Definition

 Materials can be defined as items that are

used to produce a product and which include
raw materials, parts and equipment (Stukhart,
2007)
 Goods purchased from sources out of the
organization that are used to produce
finished products (Bailey, 2009)
 Construction materials can be classified into
different categories depending on their
fabrication and the way they can be handled
(Chandler, 2001).
 Categories:
 Bulk materials
 Bagged materials
 Palleted materials
 Packaged materials
 Loose materials
 Consumables,
i.e. those that get used up, e.g.
 Non-consumables, e.g.

The materials can further be subdivided into

 On-site
 Off-site
 Construction materials constitute a major cost
component in any construction project
(Mohammed, 2012)

 The total cost of all installed materials can be

50% or more of total cost of the project
(Mohammed, 2012; Stukhart, 1995)
 Materials management is the planning and
controlling of all activities to ensure the
correct quality and quantity of materials and
equipment are installed as specified in a
timely manner, obtained at reasonable cost
and available when needed (Plemmons and
Bell, 1995, as cited by Mohammed, 2012)

 MM must be started early in the project

 With traditional procurement system materials

planning actually start during the estimate
preparation stage (true/false?)
 The estimate preparation also gives the
quantities of materials, equipment, and
services required to build the project

 A good materials management plan has to be

comprehensive in scope, covering all
necessary goods and services required for the
project (Ritz, 1994)
 The first thing we notice are the several
departmental functions involved in MM other
than the PM:
 estimating
 procurement
 engineering
 transport
 field warehousing
 accounting, etc.

 On large projects a Materials manager can be

appointed to handle the task
Objectives of Materials Management:
 Minimization of materials costs;
 To reduce inventory for use in production
process and to develop high inventory turnover
ratios;
 To procure materials of desired quality when
required, at lowest possible overall cost;
 To reduce paper work procedure & minimize
delays in procuring materials;
 To note changes in market conditions and other
factors affecting the concern; and
 To purchase, receive, transport, store materials
efficiently
Indicators of poor materials management???
 lack of materials when needed;
 materials arriving wrong time;
 lack of information regarding arrival on site
(onsite stocks);
 double handling;
 inadequate storage (maybe due to excessive
qties);
 etc
Effects
 losses in labour productivity,

 overall delays (time) that can indirectly increase

total project cost,
 Wastages,

 Suspension of activities,

 etc
A pre-requisite for cost-effective
construction is the availability of materials
at the time and location that they are
required
On the other hand, Early purchases can:
 ties capital and invite interest charges
 lead to deterioration during storage
 promote stealing

 Such problems can be solved through

Supply Chain Management
 Typical Materials Management Tasks
 Materials planning
 Procurement and purchasing
 Expediting
 Transportation
 Materials handling
 Cost control
 Inventory management /Warehousing
 Waste control
 Materials tracking

????
 The purpose of planning is to procure the
materials for the dates when they are needed,
storage facilities, and handling requirements

 The planning process comprise the task of

identification and determination of required
materials, setting up and maintaining the
materials records, determining target inventory
levels, delivery frequency including materials
logistics planning such as temporary facilities,
access roads and storage areas (Partil and
Pataskar, 2013)
 Heavily leans on company’s purchase policy
 Policy formulation based on 5 overall
objectives:
 Price
 quality assurance
 delivery schedule
 quantity control
 supplier responsibility
 What influences choice of system?
 Effects of system on golden triangle?
 Consists of several interrelated steps:
 Soliciting offers from suppliers
 Receipt and evaluation of offers by suppliers
 Purchasing or placement of purchase orders
 Approval by owner’s representative
 Expediting or contact with the suppliers to
assure timely delivery, fabrication, shipping,
delivery and inspection

 Note: For minor jobs some of these steps are not

necessary
 Procurement over when materials are on site
Purchase orders
 intended for the following:
 establish the responsibility for buying the items
needed and only those
tell the supplier in writing exactly what has been
ordered, how, when and where its to be supplied,
and how much the company expects to pay for it
provide an internal check on purchasing, receiving,
and payment for items purchased
(Palmer et al, 1995 as cited by Bennett, 2003)

(purchase order schedule)

 The second step in the purchasing process after the purchase
order is issued
 Is a method to pressure the supplier to meet the timeline or
to be even ahead of schedule
 (usually an indication of incomplete planning from the buyer)
 Three types:
Exception expediting – buyer informs supplier on not
receiving needed goods; not recommended
Preventive expediting – buyer does routine status checks to
prevent exception, calling supplier earlier to confirm
delivery dates
Field expediting ??

a full time expeditor sometimes required on large projects

 Involves using the safest and most
economical means to transport materials to
the site where they are needed
 Use of shortest possible routes
 The primary logistics function is to have
materials arrive when they ’ re needed
 Materials scheduling is an essential part of
handling material on site, which has several
benefits such as:
showing the quantities involved in each particular
operation;
providing a key to the distribution of materials on
site; and
demonstrating useful way of checking quantities
required by sub-contractor, etc.
 The quantity and quality of all material
deliveries are verified by inspection, count
and test (if necessary) as they arrive

 Materials handling equipment selection an

important function in material handling to
enhance production, effective utilisation of
manpower, and improve system flexibility, etc
 The manager has to ensure that the cost of
buying materials are kept to a minimum

 Manager to ensure that they are buying

materials at lowest possible cost (Tersine and
Campbell, 2004)

 Besides, other materials CC techniques?

Waste Control

 A tighter materials planning can reduce waste

and can directly contribute to profit
improvement and productivity

 Besides, other ways of reducing material

waste on site???
 Deals with the availability of materials for use
when needed

 Once goods are purchased, they represent an

inventory to be used during construction

 Inventory management can be done manually

or with the aid of electronic systems
 More so, proper inventory control helps in
maintaining adequate supply to meet expected
demand pattern

 Depending on criticality level and usage

frequency level of control on different
materials can be decided using ABC analysis
ABC Analysis (material classification technique)

 This is classification based on cost

 Helps in selective control

A – materials consuming 70% of cost

B – materials consuming 20% of cost
C – materials consuming 10% of cost
Class A Materials
 to be managed by top level management
 Accurate estimates required – try and avoid surplus
 Needs a closer watch

Class B Materials
 Moderate control required
 managed by middle level managers

Class C materials
 Junior level staff authorized to procure
 Bulk ordering preferred – minimize ordering and transport
costs
Materials Management
Planning
based on
availability

Procurement
Computerization

MATERIALS
MANAGEMENT Inspection
and quality
Transportation control

Issue
procedure
and Inventory Storage
codification Control
Materials management techniques on
confined downtown sites?
Supply Chain Management
 Can be defined as the network of organizations
that are involved through upward and
downstream linkages in the different processes
and activities that produce value to the ultimate
customer (Christopher, 1998)
 All construction stakeholders e.g. clients, main
contractors, designers, surveyors,
subcontractors, suppliers, etc are therefore part
of the supply chain
Characteristic:
 Joint inventory management – increases
efficiency as parties know each other’s
position throughout their relationship, of
course through information sharing. No
information sharing, no SCM.
JIT
 Channel wide cost efficiencies – how far true?
 Unrestricted information sharing – there is
minimum miscommunication between parties
 Small supply base – Good or bad????
 Ongoing joint planning – planning is a
continuous process since in most cases parties
will work together on more than a single
project. This also reduces risks since they can
be detected early
 Long term time horizon
Discuss materials management practices that
enhances economically sustainable
construction