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