Lecture notes Cons 3Mat Magt edited 2016 ed (2).ppt

Wolita Sodo University
Program: Construction Technology and
management
Course code: CoTM 5202
Course name: Construction Materials
Management

Introduction to construction
materials management
• PROFIT.
• In large constructions costing birr 106m and above, a
modest profit of between 10 to 20% is desirable. These
are projects such as 6 story and above high rise buildings.
• In smaller construction projects between birr 4.22m to
birr 106m, a profit margin of between 15 to 25% is
desirable. These are mainly high-rise buildings less than 6
stores in height.

• In projects costing less than 4.22m, profit margins of
between 20 to 35% is envisioned.
The larger the project cost, the smaller the % of
profit.

LABOUR AND MATERIALS.
•In most projects, labor costs approximately 25 to 35% of the
total project costs, with materials taking the rest.
•In interior design projects, the labor required is intensive and
the tasks take longer and have to be carried out by highly skilled
workmen e.g wood works requiring carpentry and joinery, art
work, electrical/mechanical works.
Such works usually have a 50% ratio between labor and materials.

• An average residential house construction will tend to have the
usual 30% labor versus 70% material costs. Within the
construction, some tasks will have more % of labor than others.
For example, foundation works are mainly labor based during
excavation and backfilling.

• Walling, windows, doors, plaster will have less % of labor
compared to materials, approximately 20% labor.
Roofing, fittings, fascia board, paint, electrical works,
plumbing works will mainly have more % of labor
compared to materials, approximately 40 to 50%.
• The total works will bring the average to 30% for labor and
70% for materials.
• Francis Gichuhi Kamau, Architect.
info@a4architect.com

Introduction to construction materials
management
Definition of MM
 Materials management is the process of management which co-
ordinates, supervises and executes the tasks associated with the
flow of materials to, through and out of an organization in an
integrated fashion.

Definition of MM
• Materials Management is an integrated process of planning and
controlling all necessary efforts to make certain that the
• quality and quantity of materials and equipment are appropriately
specified in a timely manner,
• are obtained at a reasonable cost and
• are available when needed.
• The materials management systems combine and integrate the
take-off, vendor(supplier) evaluation, purchasing, expediting,
warehousing, distribution and disposing of materials functions.

Definition of MM
Note take-off sheet contains
•The types of materials, the quantity of materials, the
number of labors, the number of days and the sequence
of work all things are enlisted in the construction take
off sheet.

Definition of MM
The scope of materials management applicable to construction
industry involves the planning of materials, procurement of
materials, packaging, storage, inventory control,
transportation of materials, material handling, disposal of
scrap(recyclable waste) and surplus
Successful materials management requires the participation of all
persons involved in a construction process.

Objectives of Materials Management
• Efficient control of inventories
• Ensure Uniform flow of Materials for
production/construction
• Ensure right quality at right price
• Establish and Maintain good relations with
customers
• Economical consumption of important items and
finding their substitutes

Why is CMM important?
 One of the three cost components in Construction is
Material . Hence, Materials management is an important element
in project planning and control to make construction projects
cost efficient.
 Materials represent a major expense in construction, so
minimizing procurement or purchase costs presents important
opportunities for reducing costs.
 Poor materials management can also result in large and
unavoidable costs during construction.

 First, if materials are purchased early, capital may be tied
up and interest charges incurred on the excess inventory
of materials.
 Even worse, materials may deteriorate during storage or be
stolen unless special care is taken.
 Second, delays and extra expenses may be incurred if
materials required for particular activities are not
available. Accordingly, insuring a timely flow of material is
an important concern of project managers.

 Materials management is not just a concern during the
monitoring stage in which construction is taking place.
 Decisions about material procurement may also be required
during the initial planning and scheduling stages.
 The availability of materials may greatly influence the schedule in
projects with a fast track or very tight time schedule: sufficient
time for obtaining the necessary materials must be allowed.
 In some case, more expensive suppliers or shippers may be
employed to save time.

Who are involved in CMM?
• Many People are Involved
 Successful materials management like any successful project relies on the
skills of many professionals from the architect and designers through
project management to the trade contractors.

At Pre-construction phase, people Involved In materials
management:
Team
Member
Role in Materials Management
Architect Designs for best use of standard sizes, for multiple
applications and for their recyclability.
Engineer Ensures appropriate structural component dimensions,
quality and spacing for use of standard fasteners and
materials for multiple applications and recyclability.
Estimator Uses latest materials takeoff technologies and exercises
accuracy in estimates.
Purchaser Plans purchases and deliveries to reduce
surplus and to balance materials maintenance
during on-site storage versus transportation

On Construction site people involved In materials
Management:
Team
Member
Role in Materials Management
Site
construction
management
Applies the materials management plan to the site and oversees its
implementation. Takes into consideration physical space available and
ensures subcontractors are familiar with and committed to the plan
Site materials
manager
Keeps track of new materials and used materials; organizes and stores
them for availability by the various trades throughout the project in
accordance with the materials management plan.
Subcontract
management
Communicates with site management and Materials Manager regarding
the types of materials they may be able to use for various
purposes. Ensures trades follow the Plan's practices.
Trade workers. Use materials properly, store new materials properly, handle and cut them
carefully for maximum use and minimum waste. Consider
using cuts before new pieces

Management of Construction
Materials, Permanent and Temporary
Construction materials cover all types of materials used in
construction including electrical and mechanical fittings
fixture, devices and instruments that are incorporated during
the construction of permanent works and temporary
supporting works at site.
Permanent works: Materials used for the construction of
permanent works are named as permanent materials
Temporary supporting works: those materials used for
the construction of temporary works are categorized
under here. ( engineers facilities, offices, false works,
formworks…)

Classification of materials
• Why should we classify materials?
 We deal with hundreds of different types of inventory items. With
so many items, complexity of management process increases.
 To manage these inventories effectively grouping is essential.
 Grouping together of materials of similar technical affinity is
known as classification.

The general objective of inventory control is to
minimize the total cost of keeping the inventory while
making tradeoffs among the major categories of costs:
(1)Purchase costs,
(2)Order cost,
(3)Holding costs, and
(4)Unavailable cost.

• These cost categories are interrelated
since reducing cost in one category may
increase cost in others. The costs in all
categories generally are subject to
considerable uncertainty.

• The purchase cost of an item is the unit purchase
price from an external source including
transportation and freight costs. For
construction materials, it is common to receive
discounts for bulk purchases, so the unit purchase
cost declines as quantity increases.
• “Economies of scale in the material production,
or scale economies in transportation.”

The order cost reflects the administrative expense of issuing a
purchase order to an outside supplier. Order costs include
expenses of
Making requisitions,
Analyzing alternative vendors,
Writing purchase orders,
Receiving materials,
Inspecting materials,
Checking on orders, and
Maintaining records of the entire process.

Order costs are usually only a small
portion of total costs for material
management in construction projects,
although ordering may require substantial
time.

•The holding costs or carrying costs are
primarily the result of capital costs,
handling, storage, obsolescence,
shrinkage and deterioration. Capital
cost results from the opportunity cost
or financial expense of capital tied
up in inventory.

• Borrowing costs
• A capital carrying cost is equal to the value of
the inventory during a period multiplied by the
interest rate obtainable or paid during that
period. As a general rule, holding costs will
typically represent 20 to 40% of the average
inventory value over the course of a year.

The unavailability cost is incurred when a desired
material is not available at the desired time. In
manufacturing industries, this cost is often called
the stockout or depletion cost.
Shortages may delay work, thereby wasting labor
resources or delaying the completion of the entire
project.

Classification contd….
 There are many factors that need consideration while
classifying materials. These include storage space,
shelf life, supply reliability, inventory costs, ease of
identification, construction sequence, transportation
requirement, price, procurement time, procurement
source and project life.
 Some of the general categories are;
(a) bulky, one –time purchase, repetitive use, and minor materials
(b) Vital, essential and desirable materials
(c) Indigenous and imported materials
(d) High price, medium price and low price materials
(e) High usage value, medium usage value and low-usage value materials

• Classification can be also be based on various attributes:
 By size
 By names
 By values
 By end use
 By product category

ABC Classification of construction Materials
The most commonly used method for classifying construction materials
is to group them into high-value, medium-value and low-value materials.
This classification is achieved using the ABC analysis. The prerequisite
for applying the ABC analysis technique is that the project should have
a standardized bill of materials listing the physical quantities (including
standard usage), unit rate and total cost for each item.
BILL OF MATERIALS
S.No. Item of
materials
Unit Quantity Rate Amount

The materials
management technique of
ABC analysis is based on
the principle of “control by
selection” which implies
that, it is not necessary to
give the same degree of
attention to
procurement , storage
and control of all types of
materials.
Group
Class
Total
Items
Inventory
Costs
A 15% 80%
B 30% 15%
C 60% 10%

ABC Classification
 Class A
 5 – 15 % of units
 70 – 80 % of value
 Class B
 ˜30 % of units
 ˜15 % of value
 Class C
 50 – 60 % of units
 5 – 10 % of value

Methodology
(a) Identifying materials required and estimate quantity of
each material.
(b) Obtaining the approximate unit rate for each item.
(c) Assessing the requirement during the period under
consideration, i.e. yearly or project completion basis.
(d) Determine the usage value of each type by multiplying
the quantity required with the corresponding unit rate.

Methods contd…
e. Calculate the percentage usage of each material with respect to
total project cost
f. Arrange the items in the descending order of usage value and
then compute cum. Usage value against each item.
g. Draw two horizontal demarcating the descending order of the
cum purchase value at 70% level and 20% level

ABC Classification: Example
1
1 $ 60
$ 60 90
90
2
2 350
350 40
40
3
3 30
30 130
130
4
4 80
80 60
60
5
5 30
30 100
100
6
6 20
20 180
180
7
7 10
10 170
170
8
8 320
320 50
50
9
9 510
510 60
60
10
10 20
20 120
120
PART
PART UNIT COST
UNIT COST ANNUAL USAGE
ANNUAL USAGE

(cont.)
• T. value
5400
14000
3900
4800
3000
3600
1700
16000
30600
2400
Total 1440 1000 $ 85,400
1
1 $ 60
$ 60 90
90
2
2 350
350 40
40
3
3 30
30 130
130
4
4 80
80 60
60
5
5 30
30 100
100
6
6 20
20 180
180
7
7 10
10 170
170
8
8 320
320 50
50
9
9 510
510 60
60
10
10 20
20 120
120
PART
PART UNIT COST
ANNUAL USAGE

(cont.)
Example 10.1
Example 10.1
1
1 $ 60
$ 60 90
90
2
2 350
350 40
40
3
3 30
30 130
130
4
4 80
80 60
60
5
5 30
30 100
100
6
6 20
20 180
180
7
7 10
10 170
170
8
8 320
320 50
50
9
9 510
510 60
60
10
10 20
20 120
120
PART
PART UNIT COST
ANNUAL USAGE
TOTAL % OF TOTAL % OF TOTAL
PART VALUE VALUE QUANTITY % CUMMULATIVE
9 $30,600 35.9 6.0 6.0
8 16,000 18.7 5.0 11.0
2 14,000 16.4 4.0 15.0
1 5,400 6.3 9.0 24.0
4 4,800 5.6 6.0 30.0
3 3,900 4.6 10.0 40.0
6 3,600 4.2 18.0 58.0
5 3,000 3.5 13.0 71.0
10 2,400 2.8 12.0 83.0
7 1,700 2.0 17.0 100.0
$85,400
A
A
B
B
C
C

(cont.)
.
% OF TOTAL % OF TOTAL
CLASS ITEMS VALUE QUANTITY
A 9, 8, 2 71.0 15.0
B 1, 4, 3 16.5 25.0
C 6, 5, 10, 7 12.5 60.0

ABC classification
A ITEMS
‟
Small in number, but consume large amount of
resources
Must have:
•Tight control
•Rigid estimate of requirements
•Strict & closer watch
•Low safety stocks
•Managed by top management
•Low ABC analysis does not stress on items those
are less costly but may be vital

B ITEMs
‟
Intermediate
Must have:
Moderate control
Purchase based on rigid requirements
Reasonably strict watch & control
Moderate safety stocks
Managed by middle level management

 C ITEMS
‟
 Larger in number, but consume lesser amount of resources.
 Must have:
 Ordinary control measures
 Purchase based on usage estimates
 High safety stocks
 Limitations of ABC analysis:
 Items on the border line of the ABC classification need to be scrutinized
for placing them under A/B or B/C.

 V-E-D Classification
 VITAL-ESSENTIAL-DESIRABLE
 Focus: To determine the criticality of an item. Mainly useful for the
purchase department.
 Based on critical value & shortage cost of an item
 It is a subjective analysis.
 Items are classified into
 Vital: Shortage cannot be tolerated.
 Essential: Shortage can be tolerated for a short period.
 Desirable: Shortage will not adversely affect. These must be strictly scrutinized
 ABC in conjunction with VED is used for classification of materials as
shown in the table under:-

V E D ITEM COST
A AV AE AD CATEGORY 1 10% 70%
B BV BE BD CATEGORY 2 20% 20%
C CV CE CD CATEGORY 3 70% 10%
CATEGORY 1 - NEEDS CLOSE MONITORING & CONTROL
CATEGORY 2 - MODERATE CONTROL.
CATEGORY 3 - NO NEED FOR CONTROL
VED action plan
VITAL: Maintain large stock of inventory.
ESSENTIAL: An In-between policy
DESIRABLE: Minimum stock is enough

 S-D-E Classification
 Scarce-Difficult to Obtain-Easy to Obtain
 Focus: Availability
 Useful for the procurement department, vital to the lead time analysis,
helps in determining purchasing strategies.
 SCARCE: items in short supply.
 DIFFICULT: items which might be available in the indigenous market
but cannot be procured easily, items from distance places, un-reliable
suppliers
 EASY: items which are easily available, possibly from the local markets

 F-S-N Classification
 Fast Moving
 Slow moving
 Non-moving.
 Focus: Inventories
 Useful for: Stores department and inventory control. Enables the adoption
of the right type of inventory policy to suit a particular situation.

 To determine the number of months lapsed since the last transaction
the date of receipt or the last date of issue is taken whichever is later.
 Fast Moving items: most inventory models are aimed at managing
the fast moving goods, which exhibit a regular consumption pattern.
 Slow Moving items: Many spare parts come under this category; they
require different management approach, (see below).
 Non-moving items: Optimal stock disposal rules rather than
inventory provisioning rules are to be determined.

 Managing Slow moving inventory
1. If spares are required only at a pre-specified time, such as the time of
scheduled major maintenance for replacement, then it is desirable not to
stock them but to place procurement orders sufficiently well in advance,
keeping lead times in view, so that spares arrive just-in-time.
2. If the part gives adequate warning of an impending breakdown, then
the best policy is to place an order the moment a warning is received.
Adequate warning means when the lead time required is less than the
warning time.
3. In situations where adequate warning is not obtainable, some stock
should be kept. In general one-for-one ordering policy is useful. This
means placing an order for one spare when one is consumed

Construction material production
management
•Quarries, plants and industries

Quarry management
Introduction
•A quarry is a place from which dimension stone,
rock, construction aggregate, sand, gravel, or slate
has been excavated from the ground.
Quarry management includes
• Management and operation plan,
• Operational activities on quarry and,
• Closure activities after quarrying is finished

Management and Operations Plan
• A separate management plan is required for each
quarry in each and every quarry we plan to
extract materials.
• Management and operations plan has to provides
more specific details on the development and
management of our particular quarry.

Management and Operations
Plan
• Quarry development requires a quarry permit under the
governments regulations.
• If activities include the use of equipment that exceeds
the thresholds of the applicable land-use regulations, a
land-use permit is required.
• Both permits include terms and conditions specifying
how operations must be conducted. A quarry lease may
be applied for instead of a quarry permit if longer-term
tenure is desired.

Plan
• Quarry operations that require blasting might
require regulatory approval from the
Worker’s Safety and Compensation
Commission.
• Management and operation plan includes site
physical description of the quarry.

Plan
Site Physical Description
A description of the appearance of a site
comprises
•The quarry location
•Why we select that specific location
•The layout for the proposed quarry
•The basic quarry specification

Example ; Quarry specification

Operation
Operation
1.Organization and Reporting
2.Quarry Set Up and Operation
3.Quarrying Activities
4.Site Management Measures
5.Monitoring

Operation
1. Organization and Reporting
Organization and Reporting
The entire Project will be under control of a Construction Director, with a
Site Specific Manager directly reporting to him. An Area Coordinator Lead
(AC) will report to the Construction Manager, and supervise AC#3, who
will be directly responsible for quarry development and operations.
Common to all aspects of the construction, there should be a Project
Administrator, a Safety Manager, and Engineering Site Lead, and an
Environmental Lead.
•All names and contact numbers for the above positions should be provided
prior to the commencement of quarrying activities.

Operation
1. Organization and Reporting

Operation
2. Quarry Set Up and Operation
• We have define and prepare access to the quarry and has to be with in as
short as possible distance from the construction site. Equipment
transported to the quarry site may include:
• Crushing, screening and cleaning plants;
• Drilling Equipment;
• Rock hauling trucks;
• Scrapers;
• Excavators;
• Blasting gear.
• Equipment should be serviced at maintenance facilities located at the
nearby camp areas.

Operation
3. Quarrying Activities
A. Excavation and Crushing
•Drilling will be monitored to avoid creating run off and
drainage issues.
•Washing of aggregate is required, if needed.
•Quarrying should work along the exposed rock faces
and will be terraced to minimize run off from the site.
•Efforts will be made during blasting operations to
avoid creating depressions which might collect run off.

Operation
A. Excavation and Crushing (continued…..)
•We should plan at what day and time Crushing operations
and screening operations will take place.
•Crushing and stockpiling areas should be located as near as
practical to the extent of the quarry within easy access to the
road location.
•Final material should be cleaned and stored by aggregate
size in stockpiles for transport to the appropriate
construction sites.

Operation
B. Site Security and Safety
•Copies of all safety and management documents will be made
available to on site personnel and mandatory training for
operations at working area.
•The Area Coordinator should ensure that operations are
consistent with other management plans, terms and conditions
of the issued permits, and safety procedures for the Project.

Operation
• B. Site Security and Safety (continued…..)
• Security signage should be posted at the entrance to the
quarry.
• Audible warning systems should be employed for all
blasting operations at intervals prior to any detonations.
• Blasting and processing operations should be suspended if
incursions into the quarry occur, or if observations of
wildlife in the immediate quarry area are made.

Operation
4. Site Management Measures
The following management activities will be incorporated into
the site operations:
A.Drainage Management
B.Dust Management
C.Noise Management

Operation
A. Drainage Management
•Prior to quarry operation, the hydro-geological
regime around the quarry site need to be defined,
and appropriate direction of flows from site
should be managed to maintain the natural flow
patterns as much as possible.

Operation
A. Drainage Management (continued…)
•Sources of contamination from the
operation that could affect water quality
include dust from blasting and refueling for
equipment.
•Blast residues from explosives should be
managed by ensuring that all material is
ignited during the blasting process.

Operation
B. Dust Management
•The primary sources of dust are blasting, loading
and crushing and screening of aggregates.
•Very little topsoil is not considered a primary source
of dust.
•Minimizing the creation of dust at source.
•Crushing activity should take place as far from
surface water or dust sensitive areas as is practical at
the site.

Operation
• B. Dust Management (continued……)
• Protection from prevailing winds should be
accomplished.
• Transport of material will be subject to speed
limit restrictions to help reduce dust.

Operation
C. Noise Management
•Quarry activities will generate noise from equipment
operation, blasting and crushing and screening operations.
•Noise generating within the area should be restricted to
dwellings, wildlife and other land use that is sensitive to noise
occur nearby.
•Depending on the concentrations and likely effect of the
noise generating activity, the quarry manager may temporarily
suspend operations.

Operation
5. Monitoring
• Operation of the Quarry must be monitored to ensure compliance
Quarry Management Plan and to meet the terms and conditions of
the regulations and land-use permits granted for the Project.
Monitoring will focus on:
• Regular inspection of site-preparation measures;
• Regular inspection of drainage from the quarry site;
• Quantification and quality estimates of the granular resource material;

Operation
5. Monitoring
• Monitoring for presence wild life;
• Monitoring of water quality for changes;
• Reporting requirements as outlined in any
permits.

Closure Activities
• The abandonment of quarries and borrow pits will be
integrated into the overall Project Close Out plan.
However, separate closure plans for every quarry and
borrow pit operations are required.
• Abandonment of the quarry will involve removing all
materials, equipment and infrastructure and reclaiming
the site to self sustaining productive ecosystem as near
its original condition as is achievable and practical.

Closure Activities
Closure activity incorporate the following five individual
activities
1.Abandonment of active quarry face
2.Waste Disposal
3.Stockpile removal
4.Road closure and
5.Soil remediation for contaminated soil

Closure Activities
1. Abandonment of Active Quarry Face
•The active quarry face which terraced during operation to
closely manage issues related to drainage should not be altered
for closure.
•The quarry development should preclude the creation of pits
and depressions as much as possible.

Closure Activities
2. Waste Disposal
•All site waste should be collected and placed in appropriate
containers for removal.
•Pre and post waste removal inspections will be made to ensure
the thoroughness of the program. Waste will include metallic
waste, construction material waste and domestic waste.
•Removable portable toilets disposal should be in accordance to
the waste management plans.

Closure Activities
3. Stockpile Removal
Any stockpiles that do remain should be dealt with as
follows:
•Large rock will be spread out on the landscape.
•Medium sized rock will be used to re-contour affected
areas to re-establish a more natural appearance to the area.
•Small crushed rock will be used to assist in drainage
restoration, and spread on the landscape to re-establish
more natural contours.

Closure Activities
4. Road Closure
• The entire road bed should be removed, and the
material should be utilized in re-establishing
natural contours throughout the area.

Closure Activities
5. Soil Remediation for Contaminated Soils
•A pre-closure inspection of the entire quarry site should be made.
Any contaminated soils, or overburden should be flagged.
•The extent of the contamination should be determined, and the
material removed.
•Hydrocarbon contaminated soils or overburden should be
transported to the nearest land farm.
•Other contamination, such as heavy metals or toxins, should require
containerization for shipping off site to an appropriate facility.

Plant and equipment management in
Material production
Introduction
Construction Materials produced at quarries and
plants: masonry, concrete aggregate, sand,
concrete, asphalt etc
Machineries and plants are required (such as
batching plants, dozers, excavators, loaders, dump
trucks…)
Plant and machineries, if poorly managed on
construction projects, suffers from low utilization rates.
Therefore the principal contractor needs to concentrate
efforts on the removal of non-value-adding activities.

Material production
• A concrete plant, also known as a batch plant
or batching plant or a concrete batching plant,
is a device that combines various ingredients to
form concrete. Some of these inputs include
sand, water, aggregate (rocks, gravel, etc.), fly ash,
potash, and cement.

Material production

Material production
• a place, typically a large, deep pit, from which stone
or other materials are or have been extracted.

Material production
 Plant and equipment Management
Considerable care is necessary when purchasing plant and
equipment of any kind. The person charged with making the
purchase needs to thoroughly investigate the various aspects
identified below.
The successful and profitable operation of plant is dependent
not only on the price paid but also on the necessity to conduct
a critical evaluation of its suitability.
This is an activity that should not be left solely to a plant
department but should involve consultation with the
operational and user personnel.

Plant and equipment management in...
If due consideration is given during consultations
between plant department and operations the benefits
available include:
● Simple installations
● Rapid training of operators
● High utilization with the minimum of ‘down time’
● Longer life of plant (doing the job for which it was
designed)
● Lower operational costs
● Ease of maintenance with the minimum investment in
spare parts.

Plant and equipment
management in
During purchasing plants and equipments one can ensure
an adequate return on investment by paying attention to:
● maintainability
● reliability
● installation and commissioning
● product support
● costs.

Plant and equipment
management in
Down time is the non-operational time of
equipment/plants that results from lack of
maintenance.
Stand by time is the idle time that an
equipment/plant spends because of the reason
that there is no activity to engage
plants/equipment or lack of operators…

Maintainability
The designers of all industrial plant should ensure that
their designs provide:
a minimum maintenance requirement
 rapid fault diagnosis and repair
 low maintenance and repair costs.
Equipment which conforms to these three objectives
has maintainability.
Reliability
This is demonstrated by the length of time between
breakdowns in operational service.

Installation and Commissioning
The signs of an unsatisfactory purchase
usually become obvious during the
installation and commissioning period. This
is the time when plant is delivered and put
into operation.

Product Support
 This includes the following:
• operating, installation and maintenance manuals
• maintenance schedules
• training aids
• special tools
• technical assistance
Cost
• The total cost is the cost of the equipment plus the cost of delivery,
installation, servicing and product support (life-cycle cost).

• Some of the benefits to be obtained through careful
procurement of plant and equipment are explained
below.

Plant and equipment management
in...
Commissioning
 This can be a long process if the purchaser selects the wrong vendor or
incorrect equipment. A competent vendor arrives on site with proof in
the specification that the plant meets set objectives Installation, testing
and operator training should not take long if the plant attains the
required performance and if the technical information for training is
available.
Minimum Down Time
 This is the time in which the plant is not available for production
because of a need for maintenance or repair. Down time can be caused
by a breakdown of plant or by a shutdown period for preventive
maintenance.
Long Life
 The purchasers must assure themselves of the ability of the plant to
attain long service. This is closely linked with ‘reliability’.

Low Operating Costs
A vendor should be asked for predictions of operating costs and its
approach to this problem will indicate whether it has adequately
assessed this before selling its product. Operating costs in each year
could include:
cost of fuel
cost of operating labor
cost of maintenance
cost of down time

• During Operation of plants and equipments procedures that has
to be followed to ensure efficiency in materials production:
 Setting hourly/daily performance standards
Evaluating outputs against standards
Identifying reasons for recorded production
below minimum performance threshold, if
any.
Take remedial measures

Material Production
Activities
Resource required for the production of
materials
expected
Standard
out put per
SPD (8 hrs
in a day)
as per
ERA CMS
standard
equipments Labor material
Type N
o
Type N
o
Select Material
Production
Dozer 1 Operator 1 600-800 m3
Helper 1
Quarry rock
production
Air
Compressor
2 foreman 1 Dynamite
and
blasting
caps
300-500 m3
Stat.
Operator
1
Powderman 1
Wagon Drill 2
Doz Oper. 1
Dozer 1
Helper 1

Performance in material production
• Example: if three dozers (200-300hp) are engaged in
select material production and able to produce 2100
m3 in 12 hrs of production time. Evaluate the
performance of material production crew and
compare it against the standard. If the efficiency is
not satisfactory; list down all the possible reasons
attributable to the underperformance.

Lecture notes Cons 3Mat Magt edited 2016 ed (2).ppt

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