Materials Management – Standardisation

Standardisation of Quantities

This is a standardisation of material requirements. The material requirements have to be carefully planned.

When the production process is finished a target/performance comparison is carried out.

Therefore two steps are necessary:

1. prognosis of material requirement
2. target/performance comparison

Example of step 1:

prognosis of materials requirement

normal net requirement per unit multiplied by the number of units                                      10 x 1200
= net material requirement                                                                                                  12.000
+ gross correction (unavoidable additonal requirement e.g. 3 %)                                                360
= standard materials requirement                                                                                        12.360
+ avoidable additional requirement (e.g. 1 %)                                                                           120
= material requirement forecast                                                                                           12.480

The required materials have to be provided corresponding to the demanded quantity, the appropriate type and on schedule. The material requirement might be ascertained by three different methods: program-oriented, consumption-based, and by subjective estimate.

Source: This article is based on

Materialbestand und Materialbedarf im Unternehmen