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Effective Purchase Management & JIT Strategies

The document discusses purchase management and just-in-time manufacturing. It outlines the objectives, principles, functions, and methods of a purchasing department. These include maintaining good supplier relationships, procuring materials at low cost, and coordinating with other departments. Just-in-time aims to eliminate waste and continuously improve to create a responsive manufacturing system. Its benefits include reduced costs, improved quality, flexibility, and productivity.

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chander
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87 views15 pages

Effective Purchase Management & JIT Strategies

The document discusses purchase management and just-in-time manufacturing. It outlines the objectives, principles, functions, and methods of a purchasing department. These include maintaining good supplier relationships, procuring materials at low cost, and coordinating with other departments. Just-in-time aims to eliminate waste and continuously improve to create a responsive manufacturing system. Its benefits include reduced costs, improved quality, flexibility, and productivity.

Uploaded by

chander
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

PURCHASE MANAGEMENT

&
JUST-IN-TIME

Presented By:-
JYOTI
MBA-IB
170101060003
CONTENTS

• Purchasing
• Objective of purchasing
• Principles of purchasing
• Functions of purchasing department
• Methods of purchasing
• Steps in purchase procedure
Purchase management
Purchase management is a department
of an orgaiszation responsible for
purchasing activities. purchase is most
important function in any organization.
Purchase is the first element which
affects the product cost. Purchase
management decide the profitability of
the organization.
Key issue involved in purchasing
• Quantity
• Quality
• Time
• Place
Objectives Of Purchasing
– Co-ordination
– Inventory control
– Controlling cost
– Relationship with suppliers
– Make or buy decisions
– Low cost
Principles Of Purchasing

• Right quality
• Right quantity
• Right place
• Right time
• Right price
• Right source
Functions of Purchase
Department
• Maintain good relationship with suppliers.
• Maintain record efficiently.
• Purchase goods at lower price.
• Co-ordinate with all other departments.
• Procuring materials.
Methods Of Purchasing
• According to requirements
• Market purchasing
• Speculative purchasing
• Contract purchasing
• Scheduled purchasing
Purchase Procedure

Purchasing
requisition

Checking and
Tender or
passing of bills
quotations
and payments

Receiving and
Purchase
inspecting
orders
materials
Just-In-Time (JIT) Manufacturing is a
philosophy rather than a technique. By
eliminating all waste and seeking
continuous improvement, it aims at
creating manufacturing system that is
response to the market needs.
• According to Voss, JIT is viewed as a
“Production methodology which aims to
improve overall productivity through
elimination of waste and which leads to
improved quality”.
The most significant benefit is to improve the
responsiveness of the firm to the changes in the
market place thus providing an advantage in
competition. Following are the benefits of JIT:

• Product cost - is greatly reduced due to


reduction of manufacturing cycle time,
reduction of waste and inventories and
elimination of non-value added operation..
• Quality - is improved because of continuous
quality improvement programs.

• Design - Due to fast response to engineering


change, alternative designs can be quickly
brought on the shop floor.
• Productivity improvement.
• Higher production system flexibility.
• Administrative and ease and simplicity

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