1. The document discusses various aspects of stores management including objectives, centralizing vs decentralizing stores, material procurement procedures, forms, stock control, and stock taking. Key points are planning material deliveries, ordering, checking deliveries, issuing materials, and maintaining stock records. 2. It provides flow charts for material requests and quotations/purchase orders. Forms include requisitions, purchase orders, goods receipts, and bin cards to track stock levels. 3. Maintaining accurate stock records through physical verification is important for accounting, costing, and identifying issues like theft or losses. Periodic or continuous stock taking methods are used.

1. STORES MANAGEMENT

2. Introduction
• The term “Material Management” refers to the
management of activities within an organisation
which deals with the planning,
– purchasing,
– transport,
– storage,
– handling,
– using,
– prevention of waste and such aspects of materials
used for construction.

3. Objectives of Stores
Management
• Supply of the good quality materials for the
work in time.
• To minimise the cost of material, material
movement and material handling.
• Minimise wastage and pilferage.

4. Aspects of stores management
– Material procurement
– Material selection
– Material transport and handling
– Material issues
– Material costing

5. This system can be implemented through
the delegation of responsibilities to a certain
set of people.
• Such responsibilities include
1. Planning material deliveries
2. Ordering materials
3. Checking deliveries on site
4. Processing goods received notes and invoices
5. Planning materials on site
6. Payment for materials
7. Requisitioning of material for trades
8. issue of materials
9. Maintenance of stock records

7. Centralising and decentralising
stores
• Central Stores
– In the case of certain materials, they are
purchased in bulk to secure economies such
as discounts; and advantages for ready
availability of sometimes scarce goods e.g.:
cement received at the central stores.
• Partly Decentralised Stores
– In the case of very big building projects, most
of the matërials are directly brought to the
project site stores

8. Material Procurement and
Purchasing Strategies
• Guidelines
– for government departments - Financial
Regulations.
– to specifications; quality guarantees;
warranties; terms of payment, etc.
– Each organisation involved with a large
volume of purchasing may develop it’s own
guidelines and/or strategies.

9. Material Procurement and
Purchasing Strategies
• Forms and Formats
– Flow chart for purchasing
– Purchase requisitions
– Purchase order
– Supplier Delivery note
– Goods received note (GRN)
– Material Transfer note
– Stock Ledger /Bin Card

10. Material Procurement and
Purchasing Strategies
• Forms and Formats
– Material Buildup sheet
– Record of Material suppliers
– Material requisition schedule
– Stores debit note
– Stores ledger account
– Stores requisition note
– Petty cash – for local purchase

11. Material Procurement and
Purchasing Strategies
• Forms and Formats – Purchase Requisition
Seria
l No
Site no Date
Quantity required and
date
Total
Require
ment
Remarks
File
description of
materials
Unit Quantity
in stock
Ledger
page /
Bin Card
Qty Date
Company Name : ………………………. Form Type :…………….
Serial no :……………..

12. Material Procurement and
Purchasing Strategies
• Forms and Formats – Purchase Order
Item No Quantity ordered Description /
Specification
Price Amount Discount
Company Name : ………………………. PO No :…………….
Purchasing Department : …. Address :……………..
Delivery before :……………..

13. Material Procurement and
Purchasing Strategies
• Forms – Goods Received not (GRN)
Serial
No
Item Code Job Code Descri
ption
Unit Quantity
Received
Unit price Amount
GRN No : ………………………. PO No :…………….
GRN Date : …. Address :……………..
Supplier Code :……………..
Supplier Name

14. Material Procurement and
Purchasing Strategies
• Forms – Material Transfer Note
Serial
No
Item Code Job Code Descri
ption
Unit Quantity
Received
Unit price Amount
Issuing Project Site : ………………………. MTN No :…………….
MTN Date : …. Address :……………..
Receiving Project Site :……………..

15. Material Procurement and
Purchasing Strategies
• Forms – Material Return Note
Serial
No
Item Code GRN Ref Descri
ption
Unit Quantity Unit price Amount
Returned from : ………………………. MRN No :…………….
MRN Date : …. Address :……………..
Return to :……………..

16. Material Procurement and
Purchasing Strategies
• Forms– Stock Ledger / Bin Card
Bin Card No: ………………………. Time Code:…………….
Month Code :……………..
Received Issued Cumulat
ive
Issues
Balance
Date Ref
No
Qty Price Valu
e
Date Ref
No
Job
no
Qty Price Valu
e
Qty Valu
e
Qty Price Valu
e

17. Making the Right Decision
• Establish the overall objectives which are essential or
desirable. (These are classified into MUSTS and
WANTS! and no alternative/option even considered
unless it satisfies the MUSTS).
• Classify the objectives according to importance.
• Establish the alternative choices (options/sources of
supply/different materials).
• Evaluate the outcomes of each alternative.
• Choose the best alternative as the preliminary
decision.
• Re-evaluate the decision and assess the adverse
possibilities (side-effects) of that choice (e.g.:
requiring closer care or supervision in use).
• Set up contingency plans to control the effects of the
final decision (having a stand by arrangement, if a
rather risky supplier fails to deliver in time).

18. Purchasing Procedures
• Purchasing systems may be set up for use
at both Head Office and site.
• Major items may be ordered in bulk,
• Alternatively, (and especially, minor) items
may be requisitioned from time to time by
the Project manager/Site Engineer on
purchase requisition forms.

20. Implementation of
Responsibilities
• Ordering Material
– extracts from B.O.Q;
– extracts from specification;
– reference to British Standards
– detailed or sketch drawings; and
– reference to manufacturer’s literature.

21. Records of Material Received at
the Store
• Date;
• Consignor (Supplier);
• Method of transport;
• Brief description of goods; and
• GRN number.

22. Records of Material Received at
the Store - GRN
a) Date of receipt
b) Consignor
c) Consignor’s Advice Note Number
d) Order No.
e) Vocabulary No.
f) Description
g) Quantity received, undamaged
h) Number and type of packages
i) Method of transport
j) Damage/Shortage report number (if any)
k) Any delivery excess of the quantity ordered
l) Storekeepers’ signature
m) Material Controller’s/Accountant’s/Engineer’s signature

23. Payment for Materials
• Payment for material is made by the
Accountant at the head office after
comparing the documents such as good
received notes and invoices. This is done
in accordance with the pre-agreed
manner. (Part payment or after supplying
the whole consignment or periodically).

24. Stores Accounting
(a) To indicate the value of stores in stock. This
is required when
- preparing profit and loss account
- preparing monthly bills of work
done (material at site can be claimed).
(b) To provide a bases of material costing
(c) To provide the means of operating stock
control by value. (To compare value of
stores in stock with target stock values).

25. Stores Accounting
• The following register and files are maintained
at the stores for stores accounting purposes.
(a) Stores ledger
(b) Bin cards/stores ledger cards register
(c) Personal issue register
(d) Purchase order file
(e) Goods received note file
(f) Material requisition file
(g) Goods return note file
(h) Goods transfer note file

26. Stock Control
• Stock control is the means by which
material of correct quantity and quality is
made available as and when required with
due regard to:
- Economy in storage and ordering costs
- Purchase prices
- Working capital

27. Stock Taking
• Stock taking is the complete process of verifying the
quantity balance of the entire range of items held in
stock. Proper stock taking include:
(a) To verity the accuracy of stock records
(b) To support the value of stock shown in the
balance sheet by physical verification.
(c) To disclose the possibility of fraud, theft or loss.
(d) To reveal weaknesses in the system for the
custody and control of stock.

28. Stock Taking
• Two methods
– Periodic Stock Taking
The whole of the stock is covered at the same
time at the end of a given period
– Continuous Stock Taking
Stock is taken continuously throughout the year
in accordance with a predetermined
programme.

29. Other Aspects of Stores
Management
• Location of the Sites
• Security Aspects
• Site Surplus

30. CE 5250 – Construction Project
Management Assignement
• Based on Illustration of Software do the following.
1. Flow diagram for Material request, Recommendation,
Approval.
2. Flow diagram for Quotations and Purchase order
3. List important parameter of a Purchase order
4. Explain how Purchase order, GRN and Invoices are
linked.
5. Illustrate Bin Card – you must include, Header,
Columns, Stock at start, two GRNs, two Material issues,
one stock adjustment.