Question

examine the structure of the materials management processes for these types of items. Specifically, address the following:

What are some necessary considerations when designing a materials management process for bulk and long-lead time items?

How should a project schedule deal with these types of items?

Answer 1

Necessary conditions are:

• Technical considerations of suitability and quality determination
• Price considerations
• Availability consideration
• time consideration
• quantity considerations

- The quality and suitability of materials used for production purposes are checked by technical department. The Tech department takes advice from production department and work with them to achieve this. While purchasing the dept. also looks at the economic consideration of quality. They are checked for long-term basis usage and if the product can be purchased continuously.
The seller should be then properly educated about the product so that he/she can supply it properly.
The right product must be purchased at the right price. Proper planning and negotiation must be done to get the right price.
The buyer also needs to get the right time for the purchase and also the right quantity should be purchased.

Project schedule helps to have a check on inventory and to properly schedule the availability of a long lead time item and hence the engineer can know the procurement time and can also adjust the plans accordingly.
Hence no problem of inventory and work happens and the workers can continue with other scheduled works until the item is delivered.