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MEM234027A Material Management - ECA Graduate Institute
Task: You have to complete the steps to plan and manage the materials supply for an engineering project or for a manufacturing operation.
Identify and verify the production or fabrication requirements for the engineering project or manufacturing operation.
1. We have considered the management of the construction material for a project.
The construction material comprises around 60% of the total project cost and manages around 80% of the schedule of the project. So, in case of construction industry, the construction material plays a very significant role. The total cost of the project can be decreased by proper planning of the material related concepts. The total efficiency of a project can be increased by effectively managing the material.
2. In order to manage the project, it is really significant to manage the materials efficiently.
Material management involves the plan, organization and control of various processes involved in moving the materials in a project. It ensures that the construction material is present at the place where it is demanded.
3. The material must have proper cost, quantity as well as quality. Material must be purchased at a proper time. If we purchase it early, material may be damaged until it is actually used .
4. If we purchase it late, then too there is a delay in the process. Material management includes various steps like - Plan and take off materials, evaluation and selection by vendor, purchase, expenditure, shipment, receiving the material, warehouse and inventory and at last distribution of material to relevant place.
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Steps in Material Management Process:
The steps are:
1. The site generates a need for the material.
2. Order the material in the store.
3. Generate the indent.
4. Check if it is available in the store.
5. Check if there are any balance items left.
6. From the list of approved vendors, select a vendor.
7. From the received stock, inspect the material.
8. Reject the unacceptable stock.
9. Issue the material to the concerned department.
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Features of Material Management:
1. Planning and Communication:
12. Senior managers must be involved so that better planning can be done. Then, preparation of project procedure is done. For every project, a material plan has to be made . All the specifications need to be mentioned. There must be existence of a control system for the material. The progress as well as the problem coming in the materials must be told to the senior managers. In order to improve communication, meetings must be held from time to time. There must be an overall integration between the owners, engineers and the contactors .
2. Material Requirement:
13. They must be identified on time. The material specifications must be provided as per the needs of the project. All the bill must be made and record maintained.
3. Enquire and Evaluate Vendors:
14. The vendors must be evaluated and proper evaluation must be done.
15. The data related to purchase must be managed systematically. The data of purchase order must be flexible and its status must be timely reported. Any duplicate purchase must not be there . The significant items must be carefully purchased by proper planning.
16. The requirements related to quality must be specified in detail. Proper inspection of materials must be done physically. The quality control is the responsibility of the vendor. The rejection of the inappropriate materials must be done on time. In the material management system, the positive materials must be identified .
6. Shipping of material:
17. The vendor must ensure the material shipment as per the project schedule. Any unnecessary delay must be avoided. The traffic must be properly planned.
7. Reception of material:
18. In order to maintain the accurate inventory, proper supervision of materials is required. The quality constraints must be properly met by the materials. On receiving the material, its data must be entered into the software. Any damage in the material received or any less material received must be immediately reported . The inventory data must be also centrally maintained so that all location data is at one place.
8. Material Control System:
19. The material control system and other project control systems must work in full integration. It must give the complete history. Any shortage of the material or any extra material must be timely reported. All the data related to the reception or issuance of the material must be well kept. The requests from warehouse must be checked to see the validity of the request .
20. Proper softwares must give the present and on time material information when required. The system must be accurate. The data in the system must be timely updated and checked for verification.
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21. Aim of Material Management:
Material management is done for proper planning, purchasing timely, receiving properly, proper storage, supply of the material, to maintain proper quality as well as quantity, good relations between the customer and the supplier, to enhance the efficiency, reduce nay time delay in the process, add value at every step, the material availability on time and to get best results from the materials which are bought .
22. There must be a good co-operation of the material management department with all the other departments for a smooth working of the overall project.
23. Material Management Functions:
There are 2 types of functions of material management. They are : Primary functions and Secondary functions.
24. Primary functions of material management include the planning of material requirement ,i.e., MRP. Next is purchase, planning and controlling the inventory, maintenance of proper flow and supply of the materials, to maintain quality of the materials and for overall efficiency of the project .
25. The secondary functions of material management are simplification of the process and to maintain standards, to make decisions for purchase, to code and classify the materials and to plan and to forecast any material requirement .
26. In the benchmarking process, the best process, material, technique is found out in the general market and that is applied to one's own company to enhance its performance . When the project is selected, the next steps are to plan, purchase, receive, inspect, storage, issue the material and then inventory control .
Hence, the material management and planning in construction industry has been studied.
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