Construction Material Management through Inventory Control Techniques

 
 
 
  • Abstract
  • Keywords
  • References
  • PDF
  • Abstract


    Objectives: A research has shown that the construction materials account for more than 55%-60% of the total expenditure of a project. Efficient material planning plays a major role in the successful handing over of a project within the estimated cost and schedule. Methods: This paper mainly focuses on materials planning and inventory control as these are the major aspects of material management. S-curve analysis is performed to measure the fluctuation between estimated materials cost and market materials cost. The major reasons for this are identified by interviewing engineers and contractors. Inventory control techniques such as ABC classification as well as EOQ analysis are conducted. Findings: The result of the S-curve analysis show that the actual materials cost is higher than the planned materials cost in most cases. ABC and EOQ analysis are applied to maintain sufficient stock in inventory and any given point of time, to protect the materials in the inventory against damages, to reduce inventory holding costs, to overcome stock-out problems and to maintain the inventory in an optimal level. Sensitivity check is applied to the results of EOQ analysis. The stock-out of A class and B class material problems faced in the  construction site can be reduced by  the application of ABC classification and BOQ analysis. The total expenditure of inventory is less after the adoption of these simple inventory control techniques.  Conclusion: Instead of using costly software for inventory management, the engineers and contractors may use these simple inventory control techniques which are equally beneficial and economical.

     

     

     


  • Keywords


    Material management, Inventory control, S-curve analysis, ABC classification, EOQ analysis.

  • References


      [1] Hemishkumar Patel, Dr. Jayeshkumar Pitroda, Prof. J. J. Bhavsar, “Analysis of Factor Affecting Material Management and Inventory Management: Survey of Construction Firms in Gujarat Region of India”, International Journal of Advanced Research in Engineering, Science & Management.

      [2] P.Lenin, L.Krishnaraj, D.Narendra Prasad , V.R Prasath Kumar, “Analysis of Improper Material Management Affecting Cost in Construction Projects”, International Journal for Research in Applied Science and Engineering Technology, 2014 May, p. 486 – 491.

      [3] Carlos H. Caldas, Cindy L. Menches, Pedro M. Reyes, Laure Navarro and Daniel M. Vargas, “Materials Management Practices in the Construction Industry”, Practice Periodical on Structural Design and Construction, 2015 Aug.

      [4] T.Phani Madhavi, Steve Varghese Mathew, Roy Sasidharan, “Material Management in Construction - A Case study”, International journal of Research in Engineering and Technology, 2013 p 400 - 403

      [5] Dinesh Dhoka, Dr.Y.Lokeswara Choudary, “ABC Classification for Inventory Optimization”, IOSR Journal of Business and Management, 2013 Nov. – Dec, p. 38 – 41.

      [6] Eduina Guga, Orjula Mosa, “Inventory Method through EOQ model- A Case study of SHPRESA limited, ALBANIA”, International Journal of Economics, Commerce and management, Dec 2015, P 174 -182.

      [7] Narimah Kasim, “ICT Implementation for Materials Management in Construction Projects: Case Study”, KICEM Journal of Construction Engineering and Project Management, 2011, p. 31 – 36.

      [8] Jongchul Song, Carl T. Haas, Carlos H. Caldas, “Tracking the Location of Materials on Construction Job Sites”, Journal of Construction Engineering and Management, 2006 Sep.

      [9] Nawaj Kalim Hannure, Sushma Shekhar Kulkarni, “Comparative Study of Traditional Material Management and Material Management with ICT Application”, Current Trends in Technology and Science, 2014 June – July, p. 301 – 307.

      [10] Ibn-Homaid, N. T. (2002). “A comparative evaluation of construction and manufacturing materials management.” Int. J. Project Manage., 20(4), 263–270.

      [11] Hemanta Doloi, “Cost overruns and failure in project management: Understanding the roles of key stake holders in construction Project”, International journal construction engineering and management, March 2013 139(3): 267-279.

      [12] Vipulesh Shardeo, “Impact of Inventory Management on Financial Performance of the Firm”, IOSR Journal of Business and Management, Apr-2015, p 01-12.


 

View

Download

Article ID: 16558
 
DOI: 10.14419/ijet.v7i3.12.16558




Copyright © 2012-2015 Science Publishing Corporation Inc. All rights reserved.