Key Components of Material Control

Material control encompasses a series of coordinated activities aimed at ensuring the efficient use and management of materials within an organization. Its key components span across planning, procurement, storage, and usage. These components are essential to maintain production flow, control costs, and optimize resource utilization.

1. Purchasing Control

This component ensures that materials are purchased in the right quantity, at the right quality, and at the right time and price from reliable suppliers.

  • Purchase Requisition: Internal request to procure materials, typically generated by stores or production departments.
  • Vendor Selection: Evaluating and choosing suppliers based on cost, quality, reliability, and delivery terms.
  • Purchase Order: Legally binding document issued to suppliers detailing the material requirements.

2. Receiving Control

Receiving control ensures that incoming materials match purchase orders in terms of quantity, quality, and specifications.

  • Inspection of Goods: Visual and/or technical checks are performed to confirm quality standards.
  • Goods Received Note (GRN): A formal record used to verify the receipt of materials into inventory.
  • Discrepancy Reporting: Any shortages or defects are documented and addressed promptly.

3. Storage Control

This component focuses on the safekeeping and proper handling of materials within the warehouse or storage facility.

  • Bin Cards: Physical cards attached to storage bins recording each issue and receipt.
  • Store Ledger: Maintains a detailed account of quantities and values of materials on hand.
  • Stock Rotation: Techniques like FIFO (First In, First Out) ensure materials are used before expiry or obsolescence.

4. Issue Control

Issue control governs the release of materials from storage to production or other departments.

  • Material Requisition Note: A document used to authorize the withdrawal of materials.
  • Authorization Procedures: Ensures that only approved personnel can request and receive materials.
  • Usage Monitoring: Tracks quantity issued against production needs to avoid over-usage.

5. Inventory Control

Inventory control involves managing stock levels to avoid excessive or insufficient inventory.

  • Economic Order Quantity (EOQ): Determines the optimal order size that minimizes total inventory costs.
  • Reorder Level: The stock level that triggers a new purchase order.
  • Stocktaking: Regular physical verification to match records with actual inventory.

6. Record-Keeping and Documentation

Accurate records are essential for maintaining control and supporting decision-making.

  • Material Ledger: Records all material transactions—receipts, issues, and balances.
  • Inventory Reports: Provide real-time data for forecasting, planning, and cost control.
  • Audit Trails: Ensure transparency and accountability in material movement.

7. Coordination Between Departments

Effective material control requires collaboration across several departments.

  • Production: Communicates material needs based on schedules.
  • Purchasing: Sources and orders materials efficiently.
  • Stores: Handles storage, issuance, and stock monitoring.
  • Accounts: Manages payments and reconciles material costs with financial records.

Strategic Importance of Material Control Components

Each component of material control plays a vital role in ensuring smooth operations, cost efficiency, and inventory accuracy. A well-structured material control system reduces waste, improves production planning, and enhances financial performance, making it indispensable in both manufacturing and service industries.