Basics of Materials

Management

UMAR MOHAMMAD
 Teaching Plan

1. Basics of Materials Management……….1 session

2. Inventory Management and Control……4 sessions

2.1 Inventory costs
2.2 Concept of EOQ
2.3 P and Q Inventory systems
2.4 Selective Inventory Control(ABC Analysis)

3. Materials Requirement Planning………..4 sessions

3.1 Product structure
3.2 Bill of Materials
3.3 Inventory status file
3.4 MRP Terminologies
3.5 Lot sizing techniques
 Introduction
Materials accounts for 20 to 60 percent of the total cost
of the project.
Materials management is the issue of concerns in the
construction Industry. 40 percent of the time of time is lost
at the site due to lack of materials when needed, poor
identification of materials, and inadequate storage.

Materials management function is often performed on

fragmented basis with minimal communication and no
clearly established responsibilities assigned to the owner,
engineer, or contractor.

It is vital to plan for materials material shortages due to

high interest rates, rising prices of materials, and
competition.
Expenditure on Materials
What is Materials Management?
 Functions of Materials Management

Procurement and Purchasing

Expediting
Materials Planning
Materials handling
Distribution
Cost control
Inventory management/Receiving/Warehousing
Transportation
Categories of Materials
Categories of materials Contd..
Categories of Materials
(according to site use)
Categories of materials
( according to site use)
Classification of site materials
Ordering Cost (OC)
Materials management in Projects
Scope of Materials Management
 Six Blind Men and Elephant
1

3
4
Thank You