KIBABII UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS AND ECONOMICS

NJUGUNA SERAH WANGUI

BCO/0066/21

MATERIALS AND STORES MANAGMENT

QUESTION 1

Discuss legal issues with regards to transportation of materials

The legal landscape around transporting materials can get complicated, but here's a breakdown of
some key issues to consider.

1. Classification of Materials:

Hazardous Materials: Top concern. Regulations like the International Air Transport Association
(IATA) or the International Maritime Dangerous Goods (IMDG) Code govern the transport of
hazardous materials. These materials require specific packaging, labeling, documentation, and
carrier training. Failing to comply can lead to fines, delays, or even criminal charges.

2. Documentation:

Proper documentation is crucial throughout the transportation process. Bills of lading,

commercial invoices, packing lists, and safety data sheets (for hazardous materials) are essential.
Errors or missing documents can cause delays, additional costs, or even shipment confiscation.

3. Mode of Transportation:

Regulations differ depending on the transport mode (road, air, sea). Understanding weight
restrictions, size limitations, and specific licensing requirements for each mode is essential.

4. International vs. Domestic Transport:

International shipments involve customs clearance, adding another layer of complexity.
Understanding import/export regulations, tariffs, and duty requirements for the destination
country is crucial.

5. Liability and Insurance:

Contracts between shipper, carrier, and any intermediaries should clearly define liability in case
of damage, loss, or delays during transportation. Having proper insurance coverage for the
materials being transported is also vital.

QUESTION 2

DISCUSS THE FOLLOWING CONCEPTS IN RELATIONSHIP TO MATERIALS

MANAGEMENT AND SHOW HOW IT IS APPLICABLE TO GREEN PURCHASING

1 . NEMA environment concern

NEMA Environmental Concerns and Green Purchasing

NEMA (National Environment Management Authority) plays a crucial role in materials

management by focusing on the environmental impact of materials throughout their lifecycle.
Here's how NEMA's concerns are directly applicable to green purchasing:

Reducing Environmental Impact:

NEMA aims to minimize environmental degradation caused by materials. Green purchasing

aligns with this goal by prioritizing materials with lower environmental impact throughout their
life cycle. This includes considering factors like:

Resource extraction: Choosing materials made from recycled content or sustainably harvested
resources reduces the environmental footprint of extraction.

Manufacturing processes: Green purchasing focuses on materials with less energy-intensive or

polluting manufacturing processes.
Transportation: Considering the distance materials travel and opting for locally sourced options
whenever possible reduces transportation emissions.

Product use and maintenance: Selecting materials with high durability, low maintenance
requirements, and energy efficiency aligns with NEMA's goals.

End-of-Life: Green purchasing prioritizes materials that can be easily recycled, reused, or
composted, minimizing waste going to landfills.

2. ISO 14000

ISO 14000 and Green Purchasing: A Powerful Partnership

ISO 14000 is a family of international standards that provides a framework for an effective
environmental management system (EMS). Green purchasing, on the other hand, is a strategic
approach to selecting materials that minimize environmental impact throughout their lifecycle.
These two concepts work together beautifully to achieve environmental sustainability in
materials management.

How ISO 14000 Supports Green Purchasing:

Environmental Policy: An organization with an ISO 14001 certification (part of the ISO 14000
family) has a documented environmental policy. This policy sets the overall direction for the
organization's environmental commitment and often includes specific goals for reducing the
environmental impact of materials acquisition. Green purchasing directly aligns with this policy
by providing a practical approach to achieving those goals.

Risk Assessment and Control: ISO 14001 requires identifying environmental aspects and
impacts associated with the organization's activities. Material acquisition is a key aspect. Green
purchasing practices like lifecycle assessments and supplier assessments help identify and
mitigate environmental risks associated with materials selection.

Legal and Other Requirements: ISO 14001 mandates compliance with relevant environmental
regulations. Green purchasing helps ensure compliance by considering factors like NEMA
regulations (discussed previously) and restrictions on hazardous materials.
Continual Improvement: A core principle of ISO 14001 is continuous improvement of the EMS.
Green purchasing practices like seeking out innovative, sustainable materials and collaborating
with suppliers on environmental improvements directly contribute to this principle.

QUESTION 3

DISTINGUISH BETWEEN THE FOLLOWING TERMS

Specifications and standardization

Specifications and standards are both crucial for ensuring quality and consistency, but they serve
different purposes.

Specifications:

Detailed Requirements: A specification is a document that outlines the exact requirements for a
material, product, service, or process. These requirements can be very specific, including things
like:

Dimensions, tolerances, and performance criteria

Material properties and composition

Manufacturing methods and quality control procedures

Testing procedures and acceptance criteria

Internal or External Use: Specifications can be used internally by a company to ensure its
products meet their own standards, or they can be provided to suppliers to clearly communicate
the exact requirements that must be met.
Value Analysis And Value Engineering

Value analysis (VA) and value engineering (VE) are both systematic approaches to improve the
value of a product or service, but they differ in their timing and focus:

Value Analysis (VA):

Focus: Existing Products or Services: VA is typically applied after a product or service has
already been designed, manufactured, or implemented.

Goal: Reduce Costs or Enhance Functionality: The primary objective of VA is to identify and
eliminate unnecessary costs or improve the functionality of an existing product or service while
maintaining its overall value proposition. This can involve:

Evaluation and implementation: Selecting the most promising options and implementing them.

Value Engineering (VE):

Focus: New Products or Services: VE is typically applied during the design and development
stage of a new product or service.

Goal: Optimize Value from the Start: The primary objective of VE is to ensure that the final
product or service delivers optimal value by considering both cost and functionality from the
outset. This involves:
Examples: An engineer might write a specification for a specific type of steel needed for a
bridge, or a company might provide a specification to a clothing manufacturer outlining the
desired fabric, stitching quality, and button type for a new shirt design.

Standardization:

Agreed-Upon Benchmarks: A standard is an established, often formal, document that defines

common practices, methodologies, or characteristics for a particular industry or product.
Standards are created through a consensus process involving experts from different stakeholders

Widespread Adoption: Standards are intended to be widely adopted by manufacturers, suppliers,

and other relevant parties within an industry or domain. This ensures a level of consistency and
interoperability across different products or services.

Developed by Organizations: Standards are typically developed by national or international

standards organizations like the American Society for Testing and Materials (ASTM) or the
International Organization for Standardization (ISO).

Examples: The size and type of plug on your electronic devices likely adheres to a standard to
ensure they can be used with any compatible outlet. Data transfer protocols like USB are also
examples of standards.