EVALUATION OF THE FACTORS AFFECTING MATERIAL MANAGEMENT IN BUILDING CONSTRUCTION SITES

ABSTRACT

Construction materials usually constitute a major portion of the total cost in building construction project. An essential factor adversely affecting the performance of construction projects is the improper handling of materials during site activities. The aim of this thesis is to assess the material management practices on the construction projects site of in Defense Construction Enterprise by the use of structured questionnaires administered to construction professional personnel of the enterprise.

Literature about   material management was reviewed. Questionnaire were developed, pilot study of the questionnaire was achieved using 15 questionnaires. A total of 126 questionnaire were distributed 121 were received (96%).

The data generated were analyzed using descriptive statistics. 96% response rate was achieved and used for analysis. The study revealed that there are many problems in material management of DCE construction projects. The most important were the public procurement procedure, delay on enterprise’s construction projects, difficulty in delivery of materials, and materials damage .

The study showed that the factors affecting against materials management contributes to delay in  completion time of project such as competence of stock and waste control system on site, competence of material transportation ,competence of estimators , issuing of materials for use  and competence of procurement for  materials . Based on the findings, it was concluded that Materials management practices require a transformation to improve the overall in handling of materials for more efficiency and effectiveness on the enterprise’s construction site. It was also recommended that Material management should be practiced on all sites of the enterprise building construction projects, whether large, medium or small. Competent and experienced personnel with basic managerial skills in material management should be engaged on site as store officer to enhance material management practice.

 

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Construction  industry  is  an  industry,  which  is  involved  in  the  planning,  execution and  evaluation (monitoring)  of all types  of civil works.    Construction industry plays an important role in social, economic & political development of a country. Construction is not only one of the major sectors of an economy but it is also the largest and accounts from 12% to 25% of the GNP of both developed & developing countries.  It consumes the higher percentage of the annual budget of a country; specifically in our country Ethiopia, it covers 58% of the annual budget (Semere, 2006).

Similar  to  the  case with other developing countries,  the Ethiopian construction industry shares many of  the  problems  and  challenges  the  industry  is  facing  in  other developing  countries,  perhaps  with greater  severity. However,   materials  management is  a  major  problem  in  the  Ethiopian construction industry that has important implications for the efficiency of industry due to lack of effective  management  and planning (Asmara,2015)

One  of  the  very  important  sections  that  should  specify  in  the  construction  project management  is managing  of construction  materials  at  construction  projects.  The successful execution  of construction  projects within given cost,  time and  quality,  good handling of construction materials  on  construction  site requires systematic planning and  controlling of the construction works. Construction material constitutes a major cost component in any construction project. The total cost of installed material may  be 50% or more of the total cost (Pataskar, 2013).

A  small saving  in materials  cost,   say  even  5%,   through  efficient  management  of materials,  can  result  in  a  large contribution  specially,  when  competitive  bidding  is  for small profit  margins,  varying  from 3.5%  to 10%  of  the  project  cost  (Chitkara,  1998).

A  research  carried  out  in  Ethiopia  had  shown  that construction  materials  constitute  57% of the  total budget  allocated  for construction works  (Addise,2005).Therefore, efficient procurement and handling of material represent a key role in the successful completion of the work. It is important for the project manager to consider that there may be significant difference in the date that the material was requested or date when the purchase order was made, and the time at which the material will be delivered. These delays can occur if the contractor needs a large quantity of material that the supplier is not able to produce at that time or by any other factors beyond his control. Chan (2002) noted that the project manager should always consider that procurement of materials is a potential cause for delay. The management of construction processes to reduce, reuse, recycle and effectively dispose of wastes has a serious bearing on the final cost, quality, time and impact of the project on the environment.

The goal of material management is to ensure that the materials are available at their point of use when needed hence, efficient   procurement of material represents a key role in the successful completion  of the work. It is important for the contractor to consider that there may be significant difference in the date that the material was requested or date when the purchase order was made, and the time, at which the material will be delivered, thus materials management is a key of project management ( Asmara  ,2015).

Materials management can be defined as a process that coordinates planning, assessing the requirement, sourcing, purchasing, transporting, storing and controlling of materials, minimizing the wastage and optimizing the profitability by reducing cost of material (Baldva,1997)

Materials management  is  defined as the process to  provide right material at the  right place at the  right  time  in the  right  quantity to  minimize the cost of the  project . Materials management is concerned with  the  planning,  identification,  procuring, storage,  receiving  and distribution of material  (Pataskar,2013).

While Eduardo (2002) viewed materials management as the system for planning and controlling all of the efforts necessary to ensure that the correct quality and quantity of materials are properly specified in a timely manner, are obtained at a reasonable cost and most importantly are available at the point of use when required.

Especially, management of construction materials is generally recognized to   be the integrated coordination of materials takeoff, purchasing, expediting, receiving, ware

housing,	proper    utilization and    disposal.       When	these     functions    are     not	properly
managed,	materials shortages, surpluses, and cash	flow problems are likely	to occur.

(Bell ,1987).

Petra (2013) observed that successful materials management requires the participation of all persons involved in a construction process. Materials may deteriorate during storage or get stolen unless special care is taken. Delays and extra expenses may be incurred if materials required for particular activities are unavailable. Ensuring a timely flow of materials is an important concern of materials management.

Lan (2008), opined that the rate at which materials have been squandered on site due to poor management is getting too rampant in our society and if not curbed, it can jeopardize the future of our construction industry. This is particularly true in view of the fact that mismanagement of construction resources (i.e. materials, plants and labor) affects the continuity and profit

margin of such project         and    if    not    checked   can    lead    to    technical      insolvency or

bankruptcy. Therefore, attention must be paid to how materials are been procured, stored and managed in order to achieve perfect work, effective handling of materials, right usage of materials and control of construction resources.

Materials management functions include planning and taking off materials, vendor evaluation and selection, purchasing, expenditure, shipping, material receiving, warehousing and inventory, and material distribution (Narimah 2011). Almost 60% of the total working capital of any industrial organization consists of materials costs. Materials management can only produce what it should with the right quantities of the right material at the right time.

Thus, any improper handling and managing of materials will cause a huge effect on the total project cost, time and quality. There is a need to explore on the area of materials management, the issues relating to materials management problems. The aim of this study is therefore to investigate deeply the material management practices on construction sites of Defense Construction Enterprise.

1.3 Statement of the problem

The construction project of defense construction enterprise reflects various problems ranging from delays on project completion time on most of the enterprise’s projects execution/delivery, substandard work, disputes, to cost and time overrun and decrease on expected project profitability as a result of material shortage and wastages on sites, displacement of materials on sites, as well as poor accounting and security system of the concerned sites. Lack of materials not only causes delays, but a consequent decrease in productivity and resulting to cost overruns.

Lack of effective material management is one of the major causes of this problem. Failure of the project manager to make available materials need could lead to delay. Non-compliance strictly with project bill of quantities, schedule of materials, specifications and construction program in material stock control practice is another contributing factor which tends gradually to decrease profitability of a project also often leads to extension of time respectively.

Besides that, the rate at which materials are being wasted due to improper management is becoming unbearable to the defense construction enterprise projects due to its effect on profit margin and proper usage of material to achieve quality job. Therefore, the overall intention of this study is to assess the material management practices on the construction projects site of Defense Construction Enterprise.

1.4 Research Questions

The following are the research questions as related to this study.

1. What are the practices of materials management in defense construction enterprise?
2. What is the current practice of the DCE’s projects materials management?
3. What are the factors militating against materials management on the DCE’s Construction project sites?
4. What are the measures to be put in place to ensure effective materials management?

On DCE’s projects construction sites?

1.5 Objective of the Study

1.5.1 General objectives of the Study

The general objective of the research is to assess material management practices on construction project sites in DCE with a view to proffering solutions to the identified problems.

1.5.2 Specific Objectives of the Study

The specific objectives of this research are;

1. To study the practices of construction material management in Defense Construction Enterprise
2. To investigate the factors militating against effective materials management on Construction project sites in Defense Construction Enterprise
3. To assess professionals view on the measures to be put in place to ensure effective Materials management in DCE Construction Project sites.

1.6 Definitions

Construction:  the  art  and  science  to  form  material  or  immaterial  objects,  systems  or organizations

Project: a temporary endeavor undertaken to create a unique product, service, or result which have its own starting and ending time.

Planning: answers the questions what is going to be done? How? Where? By whom? and When (in general terms, the project‘s start and end)?

Monitoring:  to be aware of the state of a system and may refer to observe a situation for any changes which may occur over time.

Evaluation:  is a systematic determination of a subject’s merit, worth and significance, using criteria governed by a set of standards.

Engineers: is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics, and ingenuity to develop solutions for technical , societal and commercial problems.

Professionals: Engineers who were graduated in engineering discipline which are civil, Electrical Sanitary, Mechanical or any related with construction works.

1.7 Significance of the study

A major part of professional engineer’s responsibility in building production management entails the selection, purchase, testing, storing and use of construction materials. As noted earlier, materials are a major expense in construction, thus the ability of contractor to manage his team and the flow of supplies are absolutely necessary for the successful project delivery and profit maximization.

This research is significant in that it may help to determine the problems behind proper materials management in DCE’s construction project sites, so as to minimize against project delay and cost overrun. This research may help create a standard method of materials management based on size of construction site and to control cost of contract and materials wastage. It is not only desirable but necessary to undertake careful study of material management.

Furthermore, since proper materials management in the enterprise will benefit the firm in terms of increased profit margin, quick execution and reduce cost of the project. In  addition, this  study  intends  to  provide  some  framework  for  the development  of company policies and rules in the management  of construction materials. This brings the need for an assessment of materials management in DCE’s construction project sites.

This research could also be used as a reference material for others who might be interested to conduct similar studies in the enterprise or other enterprises in the construction industry.

1.8 Delimitation/Scope of the Study

The study was conducted to assess the professionals’ perception on material management practices on the construction projects site of in DCE. The enterprise  has two core and two support process at head office, six road construction, one dam and twelve building projects which are operating at Addis Ababa, Debrezeit, Mekele, Berehale,Dicheto ,Bahrdar and Awash. Due to its number of projects and geographical dispersion, the data collection for the research will be limited to head office, Addis Ababa, Debrezeit , Mekele and Bahirdar construction projects.

The study was conducted only in DCE using self-administered semi structured questionnaire. Hence, it  was limitations  since the study is to be conducted in defense construction enterprise, the results may not be used to generalize and apply to all construction contractors in the country as these contractors are different in organizational structure, type and scope of projects they undertake, technological capability etc. Furthermore, since the study had done by self-administered questionnaire, it was liable to social desirability bias.

1.9 Limitations of the Study

The researcher understands that constraints are expected while doing researches and would like to address them as such. The major constraints faced by the researcher whilst conducting this study were the non-availability of adequately published and documented data about construction material management practice by the organizations which would have been useful if found. The other main constraint was that even the data found it was not adequate

 

EVALUATION OF THE FACTORS AFFECTING MATERIAL MANAGEMENT IN BUILDING CONSTRUCTION SITES

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