RESEARCH PAPER

Technology & Innovation

Volume : 4 | Issue : 4 | Special Apr Issue 2014 | ISSN - 2249-555X

Material Management in Constuction Industry

KEYWORDS

Construction Materials, Materials Management, factors effecting material

management, Material management software.

G.KANIMOZHI

P.LATHA

Periyar Maniammai University

Asst. Prof./Department of civil Periyar Maniammai

University

ABSTRACT Materials management is defined as a coordinating function responsible for planning and controlling materials flow. In a detailed view, materials management is a planned procedure that comprises the purchasing, delivery, handling and minimisation of waste with the aim of ensuring that requirements are met. Materials management is an
essential function that improves productivity in construction projects. Hence, the efficient use and management of material
have an important influence on a company's profit and can avoid delay in construction. To managing a productive and cost
efficient site efficient material management is very essential. Research has shown that construction materials and equipment may constitute more than 70% of the total cost for a typical construction project. Therefore the proper management
of this single largest component can improve the productivity and cost efficiency of a project and help ensure its timely
completion. One of the major problems in delaying construction projects is poor materials and equipment management.
This paper describes the factors effecting material management in construction company and based on the factor to develop construction materials management software that suits construction companies.
INTRODUCTION
Materials management is a process for planning, executing
and controlling field and office activities in construction. The
goal of materials management is to insure that construction
materials are available at their point of use when needed.
The materials management system attempts to insure that
the right quality and quantity of materials are appropriately
selected, purchased, delivered and handled on site in a timely manner and at a reasonable cost. Materials management is
the system for planning and controlling all of the efforts necessary to ensure that the correct quality and quantity of materials are properly specified in a timely manner, are obtained
at a reasonable cost and most importantly are available at the
point of use when required. Thus Materials management is
an important element in project management. Materials represent a major expense in construction, so minimizing procurement costs improves materials management can result in
increased costs during construction. Efficient management of
materials can result in substantial savings in project costs. If
materials are purchased too early, capital may be held up and
interest charges incurred on the excess inventory of materials. Materials may deteriorate during storage or get stolen
unless special care is taken. Delays and extras expenses may
be incurred if materials required for particular activities are
unavailable. Ensuring a timely flow of materials is an important concern of material management. For effectively managing and controlling materials, the

improves productivity in construction projects. Hence, the efficient use and management of material have an important
influence on a companys profit and can avoid delay in construction. In this study, materials management are categorised to 5 processes, namely

performance of materials management should be measured.

A performance measure calculates the effective working of a
function. These performance measures may differ from system to system. The measures divide the materials

Logistics
Generally, logistics is a concept that emphasises movement
and it may include planning, implementing, and controlling
the flow and storage of all goods from raw materials to the
finished product to meet customer requirements. There is evidence that the routing of materials is one of the main points
which affect cost and time during construction projects

management system in parts and make the working of the

system more efficient. When joined, the measures make the
complete materials management system.
Materials management is defined as a coordinating function
responsible for planning and controlling materials flow. In a
detailed view, materials management is a planned procedure
that comprises the purchasing, delivery, handling and minimisation of waste with the aim of ensuring that requirements
are met. Materials management is an essential function that

1. planning,
2. procurement,
3. logistics,
4. handling, stock
5. waste control processes.
Planning
Materials planning includes quantifying, ordering and scheduling. It is stressed that planning is especially significant in
terms of increasing productivity, profit, and facilitating the
timely completion of construction project. Hence, productivity will suffer if the material planning process is not executed
properly.
Procurement
Procurement is described as the purchase of materials and
services from outside organisations to support the firms operations from production to marketing, sales and logistics As
such, a detailed material schedule and co-ordination of the
procurement and order of material are important in assuring
material availability

Handling
Materials handling is described as a broad area that encompasses virtually all aspects of all movements of raw materials,
work in process, or finished goods within a plant or warehouse. Nearly 50 % of the production cycle time in many
industries is spent on handling materials. Due to that, poor
material handling may result in delays leading to the idling
of equipment.

INDIAN JOURNAL OF APPLIED RESEARCH X 1

RESEARCH PAPER
Stock and Waste Control
Stock control is classified as a technique devised to cover and
ensure all items are available when required. Stock control
can include raw materials, processed materials, components
for assembly, consumable stores, general stores, maintenance materials and spares, work in progress and finished
products. It is of great importance that the bulk of construction materials delivery requires proper management of stock
control. Meanwhile, construction activities can generate an
enormous amount of waste and materials waste has been
recognised as a major problem in the construction industry.
However, tighter materials planning can reduce waste and
can directly contribute to profit-improvement and productivity. Each processes stated above plays an important role
for an effective materials management. However, there are
materials management issues that have not yet been tackled
effectively. The following section will highlight on the current
materials management problem faced in the construction industry.
OBJECTIVES
v To identify the factors effecting material management in
construction company such as
Efficient materials planning
Buying or Purchasing
Procuring and receiving
Storing and inventory control
Supply and distribution of materials
Quality assurance
Good supplier and customer relationship
Improved departmental efficiency
v To develop construction materials management software
that suits construction companies. This software was developed based on survey results, literature review, the
experience of the researcher and other experts in construction materials management.
LITERATURE REVIEW
[1] Neeraj et.al.[2010] has expressed that approximately 42%
of Indian government-funded construction projects are
facing time overruns. In an earlier study conducted by
one of the authors, A second-stage questionnaire survey
based on these factors was used to identify the significant schedule performance factors. The analysis of the
survey responses led to conclude that factors such as:
a project managers competence; monitoring and feedback by project participants; interaction between external project participants; and good coordination between
project participants.
[2] Heon [2011] has stated construction scheduling techniques often generate schedules that cause undesirable
fluctuations in resource utilization levels and unintended
peak resource demands that exceed availability limits.
On the other hand, resource allocation or resource constrained scheduling models are designed to resolve resource conflicts by rescheduling project activities while
minimizing the extension in project duration.
[3] Fan [2011] states that scheduling delay is a common
worldwide phenomenon in construction projects.
[4] Hegazy and Menesi (2008) found that scheduling delays
occurred in 70%, 40% and 50% of government contracted construction projects in the United Kingdom, India
and United Arab Emirates (UAE) respectively.
[5] Anderson [2005] has commented the research focused
on engineering projects, typically complex and large in
size since they are through likely to offer more comprehensive coverage and evidence of project management
practices that can be transferred to smaller projects.
[6] Ibbs [2007] expressed that project delays caused damages to direct and indirect cost. Most of the previous
research is based on construction projects in developed
countries.In recent years, the Indian construction industry
has witnessed the arrival of impending projects related

2 X INDIAN JOURNAL OF APPLIED RESEARCH

Volume : 4 | Issue : 4 | Special Apr Issue 2014 | ISSN - 2249-555X

to infrastructure development, airport expansion, metro

rail, and power sectors.
[7] Love [2000] states that field overhead damages require
proper estimation, even though it is less complicated
than home, office overhead charges.
[8] Saka, and Mudi. [2007] observed that most of the contractors of Nigerian construction companies, collected materials locally, instead of collecting them from suppliers.
[9] Hisham [2010] Material procurement and storage on construction sites need to be properly planned and executed to avoid the negative impacts of material shortage or
excessive material inventory on-site Deficiencies in the
supply and flow of construction material were often cited
as major causes of productivity degradation and financial losses Efficient planning of materials procurement
and storage on construction sites can lead to significant
improvements in construction productivity and project
profitability. Overlooking these critical interdependencies between material procurement and site-space availability can lead to serious project problems including
material shortages, improper storage, poor and unsafe
site layout, and productivity losses Jang et al. 2007) Accordingly, there is a pressing research need to investigate
and model the critical interdependencies between material procurement and material storage decisions. The
objective of this paper is to present the development
of a construction logistics planning (CLP) model that is
capable of integrating and optimizing critical planning
decisions of material procurement and material storage
on construction sites.
[10] Said et.al. [2011] explained that Material procurement
and storage on construction sites need to be properly
planned and executed to avoid the negative impacts of
material shortage or excessive material inventory on-site.
[11] Guo, [2011] states that the effective implementation of
LCM in construction projects relies strongly on a visual
communication and collaboration information platform )
as information sharing is the key to implementing LCM
An effective information platform is needed to gather
project information
[12] Orabi, et. al [2010] states that the main purpose of this
model is to allocate limited reconstruction resources to
competing recovery projects in order to generate a recovery schedule for the damaged civil infrastructure system.
Bhargava1et.al.[2010] states that Worldwide, cost and time
overruns on highway projects are critical issues that adversely
affect project delivery and public relations, and disrupts highway programs to overlapping activities is management of the
information transfer between activities.
METHODOLOGY

RESEARCH PAPER

Volume : 4 | Issue : 4 | Special Apr Issue 2014 | ISSN - 2249-555X

CONSTRUCTION MATERIAL MANAGEMENT SOFTWARE:

The software was developed using Microsoft Excel platform.
This is because contracting companies are familiar with Excel
and find it easy to use. To increase the capability and skills of
the researcher in Microsoft Excel package, he reviewed some
books explaining the use of Excel, internet Excel publications, and Excel manual. These skills increased the capability
of the researcher to develop the software. The developed
software was tested by four contractors asking them to try it
on real projects. They were also asked to fill a questionnaire
for evaluating the software
CONCLUSION
An effective material management system can bring many
benefits for a company. Previous studies by the Construction Industry Institute (CII) concluded that labor productivity
could be improved by six percent and can produce 4-6% additional savings Among these benefits are:

Reducing the overall costs of materials

Better handling of materials
Reduction in duplicated orders
Materials will be on site when needed and in the quantities required
Improvements in labor productivity
Improvements in project schedule
Quality control
Better field material control
Better relations with suppliers
Reduce of materials surplus
Reduce storage of materials on site
Labour savings
Stock reduction
Purchase savings
Better cash flow management

REFERENCE Bell, L C. and Stukhart, G. Attributes of materials management systems. Journal of building industry: Maincauses and prevention. Journal
of Construction Engineering Construction Engineering and Management. 112(1). | 14-22, 1986. | | Dey, P. K . Re-engineering materials
management : A case study on an Indian refinery. Business ProcessManagement Journal. 7. 394-408, 2001 | | Arnold, J. R. and Chapman, S. N. Introduction
to Materials Management. 5th Ed. New Jersey: Prentice-Hall. 10 (2004) | | Harris, F. and MacCaffer, R. Modern Construction Management. London: Blackwell
Science (2001) | | New Strait Times Leverage on ICT in Construction Industry. 13 May. Malaysia, 2007. | | Sarshar M. and Isikdag, U. A survey of ICT use in the
Turkish construction industry, Journal of Engineering,Construction and Architectural Management. 11 (4). 238-247, 2004. | | Illingworth, J. and Thain, K. Material
Management is it Worth It? Technical Information Service, The Chartered Institute of Building ASCOT. 93. 1-5, 1998 | | Abdul-Rahman,. H. and Alidrisyi, M. N. A
Perspective of Material Management Practices in a Fast Developing Economy: the case of Malaysia. Construction Management and Economics. 12. 412-422, 1994
| Wong, E. T. T. and Norman, G. Economic evaluation of materials planning systems for construction. Construction Management and Econmics. 15. 39-47, 1997 | |
Lambert, D. M., Stock, J. R. and Ellram, L. M. Fundamentals of Logistics Mangagement. United States: McGraw Hill. 20, 96 (1998) | | Ademeso, O.S. and Windapo,
A. O. Relationship between Material Management Approach and Scheduled Project Completion Time. In COBRA. Conference The construction and building
research of the Royal Institution of | Chartered Surveyors. Dublin Institute of Technology, 2008 | | Pheng, L. S. and Chuan, C. J. Just-in-time management in precast
concrete construction: a survey of the readiness of main contractors in Singapore. Integrated Manufacturing Systems. 12. 416-429, 2001 | | Varghese, K. and O
Connor, J. T. Routing large vehicles on industrial construction sites. Journal of Construction Engineering and Management. 121 (1). 1-12, 1995. | | Gopalakrishnan, P.
and Sundaresan, M.Materials Management: an integrated approach. New Delhi: Prentice- Hall. 189, 240 (1977) | | Prabu, V. and Baker, M. Materials Management.
UK: McGraw-Hill, (1986) | [16] Teo, M. M. M. and Loosemore, M. A theory of waste behaviour in the construction industry. Journal of Construction Management and
Economics. 19(7). 741-751, 2001 |

INDIAN JOURNAL OF APPLIED RESEARCH X 3