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Session Objectives
Course: Civil Engineering
UNIT V
42
Management of equipment available on site, removing ideal time.
43
50-
The money is only scare and we can control on it by minimum utilization of material.
Only area in which considerable economy is still possible with materials management.
o The main task of material management is to reduce the cost of material following are the
objectives
o Right quality of materials at an appropriate cost from proper place with right terms and
conditions so as to reduce the expenditure on materials.
The material of poor quality and ineffective quality control will be cause delay in
execution.
Following flow chart is showing general material provision process under materials
management distinguishing responsible authority.
Study the contract documents and identify the material requires
for project with qualitative details.
Planning
Engineer
For receiving material from store, the contractor has to put a requirement to carry
out work.
High cost items (type A) should be approved from construction manager, planning
manager and many times from project manager.
1. Name of organization 2. Site name & site code 3. Date of indent issue
10. Quantity of material 11. Material type (returnable) 12. Where material is using
(location of use)
16. Sign of material supervisor 17. Sign of material manager 18. Sign of planning engineer
after sanction
The bill of materials with the production schedule can be sent directly purchasing
department as a notification of production department needs a material.
The production control department can also send a copy of engineering bill of
material to store as a document authorizing release a material.
Explosion of bill of materials refer to the splitting of requirement for the product
to be manufactured into its basic components.
5.8 Storage of Materials:
o Convenience
o Cost of land
o Climatic condition
o Transportation
Economy and efficiency are the most importance in determining the lay-out of
stores.
In OUT
Figure5. Lay-out of
Store
Other functions and need to work places are not considered in this method.
OUT
IN
MATERIALS ON BIN
MATERIALS ON RACKS
MATERIALS ON PALLETS
This type is only considered for incoming and outgoing of materials not
for separation of material group wise.
Materials under one head are grouped where assessment, stacking and
controlling is easy.
This is flexible in nature store and having one and more access to the
material.
After receiving material on site, while unloading concern engineer has to confirm the
quality and quantity of material is as per requisition or not.
This is automatic system which gives total information and status of activities
carrying in store.
It estimates the need and synchronizes the changes between multiple systems.
Customization is problematic,
5.11 Inventory
Inventory consists of cost of raw material, stores, spares, packing material, coal,
petroleum etc.
Efforts are made to minimize the stock of inputs and outputs by proper planning
and forecasting of demand of various inputs and producing only that much
quantity which can be sold in market.
The inventory cost is not only interest on stocks but also cost of store building of
storage, insurance and obsolesce and movement of input and output.
(i) Maintain sufficient stock of raw material in the period of short supply and
anticipate price changes.
(ii) Ensure a continuous supply of material to production department facilitating
uninterrupted production.
(iii) Minimize the carrying cost and time.
(iv) Maintain sufficient stock of finished goods for smooth sales operations.
(v) Ensure that materials are available for use in production and production services
as and when required.
(vi) Ensure that finished goods are available for delivery to customers to fulfil orders,
smooth sales operation and efficient customer service.
(vii) Minimize investment in inventories and minimize the carrying cost and time.
(viii) Protect the inventory against deterioration, obsolescence and unauthorized use.
(ix) Maintain sufficient stock of raw material in period of short supply and anticipate
price changes.
(x) Control investment in inventories and keep it at an optimum level.
Principle of ABC analysis, small portion of the items may typically represent
the bulk of money value of the total inventory used in the production process,
while a relatively large number of items may from a small part of the money
value of stores. The money value is ascertained by multiplying the quantity of
material of each item by its unit price.
According to above concept high value items are more closely to control than low
value items.
A carries the highest value items should be under the tight control and under
responsibility of the most experienced personnel
B Category 15% to 20% of the items represent 15% to 20% value of the
money.
Quantity of Items
1. It ensures a closer and a more strict control over such items, which are having a
sizable investment in there.
2. It releases working capital, which would otherwise have been locked up for a
more profitable channel of investment.
3. It reduces inventory-carrying cost.
4. It enables the relaxation of control for the C items and thus makes it possible
for a sufficient buffer stock to be created.
Some items are negligible in value but essential to perform operations which are
considered in ABC analysis.
The results of ABC analysis should review periodically and updated.
The EOQ refers to the order size that will result in the lowest total of order and
carrying costs for an item of inventory.
If a firm place unnecessary orders it will incur unneeded order costs. If a firm
places too few order, it must maintain large stocks of goods and will have
excessive carrying cost. If a firm place unnecessary orders it will incur unneeded
order costs. If a firm places too few order, it must maintain large stocks of goods
and will have excessive carrying cost.
By calculating an economic order quantity, the firm identifies the number of units
to order that result in the lowest total of these two costs.
Demand is known-- Using past data and future plans a reasonably accurate
prediction of demand can often be made. This is expressed in unit sold in a year.
Sales occur at a constant rate-- This model may be used for goods that are sold
in relatively constant amount throughout the year. A more complicated model is
needed for firms whose sales fluctuate in response to these seasonal cyclical
factors.
Cost of running of goods is ignored-- Cost associated with storage, delays or lost
sales are not considered. These costs are considered in the determination of safety
level in the re-order point subsystem.
Safety stock level is not considered-- The safety stock level is the minimum level
of inventory that the firm wishes to hold as a protection against running out. Since
the firm must always be above this level the EOQ need not be considered the
safety stock level.
While EOQ indicates the quantity to be ordered but not showing when to order.
This above points are cover in Figure10 which showing that as demand as well as are
certain and known.
In practice, it is likely that lead time consumption value is greater than EOQ.
The inventory system should be started with purchase of lead time consumption and then
come in picture of EOQ cycle.
This system keeps track of the goods held by the firm, the insurance of goods, and the
arrival of order.
Whenever those subsystems reports that an item is at a below the recorder point level, the
firm will begin to place an order for the item.
o The demand or usage of inventory is not generally known with certainty. Usually
it fluctuates at a given period of time. In this case formula is (Maximum daily
usage rate x Maximum lead time) (Average daily usage rate x Average lead
time).
o Fluctuation in demand and best distribution are two important roles play in design
of system.
Reorder Point:
The reorder point is the level of inventory at which the firm places an order in the
amount of EOQ.
If the firm places the order when the inventory reaches the reorder point, the new
goods will arrive at the site before the firm runs out of goods to sell.
o Usage Rate
o Lead time
o Safety Stock
Lead Time:
This is the amount of time between placing an order and receiving goods.
The time to allow for an order to arrive may be estimated from a check of the
companys record and the time taken in the past for different suppliers to fill
orders.
5.13 Equipment Management
As day by day shortage in skilled manpower the best solution to mechanized the
things
Source of Equipments
Buy Lease
Uniformity of type
Size of equipments
Country of origin
Quantity of production
Peak utilization
Mobilization
Progress schedule
It is the time when machine is ideal or not working; it may undergo for repairing
and adjustments. Down time increases with usage.
It denotes the availability of equipment for actual production but not working and
productivity gets hammered.
Transportation system run in company to carry out day to day activity is called
as fleet management.
It includes a transportation of work force, equipment etc.
It includes the management of car, motor vehicles, ship etc.
Fleet management includes a range of functions like;
o Vehicle financing
o Vehicle maintenance
o Driver management
o Speed management
o Fuel management
o Health and safety management
This the function on which organization relay on transportation in business to
remove or minimize the risks associated with
o Vehicle investment
o Improving efficiency
o Reducing transportation cost
o Providing 100% compliances with government legalization
Two types of fleet management
o In-house
o Out sourced
The software related to fleet management accomplish with a series of tasks in
management of any fleet of vehicle.
This software conducting following activities:
o Acquisition of vehicle
o Depending on its capabilities
o Driver and vehicle profiling
o Trip profile
o Dispatch
o Vehicle efficiency
5.14.3 Definitions:
1. Construction: Construction is the process of making, building, fabrication and/or
erection of structures for some facility to be housed in the same.
2. Safety: Safety is related to external threats, and the perception of being sheltered
from threats. According to the business Dictionary, safety is defined as a relative
freedom from danger, risk, or threat of harm, injury, or loss of personnel and/or
property, whether caused deliberately or by accident. Safety can also be defined as
the control of recognized hazards to achieve an acceptable level of risk. In this
study, safety means freedom from danger, harm, and injury to the person involved
in construction activities.
Causes of Accidents
Examples: Do not specify fragile roofing materials through which people can
fall. This is obviously more effective than specifying solutions designed to
minimize the risks from falls through fragile material. Specification of lighter
materials, such as blocks and bags, is preferable to arranging ways to handle
heavy materials on site. Inevitably, at some stage the latter will result in someone
having to lift manually a load heavier than it could have been. Avoid using
hazardous substances at all where possible, or substitute those known to be less
hazardous.
Examples: Designing floor slabs with fewer voids removes the need to control
the risk of falling through them by setting up barriers or covering them. Avoid
dust-producing processes: specify off-site finishing.
5.14.5.3. Adapt work to the individual when designing work areas and selecting
methods of work
Ergonomics aims to improve the interface between people and their
workspaces, by seeking to adapt the workspace rather than the person. Thought
given to layout can improve working conditions and reduce risks.
5.14.5.5. Give priority to protection for the whole workplace rather than to
individuals
Reliance on personal protective equipment (PPE) as a sole means of risk
control is rarely acceptable. This is because no PPE is 100% effective for 100% of
the time for 100% of the people who use it. One of many reasons for this is that it
may not always be possible to identify everyone at risk and issue the PPE to them.
Example: Extensive work on a flat roof may require the presence of a large
number of workers from different employers, in addition to supervisory staff,
clients, etc. In these circumstances, the appropriate protection would be provided
by perimeter barriers, rather than by giving 'everyone' a safety harness. Installing
permanent edge protection during the main construction process instead of at the
end gives protection to both constructors and end users.
5.14.5.6. Ensure everyone understands what they have to do to be safe and healthy
at work
Safety training is not just a matter of handing out booklets it is unwise to
assume anything about people's previous experiences in construction work, or
even their ability to read and understand instructions and information. Safety
awareness is not inherited, and induction training on sites is required to make sure
that everyone knows what the hazards and the control measures are.
Example: Specific site induction must include the local emergency evacuation
procedure, and understanding may need to be confirmed by holding regular
practice fire drills.
5.14.5.7. Make sure health and safety management is accepted by everyone, and that
it applies to all aspects of the organizations activities
A single contracts manager, joinery manager, or other member of senior
management who believes that the company safety management system does not
apply to situations where time is short can destroy the safety climate overnight. If
someone is injured as a result, the penalty can be severe for that person, and
possibly for the company as well.
Examples: Failure of a senior manager to wear safety footwear and safety helmet on a
site visit gives the impression to the workforce that the rules do not apply to senior
management. Failure to carry out risk assessments because of pressure of work could lead
to criminal prosecution of an individual.
1) What is resources
2) ABC,EOQ
3) Store management
4) Safety management
Dictation of Notes
Unit V
i. Safety stock
ii. Lead time
iii. Inventory
iv. EOQ
Que. 3 A supplier has to supply 400 units of commodity to his customer very week.The cost rate
is RS. 200/- per unit and ordering cost is Rs. 200/- per order. The carrying cost of inventory is
20% per yer of the cost of inventory. Find Economical Order Quantity.
Que. 4 Following table shows the annual consumption of the items used in a project and their
unit cast. Classify them in A,B,C lasses plot ABC curve.
Que. 6 Explain significance of Safety Programme and Safety Training.Write a detal note on
personal protective equipment.
Que. 8 What is relationship between good plant layout and material handling (M.H) system.
Que. 13 Define Inventory and Inventory Management. What are the methods of inventory
control?
Que. 14 Why is safety training is required? Write a safety programme foe national highway
project?
Que.15 For the site you have visited write a report on safety policy adopted on sie. Mention the
safety gadgets used.
Session outcomes
1. Able to understand the Resource management, its use and objectives.
2. Able to know the standard procurement procedure.
3. Able to manage material for minimizing of material cost on site.
4. Able to know the software used in material management.
5. Able to find out the economical order quantity of material for avoiding shortage for
continuation in work for a project.
6. Able to find out effective use of equipment available on site, removing ideal time.
7. Able to understand the safety and its importance for a construction project