At Construction site - Material management Practice By Ankit Goyal

1. Power Sector Western Region
Material Management
at Sites
Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence
Power Sector Western Region
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ANKIT GOYAL

2. MM and MH – the Relevance
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Why is MM & MH function important ?
1. Every Project is to be Commissioned & hand over to
Customer by a scheduled date - Any erection activity can
take place smoothly only if the correct material, in correct
quantity and in acceptable quality within desired time
limit is made available.
2. Hence, each E&C activity is affected by the quality of
Receipt, Handling, Care during storage (including
Preservation), Issue and proper accounting processes of
each product.
3. The consequences of substandard MM & MH, eventually
are severe.
4. Hence, MM is the stepping stone for success at Project
sites.

3. MM and MH - in WR Today
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How we are doing in MM & MH, currently
1. Crisis Management : Driven by the circumstances & the
demands of the internal/ external customers.
2. Procedures’ knowledge : Many of us have not read the
DP:SOX.
3. Half-hearted involvement : Work with feelings of
despair, stuck, unrewarding prospects.
4. Without Accountability : Lack a sense of ownership,
also viewed as inexperienced in MM functions.
Always have Positive Attitude and Conviction

4. MM at Sites – its Role
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How it should be done
( Follow instructions as per the DP:SOX – latest revision)
The MM role is primarily SERVICE oriented, all the
time we deal with the (internal) Customers, to achieve
the ultimate target of Project completion
Be Polite but FIRM
MM Dept. has a host of supports – Tap these resources
(CM, other HODs, staff MM Agency, locals, HQ.
Purchase, FEX, BHEL Security agencies, Customer,
local Police, etc )
Raise the level of the issues

5. Gearing up for MM at Sites
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Get to know these
 MM & MH Agency for execution of the MM activities.
 (refer Contract Agreement)
 Enabling Works agency & Scope of work – Ensure MM requirements
are accounted in Plans.
 Your customer – their Reporting requirements.
 Erection Agencies of BHEL (with authorization letter).
 Local Transporter Offices / Good-own & Railways office.
 Insurance Company officials & Insurance Surveyors. (Insurance
Policy doc.)
 Customer’s Security Officers – Understand gate entry system.
 Local Police Station.
 Nearby Authorized Weight bridge. (collect calibration certificate)
Exercise Restraint and Caution

6. Preparations for MM
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Organize yourselves
 Study DP:SOX: 04, ~05, ~06, ~10 and SP, DP formats.
 Study the Contract Agreement and mark & review all
operational clauses with agency.
 Assess the required qty. & procure/arrange Materials
Storage Racks, Tarpaulins, sleepers & other infrastructural
facilities.
 Co-ordinate with FEX, Nagpur closely and extend
cooperation as per WI: SOX:03: Upkeep of BHEL assets.
 Reporting regularly. (Material receipt, MDR, Insurance
status)

7. Preparations for MM
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Step Wise Check List
Material Receipt at Site
 Driver with LR papers to report at BHEL Office.
 Paper to be checked (Consignee Address, Work Order No., Original LR, Original
Invoice, Original DFT copy and packing slip).
 Please ensure Gate Entry by customer security.
 If all papers found ok then based on the Supply of unit DB number to be issued.
(preferably DB no. should be common for all manufacturing units, but it is
difficult to manage in bigger projects)
 After DB Entry, Papers to be handed over to unloading in-charge.
 Unloading in-charge will put the Location, type of unloading and preventive
action.
 Paper Handover to unloading supervisor - Accordingly the unloading will be
done & Unloading report will be submitted. Unloading In-Charge will verify the
unloaded material with proper stacking.
 In case and damaged/Shortage is observed in material, before unloading, the
photograph has to be taken before and after unloading of material in presence of
Insurance In-Charge.

8. Preparations for MM
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Step Wise Check List
Record Keeping at Site
 After unloading, material Receipt to be given to Driver on one copy of
LR.(things to mention in receiving – Vehicle no., Type of vehicle, Driver name,
Driver License, no. of packages & Condition received)
 All papers will be handed over to Record keeping In-Charge.
o DB Entry (Hard & Soft) and Stock Entry to be maintained.
o MRC to be prepared (if applicable).
o SRV/ISTV to be prepared (if applicable).
o Photocopy of complete set to be taken for record keeping.
o MDR rising in case of any shortage/damage/wrong/Excess found.
o RIV/CRIV/CCIV/RSV etc posting in Stock register to be ensured.
o Out gate pass to be prepared and record to be maintained.
o Monthly MDR report, Unloading report & verification report to be prepared.
o Monthly progress review (F-14) to be prepared.

9. Preparations for MM
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Step Wise Check List
Material Verification and issue at Site
 Than Paper will be handed over to Verification In-Charge
o Detail material verification will be done within 7 days from the receipt of material.
o Verification of Box Materials, repacking of material and storage as per instruction
at open or covered shed to be ensured.
o Receipt Inspection Report to be prepared.
o In case of shortage/damage/wrong/Excess material found, MDR to be ensured.
o MRC to be cleared.
o Material tracing at the time of Issue to be insured.
 Material Issue to Contractor – Material Issue
o Number punched RIV/CRIV/RSV/CCIV book to be issued to contractor.
o RIV to be prepared before material identification, Material will be issued
accordingly. No. of boxes/loose/gunny bag issued to be mentioned at the back
side of RIV/CRIV/CCIV.
o Clause no. for free/issue & Reason to be ensured in case of CRIV.
o Reason for cannibalization to be ensured on CCIV.
o All RIV/CRIV/CCIV/RSV etc to be handed over to Record keeping In-Charge.

10. Preparations for MM
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Step Wise Check List
Insurance activity at Site
 Insurance In-Charge activity
o Insurance Claim intimation to be raise immediately at the time of loss
observed. Intimation to Insurance company and cc to all concern
including concern manufacturing unit.
o Insurance claim survey to be organizes.
o Take necessary photographs.
o Necessary IOM for replacement supply to be raise.
o Collect Incident report.(FIR in case of Theft Loss).
o Collect Cost certificate from Manufacturing Units.
o Claim to be close/final claim bill to be raise.
o Insurance claim record to be maintained.
o Monthly Insurance claim status report to be prepared.

11. Right Attitude for MM Role
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Do’s & Don’ts for MM persons
o Build Leadership skills rather than a task master.
o Build credibility by showing involvement in MM activity.
o Empower subordinates – hear their viewpoint & account while
taking decisions.
o Set clear tasks/ roles, motivate staff to meet their goals.
o Take proactive steps to meet challenges.
o Treat everybody with courtesy and respect.
o Instill Discipline among the staff with Stringent Rules.
o Maintain absolute INTEGRITY.
o Do nothing which is unbecoming of a public servant
o Avoid act/s of ‘misconduct’ where
“Misconduct” refers to negligence, insolvency, moral
disobedience committed by an employee during
employment”
Be Fair and Firm

12. Getting Started … MM
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PLANNING & ORGANIZING THE MATERIALS’
MANAGEMENT
Plan the activities and organise as below:
1. Draw the Material Storage Layout (with proper nomenclature:
Each Area Approx 1000 Sq. M). Nomenclature each Storage
Shed, Inside Bays, Material Storage Racks Sub-locations.
2. Mark all location by Display Boards & Layout Board.
3. Maintain a Control Register of Issues, Return/ Deposit of each
Key with Key S. No., Shed/ Gate Location, (all keys must come
back by the close of day).

13. Material Handling at Warehouse
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Materials’ Handling activities at Stores entail a varied experience
to all facets of handling materials, viz.
1. Proper usage of Hydra, Cranes, w.r.t. Load Charts, manual
handlings with care desired
2. Capacities (an empirical information) of Steel Wire Ropes, their
eyelets
3. Adequate Skilled manpower in required numbers so as to meet
necessary pace of work progress and desired quality
4. Ensuring maintaining essential inventory of spares, fuel,
consumables for the quickest possible restoration
5. Arranging Preservatives, Tarpaulins etc. well ahead of need
6. Ensure appropriate mobilisation by the MM agency e.g.
Cranes, Hydra, manpower- their scope & under MMS including
setup for vegetation removal for prompt action

14. Material Handling at Warehouse
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15. Material Handling at Warehouse
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16. MM GLIMPSE
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Inside View of a Closed Shed : P Type

17. MM GLIMPSE
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Stacking of Material

18. MM GLIMPSE
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Stacking of Material: MS
Packing Materials/ Scrap

19. MM GLIMPSE
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Stacking of Material

20. Security arrangements at Sites
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A) SECURITY GUARDS (SGs) TO ENSURE
Security Guards should always wear their uniforms (on duty).
Be punctual to report on duty, No post to remain UNMANNED ever.
Issue vehicle Pass & Manpower Pass with proper serial no.
Daily physical attendance & parade.
SG should have their own safety system Such as patrolling near boundary in every 2 hrs.
etc.
Ensure timely switching on/off of lighting in BHEL open store yards & sheds’ area.
SG should Seize the vehicle /crane if their operator is found to tamper/damage BHEL
property.
Submit daily situation report personally to BHEL.
In case a thief/miscreant/suspect is noticed, to be detained immediately, call BHEL
official(s) later submit detailed report.
Lodge FIR in case of theft incident(s) & Coordinate with Local Police/ CISF
Allow exit of material only on receipt of duly completed and signed issue vouchers and
with clearance from store assistant after verification of material qty.
Providing support to store assistant in maintaining discipline.

21. Security arrangements at Sites
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SECURITY AGENCY TO ENSURE: PF to be remitted regularly and proof with Form 12A to
be submitted with bill. Also, during April every year submit Form 3A & 6A which
shows individuals’ a/c of PF. To ensure Minimum wage disbursement. Service
Charges to be remitted and proof to be submitted with bill.

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