PROCEDURE OF SETTING MATERIAL QUANTITY STANDARDS
The following procedure is usually followed for setting material quantity standards.
(a) Standardisation of products: At this phase, products to be produced is decided based on production plan and customer’s order. Generally following questions are answered at this stage: (i) What to be produced? (ii) Which type to be produced and (iii) How much to be produced?
(b) Product study: Product to be produced is analysed and studied for developments and production. Product study is carried out by the engineering department or product consultants. At this phase answers to the following questions are satisfied: (i) How can it be produced? (ii) What are the prerequisites? (iii) Which type of materials to be used? (iv) How products can be accepted in the market? Etc.
(c) Preparation of specification list: After the product study a list of material is pre- pared. It specifies types (quality) and quantity of materials to be used, substitute of the materials, quantity and proportion of materials to be used, process to be followed, prerequisites and condition required etc. While preparing specification list consideration to expected amount of wastage is given. It must be customised to adopt changes in the product.
(d) Test runs: Sample or test runs under specified conditions are carried out and sample products are tested for the desired quality and quantity. Any deviation from the specification is noted down and specification list is updated.
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