PPM an der FOM Hochschule für Oekonomie & Management

The business management function that ensures identification, sourcing, access and management of external resources  

the coordinating function responsible for the planning and controlling material flow.

• Maximizing the source of the firm resources
• Providing customer service 

Also known as distribution-/controll-/logistic- management 

Materials have to be stocked before being transformed into finished goods(Inventar). That process reduced the amount of time that inventory spends in production is a good way to reduce the costs.

Purchasing: Operative processing task

Logistic: Physical flow of material 

basic material which is used in the primary production or manufacturing of goods (fuel oil for chemical and plastic industry, lumber for furniture, or wheat for bread)

are part of the finished products, but only in small value and/or quantity (condiment in pastries or glue in furniture)

are inventory items consumed in the normal functioning of an organization. They are not part of the finished products, but necessary for production machines (lubricant and energy)

already made parts by other manufacturers (mattress for beds, seats for cars)

to extend the own line of product (beverages in a bakery)

to replace older plants, to extend production capacity or to rationalize

due to amortization or to defect risk

Immaterial goods (transport, facility management)

important source for decision making at all levels and hierarchies in a company (information about products, markets, competitors). Partly generated within the company, partly from outside through market research institutes