Problems Associated with Material Management. Practice in the Construction Industry

Bachelor Thesis , 2014 , 61 Pages , Grade: 64.2

Business economics - Business Management, Corporate Governance

Management of materials has over the years been a great problem to most firms in the construction industry. In construction project operations, there is always a tendency of mismanagement of materials by construction firms. As the size of the contract increases, however, so does the scale of activities concerning materials management. The aim of this research was therefore to investigate into materials management problems faced by construction firms in the Greater Accra Region.

To achieve this aim, the following objectives were set out: To identify the problems in materials management practices by greater Accra firms, to identify the causes of these materials management problems, to identify proper ways of managing materials by construction firms on sites and to suggest ways of solving materials management problems by construction firms.

The research instrument adopted was the use of questionnaires. Fifty-five (55) sets of questionnaires was distributed to various contractors. The sampling technique adopted was the snowball sampling technique. Quantity analysis approach was adopted for the analysis of the data which involved the use of frequency distribution tables and charts. The analysis of the data revealed that high project cost and delay were also some of the effects of improper materials management. Provisions of standard storage facilities, delivery of materials to the site, were some of the factors that most construction firms considered prior to the commencement of works with regards to the storage of materials on site.

TABLE OF CONTENTS

ABSTRACT

DEDICATION

ACKNOWLEDGEMENTS

CHAPTER ONE
1.1 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 PROBLEM STATEMENT
1.3 AIM(S) OF THE STUDY
1.4 OBJECTIVES OF THE STUDY
1.5 SCOPE OF THE STUDY
1.6 RESEARCH QUESTIONS
1.7 OVERVIEW OF METHODOLOGY
1.8 LIMITATIONS OF THE STUDY
CHAPTER TWO
2.1 INTRODUCTION
2.2 MEANING OF MATERIALS MANAGEMENT
2.3 PROCUREMENT OF MATERIALS
2.3.1 FUNCTIONS OF PROCUREMENT OF MATERIALS
2.3.2 OBJECTIVES OF PROCUREMENT OF MATERIALS
2.3.3 PROCUREMENT CYCLE OF MATERIALS
2.4 TRANSPORTATION (MOVEMENT) OF MATERIALS
2.4.1 HORIZONTAL MOVEMENT
2.4.2 VERTICAL MOVEMENT
2.5 MATERIAL HANDLING
2.5.1 SELECTING MATERIALS HANDLING SYSTEM
2.5.2 MANAGEMENT OF MATERIALS HANDLING
2.5.3 METHODS OF MATERIAL HANDLING
2.5.3.1 ADVANTAGES OF MANUAL HANDLING
2.5.3.2 DISADVANTAGES OF MANUAL HANDLING
2.5.3.3 ADVANTAGES OF MECHANICAL HANDLING
2.5.3.4 DISADVANTAGES OF MECHANICAL HANDLING
2.5.4 CAUSES OF DOUBLE HANDLING
2.5.5 SOLUTIONS TO DOUBLE HANDLING
2.6 MATERIAL CONTROL
2.6.1 MATERIAL CONTROLLER
2.6.2 SITE SUPERVISION
2.7 STORAGE ACCOMMODATION
2.7.1 METHODS OF STORAGE
2.7.2 SITE STORAGE PROVISION
2.7.3 AREAS FOR STORAGE ON SITE
2.8 CLASSIFICATION OF BUILDING MATERIALS
2.8.1 LOCATING MATERIALS ON SITE
2.9 CAUSES OF IMPROPER MATERIALS MANAGEMENT
2.10 WASTE
2.10.1 CLASSIFICATION OF WASTE
2.10.2 REDUCTION OF WASTE
2.11 METHODS OF IMPROVING MATERIAL MANAGEMENT ON SITE

CHAPTER THREE
3.1 INTRODUCTION
3.2 PRELIMINARY SURVEY
3.2.1 OBSERVATION
3.3 DATA COLLECTION ON RESEARCH
3.4 DESIGN OF QUESTIONNAIRES
3.5 TARGETED POPULATION
3.6 DATA ANALYSIS
3.6.1 QUANTITATIVE ANALYSIS

CHAPTER FOUR
4.1 INTRODUCTION
4.2 DATA PRESENTATION AND ANALYSIS
4.3 DISCUSSING OF RESULTS

CHAPTER FIVE
5.1 INTRODUCTION
5.2 CONCLUSIONS
5.2.3 OBJECTIVE ONE
5.2.4 OBJECTIVE TWO
5.2.4 OBJECTIVE THREE
5.2.5 OBJECTIVE FOUR
5.3 RECOMMENDATIONS

REFRENCES

QESTIONNAIRES

ABSTRACT

Management of materials have over the years been a great problem to most firms in the construction industry. In construction project operations, there is always a tendency of mismanagement of materials by construction firms. As the size of the contract increases, however so do the scale of activities concerning materials management. The aim of this research was therefore to investigate into materials management; problems faced by construction firms in the Greater Accra Region. To achieve this aim, the following objectives were set out: To identify the problems in materials management practices by greater Accra firms, to identify the causes of these materials management problems, to identify proper ways of managing materials by construction firms on sites and to suggest ways of solving materials management problems by construction firms.

The research instrument adopted was the use of questionnaires.Fifty-five (55) sets of questionnaires was distributed to various contractors. The sampling technique adopted was the snowball sampling technique. Quantity analysis approach was adopted for the analysis of the data which involved the use of frequency distribution tables and charts.

The analysis of the data revealed that high project cost and delay were also some of the effects of improper materials management. Provisions of standard storage facilities, delivery of materials to the site, were some of the factors that most construction firms considered prior to the commencement of works with regards to the storage of materials on site.

Recommendations were made for the study

DEDICATION

I dedicate this work to God Almighty for giving me the strength, knowledge, mental efforts, and above all grace for the successful completion of this project work in particular, and in my wider academic endeavours in general.

This work is also dedicated to my supervisor Mr. M. Muomaalah for guiding me during my project work.

ACKNOWLEDGEMENT

I will like to express my deep gratitude to Mr. M. Muomaalah for the maximum and expeditious support he offered as part of his supervision of this project work.

I also owe a profound appreciation and gratitude to all the lecturers of the Faculty of Engineering, especially the Department of Construction Technology for their selfless contribution throughout my studies in this institution.

Finally, I will say thank you to all Construction Technology fourth year Students. Thank you for the various positive impacts you all made during the studies.

CHAPTER ONE INTRODUCTION

1.1 BACKGROUND OF STUDY

Materials management is defined as a management system that is required in planning and controlling the quality and quantity of the material, punctual equipment placement, good price and the right quantity as required (Bailey and Cole, 1995).

The management of materials by construction firms is an enterprise that involves many people with diverse interest, talents and background. The building team indirectly constitutes the management team on building sites. This is due to the role played by each member of the team in relation to the successful erection of the building (Skyoles, 1974).

It is often the largest single cost as a percentage of a company’s balance sheet. The material cost as percentage of a company’s turnover depends on the nature of work and the scale of activities undertaken by the level of profitability and status of the company. (Butler, 1988).

It is important to note that materials management on construction site is not just reducing waste; it equally has to do with when and where materials are located on site, site security, competency of operatives and others.

Materials control is to ensure that materials are ordered in good time and that a very close watch is kept upon planned delivery date. Control on site must therefore be exercised with respect to waste, deterioration, pilfering and misuse. Careful checks should be made to ensuring correct of orders and that materials delivered can be properly stored and unnecessary handling avoided (Butler, 1988).

One way to achieve proper material control on construction site is to appoint a material control manager with all the responsibilities that implies, so that planned materials handling distribution can proceed from onset of the contract.

Storage of building materials can be defined as the provision of adequate space, protection and control for building materials and components held on building construction sites during

construction process. Proper storage of materials helps minimize waste and losses arising from improper storage. (Chandler 1978),

Procuring of materials is simply the process of buying. Procuring is responsible for establishing the flow of materials into the firm(s), following up with the supplier and expediting delivery. An aid is provided by the quantity surveyor to the procuring department by systematic analysis of the bill of quantities and contract drawings. The correct quantities and details of quantities of materials is extracted from the bill of quantities, drawings and specifications to cut down wastage of materials or to check shortage and excess of materials supply to the site. (Pathak 2009).

Movement of material is a process of transferring construction materials from one position to another onto or within the site, to minimize handling damage and cost by using route planned to ensure safety and ease travel. The aim is to get the materials to the required level in the most efficient way (Tam, 2003).

Observing how the costs of construction materials have become expensive, it is obvious that ineffective management of materials bring about increase in the cost to both the contractor and the client. It is therefore essential for proper materials management to be ensured by construction firms.

1.2 STATEMENT OF THE PROBLEM

Management of materials have over the years been a great problem to most firms in the construction industry. In construction project operations, there is always a tendency of mismanagement of materials by construction firms. As the size of the contract increases, however so do the scale of activities concerning materials management

During the occurrence of high number of projects, most construction firms focus on getting work done whiles neglecting the management of materials. The negligence of proper materials management contributes to several negative consequences such as, breakages of materials, dissatisfaction by client, and reduction in the productivity of workers, materials wastage, high project cost and delay in the progress of work at hand, which affects the maximization of limited resources. Most construction firms have given little priorities to the setting up of a department which oversee the management of their materials resulting in improper materials management if there is any at all. Mismanagement of materials can be classified as loss since it has adverse effects on construction projects. On the small sites, materials are managed by individuals with little or no knowledge about the management of materials. It is therefore prudent for construction firms to have a critical look on materials management, since it has a rippling effect on construction projects.

1.3 AIM OF THE STUDY

The aim of this study is to investigate into materials management; problems faced by construction firms in the Greater Accra Region.

1.4 OBJECTIVES OF THE STUDY

The specific objectives of the study are as follows;

a. To identify the problems in materials management practices by greater Accra firms.
b. To identify the causes of these materials management problems.
c. To identify proper ways of managing materials by construction firms on sites.
d. Suggest ways of solving materials management problems by construction firms.

1.5 SCOPE OF STUDY

The project ranges in scope from investigating the problems faced by the construction firms within the Greater Accra region, with respect to material management systems such as, storage, procurement, movement, control and handling of materials

a) To identify the problems in materials management practices by greater Accra firms.
b) To identify the causes of these materials management problems.
c) To identify proper ways of managing materials by construction firms on sites.
d) Suggest ways of solving materials management problems by construction firms.

1.6 RESEARCH QUESTIONS

- How important is materials management in the construction industry?
- Are there ways of curbing improper materials management?
- Is there any possibility of reducing materials theft on construction sites?

1.7 OVERVIEW OF METHODOLGY

The following methods of approach was used in carrying out the study

- Personal observation
- Questionnaires
- Library research
- Interviews
- Internet

Chapter three gives a detailed research methodology for the research

1.8 LIMITATION OF STUDY

It is a normal process to suffer setbacks when executing premeditated activities in every human endeavour. The following are limitations encountered during the research work.

- Financial constraints
- Limited time as the researcher had to attend lectures.
- Limited research materials.
- Unwillingness of the firm to give out information.

CHAPTER TWO LITERATURE REVIEW

2.1 INTRODUCTION

This chapter gives an account and review on what has been unpublished and those published by accredited or recognized scholars or institution on various materials management by building construction firms. This chapter gives an overall picture to the relationship between efficient material management and inefficient management on building construction site.

2.2 MEANING OF MATERIALS MANAGEMENT

Materials Management is coordinating function responsible for planning and controlling materials flow. It has the objective of maximizing the use of company’s material resources and providing the required level of clients’ service (Harris & MacAfee, 1995).

The centre for Advanced Purchasing Studies defines materials management of an organization in which the use and handling of materials is reported to a single responsible individual.

From the above schools of thought, it can be deduced that materials management has to do with how judicially materials meant for work is put to use. This deals with the power to direct and regulate the flow (usage) of materials on the site. It is however unclear why many construction firms see no reason for effective materials management on construction sites.

Although this project work can’t replace the knowledge and skills developed through expensive management course can offer a valuable preparation and supplement your experience. Many of the concepts discussed in this project will help make sense out of experience more quickly. Our natural ability to make a right decision or take an appropriate action can be improved through systematic study (Wyatt, 1978).

2.3 PROCUREMENT OF MATERIALS

Procuring of materials is simply the process of buying. Procuring is responsible for establishing the flow of materials into the firm(s), following up with the supplier and expediting delivery. An aid is provided by the quantity surveyor to the procuring department by systematic analysis of the bill of quantities and contract drawings. The correct quantities and details of quantities of materials is extracted from the bill of quantities, drawings and specifications to cut down wastage of materials or to check shortage and excess of materials supply to the site. (Weele, 2010).

2.3.1 Functions of procurement of materials

The following are some of the functions of procurement of materials for construction.

- Obtaining the right material, in the right quantities, with the right delivery (time and place), from the right source and at the right price.
- Responsibility for placing the orders and for ensuring that the goods arrive on time.
- Responsibility for locating suitable sources of supply and for negotiating prices.
- Issuing and administration of purchase orders. (Weele,2010).

2.3.2 Objectives of procurement of materials

Some of the objectives of procurement of materials include the following;

- Obtaining goods and services at lowest cost.
- Ensuring the best possible service and prompt delivery by the supplier.
- Obtaining goods and services of the required quantity and quality.
- Development and maintaining good supplier relations and developing potential supplier. (Lewis and Roehrich 2009).

2.3.3 Procurement cycle of materials

The purchasing cycle consists of the following steps;

- Receiving and analysing purchasing requisitions.
- Selecting suppliers of finding ways of selecting potential suppliers issuing requests for quotations, receiving and analysing quotations, and selecting the right supplier.
- Determine the right price.
- Issuing purchasing orders
- Following up to ensure delivery dates are met
- Receiving and accepting goods
- Approving supplier invoice for payment. (Roehrich 2009).

2.4 TRANSPORTATION (MOVEMENT) OF MATERIALS

Free and safe must be provided between storage area and the work place. The route should; Be level and avoid any sharp gradients

Be kept clear of waste materials that can cause operatives to trip and fall Be free of obstructions such as plant or material. (Doran, 1994).

2.4.1 Horizontal movement

This is the movement of material from one position to another over the site to minimizing handling damage and cost by using route planned to ensure safety and ease of travel. Horizontal movement is generally restricted to ground level.

The route should be defined by laying road or making their width. Only plant capable of conveying each product should be employed. The load should be properly secured by ropes or other holding device to prevent it from falling (Doran, 1994).

2.4.2 Vertical movement

This is the movement of materials from one level to another in either a strict perpendicular manner or with a certain amount a horizontal movement. The aim is to get the materials to the required level in the most efficient way.

Lifting plant should be position around the building to ensure the excessive horizontal within the structural levels are minimized. It should be able to caring the heaviest component that leads to be lifted. The load must be safely and should be secured if there is the slightest danger of it falling (Doran, 1994).

2.5 MATERIAL HANDLING

Material handling is the process of activities materials go through before it is incorporation into the work on site (Johnson, 1981). These activities include the following;

- Selection of the materials from their place of storage (Lifting).
- Movement of materials from one designated point to another.
- Storage and placement of materials in the required place and position.

2.5.1 Selecting materials handling system

Factors to be considered are;

- Compatibility of existing storage equipment.
- Materials handling equipment available on the market.
- Nature and characteristics of the materials. Future needs.
- Capital and resources available.
- Location materials centre. (Johnson, 1981).

2.5.2 Management of materials handling

The main problem in materials handling management is ‘double handling’. It refers to situations where materials are being handled more times than is necessary, mainly because of inefficiency.

In theory when materials are delivered to site, they are supposed to make only a limited number of journeys. For example;

- Delivery vehicle to place of storage.
- Selection from place of storage.
- Delivery to and through the process of production.

However, in practice this seemly simple flow is not maintained. This increases greatly the real cost of handling (i.e. fuel, plant, labour, etc) with its attendant increase in the risk of accidents and stock damage. (Johnson, 1981).

2.5.3 METHODS OF MATERIAL HANDLING

There are two main methods of handling materials. They are;

- Manual handling
- Mechanical handling

Mechanical handling involves the introduction of plant and equipment into the construction process. On the other hand, manual handling is a labour intensive method of handling materials and is relatively cheaper and efficient in relation to loads that can be handled easily. (S.R Pathak 2009).

2.5.3.1 Advantages of manual handling

Advantages of manual handling of materials include the following;

- Efficient in to loads that can be handled easily.
- Manual handling is relatively cheaper
- Can be used in confined spaces and older stores the design of which was not based on the use of any devices. (Pathak 2009).

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• Grade: 64.2
• Author: Fredrick Ahenkora Boamah (Author)
• Publication Year: 2014
• Pages: 61
• Catalog Number: V358442
• ISBN (eBook): 9783668437203
• ISBN (Book): 9783668437210
• Language: English
• Tags: problems, associated, material, management, practice, construction, industry