## Material Control System
### Definition
Material control is a systematic control over procurement, storage, and usage of material so as to maintain an even flow of material to the right department, at the right time, and in the right quantity.
### Objectives
1. Minimise interruption in production due to material shortage.
2. Minimise raw material cost; maximise raw material quality. Avoid both "Out of Stock" and "Over-stocking".
3. Reduce wastages in the manufacturing process.
4. Inform management of available raw material stock and trigger purchase alarms.
5. Ensure customer orders are completed on time.
### Requirements
1. Co-ordination among all departments (purchase, inspection, storage, accounting, payment).
2. Defined purchase procedure ensuring most favourable price and terms.
3. Standard forms for placing orders and noting receipts.
4. Material budgets to minimise procurement cost.
5. Checks on material and equipment purchase transactions.
6. Proper storage with adequate safety.
7. Perpetual inventory system and continuous stock-taking.
8. Systematic issue of material to the right dept., at the right time, in the right quantity.
9. Accounts showing material costs at receipt and consumption stages.
10. Material stock account recording: purchases, issues, balances, obsolete stock, returns to vendors, spoiled/defective units.
### Elements of Material Control
1. Purchasing of materials
2. Receiving of materials
3. Inspection of materials
4. Storage of materials
5. Issuing materials
6. Maintenance of inventory records
7. Stock audit