MATERIALS MANAGEMENT IN BUILDING INDUSTRY

MATERIALS MANAGEMENT IN BUILDING INDUSTRY

BACKGROUND OF THE STUDY

Material management is a process that may be characterised as the coordination of planning, analysing the demand, sourcing, purchasing, transporting, storing, and regulating of materials, with the goals of avoiding material waste and improving profitability by lowering material costs (Teo, & Loosemore 2021). According to Baldva (1997), materials management is a process that involves planning, executing, and regulating operations in both the field and the office of a construction project. While Eduardo (2002) viewed materials management as the system for planning and controlling all of the efforts necessary to ensure that the appropriate 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, I view materials management as the system for planning and controlling all of the efforts necessary to ensure that the appropriate quality and quantity of materials are properly specified in a timely manner (Theodore, 2022).

According to Khyomesh and Chetna (2011), the cost of labour accounts for between 30 and 40 percent of the direct expenses associated with a project or a facility, while the cost of building materials accounts for between 60 and 70 percent of those expenses. Therefore, effective material procurement and management play a significant part in the achievement of the desired outcome: the successful completion of the task (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021). It is essential for the project manager to take into consideration the possibility that there will be a sizable gap between the date on which the material was requested or the date on which the purchase order was placed and the time at which the material will be delivered (Teo, & Loosemore 2021). It is possible for these delays to arise if the contractor requires a big amount of a material that the supplier is unable to deliver at that time or if there are any other variables that are beyond the contractor's control. According to Chan (2002), the project manager should keep in mind that the acquisition of materials is always a possibility for causing a delay in the project. The management of construction processes to decrease waste, reuse waste, recycle trash, and dispose of waste in an efficient manner has a significant impact on the total cost of the project, as well as its ultimate quality, completion time, and environmental impact (Theodore, 2022). The purpose of materials management is to make certain that building supplies can be located at their respective points of usage whenever they are required. The goal of the materials management system is to guarantee that the necessary number and quality of materials are identified, purchased, delivered, and managed on-site in a timely way at a cost that is affordable (khyomesh and chetna 2011). The scope of waste materials is quite broad, and this waste happens in the industry regardless of the size of the building business. Furthermore, instructions for the handling, storage, and stacking of waste materials are not supplied with the items or delivered in advance to the site (Abdulazeez, 2000).

In the construction industry, materials management refers to the practise of making effective use of materials and tools before to, during, and after the conclusion of a building project (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021). According to Petra (2013), successful materials management involves the engagement of all those who are involved in the process of building. For Unless extra precautions are taken, the materials may be stolen or become damaged while they are being stored (Teo, & Loosemore 2021). If the supplies necessary for certain tasks cannot be located, it is possible that additional delays and costs may be spent. A primary objective of material management is ensuring that the flow of materials occurs at the appropriate times (Shah, 1993).

Thus, Materials management is a crucial factor in project management. The cost of materials is one of the most significant expenditures in construction; thus, decreasing the amount spent on procurement can enhance the chances of bringing down the total cost of the project (Theodore, 2022). During the building process, greater expenses may occur from improper management of the materials. On the other hand, effective management of the project's materials can lead to significant cost reductions. If supplies are acquired too far in advance, it might result in the retention of capital and the accrual of interest costs on any surplus inventory of materials (Wendy, 2006).

According to Johnston (2001), the responsibility for Material Management is often split between the company's headquarters and the building site. At the head office, decisions are made about the selection, price, ordering, and production of schedules and payment accounts. On-site management is responsible for learning how to learn the receipt storage, protection, and use of goods. Because of the high cost of materials, the project could have to be scrapped if its finances aren't handled correctly during the time that the contract is being carried out (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021).

Lan (2008) expressed his opinion in his submission that the pace at which materials are being squandered on site owing to bad management is become too widespread in our society and that if it is not regulated, it can put the future of our construction sector in jeopardy. This was lan's contention. This is especially true when taking into consideration the fact that poor management of construction resources (such as materials, plants, and labour) has a negative impact on the continuation of such projects as well as their profit margins, and if it is not addressed, it can eventually result in technical insolvency or bankruptcy (Teo, & Loosemore 2021).

Therefore, in order to accomplish excellent work, effective management of materials, correct consumption of materials, and control of building resources, attention must be paid to how materials are acquired, stored, and managed (Theodore, 2022).

This, explains the reason why Johnston (2001) noted that materials management begins with planning and estimation, and that these can be accomplished through proper site co-ordination measures of reducing wastes, the location and security of materials on sites, the procurement of quality materials as being specified, and effective administration of site together with quality control (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021).

Lee and Donald (2001) observed that the problem associated with the absence of proper materials management on construction sites could be wastage of resources, resulting in contract costs that are higher than the budget sum, reduction of profit margin of the contractor, ineffectiveness of project handling, reduction of output, etc., and that if these are not properly taken care of, it could be disastrous for the firm (Teo, & Loosemore 2021). In addition to the careful planning of materials required by the builder, it is to the builder's advantage to foster a good relationship with the suppliers, many of whom will have been selected due to their fulfilment of orders to the standard required and meeting of delivery times over a number of years. Without an adequate supply of raw materials, no construction project can begin and prove effective (Pheng and Chuan, 2001). In addition to the builder's own suppliers, the architect may stipulate that a particular supplier must be used; such suppliers are referred to as "nominated suppliers." Regardless of the type of suppliers that are to be used, the information that is passed to them and received from them is the same, and with the exception of the smallest businesses, this information and document will pass through the buyer. (Yang, et al., 2003). Additionally, the buyer is responsible for ensuring that the architect receives any samples from the suppliers in the very early stage of the procedure for the contract, in order to reassure the architect regarding the relative advantages of the material. For instance, it may not be able to receive the required material in time in connection with the building programme; nevertheless, the architect may decide on a different form of construction or design in order to avoid delays by collecting samples of similar items (Theodore, 2022). For the purposes of the estimating phase of the project, a buyer will, in the majority of instances, send inquiries to two or three suppliers or, in some instances, directly to manufacturers for items such as sand, gravel, brick, block, cement, and the like, in order to obtain information regarding prices, delivery dates, and other relevant details. The estimator will be able to make use of the gathered figures in the process of preparing the tender figure as a result of this (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021).

A card index system is often employed because it enables the purchasing or procurement department to maintain a continual watch on the supplies and enables rapid checks to be made regarding the delivery or non-delivery of items. These cards have all of the pertinent information, and it is recommended that you store them in chronological order for ease of reference. Even when bulk deliveries are scheduled according to the programme, if extra time and effort are taken to write out a card for each delivery, there is a much lower chance of missing the delivery date because regular checks will be done on the file. This is true even when bulk deliveries are scheduled according to the programme (Vieira, Pasa, Borsa, Milan & Pandolfo, 2021). The information will be entered on the card in the order in which the items are received. Management procedures, such as planning, organising, executing, monitoring, and regulating, may be utilised to successfully complete construction projects. These management processes are included in the previous sentence (Ahuja et al 1994 in Al Haddad 2006). Controlling and managing the interconnected aspects of time, money, and quality over the entirety of any construction project is an absolute need. The efficient management of all available resources is necessary for the successful execution of projects. According to Prabu and Baker (2006), materials management is a method for achieving higher levels of productivity, which should be converted into lower levels of operating expenses. According to Ademeso and Windapo (2008), ineffective planning and control of materials, a lack of materials when they are needed, improper identification of materials, re-handling, and inadequate storage lead to decreases in labour productivity and overall delays, both of which can indirectly lead to an increase in total project costs. These expenses may be reduced by efficient management of the resources, which also makes a substantial contribution to the overall success of the project (Teo, & Loosemore 2021).

The tasks of planning and taking off materials, evaluating and selecting vendors, purchasing, spending, shipping, receiving items, warehousing and inventory, and distributing materials are all included in the functions of materials management. (Narimah 2011), Almost sixty percent of an industrial organization's total working capital is comprised of the expenses of its raw materials (Dey, 2001). The management of materials can only create what it should if it has the appropriate quantity of the appropriate material at the appropriate time (Arnold and Chapman 2004). Therefore, any carelessness in the handling and management of the materials would have a significant impact on the overall cost, time, and quality of the project. There is a pressing need to investigate, in the field of materials management, the challenges that are associated with materials management.

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