Acknowledgement

I am gifted to study in periyar maniammai university vallam prestigious intuition. I express my

great respect and gratitude to THANTHAI PERIYAR.

My sincere and respectful gratitude goes to Esteemed Chancellor Dr.K.VEERAMANI.MA BL.

D.Lit., and all the other trust members of Periyar Maniammai University for provided with a
plethora of facilities to complete this project successfully.

I express my gratitude and sincere thanks to our Honorable Vice Chancellor

Prof.N.RAMACHANDRAN, for helping to bring successfully and for strengthening the ray of
hope.

I highly indebted to Dr.R.JAYANTHI, M.E., Ph.D., Head of the Department Civil Engineering
for his suggestions that have been invaluable for the project development and improvement

My sincere and respectful gratitude to my guide, Mr.K.SAKTHI MURUGAN M.E. Asst

professor for his continuous encouragement, guidance and made me to take this challenging
work.

It is pleasure to thank the people who have played major role in various stage in support towards
the project and all staff members of the Department of Civil Engineering.

i
 ABSTRACT

This project is done to reduce obstacles by absence of proper materials management on

construction sites. It aims to reduce 30% of total cost of typical construction. 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. This project is carried by the
material management functions such as planning, scheduling, purchasing, monitoring, and
controlling and another one of the tool is scheduling by MSP software. This software is reducing
the time for scheduling process. One of the major problems in delaying construction projects is
poor materials and equipment management. The efficient procurement of material represents a
key role in the successful completion of the work. Poor planning and control of material, lack of
material when needed, poor identification of material, re-handling and inadequate storage cause
losses in labor productivity and overall delays that can indirectly increase total project cost.
Effective management of materials can reduce these costs. Inventory control is to reduce the cost
of the material.

KEY WORDS: Construction Materials, Materials Management, Cost control

ii
 TABLE OF CONTENTS

Acknowledgement i

Abstract ii

Table of Contents iii

List of Tables vi

Chapter Number Title Page Number

1 Introduction 1

1.1 General 1

1.2 The Scope of My Project 2

1.3 Project 2

1.4 Project Management 2

1.5 Material management 3

1.5.1 Objectives of material management 5

1.5.2 Functions of material management 5

1.5.3 Benefits of material management 6

1.5.4 Basic Requirements of material management 7

1.5.5 Factors affecting role of material management 8

1.6 Material management system 10

1.7 Material cost control 10

1.7.1 Material planning 11

1.7.2 Purchasing of material 12

iii
 1.8 Inventory of material 12

1.9 Reserve stock system 14

1.10 Inventory Control records 16

1.11 Inventory management techniques 21

1.11.1 Setting up of various stock levels 21

1.11.2 Preparation of Inventory budget 23

1.11.3 Maintaining perpetual inventory system 24

1.11.4 Inventory turnover ratio 25

1.11.5 Perpetual inventory control system 26

1.11.6 ABC analysis 26

1.12 Stock control methods 27

1.13 Inventory control and quality management 28

1.14 Economic order quantity 29

2 Literature review 31

3 Methodology 35

3.1 General 35

3.2 Flow chart 35

3.2.1 Planning of project 36

3.2.2 Quantity survey 37

3.2.3 Schedule through MS-Project 40

3.2.3.1 MS-Project advantages 40

3.2.4 Analysis of CPM chart 42

3.2.4.1 Project scheduling 42

3.2.4.2 Bar chart 43

3.2.5 Techniques used in CPM 46

3.3 Inventory management 47

iv
 3.3.1 Objectives of inventory management 47

3.3.2 Functions of inventories 48

3.3.3 Requirements of effective inventory management 49

3.4 Material availability 49

3.4.1 Material availability shortage 49

3.5 EOQ analysis 50

3.5.1 Limitations of standard EOQ model 51

4 Result and discussion 53

4.1 Result 53

4.2 EOQ analysis output 56

5 Conclusion 57

Appendix

Schedule 62

Resource 64

Critical activities 66

Critical & non critical activities 68

Task usage for resource of budget 70

Budget Resource wise 72

Cash flow sheet 73

Resource work availability report 74

Resource work summary report 75

v
List of tables

Table No. Description Page number

1 Man power data 38
2 Materials data 39

3 EOQ Analysis for the duration of 3rd to 32nd activity CPM 53

4 EOQ Analysis for the duration of 33rd to 61st activity Non-CPM 54

5 EOQ Analysis for the duration of 63rd to 84th activity CPM 55

vi