The 8 Crucial Activities in Raw Material Control
- Explode BOM Requirements: Calculate gross material demands against target production schedules.
- Net Against Available Stock: Deduct free stock and incoming purchase orders to isolate net shortages.
- Raise Automated Requisitions: Generate purchase indents specifying engineering grades and tolerances.
- Vendor Purchase Orders: Issue commercial POs with binding delivery deadlines and payment terms.
- Goods Receipt Note (GRN): Record physical receipt, verify weighbridge readings, and stage for inspection.
- Incoming Quality Assurance (IQA): Verify metallurgical certificates, dimensional tolerances, and test bars.
- Issue Against Work Orders: Restrict material disbursement strictly to authorized manufacturing job cards.
- Closing Stock Reconciliation: Audit scrap returns and variance between standard consumption and physical stores.
The Severe Cost of Poor Raw Material Tracking
When stores personnel disburse raw material without work order tracking, inventory balances drift rapidly. Critical coil steel or copper bars vanish into unreported scrap, triggering unexpected line shutdowns when the next high-priority order enters fabrication.
Production & Plant Control
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