ASSIGNMENT

ON
PROJECT PROCUREMENT AND MATERIALS MANAGEMENT

(PGPM-13)

By

MD IRSHAD ALAM
(Registration No: 214-05-31-50011-2163)

SUBMITTED TO
SCHOOL OF DISTANCE EDUCATION
NATIONAL INSTITUTE OF CONSTRUCTION
MANAGEMENT AND RESEARCH CENTRE
25/1 BALEWADI, N.I.A POST OFFICE
PUNE 411045.

ASSIGNMENT TITLE
You have been appointed as manager of materials management department of a
construction firm. The company is asking you to prepare a manual on procurement
of materials. Prepare a manual on procurement of materials by covering the
following.

1. Factors to be considered for purchasing

2. Source Selection
3. Selection of Suppliers
4. Scrutiny of offers
5. Final purchase
6. How to develop purchasing policies and procedures
7. Formulate strategies for improving efficiency of procurement of materials
department.

The project:
Project:

Construction of International Airport

Location:

30Km away from the city

Scope of work:

100m width of Road construction for international airport 30 km away from city

Cutting and dozing of 100,000 cum of earth. Average height 0.75m

Transportation of 20,000 cum of surplus earth from site to dumping place 3km away from site.
Filling of 80,000 cum in landing strip.

Bringing of 3000 cum of sand from 20 km including spreading and leveling at site.

Procurement of 1, 50,000 lit of Bitumen from Bongaigaon Plant in Assam.

Description of Equipments:
Hauling equipments
TRACTOR:
Tractors have many uses as construction equipment. Use of this, primarily may be to pull or
push goods, they are also used as mounts for many types of accessories such as front end shovel, rippers,
bulldozers, side brooms, hoes, trenches and others. There are sizes and types to fit almost any job for which
they are usable. Tractors may be divided into 2 major types crawlers and wheels.

DUMPERS:
Dumper is a heavy duty truck with a strongly built body which is hinged at back and is fitted
with a hydraulic ram on the underside to lift the front of the body and tilt it backward into the dumping
position. A tailgate may be fitted at the rear of the body or the body may have a chute like shape in the rear
with inside corner rounded and sides tapered to facilitate dumping which is most popular now-a-days. Useful
life of dumpers is generally 8-12 years i.e. 10,000 15,000 hours depending upon their capacity. The life is
also expressed in terms of kilometers i.e. 200.000 kms.

Earthmoving machines:
These equipments are used to cut the earth or trees, rocks and then move them to a distance
required. Equipments like bulldozers are also used for leveling the ground, cleaning land of timber, stumps,
spreading earth fill etc. These equipments are very common of all the earth moving machines, a bulldozer is
most useful and most the project sites require its use in one form or the other.

BULLDOZERS:
Bulldozers are basically a pushing unit consisting of a tractor either crawler mounted or
wheeled to which a cutting blade is mounted at the direction perpendicular to the direction of travel. There is
no difference between a bulldozer and Anglo dozer except that the cutting blade is set at an angle with the
direction of travel. The size of the bulldozer is indicated by the length and height of the blade, its shape and
capacity. The size of blade varies from 1.7mX 70 cm. (height) X0.7m3 (capacity of blade) to
3.38mX1.14mX3.7m3.Working of dozer consists of lowering front blade to the ground. The moment dozer
drives, it cuts and pushes earth collected in blade to a desirable distance.

Compaction Equipment:
TANDEMROLLER
There is also a smooth wheeled roller with to roller wheels of approximately the same widthone at the front and other at the rear. Compaction with this type is better. This roller is better for rolling
finishing surfaces as it produces smooth and even surface.

Bitumen Plant:
BITUMEN BOILER:
This is used for heating bitumen from drums. Boiler is fitted with a fire box, fuel tube and
chimney. Full asphalt drums are lifted to the top where the contents are emptied and heated by flame or
combustion gasses. The boiler is mounted on the wheels and can be towed from one location to the other.

BITUMEN SPRAYING EQUIPMENT:

Bitumen boiler is fitted with the pump with strainer in the suction pipe. The pump is operated
either by hand or mechanically. On the delivery side there are flexible pipe spray bars and spray nozzle. The
rate of application of bitumen can varied by adjusting the height of the spraying nozzle above the ground.
Uniformity of spraying is control by the angle at which the spray bar is kept.

BITUMEN TANKER:
When bulk bitumen is to be transported, tanker is used. It is mounted on a truck or a trailer.
Capacity of the tanker may range from 5000 to 15000 liters. Oil fire burners are used to maintain the
temperature of bitumen during transit. Bitumen Pressure Distributor: This equipment is used when a specified
quantity of hot bitumen is to be sprayed uniformly for grouting or surface dressing. It is used with
bulk bitumen supply.

ESTIMATING AND REQUIREMENT OF THE

EQUIPMENT :
Equipment on roadwork (or on any work) has either to be purchased, obtained on hire or transferred
from some other project. In either of the cases a fairly accurate estimate of the requirement of equipment has to
be done so as to ensure that expenditure on equipment is not wasted. This needs planning well an advance.

Factors to be considered are:

1. What is most desirable sequence of operations involved in the work?
2. Which are the operations are to be performed by the machinery?
3. In case some or all equipment is to be transferred from other projects how the programmers of
both project to be arranged so that there is no undue to and from movement of the equipment and
at the same time the work is completed in optimum time.

Data required:
1.Quantities of items of work: Road project is sub divided in operations
like(A)Earthwork (B)Aggregate production(C)Transporting Aggregate to road(D)Compaction(E)Wear
ing surface- Concrete/ Bituminous surface etc. Quantities of items are worked out.
2. Period of completion of the project. Normally road work has to be completed in stipulated period
particularly when the work is to be completed on contract. In such cases the duration of the constituent
operation has to be adjusted taking in to consideration the activity interrelation and overall period of
completion. While fixing of activity duration due allowance must be made for bad weather, monsoon,
and loss of time due to shifting of equipment, break down, repairs and maintenance of equipment.
3. Normally no work is possible for 3 to 4 months in a year due to monsoon. Further considering
weekly holidays normally 25 days could be considered to be available for working. Though a working
day is considered to comprise 8 hours, a part is spent in inevitable operations like shifting, waiting etc.
thus in about 200 days available, working hours could be about 1200-1500.

4. From above a fair estimate of requirement of equipment can be done. Over the above this suitable
provision (to the extent of 10%) is done as stand by to take care of break down or Unforeseen
circumstances.

MACHINERY REQUIREMENT FOR THE PROPOSED

SCOPE OF WORK ALONG WITH DETAILED
CALCULATIONS:
Cutting and Dozing:
Volume of Total Work: 1, 00,000 cum of earth having average height of 0.75m.
Time assumed to complete the excavation and dozing work is 60 days. Considering 25 working days in a
month, total available actual working days shall be 50 days.
Therefore, Quantity/day to be achieved = 1, 00,000 / 50 = 2,000 cum.
Considering Output capacity of each dozer as 50 cum/hr, and taking working hours daily as 8 hours/day, each
cutter/dozer would give an output of 400cum/day.
To complete 2, 00 cum/day, total number of cutter/dozer required is 5 nos.
Provision for Breakdown/ maintenance = 1 no.
Therefore total number of dozers deployed = 6 nos.

Excavation:
Number of Excavator for sub-base of landing strip, aprons.
For Transportation of Surplus Material:
Transporting Surplus earth = 20000 cum in 30 days. Actually 25 working days i.e. 800 cum/day
Considering truck capacity of 5 cum,
No. of tipper truck trips/ day = 800/5= 160
For 3 K.M. lead, 1 truck can make 10 trips/ day.
Therefore no. of trucks required = 16nos.
For breakdown/ preventive maintenance = 2 nos.
Therefore total number of trucks required = 18 nos.

Filling of earth in Strip:

For Filling of 80,000 cum of earth in landing strip:
Filling of earth = 80,000 cum in 25 days i.e. 3200 cum/day.
Considering capacity of scraper is 10 cum.
Required scraper lead /day =3200/10=320
For one strip, one scraper can give 138cum/day.
Therefore no. of scraper required = 2 nos.
For breakdown/ preventive maintenance = 1 nos.
Therefore total number of scraper required = 3 no.s

Procurement of Sand:
For procurement of 3000cum of sand in 40 days;
6 trucks out of above 18 trucks are sufficient.

Compaction of Earthwork:
For compaction of earthwork of roads 2 nos. roller (10 T each capacity),
Shall be required
Number of bitumen paver required = 1 no.
Number of Bitumen roller required = 1 no.

Procurement Schedule of Bitumen:

Procurement of 1, 50,000 from 60th day of starting of work. Bitumen to be obtained from refinery at
Bongaigaon in Assam. Lead time on site is 45 days. Storage facility available on site is for 50,000 liters.

Total bitumen requirement = 1, 50,000 liters.

Storage capacity at site = 50,000 liters.
1st requirement is on 60th day: margin of 2 days i.e. 58th day.
Lead Time = 45 days.

Order day

Quantity

Receipt

Opening

(Ltr)

Day

Balance

Addition

Closing
Balance

(Ltr)
13th day

50,000

58th day

50,000

nil

50,000

23rd day

40,000

68th day

10,000

40,000

31st day

40,000

76th day

10,000

40,000

50,000

35th day

20,000

80th day

30,000

20,000

50,000

50,000

Therefore the total quantity of 1, 50,000 liters of bitumen required at site could be procured by the 80th day of
starting of work.
Therefore the first order to be placed on 13th day for 50,000 liters.
Therefore the Second order to be placed on 23rd day for 40,000 liters.
Therefore the third order to be placed on 31st day for 40,000 liters.
Therefore the fourth and the final order for 20,000 liters to be placed on
35th day.
Excavator with bucket Komatsu PC 200 productivity 600 m3/per day considered.

Materials Management:
ROL:

Reorder Level = Lead Time in Days Daily Average Usage

Lead time is the time it takes the supplier or the manufacturing process to provide the ordered units Lead time
is the time it takes the supplier or the manufacturing process to provide the ordered units.
Daily average usage is the number of units used each day.
If a business is holding a safety stock to act as buffer if daily usage accelerates the reorder level would increase
by the level of safety stock.
Reorder Level = Lead Time in Days Daily Average Usage + Safety Stock

Economic Order Quantity (EOQ)

Economic order quantity (EOQ) is the order quantity of inventory that minimizes the total cost of inventory
management.
Two most important categories of inventory costs are ordering costs and carrying costs. Ordering costs are
costs that are incurred on obtaining additional inventories. They include costs incurred on communicating the
order, transportation cost, etc. Carrying costs represent the costs incurred on holding inventory in hand. They
include the opportunity cost of money held up in inventories, storage costs, spoilage costs, etc.
Ordering costs and carrying costs are quite opposite to each other. If we need to minimize carrying costs we
have to place small order which increases the ordering costs. If we want minimize our ordering costs we have
to place few orders in a year and this requires placing large orders which in turn increases the total carrying
costs for the period.
We need to minimize the total inventory costs and EOQ model helps us just do that.
Total inventory costs = Ordering costs + Holding costs
By taking the first derivative of the function we find the following equation for minimum cost
EOQ = SQRT(2 Quantity Cost per Order / Carrying Cost per Order)

BIBLIOGRAPHY / REFERENCES

 Heavy Construction Jagman Singh

Book Complied by NICMAR on Construction Equipment Management
Internet