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E.

MATERIAL MONITORING, HANDLING, AND STORAGE

E.1. Introduction

Warehousing is the activity of holding goods over a period of time. Materials


management is a process for planning, executing and controlling field and office
activities in construction. Warehousing is functioning concurrently with accumulation
(acceptance of deliverables/returned of excess materials), withdrawal, storage,
monitoring and inventory. Warehouse management aim to insure that the right quality
and quantity of materials are appropriately selected, purchased, delivered and handled
onsite in a timely manner and at a reasonable cost. The place where material and/or
finished goods are stored is referred to as warehouse or store. Generally, warehouse is
structure or building design keeping in material going to store. Thus Materials
management is an important element in project management. Materials represent a
major expense in construction, so minimizing procurement costs improves opportunities
for reducing the overall project costs. Poor materials management can result in increased
costs during construction. Efficient management of materials can result in substantial
savings in project costs. If materials are procured 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 For effectively
managing and controlling materials, the performance of materials management should
be measured. A performance measure calculates the effective working of a function.

E.2 Warehouse Standard Procedure

OBJECTIVE

To provide easy access to the Company’s Materials for the effective inventory storage
and tracking system. Know the relationships between warehousing, logistics, and
supply chains. Know the major activities and processes in warehousing and the major
characteristics of warehousing Be able to quantify the economic importance of
warehousing. Materials management is to insure that construction materials are
available at their point of use when needed.
General Overview

PROCESS

Warehousing has processes which may be active simultaneously: accumulation


(acceptance of deliverables / returned of excess materials), withdrawal, storage,
monitoring and inventory

Acceptance of Material Deliverables (1):


 Material Deliverables shall be subject for Inspection and checking of receipt quality.
 If material deliverables is “PASSED” through Inspection therefore the material are
bound to accept the materials for Material storage.
 If material deliverables is “FAILED” through Inspection therefore the material are
bound to be rejected by Warehouse keeper.
 Thereby as a rule update the Material monitoring and Inventory records.
Materials Withdrawal
 Materials requested through operation group leaders.
 Request materials are subject for the approval of the signatories.
 If material request approval is “YES” therefore the material are bound to release
from material storage by the Warehouse keeper.
 If material request approval is “NO” therefore Logistic Team are to be notify by
Warehouse keeper for their action and resolution.
Returned Materials (2)
 Returned materials shall be subject for Inspection and checking of receipt quality
and quantity.
 If Returned materials is “PASSED” through Inspection therefore the material are
bound to accept the materials for Material storage.
 If Returned materials are “FAILED” through Inspection therefore the material shall
be disposed by Warehouse keeper.
 Thereby as a rule update the Material monitoring and Inventory records.

E.2. Staffing Needs

E.2.1 Warehouse Organizational structure

E.2.1.1 Logistic head (1)

 General responsible for the overall logistic management of the Company

E.2.1.2 Warehouse supervisor (1)

 Maintains receiving, warehousing, and distribution operations by initiating,


coordinating, and enforcing program, operational, and personnel policies and
procedures.
 Maintains warehouse staff by recruiting, selecting, orienting, and training
employees.

E.2.1.3 Store keeper (3)

 Ensure a correct physical and administrative stock management


 Manage the team of loaders
 Check the safety of the warehouse and goods.
E.2.1.4 Warehouse Staff (15)

 Assist storekeeper but not limited to loading, unloading, classifying, identifying and
organizing the materials in the warehouse.
 General Housekeeping performing a variety of cleaning activities such as sweeping,
mopping, dusting and polishing. Ensuring all rooms are cared for and inspected
according to standards. Protecting equipment and making sure there are no
inadequacies.

E.3. Organization of Warehouse Space and Planning

E.3. 1 Warehouse Layout

 To determine the size of the warehouse required, use the volume and floor space
needed of the items to be stored. A good ratio is 30% for access and 70% for storage.
 Storage height depends on the type of items and packaging. A two-meter stacking
height is appropriate for the majority of items. Piling over three meters is dangerous
and may jeopardize stock at the bottom.
E.3. 2 Warehouse Planning

 Accessibility: Access to warehouse should be easy for cars and trucks in all weathers.
 Utilities: There should be office space for the storekeeper, preferably with toilet and
wash-up facilities, and regular garbage disposal. Lighting in the warehouse and
surrounding area. The warehouse should be fenced and facilities should be present
for watchmen.
 Size: The warehouse should have sufficient capacity to meet forecast requirements
for temporary or transit storage.
 Security: Area should not be likely to invite intrusion or vandalism.
 Proximity: There should be good access to transport infrastructure.
 Easy movement: The warehouse should have sufficient additional floor area to
permit easy stock handling and access to all stocks for inspection, and insect and
pest control.
 Ventilation: The construction should be dry and well ventilated. The roof should be
leak-proof. There should be no broken windows. Doors should close securely with
no gaps. To reduce temperature inside the warehouse, you should paint the roof and
walls outside, in white.

E.3.3 Operating Schedule

Regular Working Hours

Timing-In: 8:00 am

Timing-Out: 6:00 pm (Monday to Thursday)

Timing-Out: 5:00 pm (Friday)

Timing-Out: 12:00 nn (Saturday)

Overtime Working Hours

As required by Person- In –Charged


E.4 Acceptance of Deliverables

OBJECTIVE

The Deliverable Acceptance is used to track the status of project deliverables as they are,
verified, validated and finally accepted. To avoid mistake on the materials purchase.

PROCESS

The storekeeper must inspect the delivery on arrival. If the inspection indicates poor
quality, the storekeeper must refuse the delivery. The delivery inspection involves the
storekeeper:

E.4.1 Evaluation of Deliverables

 Warehouse personnel evaluating the Purchase Requisition Slip (PRS) approved by


the Logistic Department. Refer to Appendices
 Checking the quantity that is delivered matches the quantity mentioned on the
delivery description; count and/or weigh the items when needed
 Performing an administrative check-general documentation, consistency between
the document reference numbers, conformity certificates and delivery Receipt.
 Refusing Materials of an obviously poor quality-torn bundles, leaking container,
signs of rusty tins, deformed material and irregular or defect of any materials to be
accepted.
 Writing the date of entry of stock on all the bags/final packaging if that item of
material has no date on the package.

E.4.2 Clients Approval

 Warehouse representative shall request BEC- QC to perform evaluation to


determine if the deliverable is acceptable
 Inspection of both representatives from BEC- QC and Client shall validate through
acceptance testing, walkthrough, and appropriate testing for a particular material.

E.4.3 Materials Acceptance

 Acceptable materials shall be approved by both BEC-QC and Client’s representative.


 Furnished with approved remarks of Material Delivery Inspection Report (MDIR)
 Warehouse personnel accepted the approved deliverables in the project.
E.5 Warehousing Storage Procedure

OBJECTIVES

To achieve faster trucking, inventory, and retrieval of the materials. To ensure that the
materials are stored in efficient, suitable storage location/place. Stored materials must
be in accordance to the material requirements.

PROCESS

 Stored materials shall be identified and classified according to its category.


 Proper Tagged the Stock to identify according to classifications and types of the
materials.
 Organized the warehouse space to facilitate effectively the storekeeping in
compliance with safety standards, and allow sufficient space.
 Implement an appropriate rotary system for the order of stocks coming in and
out, considering the expiration dates.
 Implement good piling/stacking practices.

Considerations of materials storage are as follows:

• Stock Levels
• Decide on the level of stock required and ensure good stock management.
• Determine storage space requirements based on the level of stock
required.
• Ensure the warehouse space is organized to facilitate effective
storekeeping and comply with safety standards, and allow sufficient
space for delivery and packing.
• Supply the warehouse with adequate levels of materials and equipment.
• Ensure safety measures are in place including safety equipment and
practices.
• Put controls in place to minimize security risks to warehouse and stock.
• Implement good piling/stacking practices.
• Requirements for special storage
• Select a warehouse that meets adequate design requirements including
security, access, size, ventilation, location and utilities.
• Implement good piling/stacking practices.
• Implement an appropriate rotary system for the order of stock coming in
and out, considering expiry dates.
• Put in place adequate warehouse staffing including storekeeper and
loaders.

E.6 Material Classification

OBJECTIVE

Material classification provides a mechanism for identifying items according to material


type that will have a significant impact in terms of location, tagging, and identification
of the materials. It also provides a mechanism for identifying different categories of
stocks that will require different storage settings requirements. Refer to figure below.
Note: Identification of fast mover material should be located at accessible portion of the warehouse
E.7 Proper Tagging

OBJECTIVE

To ensure that all materials shall be tagged in accordance to Material Classification Table

PROCESS

 Each material shall have a unique reference number to ensure that everything is up
to code
 Label all multi-racks, multi-shelves and any storage solution to the way items are
grouped together according to material classification type. Warehouse labels are
designed specifically to meet the unique needs of the warehouse.
 Storage / Bin cards (if used) must be numbered consecutively and these numbers
must also be stated on warehouse record.
 The Specific location of the goods must be recorded in Material directory and
mapping
 Sample of standard tagging format as shown below:

E.8 Material Directory and Mapping

OBJECTIVE

The purpose of warehouse directory and mapping is to ease locating and identifying of
materials in the warehouse. Evaluation of storage conditions and identifies critical zones
inside the warehouse.

PROCESS

 All Materials shall be designated in accordance to Material Classification Table.


 Flammables or Combustible materials shall be secured with safety requirement.
 Isolate storage according to the requirements of the material, i.e. flammable,
maintaining temperature materials and others.
 Material Directory and Mapping Layout.
Refer to Layout under Organization of Warehouse Space.

E.9 Management of Warehouse Document Records

OBJECTIVE

For safekeeping of the records of warehouse document and for easy access of documents
requested. Provide hard copy and Electronic File for the accuracy of Warehouse
document records.

E.9.1 Warehouse Document Records

PROCESS

All form/slip shall be filed according to date, and shall be monitored by the person in
charge. All the documents are the following: Refer to appendix 1

• Delivery Receipt (DR)


• Material Inspection Form (MIF)
• Material Request for Issuance (MRI)
• Material Return Slip (MRS)

E.10 Stock Monitoring and Checklist

Refer to Appendices Summary Material Monitoring

E.11 Withdrawal Procedure

OBJECTIVE

To monitor the withdrawn material and to ensure accuracy of the description and
quantity of material to be used in the project site.

PROCESS

Materials in transit document such as Delivery receipt and Service Vehicle Trip ticket
and required to comply before transporting the items.
 Service Vehicle Trip Ticket Procedure
 Filling of Service Vehicle Trip Ticket and schedule.
 Approval of scheduled Service Vehicle Trip Ticket by Authorized signatory.
 Releasing of the approved Service Vehicle Trip Ticket.
 The materials request that will be used at the project site shall be submitted to
the Operation Group leader.
 Material request must/will be approved by the Project Operation in charge,
Logistic Engineer and Project In-Charge.
 Warehouse personnel will process the approval of the approved materials
request.
 Materials Request shall be released by the Warehouse personnel. Refer to figure
below.

E.12 Inventory of Materials

OBJECTIVE

To avoid shortage of the supply materials and also to determine the most frequent
materials supply that is in demand.

PROCESS

 Stored materials shall be quantified according to the category and type materials.
 Reconciliation for all incoming and outgoing transactions about the stored material.
 Observe any potential problems that may occur during inventory
 Review the inventory management and warehouse organization systems for
efficiency.
 Verify that staff members have a functional flow path, identify (and remove) any
obstacles, and double check warehouse space Layout.
 Update monitoring and Inventory records
E.13 Materials Disposal

OBJECTIVE

That all scrap, valuable waste, and salvageable materials associated with, renovation,
maintenance, and new construction accomplished or managed by Person-In – Charged
in the project site shall be properly disposed of, or returned to Warehouse for storage
and reuse in a manner that complies .To strictly control short or long term storage of
salvageable material to reduce costly storage of non-valuable or obsolete material in the
Warehouse.

PROCESS

 The proper disposition of scrap, valuable waste, and salvageable material will be
planned by Warehouse Supervisor work functions, whether for a specific single
event, or for continuous operations.
 Transport of all scrap, valuable waste, and salvageable material shall be properly
recorded when disposed of, or inventoried when stored for later use.
 Disposition of scrap and salvageable material shall be designated by Warehouse
Supervisor that includes a description of the material, its initial location, and final
disposition or storage location.
 No employee may acquire for their owned personal use or gain any item of scrap,
valuable or non-valuable waste, or salvageable material. This shall include
packaging materials and used construction materials destine for disposal, even if
disposal is to be in the Company waste stream.
 Person-In-Charge from those directly involved in generating scrap, valuable waste,
or salvageable material will move the material to its point of final disposal or
warehouse storage.
 Person-In-Charge will generate or set up the material for relocation than those who
will actually relocate the material to the final destination for disposal or storage.
Material shall be properly recorded when disposed of, or inventoried when stored
for later use.
 Person –In –Charged shall prepare a written report of items covered by this directive
which are currently stored or proposed to be stored in other remote Project locations.
This does not include short term storage of construction materials or equipment
being installed on a project. The report shall generally describe the items being
stored, quantities, and location.
 Remote storage that is intended to avoid the purpose of this directive is considered
inappropriate.

E.14 Warehouse Safety

E.14.1 Health and Safety working Environment

OBJECTIVE

Ensure safe and healthy workplace benefits to all workers and staff. To ensure
awareness and compliance with legal obligations by ensuring staff are aware of personal
protective equipment (PPE) selection issue and use.

To eliminate or minimize in relation to workplace risk of injury, work interruption and


absenteeism associated with injury .To reduce downtime of equipment through the
appropriate use of safety procedures.

PROCESS

E.14.1 Appropriate PPE

 It should also be worn when required. Should be involved in assessment of PPE in


their work area Employees with personal protective equipment that conforms to
appropriate standards.

 Eye and Face Protection:


 Head Protection:
 Foot Protection:
 Masks / Breathing apparatus
 Face Shields
 Hearing Protection
 Harnesses
 Safety Vests
 Hand Gloves
 Coveralls
E.14.1.2 Elimination of Potential Safety Hazards.

 Ensure all flooring; landing, stair and ground are free of ‘slip and trip’ hazards.
Always safety check is carried out on a regular basis, by all employees, and that the
floor is always free of stray cords, liquids and any other potentially hazardous items.
Fragmented flooring should be repaired immediately to warehouse supervisor for
immediate action solution to avoid cause of serious injuries and damages to
machinery.

E.14.1.3 Designation of Hazardous Zones.

 Flammable Combustible or any dangerous materials should be stored in area that is


clearly labeled and safe walk ways should be highlighted by signage.

E.14.1.4 Manual Safety Lifting.

 Check the weight, the balance and the content of the item.
 Do not attempt to lift more than you can. When lifting or moving a heavy or a large
item, move the load by shifting your weight to protect your back. Turn your feet
forward with one foot slightly ahead of the other, this way your spine will be in a
good position. The further the load is from your body, the greater the accident risk
and harmful loading. When removing items from shelves that are above shoulder
height, first bring the load down to your chest and then bring it down. Avoid
carrying heavy loads in the stairs. Use ramps whenever possible. If the pallet is
stored high up, lower it down for handling items on it. Find out what kind of aids
and devices there are in your workplace to help you with manual lifting.

E.14.1.5 Pallet jack fork Lift or Fork lift

 Check the route to ensure no obstacles are in the way and ensure there is enough
space for the load at its destination. Safe lifting techniques should always be carried
out and the load should not obstruct the view of the lifter. Use all materials handling
equipment carefully and follow the proper operating procedures including push
rather than pull, whenever possible and lean in the direction that is being travelled.

E.14.1.6 Safety training mandatory.

 All staff is trained about safe practices within the workplace. Workers should be
completely aware of the consequences that can arise from an unsafe workplace.

E.14.7 Warehouse awareness.

 All staff members should be constantly aware of the surrounding in the workplace
to avoid collision accident.

E 14.8 First Aid

 To provide immediate assistance until a qualified health care professional arrives


and takes control of the situation or the casualty recovers.
 First Aid Officers and first aid kits and equipment shall be accessible to obtain.
Assess the situation quickly. Check for danger. Identify the nature of the injury or
illness as far as possible. Arrange for emergency services to attend Manage the
casualty appropriately and promptly. Stay with the casualty until able to hand over
to a health care professional. Give further help if necessary or as directed.
 First Aid Officers are to keep a log of all treatment provided and first aid equipment
dispensed. Any First Aid Officer who provides any first aid to a casualty must
advise them that an Accident, Incident and Injury Report must be completed and
given to their relevant supervisor unit within 24 hours.
 First Aid Officers should aim to record as much information as possible for each
injury. This information is vital when handing-over the casualty to a health care
professional.
 Information that should be recorded includes:

The name and contact number of the casualty;


 Details about the nature of the injury;
 Details of the time and date of the incident; and
 Details of treatment given

E.14.9 Warehouse Fire Safety and Emergency

To ensure that warehouse operations fire safe and that all employees are familiar
with the procedure to follow in the event of an emergency. All personnel should
follow the Fire Safety Procedures

 Manage fire safety risk assessment. Identify, determine, reduce and remove fire
hazards and risk. Record your findings, and review and update your assessment
regularly.
 Establish fire safety procedures tailored to your specific risks, including an
Emergency evacuation plan, and should provide training to all employees to
ensure a cooperative response in the event of a fire.
 Have the necessary fire protection tools at your disposal to fight a warehouse fire
including fire extinguishers, sprinklers and automatic fire detection systems. If
employees are asked to extinguish a fire, ensure they are trained on the proper
use of a fire extinguisher. Also be sure to regularly check that these tools and
systems are working properly. Your fire detection and fire suppression systems
should be inspected and tested annually.
 Prohibit smoking inside the premises.
 Avoid accumulation of waste. All waste materials should be removing at the end
of every working day and transfer them to a proper disposal assigned area.
 Check that accumulated waste materials have been removed, that fire prevention
and security systems are functioning and that any hazardous material or
equipment has been stored properly
 Check manufacturers' instructions or data sheets for chemicals and equipment as
they can be very helpful in spelling out the hazards and putting them in their
true perspective
 Review accident and ill-health records to identify the less obvious hazards
 Maintain hallway and fire exits clear, and properly store all hazardous materials,
such as flammable and combustible liquids, in a UL-listed flammable storage
cabinet.
 Check electrical systems to ensure they are properly installed and maintained
according to code. Eliminate use of temporary electrical cords whenever
possible, but if you must use them, regularly inspect the cords for damaged
insulation or plugs.
 Provision of Security camera to guard against arson, one of the main causes of
warehouse fires. Consider installing internal and external security cameras and
alarms to deter Intruder.

E.15. APPENDICES

Format of documents and template

 Purchase Requisition Slip (PRS)


 Delivery Receipt (DR)
 Material Delivery Inspection Report (MDIR)
 Material Request for Issuance (MRI)
 Material Return Slip (MRS)
 Service Vehicle Trip Ticket (SVTT)
 Business Slip (BS)
 Summary Material Monitoring (SMM)
 Purchase Requisition Slip (PRS)

1. Company logo
2. Purchasing head
3. Person in charge on the project
4. Project name
5. Sales order number
6. Trade
7. Item number
8. Description (Material, Equipment and Tools)
9. Specified brand
10. Contract BOQ
11. Signatory
12. Division reference number
13. Site request
14. Material unit
15. Remarks
16. BOQ number reference
17. Allotted budget
18. Request quantity
 Delivery Receipt (DR)

1. Company logo
2. Company address and TIN number
3. Sales order
4. Project name
5. Actual delivery
6. Quantity
7. Unit
8. Signatory
9. Delivery receipt number
10. Date
11. Company TIN number
12. Bus style
13. Description (Material, Equipment and Tools)
 Material Delivery Inspection Report (MDIR)

1. Company logo
2. Project name
3. Materials details
4. Inspection summary
5. Inspection conclusion
6. Remark/Comment
7. Signatory
8. Tittle
9. Reference number
10. MDIR Reference number
 Material Request for Issuance (MRI)

1. Company Logo
2. Customer
3. Item Number
4. Description
5. Signatory and Date
6. Issued to
7. Sales Order Number
8. Remarks (description of works)
9. Unit
10. Quantity
11. Material Request for Issuance Number

NOTE: In case of excess materials shall be return to Warehouse subject for


assessment of the description and quantity of material.
 Material Return Slip (MRS)

1. C
o
m
p
a
n
y

L
o
g
o

1. Company logo
2. Customer
3. Item Number
4. Description
5. Issued Quantity
6. Used Quantity
7. Signatory and Date
8. Inspected by
9. MRI reference number
10. Remarks
11. Unit
12. Returned Quantity
 Service Vehicle Trip Ticket (SVTT)
 Business Slip(BS)

1. Company Logo
2. Name of Employees
3. Assignment
4. Mode of transportation
5. Entry/Exit from /to Company
6. Guard on Duty
7. Business Slip number
8. Date
9. Signature
10. Approval signatory
11. Entry/Exit to /from Assignment
12. Assignee signature
13. Division Head signature
 Summary Material Monitoring (SMM)

1. Company Logo
2. Description
3. Unit
4. Total SBM
5. Delivery
6. Total Replacement For Transfer
7. Remaining SBM
8. Summary of Material Monitoring
9. Withdraw
10. Pending Request
11. Pending transfer to other site
12. Request
13. Stock on Hand
14. Maintaining quantity
15. Remarks
16. For request
17. Total Transfer to other site