Materials management in large scale projects

Abstract

The potential available for improving the existing materials management in large scale projects undertaken by Galfar is tremendous. It will be very crucial for the top management to understand and identify these potentials and device policies and procedures to reap those benefits. THE EXISTING SYSTEMS AND PROCEDURES A comprehensive study and documentation of the materials management practices in the company was initiated. A further enhanced study was proposed which would help in developing a materials management manual for the company. The document thus developed can serve as a quality document and as an input to the ERP package being implemented in the company. SURVEY AND INTERVIEWSA questionnaire was developed on issues related to materials management in the company and personal interviews were conducted to study project managers concerns and suggestions towards these issues. It was interesting to note most issues had practical solutions suggested in-house by project managers. A formal open house forum conducted regularly for project managers on materials management would prove fruitful in the long run. LEAD-TIME ANALYSIS For the first time in the company an analysis on lead-time for project materials was conducted the major constrain in this study was the limitations in the existing computer system to do analysis and generate useful reports from the database. The study showed long lead-time for material was common and particularly for maintenance jobs it was above threshold. Independent procurement cell for projects was suggested and executing projects on a matrix structure would eliminate most of the time consuming non-value added activities. The ERP system being implemented could use some of the report formats and analysis tried out in this study integrating various departments and site office database. A further study of lead-time across all jobs and time period can throw more light on this lead-time management. This report can serve as a base to initiate further studies and justify allotment of resources towards materials management in the company. A sincere effort from the top management to develop core competence in materials management for large-scale projects can help the company face the challenges of the millennium confidently.