Basic Concepts of Materials Management

Basic Concepts of Materials Management

1. Process Mapping: It is a visual tool that shows all the stages of a process, from inputs to final products, in order to identify improvements, failures, or waste.

2. Planning: A process through which objectives, resources, timelines, and activities are defined to achieve a goal efficiently

3. Inputs: All the resources needed to start a process, such as materials, information, labor, energy, or time.

4. Processes: A set of ordered and related activities that transform inputs into products or services.

5. Procedures: Detailed instructions that explain how to carry out each activity within a process.

6. Products: The final result of a process. They can be physical goods or services that satisfy a need.

7. Materials: Physical elements used during the production process. They include raw materials, parts, and components.

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   • Control: A set of actions to verify that processes are carried out as planned, correcting errors when necessary.

9. Types of Orders Classification of orders according to their nature, for example: • Stock orders • Make-to-order • Custom orders • Urgent orders

10. Takt Time: The available production time divided by customer demand. It indicates how often one unit must be produced to meet demand.

11. Forecast : An estimate of future demand, based on historical data, trends, and market analysis.

12. Lead Time: The total time that elapses from when a product is requested until it is delivered to the customer.

13. Delivery: The process of delivering the finished product to the customer on time and in proper condition.

14. Raw Material: Basic material that has not been transformed and is used as the basis for manufacturing products.