In organisation we can do many types of work with collectively, because every individual is expert in his field, the main purpose of this to earn maximum profit in short time. The working process in organization is so fast other than who work separate (synergy).

PRODUCTION
The function of production department is to convert input to output. In production department the production manager has some responsible for making sure that raw material is provided and made in finished goods effectively, and make sure that work id carried out smoothly it is closely related to other departments like HRM, Finance etc

O FUNCTIONS IN PRIVATE AND PUBLIC COMPANY

In shiraz flour mills we produces the maximum quantity of flour in short time to meet the demand of market production and it is totally process of planning if demand is high then we produces in high quantity and store in our god owns, and total quality management to check it time to time. In public organization PIA in which totally parts are import from other countries and assemble in Pakistan and in which some parts is produces in Pakistan. In PIA production department has the function to repair it and assemble new planes and checked it time to time.
ntroduction

Industrial Engineering has been traditionally concerned with the analysis, design and control of materials, work and information in operating systems.

A distinguishing focus has been the integration of humans, machines, and materials to achieve optimum performance of operating systems. Methods of operations research and ergonomics provide the fundamental tools for performing this analysis and integration.

More recently the field has expanded to include non-industrial operations involving supply, distribution, transportation, communication and information handling, medical care and safety. The design and control of these systems requires the use of scientific methods in a variety of research and application areas.

The Materials Management applications must provide the NCAS with capabilities for managing and controlling the State's purchasing and accounts payable policies and accounting for the inventoried assets. These functions include Purchasing, Accounts Payable, Fixed Assets, and Inventory which are completely integrated within the Materials Management system, as well as with the General Ledger and Budget Control process. The Materials Management modules are currently integrated components of the NCAS with the exception of the Fixed Assets Module (FA). Figure 5, along with the following paragraphs by business application, portray the fully integrated process.

Figure 5. Overview of Current Materials Management Process

Through shared vendor and policy information, Purchasing and Accounts Payable functions can freely communicate without the usual control issues associated with duplication of files and batch interfaces. Accounts Payable shares purchase order information from Purchasing and updates the invoiced-to-date amount on the purchase order real-time. Receipts are entered and referenced to a purchase order number, ensuring accurate posting of deliveries to each purchase order line. Receipts that cannot be identified or that do not fit matching criteria are identified, placed on hold, and reported for buyer action. Each receipt is checked for proper delivery points and verified that the quantities received and the receipt

date are within tolerances already defined on the purchase order. Another receipt requirement, inspection of goods, is handled through dock-to-stock tracking. This feature tracks the inspection of materials according to a table of routing and inspection areas. Accounts Payable performs the invoice audit and approval functions by checking invoice details such as amounts, unit price, terms, tax, freight, etc. against the purchase order. Data entry effort is minimal, because invoice details are built from the purchase order and displayed on-line. Accounts payable clerks have to deal only with the exceptions, resulting in maximum efficiency with full control. The NCAS system uses a PC-based, laser printing process to support the creation of vendor payments. The laser check printing process has strong internal controls, including password protection access to the check printing software, the use of security chips in the printers themselves, as well as the use of blank check stock (vs. pre-printed check forms). Agencies print checks locally, using a nightly check file that is downloaded from the NCAS mainframe system. The Inventory integration with the Purchasing system is designed to address warehouse replenishment needs. Information about stock items and requisitions for replenishment are passed from Inventory to Purchasing, and purchase orders and receipts pass from Purchasing to Inventory. The following information is shared between the two systems: items, requisitions, purchase orders, and receipts. Requisitions are created to replenish warehouse inventory. They can be generated either automatically in batch by the system, or created manually by the inventory replenishment planner. Once approved, these requisitions automatically pass to Purchasing to be converted into purchase orders. When goods are received in the Purchasing function, the quantity is passed to Inventory to reduce the on-order quantity and increase the on-hand quantity. If goods undergo inspection in the Purchasing function, the active on-hand quantity is not increased in the Inventory until the goods have passed inspection. The Materials Management systems maintain accounting integrity through integration with the General Ledger. Distribution entries from purchase orders, Accounts Payable and Inventory issues and replenishments are validated directly against the General Ledger. Offsetting cash, assets accounts, and encumbrances are automated through the accounting rules or system policies to ensure accounting accuracy. The integration of the Materials Management functions with the budgetary control function provides the funds-checking capability required for the NCAS. All Purchasing, Accounts Payable, and Inventory transactions (commitments, encumbrances, inventory consumption and replenishment, and expenditures) are checked real-time to the available funds amount calculated through budgetary control functions. Real-time funds checking ensures expenditures are kept within the authorized budget and provides advanced knowledge of the budgetary status for spending decisions. Purchasing The Purchasing function is a real-time, decision support application designed to help manage the entire procurement cycle. This cycle includes requesting, competitive bidding, buying, receiving, and inspecting. Purchasing agents' day-to-day decision-making is fully supported with tools and information on-line to manage the supplier base and service the purchasing function for the State in a timely and efficient manner. Figures 6 and 7 display the participants and tasks in the Purchasing or Competitive Sourcing and Vendor Selection processes, respectively. Purchasing Financial Functions The State's purchasing policies and strategies are the basis for the system and are incorporated into a policy hierarchy. The policy hierarchy consists of rules that define how to handle purchasing functions within the government environment. The most general purchasing policies represent the highest level of the hierarchy, and each successive level below the general policy defines further levels of detail to the general policy.

As requisitions and purchase orders are processed, the policy hierarchy ensures that the majority of the purchasing activity is handled automatically and within the required purchasing guidelines. If a particular situation does not fit the general rules, a purchaser may change the hierarchy default to fit the situation; however, the system tracks in detail the full procurement process from requisition to payment.

Figure 6. Overview of Current Purchasing Process The Purchasing function provides: Full integration with Accounts Payable, Inventory, Budgetary Control, and General Ledger; Real-time encumbering of funds and confirmation of funds availability; A centrally-controlled item file that ensures a consistent statewide purchasing history database; Common policy files for Purchasing and Accounts Payable; A statewide central vendor file that is shared by both Purchasing and Accounts Payable;

Funds checking at each decision point (requisition, purchase order, and Accounts Payable); Buyer tools (on-line buyer split requisition worksheet);

Figure 7. Overview of Current Vendor Selection Process Document preparation for requisitions, purchase orders, and requests for quotes (RFQs) with standard phrases available to expedite the preparation process;

Flexible purchase order generation to support blanket order purchases, services, and purchases of goods; An integrated receiving function; Documentation and tracking of purchase order quotes; On-line real-time requisition approval and rejection; and Continuous building of financial data throughout the Purchasing and Accounts Payable functions.

Purchasing Reporting Functions Reporting within the Purchasing function supports: Daily purchasing decisions through buyer action reports and buyer exception reports, and Central management requirements for the Division of Purchase and Contract (P&C) HUB reporting and recycled goods reporting.

Accounts Payable The Accounts Payable function provides an effective and efficient cash management process by automatically calculating the discount due date, discount amount, and payment due date according to standard vendor terms or system policy, thus maximizing cash availability. For inventory transactions, the Accounts Payable function recognizes price variances, and automatically posts the adjustments to the General Ledger. Figure 9 shows the details of the Current Accounts Payable process. For clarity and completeness, a flow of the Current Receiving Process is also presented in Figure 8. The Receiving process contains multiple decision points necessary to bring a receipt to the point where the Accounts Payable staff are involved and pay for the items.

Figure 8. Overview of Current Receiving Process

Figure 9. Overview of Current Accounts Payable Process Accounts Payable Financial Functions The Accounts Payable function provides: Full integration with Purchasing, Inventory, Budgetary Control, and General Ledger; Flexible payment cycles; Available funds checking; Efficient document processing through: o Automatic document matching; o Automatic validation of Purchasing and Accounts Payable policy and accounting distribution; o Recurring payment options ;

o o o o o o o o o o o o o

Pre-defined policies that default on the invoice; Information passing from the purchase order to the invoice; Automatic proration of discount, sales tax, and freight ; Agency cash management; Common policy files; Statewide centrally-controlled vendor files; Bank reconciliation; Agency-controlled checks; 1099 processing and control from the central vendor file; Fixed Assets interface to facilitate establishing newly acquired fixed assets; Cash, encumbrance, and accrual reporting automated to the General Ledger; Employee advances/reimbursements tracked and balanced; and Vendor payment history.

Accounts Payable Reporting Functions The Accounts Payable function supports the following reporting requirements: Daily input control reports; Automated balancing reports; Cash management reports; Sales and Use Tax reports; Ad hoc reports; Bank reconciliation with the Treasurer; and MICR-encoded checks from blank stock.

Fixed Assets The Fixed Assets function provides timely and accurate information about the State's fixed assets. The Current process is described in Figure 10.

Figure 10. Overview of Current Fixed Asset Process Fixed Assets Financial Functions The Fixed Assets function meets the following NCAS objectives: Maintains maximum property control for acquisitions, additions, transfers, retirements, adjustments, property listings, and retirement reversals; and Provides depreciation calculations according to GASB specifications.

Some of the specific features included with the function are:

Maintenance of service and repair cost information, with supporting information such as vendor name, service contract number, and contract expiration date; On-line data entry, validation, and inquiry; Interface to establish fixed assets when payment is made for an item in Accounts Payable; On-line report viewing; and User-defined fields that can be used to identify location and other descriptive information.

Fixed Assets Reporting Functions The Fixed Assets function provides reporting for: Active and retired assets; Assets transfers; Asset adds and deletes; and Asset depreciation.

Inventory The Inventory function tracks and maintains inventory in a cost-efficient manner, ensuring the integrity of the inventory balances while providing the flexibility required at the agency level. The Inventory design allows for multiple warehousing, staging areas, and inventory item differences. The financial integration of Inventory to Purchasing, Accounts Payable, Budgetary Control, and the General Ledger, along with Inventory policy defaults ensure uniform and appropriate financial information required for cash basis, GAAP, and management reporting. Figures 11 and 12 cover the current inventory replenishment and inventory issuing processes. Inventory Financial Functions The Inventory function supports: Flexible policy definitions; Multiple buying entities defined;; User-defined network of warehouses and item controls at the warehouse level; Historical demand information captured to assist in forecasting future demand for an item and management of inventory levels; Automatic calculation of a moving weighted average cost, which provides up-to-date inventory valuation; Precise inventory replenishment through multiple ways of controlling replenishment: order point, computed order point, and standard inventory level;

Figure 11. Overview of Current Inventory Replenishment Process Reduction in number of backorders through usage order shortage checks that identify approved substitutes to resolve material shortages; Allocation of inventory off-line or real-time, providing up-to-date information on available inventory; Cycle counting procedures and on-line adjustment to prevent understating inventory and/or ordering unneeded material; Integration with other business functions (Purchasing, Accounts Payable and General Ledger) to expedite the inventory management process and ensure the integrity of the financial data; and Inventory security, permitting operators to be defined with varying degrees of access to warehouse and other system functions.

Figure 12. Overview of Current Issue Inventory Process

Signature approval process that provides management controls over work orders; Automatic inventory picking, which programmatically posts the allocated quantity as the picked quantity for usage orders allocated during off-line processing (optionally, the picked quantity can be manually posted); Minimum/maximum item quantity controls that prevent stockpiling of inventory; Available funds checking through integration with Budgetary Control ensures that funds are available before inventory is issued or replenished; and Consumption accounting, which provides effective planning information for future budgeting requirements for inventory purchases and cost of operations.

Inventory Reporting Functions The Inventory reporting capabilities include: Pick lists; Value transaction register by warehouse; Inventory valuation detail report; Transfer and usage reports; Usage history by item and assets; Replenishment action report; Cycle count reports by warehouse; and

Ad hoc reporting.

ROLE OF MATERIALS MANAGEMENT IN OPERATIONS Materials management is an important organized activity of any business system, which is essential for any manufacturing sector. A careful planning is required while laying the objectives. The objectives of materials management are either set by the top management or by the materials manager himself keeping in view corporate policies. The main aim of material management is to provide efficient service of continuous supply of bought out materials at minimum cost. These can be raw materials or components for production as direct inputs, spare parts or factory operating supplies. Stock out of any of these may totally disrupt the production causing severe losses to the company. The following are the objectives set by materials manager in the process of achieving the organizational goals : To procure raw material at low cost In a manufacturing firm raw materials play an important role in the process of production . They constitute about 50% of the total cost of production. Therefore, a slight reduction in the cost would certainly reduce the price which would in turn increase the profits of the firm. To maintain consistent quality The materials manager should look for quality, even though the raw material is available at a lower cost. As the procurement of raw materials is done only for production, finally a product is manufactured for selling; a customer would look for a quality product apart from price. Therefore, care should be taken to procure the material of precise specifications which would reduce the cost of inspection, degree of defectiveness and increase the inventory turnover, profitability and image of the company. To ensure continuous supply of raw material The materials manager should ensure smooth flow of supply of raw materials from suppliers or else, it would affect the process of production which would substantially increase the operating costs and also increases the unit production cost. To minimize the carrying costs and ordering costs The material function involves the incidental costs such as costs of ordering material, freight changes, storage costs etc. Reducing any of the above costs, would substantially increase savings, which inturn increases the profits. Techniques such as Economic Order Quantity are used in order to minimize the carrying and ordering costs. To maintain a good relationship with supplier A good relationship with the supplier shows the efficiency of the purchase department. Maintaining a good rapport with suppliers would not only have a good image in the industry, but also leads to certain economic advantages like reasonable price, preference in time shortages, intimation about forthcoming shortages etc., which will have an edge over the competitors. Efficient record-keeping and prompt reporting Materials management involves huge paper work. Paper processing work should be standardized through designing forms for recurring operations, submission of

copies to the needy departments. It should ensure efficient record maintenance and reproduction of records when ever necessary. To develop new sources and new materials Purchase research helps in exploring new sources of supply. This may result in the supply of better quality of materials at favorable terms. Procurement of cheaper substitutes than the presently used material ( without affecting the quality) if any, should be availed. Thus it would reduce the cost. Training and development of personnel Materials department is an indispensable part of manufacturing sector. Efforts should be made to develop the personnel by training them if necessary; such training programs will not help to improve the morale of the employees but also, contribute to the qualitative. Due to the conflicting nature of objectives it is difficult to achieve all of them at a time. For example, low cost of acquisition and storing would come in conflict with minimizing the storing costs while, the objective of procurement at a low cost will conflict with continuous supply of materials. Thus, it is difficult to attain all the objectives at a time.
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Materials are any commodities used directly or indirectly in producing a product such as raw materials, component parts or assemblies. Materials management is the grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product. Thomas F. Wallace & John R. Dougherty Materials management involves planning, programming, organising, directing, controlling, and co-ordinating the various activities concerning the materials. The production managers found it necessary to develop an organised body of knowledge on this subject. The resulting set of related disciplines is known as materials management. Materials planning and programming Raw material purchase Receiving, store keeping, and warehousing Issuing of material Inventory control Value engineering Transportation of materials Vendor development Vendor rating Disposal of scrap and surpluses Buying the best item at the lowest cost Reduction in inventory cost and High inventory turnover Maintaining the flow of production Maintaining the consistency of quality Optimisation of acquisition and possession, resulting in lower cost Cordial relationship with suppliers Maintaining good records Contribution towards competitiveness Personnel development Material cost can be lowered ( Sales price can be brought down to a reasonable level)

Controlling of indirect cost (such as materials movement) Risk of inventory loss minimised (theft, pilferage ) Reduction in loss of time of direct labour Cost of material used in different department ascertained Control of manufacturing cycle Material congestion in storage places avoided Improvement in delivery of the product