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Explain the material cutting characteristics and process considerations to be taken into account when cutting materials?
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What is mean by material control and Explain the objective of material control?
Material is one of the important elements of cost and it has been observed that in the total cost structure of a product, material content is about 60 to 65%.The term 'material' generally used in manufacturing concerns, refers to raw materials used for production, sub-assemblies and fabricated parts. The terms 'materials' and 'stores' are sometimes used interchangeably.Material cost constitutes a prime part of the total cost of production of manufacturing firm.The publication of the Institute of Cost and Management Accountants on Budgetary Control defines Material Control as "the function of ensuring that sufficient goods are retained in stock to meet all requirements without carrying unnecessary large stocks". When the function of indexing buying, receiving, inspection, storing and buying the goods are separated, it is essential that these should be properly co-ordinate so as to achieve the advantages of specialization.The following are the objectives of material control.a. Material of desired quality should be available when needed for efficient and uninterruptedproduction.b. Material should be purchased only when it is needed and in most economic quantities.c. Investment in material is maintained at minimum level consistent with the operating requirement.d. Purchasing of material will be made at the most favorable prices under the best possible terms.e. Material is stored in such a way that the objective of protection is met fully and at the same timematerial is made available easily.f. Issues of materials are authorized properly and are accounted for properly.g. Materials are, at all the time, charged as the responsibility of some individual.
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