The objectives of a firm are often realized only with the general effectiveness of all areas of operation which incorporates the management of materials. Materials management is anxious with input process of producing and includes the flow of raw materials, piece parts, components and finished goods, to produce the sales and marketing functions with product. The 'input' process is separated from the 'output' process because in an exceedingly manufacturing concern the functions involved in the input process finally change the physical state of the merchandise. The important aspects of the material management system are 'materials', time, and space, and the operation of the system aims to beat the issues of 'supply', distance and time, so as to get product for the minimum cost under the constraint of a longtime customer service level requirement. The procurement of materials to supply the merchandise isn't the only real purpose of manufacturing.  Materials Management has been branded because the kingpin of production. The task of materials management is integrating external suppliers with internal departments so as to produce a smooth product flow process. Such a task is extremely difficult thanks to the existence of fundamental conflicts like Every supplier aims to maximize his profit, there is also no overall control of materials within the corporate because each department wishes to own security of supply without responsibility for either quality or cost. Other reasons could even be there like there is also no accountability for materials at department level and Costs might not be attenuated to product level or the poor communication gap between the departments within the corporate leading to confusion between the departments. Due to the communication gap between the departments the acquisition department is given too short notice of time which finally ends up in poor working relationships with suppliers and therefore the business. Hence, it's necessary to avoid the conflicts and confusion which normally prevails between the interior departments of the firm and also the suppliers. This may help the firm to avoid a sub optimal form of functioning and to achieve the stage of effective functioning.

KEYWORDS: Material Management, Cement Industry, Production, Functioning, Statistical Methods.