Material Management

30/11/2020
SBEC 4763
Material Management
FACILITATOR
ASSOC. PROF. SR. DR. WAN YUSOFF WAN MAHMOOD
Email: b-wyusof@utm.my
HP: +60 19 755 8088
Lecture Outline
• Introduction
• Definition Material and
Material Management
• Function of Material
Management
• Focus of Material
Management
Lecture Outline
• Objectives of Material
Management.
• Benefit of Material
Management
• Phases in Material
Management
• Challenges in Material
Management
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Lecture Outline
• Factors Influence Material

Supply
• The Need for Site Control
• Material management
process
• Just in Time (JIT) Approach
• ABC Analysis Techniques
Introduction
Introduction
• Material is an important physical
resources to complete the construction
project.
• Hence, its need to be manage carefully
to avoid any disruption to construction
production.
• Delay in supply, shortage in quantity and
quality not according to specification will
disturb the project implementation.
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Introduction
• Ordering material need to be done in

good timing, so that its can be supply to
the site when required.
• Stock monitoring is important to ensure the
ordering can be done in a reasonable
time.
• Must be alert to the current market
condition of the construction material in
term of availability and price – its will effect
to program and cash flow of the project.
Introduction
• Preventive measure to avoid
delay in material supply:
§ Material supply agreement
§ Confirmation of order
CONSTRUCTION PROJECT MANAGEMENT KNOWLEDGE AREAS

AND PRACTICE
PROJECT INTEGRATION PROJECT SCOPE PROJECT TIME

MANAGEMENT MANAGEMENT MANAGEMENT
PROJECT COST AND

PROJECT QUALITY HUMAN RESOURCE
FINANCIAL
MANAGEMENT MANAGEMENT
MANAGEMENT
PROJECT
PROJECT RISK PROCUREMENT
COMMUNICATION
MANAGEMENT
TECHNOLOGY AND
ENVIRONMENTAL
ENGINEERING PROJECT MARKETING
MANAGEMENT
MANAGEMENT
PLANT AND
MATERIALS HEALTH AND SAFETY
MACHINERY
MANAGEMENT
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Materials & Materials

Management
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What is Materials?
• Materials are any
commodities used directly
or indirectly in producing a
product such as raw
materials, component
parts or assemblies.
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What is Materials Management?

• Materials management is the
grouping of management
functions supporting the complete
cycle of material flow, from the
purchase and internal control of
production materials to the
planning and control of work in
process to producing a finished
product.
(Thomas F. Wallace & John R. Dougherty)
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What is Materials Management?

• Materials management is the
management of the flow of materials into
an organization to the point, where, those
materials are converted into the firm’s end
product(s)
(Bailey & Farmer)
• The executive who engage in materials

management are concerned with three
basic activities: buying, storage of
materials and movement.
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What is the Functions of Materials

Management?
• Materials planning and
programming
• Raw material purchase
• Receiving, and store keeping,
• Issuing of material
• Inventory control
• Transportation of materials
• Disposal of scrap and surpluses
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Focus of Material Management

• To procure right materials
§ In Right Quantity
§ Of Right Quality
§ At Right Time
§ From Right sources
§ At Right prices
(5R’s, Principles of Purchasing)
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What is the Objectives of Material

Management?
• Buying the best item at the lowest
cost
• Reduction in inventory cost and
high inventory turnover
• Maintaining the flow of production
• Maintaining the consistency of
quality
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What is the Objectives of Material

Management?
• Optimization of acquisition and
possession, resulting in lower cost
• Cordial relationship with suppliers
• Maintaining good records
• Contribution towards
competitiveness
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Advantages or Benefits of Material

Management
• Material cost can be lowered (Sales
price can be brought down to a
reasonable level)
• Controlling of indirect cost (such as
materials movement)
• Risk of inventory loss minimized
(theft, pilferage )
• Reduction in loss of time of direct
labour
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Advantages or Benefits of Material

Management
• Cost of material used in different
department ascertained
• Control of production cycle
• Material congestion in storage places
avoided
• Improvement in delivery of the
product
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Phases in Material Management

• Planning (Plans for capacity or production
levels and required inventory levels
• Material utilization (efficiency of the flow
of materials through the plant)
• Physical (storing, receiving and issuing of
materials and physical checking of
inventory of raw materials, work in
process, finished goods, record keeping)
• Control or follow up (feedback and
corrective action involved)
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Challenges of Material Management

• Selection of appropriate
supplier/vendors
• Storage cost increase
• Difficulty in forecasting demand
accurately
• Scarce capital for investment in
materials inventory
• Optimizing time and quantity for
products
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Factors Influence Material Supply
• Purchasing power
• Material availability
• Transport availability
• Purchasing/selling conditions
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• Purchasing power (Company
Image)
§ Identity/ image of the
company
§ The amount of deposit given
§ Relationship between supplier
and purchaser.
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• Material availability
§ The amount of material that can
be supply by supplier are
depending on the amount of
available in their stock.
§ Certain type of material are only
supply by the authorized agent.
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• Transport availability
§ Transportation method and
the suitability of access road
will influence the delivery of
material to construction site.
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• Conditions of purchasing/selling
§ Refer to the payment system by
the purchaser either cash or
credit.
§ Normally cash system are more
preferred by the seller and its
will show the financial stability of
the purchaser.
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Construction Material Prices

• Malaysian construction industry has
from time to time experiencing the
increase of prices of materials.
• This is due to the increase in the cost
of raw materials, fuel, transport and
manpower.
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Building Materials
• In construction, materials account for about 35-
40% of the cost of the project. It is a very
considerable portion of the total cost of the
project.
• What happen to the project cost, particularly
the profit margin of the contractor if there is a
savings of say 5% in the cost of materials?
• What happen if there is a waste of materials,
say 5%?
• Especially if the project is secured through
competitive tendering where the profit margin
in only about 5-10% of the total cost of the
project.
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Material Cost and Contractor's Profit
Material cost + Labour cost + Plant cost + Overhead = Project Cost
Contract Price - Project Cost = Profit
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Material Cost and Contractor's Profit
Profit
Material
Cost
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What is Construction Materials?

• Any material, good, fitting, component and
accessories used in the construction of building
project.
• They include - Building materials and goods
- Electrical fittings
- Mechanical fittings &
accessories
- Manufactured elements &
components
• The study of construction materials covers also
the associated plant and machinery and
storage.
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Material Management in Building

Construction
Materials
§ Cement § Timber roof trusses
§ Sand § Roofing tiles
§ Aggregates § Timber wall panelling
§ Steel reinforcement § Pre-cast concrete
§ Bricks slabs
§ Timber – group A, B, C § Floor tiles
and D § Door and door frame
§ Lime § Windows and frames
§ Glass § Sanitary fittings
§ Aluminium sections § Electrical fittings and
§ Plasterboard accessories
§ Mineral fibre board § Built-in fitments
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Construction
• How can we make some saving
from materials ?
and at the same time
• How do we make sure that the
material waste is kept to the
minimum so that we can maximize
our profit?
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Construction
• It bores down to the issue of
§ What materials are needed?
§ When are they needed?
§ How much each material is needed at
one time?
§ When to order and purchase?
§ When to get delivery?
§ How and where to store?
§ How much to taken out?
§ How to ensure efficient use and less
wastage?
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Construction
• As in other aspects of project management,
material management requires an integrated
and very coordinated approach.
§ Planning
§ Purchasing
§ Control – inventory control (detailed list of
materials in hand)
§ Store keeping and ware housing
§ Handling and transportation
§ Codification and standardization
§ Disposal of surplus and waste
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Construction
• As in other cases, material planning is the key
function of material management. It is very closely
linked with project planning and control. Planning
includes:
§ Material procurement – purchase and
acquisition; what, how much, when, where and
how to buy
§ Stocking (keeping materials) – to provide the
work with materials of the right quality, in the
right quantity, at the right place, from the right
source and at the right time
§ Securing credit facility and supply warranty
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Construction
• Material planning process includes:
§ Identifying the materials and goods for
use in the project
§ Estimating or computing the actual
quantities needed
§ Defining the specification
§ Forecasting (estimating) the project
materials
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Construction
• Material planning process includes:
§ Determining and locating the suppliers
§ Getting samples of the approved
materials for approval
§ Designing material inventory
§ Developing procurement plans – when
to buy, from where and how much
§ Monitoring flow of materials, delivery
and consumptions
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Construction
• In the management of construction
materials, we may adopt the method
used by the manufacturing industry of
classifying the materials according to an
ABC analysis
• The primary purpose of classifying the
materials is:
§ to control the quality
§ to control the cost and
§ to ensure timely supply and delivery
of the materials
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Material Classification
• There are many factors to be considered
while classifying the materials
§ the usage rates
§ storage methods and location
§ shelf life of the materials
§ supply reliability and regularity
§ inventory cost
§ ease of identification
§ construction sequence (work
arrangement)
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• There are many factors to be

considered while classifying the
materials
§ transport requirements
§ Price
§ procurement time
§ procurement sources, and
§ project duration
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• In general construction materials may be
grouped or classified into any of the following
categories:
1. Bulky – one time purchase, repetitive use and
minor materials
2. Vital – essential and desirable materials
3. Indigenous and imported materials
4. High price, medium price and low price
materials
5. High usage value, medium usage value and
low usage value
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• The most COMMONLY USED METHOD for

classifying construction materials is to
group them into:
1. High value
2. Medium value
3. Low value materials
by using the ABC analysis technique
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The Needs for

Site Control
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The Need for Site Control

a) Changing pattern of supply and demand.
• Changes in construction industry will
influence;
§ Production rate
§ Construction techniques used
§ Total quantity materials used
• The increase of the amount of material
used will increased the amount of
waste.
• Certain type of material need to be
imported from oversea.
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b) Design
• Specification prepared by designers
• Sometimes material specified not
available in the market.
• Conflict between aesthetic value and
practical requirement.
• Hence, the designers must take more
account of the actual construction
procedure applied on site.
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b) Design
• Keep variation to an absolute
minimum.
• Ensure all information are available
at an early stage.
• The application of material and the
amount of waste are highly
dependent on good design, in
particular, on how details are
prepared.
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c) Waste
• Waste occurs on site for a number of
reasons, most of which can be
prevented. The obvious one are:
§ Misinterpretation of drawing
§ Over estimating of quantity required
§ Faulty workmanship
§ Careless handling of material.
§ Design requirement
§ Plant operate by unskilled
driver/operator
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c) Waste
• Waste can be classified to three
categories:
§ Material damage through poor storage;
careless handling and poor
workmanship
§ Material missing or deposited in areas
which render them unsuitable
§ Material damaged but usable within the
contract for less important purposes
• The answer for this problem is BETTER
MATERIAL CONTROL
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c) Waste
• Type of construction waste:
§ Trees and shrubs removed during
clearing and grubbing
§ Packaging materials ( wood, paper,
plastic, etc.)
§ Scrap or surplus building materials
(scrap metals, glass, masonry product)
§ Paints
§ Materials resulting from the demolition of
structure
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Definition of Waste
• Waste is defined as:
“The difference between the value of
those materials delivered and
accepted at site and those properly
used as specified and accurately
measured in the work, after deducting
the cost saving of substituted
materials and those transferred
elsewhere”.
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Causes of Waste
• Site stacking and storage
• Unloading, transporting and handling of
materials
• Work place waste, i.e. cutting, quality and
mishandling
• Theft and vandalism
• Non-delivery
• Misuse and damages by following trades
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Causes of Waste
• Variations requested by the architect
• Training errors
• Rejected work
• Substitution –goods bought for one
purpose and use for another
• Production waste e.g. cutting to length of
joist
• Negligence waste e.g. over excavation
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Causes of Waste
• Waste also occurs on site caused
by off site activities such as poor
design, poor project information,
unintelligent buying, etc.
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Site Management Team

Minimising Waste • Taking-off and scheduling
on Site • Requisitioning and ordering
• Receipt and checking of
deliveries from supplier’s or
contractor’s own yard
• Off-loading and handling
Construction Site Approach • Storing and protecting
• Issuing and distributing
• Use of materials
• Quality control and
supervision
• Security
Output
Reduce Waste on Site
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d) Management
• Responsibility for material management
can be divided as follows:
§ Head Quarters – Selection, pricing,
ordering, preparation of schedules,
and payment of accounts.
§ Site – Received, storage, protection,
and use of material.
• Even though the system are varies
between the company - Head Quarters
still responsible for ordering and payment.
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d) Management
• Material control can be successful when
handled properly on site, and this need
a mixture of experience, discipline and
initiative.
• The development of a comprehensive
material handling system is important to
ensure the implementation of a
systematic and efficient material
management system on-site.
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e) Site Management
• Site management must be able to:
§ Anticipate the progress and problems of
construction.
§ Control men and materials with equal
efficiency.
§ Complete the contract within program
period.
§ Carry out the work according to
specification.
• Site management play an important role in
controlling material on site.
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e) Site Management
• Currently site management given more
attention to:
§ Built up working relationship with other
personnel on the contract, and
§ Resolving labour problems.
• Hence, a little time allocated for
attending to the responsibility of
construction, control of workmanship and
management of materials on site.
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e) Site Management
• Changes in materials, techniques and
workforce – needs better control on
site.
• Materials still wasted – need backup
from Head Quarters to encourage site
management to deal with the situation.
• Responsibilities on site must be defined
to avoid the usual controversial.
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Process of Material
Management
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Material Handling Policy

• Top management should formulate a
material handling policy as guide for their
staff/ worker on site.
• The objective is to minimize the
movement and cost of material handling
on and to the site.
• There is no fixed rules or method should be
determined, but the basic philosophy and
principles must have clearly defined
parameter.
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Material Handling Policy

• All site factors must be taken into
consideration.
• Each case must be treated
individually but within the context of
the site condition and technology.
• A complex movement system may
be necessary in order to achieve
overall efficiency.
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Process of Material Management

• Obtaining material
§ Materials are selected by the designer
and described in the bills of quantities
§ Contractor responsible for placing
order and receiving the goods on site
based on the billed rates for the
materials.
§ Material should be supplied under the
term laid down in the contract as
described in the bills of quantities
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• Contract requirements
§ All goods must be in accordance
with the specification.
§ Components must be complete and
suitable for inclusion in the works.
§ Goods included in interim certificate
will become the client’s property.
§ Materials store off site must be
approved by the client.
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• Contract requirements
§ Material stored off site must clearly
identified as the clients property.
§ Materials and components must not
be removed from site or from off site
store without the client’s permission.
§ The contractor responsible for all
materials and components held in
store and for any damage or loss to
them.
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• Quality and testing of material.
§ Condition of contract stated that:
1. Material and component must be of
the kind and standard specified.
2. Certificate or warranty must be
provided to substantiate the
requirement
3. Specified materials must be tested.
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• Manufacturer, supplier and nominated
supplier
§ Once the contract awarded, a pre-
contract meeting will be arranged with
supplier to discuss the detail of
manufacture, method of delivery and
ordering procedure.
§ Contractor should determined a method
of communication and preparing delivery
schedule to ensure that all materials are
delivered according to specified time,
quality and quantity.
68

• Program of works
§ The successful completion of a project
depending on the sound and effective
planning.
§ To ensure a better and efficient
coordination of work:
1. Produce a detail planning before start of
work.
2. Accurate schedule of delivery
3. Realistic assessment level of skill of the
people/ worker
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• Program of works
§ All information fed into program
must be accurate, update daily
and make corrective action when
necessary.
§ Program of work also need to take
into account a contractor cash
flow.
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• Material samples
§ The contractor required to submit a
material sample for designer’s approval
to ensure it’s accordance to the
specification.
§ Each material must be sampled in a
manner described in the standards and
recorded.
§ Samples must be labeled with the name
of the supplier, source of origin, date of
submission and date of approval.
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• Material samples
§ During construction, test sample of
materials to confirm the quality meets
the specification.
§ If the test not carried out properly, the
result will be open to question?
§ Some sample are submitted direct to
the selected laboratory for testing.
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• Call off procedure
§ Before confirming any order with
manufacturer/supplier, established:
1. Total quantity required
2. Period of delivery without effecting the
contract (refer to call-off schedules)
§ Bulk order will:
1. Put pressure on supplier
2. Cost of storage
3. Risk of damage/lost
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• Call off procedure
§ Staggering deliveries – ‘supplies must be
balanced with progress’ but with some
buffer stock.
§ Non-delivery or delay may be occur
when there are:
1. Shortage of basic material
2. Plants/machines breakdown.
3. Labour difficulties
4. Lack of information from contractor
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• Materials handling
§ The sequence of material handing
involved four (4) separate activities.
1. Lifting
2. Movement
3. Storage
4. Placing
§ These different function are coordinated
to form one operation.
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§ Material handing must be plan to
coincide with other activities. Its will be
achieved by:
1. Understanding the situation
2. Discussing the form of packaging
beforehand
3. Controlling the sequence of deliveries
4. Using the right equipment
5. Adopting firm control of all the
operation.
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§ Unnecessary handling of material will:
1. Increase site cost
2. waste
§ Not only site problem, its also involved:
1. Designer – shape/weight of material
2. Manufacturer/supplier – presentation of
package
3. Contractor – policy for mechanical
handling on site will influence the total
operation.
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§ Unit load
1. Manufacturer deliver material in a
convenient form known as unit
load.
2. For ease of mechanical handling
on site, the design of unit load
should take into account:
a. The type of components/
materials
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§ Unit load
b.Density of material
c.Format of sub-division within the
pack
d.The dimensions and loading
capacity of the delivery
vehicle.
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§ Deliveries
1. Assess during the planning
stages of the contract.
2. Relate to the sequence outline
in construction program
3. Schedule of delivery is crucial to
the erection sequence and
must be carefully monitored by
the site management.
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§ Deliveries
4. Material deliver in many form –
bulk, bagged, created/
boxed, packaged and pallet.
5. The contractor and supplier
usually agree the delivery
method in advance
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§ Off loading
1.Before unloading - need
carefully considered in order
to avoid damage and to
minimize labour cost.
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§ Distribution
1. Material are continually being
moved around the site
2. Distribution must be firmly
supervised to avoid waste/ lost.
3. Established distribution point/
stockpiles.
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§ Waste in handling - Varies from site to
site depending on the site condition
and site management.
§ Plant and equipment for material
handling
1. Crane
2. Hoist
3. Dumper
4. Forklift trucks
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• Stock control on site
§ Material controller
1. Material delivery must be according
to he program/ schedule to ensure
stock are maintain at constant level.
2. More efficient material control will:
a. Reduce material waste and
shortage
b. Reduce chances of damage
c. Higher standard of finished
d. Reduce double handling
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§ Material controller
3. Good control can only be
achieved by delegating
responsibility to one person as
material controller
4. They should be involved in all
meeting related to construction
planning and progress meeting.
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§ Checking procedure - All materials
and components should be
inspected when they arrived on site
to make sure:
1. Type of goods must be agree with
the item requested on the official
order
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§ Checking procedure
2. Quantities off loaded must be
comply with the total shown on
delivery note
3. Materials/ components must be
free from damages when they
have been offloaded.
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§ Checker’s duties
1. Must have clear define duties and
responsibilities
2. Must be observant
3. Must be able to recognize obvious
differences in ordinary construction
materials.
4. Experience is important.
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§ Coordinating supplies - Important
factor to consider:
1.Material requirement
2.Purchasing department
3.Material controller
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§ Material schedule
1. Amount of material required
2. The important of schedule
a. Quantities of material
b. Distribution of material to
suitable stockpiles
c. Checking off materials
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§ Controlled distribution
1. Prepare material received chart –
indicating all major deliveries to site
2. Check stockpiles records
3. Distribution of materials
4. Regular checking on stockpiles/
distribution.
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§ Transfer of material
1. Transfer material between site
2. Need accurate accounting
3. Properly records and issued by
authorized person.
4. Permission from the client’s
representatives.
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§ Accounting procedure - Site accounting
should produce accurate records of all
transaction throughout the contract and
provide:
1. Advance warning of shortage
2. Indication of access use of specific
materials
3. Cost saving from reduce site shortage
4. Opportunities to purchase materials in a
favorable market.
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§ Interim Account
1. Schedule compiled each month will
support contractor’s claim for
payment.
2. Need a comprehensive support
document
3. Contractor remain responsible for
protection of material.
4. Cannot remove from site without
client permission.
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• Storage of material
§ Storage actually consists of more than
one operation and involved:
1. Delivery of goods to the site
2. Off loading
3. Stacking
4. Protection against deterioration
5. Identification for future reference
6. Accounting procedure
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§ Issues of material to operatives for use
on site
§ Loading for transfer to construction
areas
§ General movement of goods
§ Storage means ‘expenditure of
capital’
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§ Compound facilities
1. Principles consideration
a. Restriction of the space available
b. The existing contour of the site
c. Availability of materials and
components
d. Size of contracts
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§ Compound facilities
2. Compound should be close to
site entrance
3. Stacked in a plan sequence
4. Keep clean and tidy
compound
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§ Stockpile arrangement
1. Mini compound facilities for
short term storage area.
2. Normally contain
prefabricated components
and certain type of materials.
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§ Ground preparation - Need to
consider underground services.
§ Staking material - Material should
be stacked so that access to other
component is not obstructed and
mechanical equipment can be
operated without additional
manual assistant.
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§ Site surplus
1. Surplus at the end of a particular
job indicates an initial over estimate
of the amounts needs
2. Needs a precise estimate
3. Needs to avoid a surplus of
materials
4. Cleaning all surplus material
immediately for safety.
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§ Withdrawing storage
1. Keeping a detail and an accurate
record of all material transaction
2. Conduct a regular monthly
checking
3. Only authorized personnel should
be allow access to the site storage
4. Supply store man with schedule of
material required
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§ Withdrawing storage
5. Provide form of delivery material
6. Batch small components into set
7. Prepare a daily statement for the
total material issued from store and
the balanced in stock.
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Topic for Discussion
• Wastage of materials exist on all

construction projects
§ What is wastage/ waste?
§ What are the cause of
wastage?
§ How can this wastage be
reduced?
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• Security of material
§ Security control
1. Materials & components stored on
site are valuable items
2. A large number of personnel are
employed
3. Must established system of control
4. Employed own security officer – have
a regular visit to site
5. Must have standard security
procedure.
106

§ Fencing to the compound
1. Closed boarder fence
2. Chain-link fence
§ Security lighting
1. Spot light
2. Flood light
107

§ Security of site storage
1. Issued material only to authorized
personnel
2. Covered storage
a. Few windows
b. Metal grilles
c. Installed alarm system
d. Coil of wire
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§ Fire precaution
1. Cause by human error – need training
2. Effect – lost goods and life
3. Access for fire brigade?
4. Combustible material?
5. Flammable liquid?
6. Water supplies?
7. Notice danger of fire – tel. no fire
station
8. Smoking sign
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§ Alarm system.
§ Vehicle compound
§ Immobilizing plants on site
§ Personnel control
§ Communication on site
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Just in Time (JIT)

Approach
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Just in Time
• JIT, or “Just-In-Time,” refers to the
timing of production flow;
• Goods are delivered to the
construction site just in time to be
used, just in the immediately
needed quantities, and just to the
production processes that need
them.
112
Just in Time
• The most important word in Just-In-
Time is the first word, “just.”
• Goods need to arrive within minutes,
not days or weeks, of their use on the
production line.
• Only then can we eliminate waste in
such forms as overproduction,
waiting for late deliveries, and excess
inventory.
113
Key Elements of the Successful

Used of JIT
• Maintaining continuity of
production without switching
from one operation to another
otherwise the planned flow of
materials will be interrupted.
114
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Used of JIT
• Encouraging the standardization

of components as this enables JIT
to work more effectively. The
more variations the more difficult
is the control required, increasing
the likelihood of errors.
115

Used of JIT
• To control delivery costs, the work
should be packaged in such a
way as to use full loads on
delivery if possible. If a partial
load, the cost per item increases
and there is a loss of control in
delivery time as the vehicle has
to go to other locations.
116

Used of JIT
• Careful consideration to the

distance and complexity of the
journey over which goods have to
be supplied. Usually, the longer
the distance, the greater the risk
of delay. This needs to be built into
the programming of deliveries.
117
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Used of JIT
• Suppliers have to ensure that
goods arriving are as meant and
are not defective in any way. These
requires stringent controls at the
point of loading, appropriate
packaging, correct equipment
available for unloading on site, and
properly trained and supervised
employees.
118
ABC Analysis
Techniques
119
ABC Analysis Techniques

• The pre-requisite to ABC analysis technique is
that the project should have a Standardized
BILL OF MATERIALS that list down the following:
1. The physical quantities of the materials
2. Standard wastage
3. Unit rates
4. Total cost of each material item
• The material management technique of ABC

Analysis is based on the principles of
CONTROL BY SELECTION.
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• ABC analysis is used for control of
regular stock items which can be
classified into 3 Groups:
Group Total items Inventory cost

A 10% 70%
B 20% 20%
C 70% 10%
121

1. Group A items – they are high usage value
items which account for 70% of the inventory
cost. The number of items of this type of
materials is 5-15% of the total number of
material items
2. Group B items – they are medium usage value
items, which account for 20% of the inventory
cost. Their number is between 15%-25% of the
total number of the material items.
3. Group C items – they are the remaining 65%-
76% of the material items which account about
10% of the inventory cost.
122

• The ABC analysis shown earlier can also
be used for the categorization of
REPETITIVE CONSTRUCTION MATERIALS
• The number of material items are those
required for the construction of a project.
How ABC analysis technique is used

in the management of construction materials?
123
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1. Identify materials required for
the construction of the project.
2. Prepare the standard bill of
materials for the project
124

3. Estimate/compute the
quantity and quality
(specification) of each of the
material item
4. Obtain the rate (price per unit)
for each material item
125

5. Assess the requirement during the
period under consideration (refer to
project programmes) – half yearly,
yearly throughout the project
duration
6. Determine the usage value of each
type of material – by multiplying the
quantity with the rate (price per unit
of the material)
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7. Calculate the percentage (%)
usage value of each material in
relation to total cost of the
project. Write this % against the
material concerned
8. Arrange the material items in a
descending order (turutan
menurun) of usage value
127

9. Consider materials in the
descending order of usage
value;
10. Compute cumulative usage

value (nilai guna tercampur)
against each other;
128

11. Draw 2 horizontal lines demarcating
(menandakan) the descending
order of cumulative purchase values
at 70% level and 20% level;
12. The three groups separated by the

lines starting in descending order of
usage value can be classified as ‘A’
group, ‘B’ group and ‘C’ group.
129
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No Item of Materials Unit Qty. Rates Amount
1 Cement Bags 1,200
2 Sand Tonne 2.5
3 Aggregates Tonne 3
4 Bricks Peltt 45
5 Reinforcement Tonne 10.3
6 Timber – Group A Tonne 3
7 Roofing tiles Pcs 5,000
8 Sisalation Roll 5
9 G.I tubing Length 50
10 Plywood 1.20m x 2.40m Pcs 50
11 Nails – 38mm long Kg 5
130

Item Unit % 0f Cumulative % Unit Price Total Cost % of Cumulative
RM RM Total %
Total
1 10000 10 30.40 304000 38.00 Group A

2 5000 5 15 51.20 256000 32.00 70
3 16000 16 5.50 88000 11.00 Group B
4 14000 14 45 5.14 72000 9.00 90
5 30000 30 1.70 51000 6.38
6 16000 16 1.50 22500 2.81 Group C
7 10000 10 100 0.65 6500 0.81 100
Total 100000 80000
131
ABC Analysis
Techniques
• The graph shows the Pareto Analysis or ABC Analysis can be depicted
pictorially
• On the X-axis we have the cumulative percentage of items. On the Y-axis we
have the cumulative percentage of use by value
• As can we seen from the graph, a few items contribute to a high percentage
of usage by value and there are many items which are the ‘C’ class items
which contribute only to a small percentage of usage by value.
• The ABC analysis puts items into categories that show the amount of effort
worth spending on inventory control.
• 20% of inventory items need 80% of the attention, while the remaining 80% of
items need only 20% of the attention.
132
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133
Bills of Materials
• For the purpose of applying the
ABC Analysis in the planning and
control of materials, it necessary to
prepare Bills of Materials.
• It is very different from the Bills of
Quantities that you have seen or
know about it before this.
134
Bills of Materials
• Your work of preparing the BILL OF
MATERIALS is made easy if the contract is
based on BILL OF QUANTITIES. You can
estimate the quantities of the various
materials for the project by abstracting
the quantities of the different work items
in the bill of quantities using the material
constants and standard wastage.
135
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Bills of Quantities
No Description Unit Qty Rates Amount
ELEMENT NO. 3 - FRAMES

Vibrated Reinforced Concrete Grade 25 as
specified
1 In columns m3 15 220.00
2 In suspended beams m3 27 220.00
3 In roof beams m3 25 220.00
Formwork as specified
4 To sides of columns m2 28 25.00
5 To sides and soffit of suspended beams m2 54 25.00
6 To sides and soffit of roof beams m2 50 25.00
TO COLLECTION
136
Bills of Quantities
ELEMENT NO. 3 – FRAMES (Cont’d)
Mild Steel Rod reinforcement as specified
1 6mm Diameter in columns as links Kg 14 2.50
2 6mm Diameter in suspended beams as

Kg 39 2.50
stirrups
3 6mm Diameter in suspended roof beams as
Kg 35 2.50
links
High Tensile Rod reinforcement as specified
4 12mm Diameter in columns Kg 28 2.50

5 16mm Diameter in suspended floor beams Kg 54 2.50
6 16mm Diameter in roof beams Kg 50 2.00
TO COLLECTION
137
Bills of Quantities
ELEMENT NO. 6 – EXTERNAL WALLS
1 Vibrated reinforced Concrete Grade 25 as

specified in stiffeners m3 5 220.00
2 Formwork to sides of stiffeners m2 7 25.00
3 6mm Diameter mild steel rod reinforcement in
stiffener as links Kg 9 2.50
4 12mm Diameter high tensile rod
reinforcement as specified in stiffeners Kg 12 2.50
5 113mm Thick brick wall in common bricks in
gauged mortar (1:6) in stretcher bonds
including a layer of brick reinforce at every
fourth course m2 59 34.00
6 12mm Diameter mild steel rod as bonding
ties 450mm long No. 45 1.00
7 113mm Wide damp proof course laid on
brick work (no allowance made for laps) m 50 2.00
TO COLLECTION
138
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Bills of Quantities
ELEMENT NO.10 – INTERNAL WALL FINISHES
1 12mm Thick cement and sand (1:3) as

specified screeded backing to receive wall
tiles m2 35 15.00
2 12mm Thick cement and sand (1:3) with
approved plasticiser plainface to walls
trowelled smooth m2 104 16.00
3 105mm x 105mm x 6mm thick white glazed
wall tiles bedded and jointed to wall on
screeded backing including filling joints with
white cement mortar m2 35 35.00
4 Prepare and apply two coats of emulsion
paint to plastered wall m2 104 9.00
TOTAL FOR INTERNAL WALL FINISHES

Carried to Summary
139
Bills of Quantities
Qty of Add Qty of
No Description Factor
item wastes materials
1 part cement
12mm Thick cement and sand 3 parts sand
1 (1:3) as specified screeded 35 m2 1 part lime
backing to receive wall tiles 1 part Plasticiser
2.5 %
12mm Thick cement and sand
(1:3) with approved plasticiser 1 part cement
2 plainface to walls trowelled 104m2 3 parts sand
smooth 1 part lime
1 part Plasticiser 2.5 %
105mm x 105mm x 6mm thick
white glazed wall tiles bedded
and jointed to wall on screeded
3 35m2
backing including filling joints with
white cement mortar
35 35.00
Prepare and apply two coats of
4 emulsion paint to plastered wall 104m2
104 9.00
140
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Material Management

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Material Management

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30/11/2020

• Factors Influence Material

• Ordering material need to be done in

CONSTRUCTION PROJECT MANAGEMENT KNOWLEDGE AREAS

PROJECT INTEGRATION PROJECT SCOPE PROJECT TIME

PROJECT COST AND

Materials & Materials

What is Materials Management?

What is Materials Management?

• The executive who engage in materials

What is the Functions of Materials

Focus of Material Management

What is the Objectives of Material

What is the Objectives of Material

Advantages or Benefits of Material

Advantages or Benefits of Material

Phases in Material Management

Challenges of Material Management

Factors Influence Material Supply

Factors Influence Material Supply

Factors Influence Material Supply

Factors Influence Material Supply

Factors Influence Material Supply

Construction Material Prices

Material Cost and Contractor's Profit

Material cost + Labour cost + Plant cost + Overhead = Project Cost

Contract Price - Project Cost = Profit

Material Cost and Contractor's Profit

What is Construction Materials?

Material Management in Building

Material Management in Building

Material Management in Building

Material Management in Building

Material Management in Building

Material Management in Building

Material Management in Building

Material Management in Building

• There are many factors to be

• The most COMMONLY USED METHOD for

3. Low value materials

by using the ABC analysis technique

The Needs for

The Need for Site Control

The Need for Site Control

The Need for Site Control

The Need for Site Control

The Need for Site Control

The Need for Site Control

Site Management Team

Reduce Waste on Site

The Need for Site Control

The Need for Site Control

The Need for Site Control

The Need for Site Control

The Need for Site Control

Material Handling Policy

Material Handling Policy

Process of Material Management

Process of Material Management

Process of Material Management

Process of Material Management

Process of Material Management

Process of Material Management