Module 2:Resource Management,Construction Equipments,Materials Inventory by Dr.Vinay Kumar B M

Syllabus
3/22/2018 Department of CIvil Engineering,VVIET,Mysuru. 2

What is resource?
“Anything that can be used to satisfy construction needs is called as an
resource”

Types of resources: (4Ms)

Money
“Money management is the process of managing money, which includes
investment, budgeting, banking and taxes”.
• It is also called investment management.
• Financial analysis of a project is divided into:
1.Estimation of capital cost requirement.
2.Source of financing.

The main elements of capital cost include:
• Engineering and project management cost.
• Construction materials, manpower , equipment cost
• Management and supervision during construction.
• Land acquisition including assembly holding &improvement.
• Construction financing.
• Inspection & testing.

Sources of financing
• Equity capital
• Preference capital
• Secured debentures
• Term loans
• Capital subsidy & development loans

Materials
Materials are generally classified into the following three groups:
1. Cementing materials: Lime, Cement, Mortar etc.
2. Solid materials: Stones, Bricks, Iron, Timber etc.
3. Protective material: Paints, Varnishes, Plaster etc.

Time of purchase
• The purchase is mainly depend upon quality specification ,quantity
required ,timing of requirement much in advance.
• Based on this information the purchasing department will locate the
suppliers, place the orders ,procure the materials.
• The indent should generally contain the item code , specification ,
quantity required , & time.

• The indents are generally checked by the store personal.
• Only authorized persons are eligible to the requisition of purchase of
materials as per the delegated powers

Machinery
• Machineries are generally used to reduce the no of labour.
• To reduce time of the construction.
• To increase the effectiveness of the project.

Machinery selection is mainly depend upon
• Weather to purchase or to hire the equipment.
• Purchase is generally preferred when the equipment is needed for the
entire project.
• Hiring is generally preferred when the cost of the machinery is high to
purchase.
• It is better to use the equipment which is available at the construction
site3/22/2018 Department of CIvil Engineering,VVIET,Mysuru. 12

• Use of standard equipment , availability of spare parts.
• Suitability of local labour for operation.

Types of equipments
• Earth moving equipment.
1.Excavation equipment.
2.Earth compaction equipment.
• Hauling equipment
• Hoisting equipment
• Conveying equipment
• Pile driving equipment
• Tunneling & rock drilling
equipment.
• Pumping & dewatering equipment.

Manpower
• Next to agriculture , the construction industry provides maximum
employment.
• There is no job security & the workers are hired when required &
fired when the work is over.
• Legislation is generally necessary for the following reasons:
1. To fix the terms of employment.
2. To provide proper working conditions.
3. To provide social security.

Types of labour
Skilled labour
• Masons
• Carpenters
• Painters
• Electricians
• Plumbers
Unskilled labour.
• Majdoors .
• Beldars .
• Bhisti.
• House keeping labour.
• Helper.
• Material shifting labours.3/22/2018 Department of CIvil Engineering,VVIET,Mysuru. 16

Establishing workers Productivity standards
• The basic equation for determining the workers required for
accomplishing a specific activity or work item is given by:

Where,
• Workers productivity standard is defined as the effort in man-days or
needed for the accomplishing a unit quantity of work ,while working
efficiently but allowing for normal delays and wastage.
• Work quantity of the activity involved is expressed in standard units. In
India, method of measurement of building and civil engineering works is
specified in BIS 1992(28 parts)

• Completion period is taken as working days or hours planned or earmarked to
accomplish the task.
• Workers production norms in the above equation, is expressed in man days or
man hours, category-wise, required for accomplishing the unit work.
• Production efficiency factor is the multiplier used to convert production
norms into productivity standards expected under job conditions at the site.

Workers Production Planning norms
• The workers production planning norms indicate the extent of effort
required in terms of man-hours(MH) to accomplish a unit quantity of
specified work or activity.
• These norms also referred as ‘Workers productivity norms’.
• To illustrate, the workers productivity norms used by construction
company in UAE for estimating and planning their building construction
activities are shown in following table:

Consider a task involving 160m2 of fixing the timber formwork for the roof
slab of a single storey building. The time earmarked for completion is 4 days,
working eight hours per day. If a workers team consisting of two skilled
workers and an unskilled worker can install the fair-face formwork at a rate of
1.252 per team hour then:

• Experienced estimators and planners compile the workers production planning
norms for estimating the manpower requirements.
• In the absence of such data, appropriate norms can be evolved using one or a
combination of following methods:
1. Analyzing the past performance data
2. Abstracting data from published norms
3. Work-studying the actual work process

Analyzing the past performance data
• The long-standing construction firms compile their basic production norms
by analyzing the past performance data of similar works, using statistical
techniques.
• The analysis of each item of work is carried out by statistically averaging
the historical data of output achieved.

Drawbacks of performance analysis of past data
• No two projects are exactly alike, and therefore the past performance
data of various projects have to be critically examined for their
suitability while determining the norms for a given project.
• The construction production output is constantly improving over time
because of induction of better techniques and latest equipment. The
analysis of past performance may not conform to the state-of-the- art.

• Analysis of the past data is useful only if the data available is reliable. The
degree of reliability of such data needs to be ascertained prior to analysis.
• The past analysis must not blindly compound the inefficiencies or the
problems of the past. The actual context in which the past performance
data was recorded should be studied.

Published production norms
• A planner can derive production norms for a project by relating them with
the published production norms of professional institutions like Institute of
quantity surveyors, the builder associations and other corporate and
practicing bodies.
Example: The Bureau of Indian standards has published IS 7272(Part-
I):1974,containing ‘Recommendations for labour output constants for building
work: Part 1,North zone’

Work studying construction process
• Workstudy, using the method study and time study techniques, aims at
finding the optimum method of production with specified resources and
the time required to perform the production tasks.
• It is a specialized field, and the workstudy is carried out by
professionals.

• The method study aims to find an optimum method of execution of work
by minimizing all waste.
• In this, the purpose of study is defined, the method of execution is
recorded, the sequence of work and resources employed are critically
examined ,and areas of inefficiency are identified with the aim of
reducing wastage.

Factors affecting Productivity of Labours in
construction site
Job-site productivity is influenced by many factors which can be
characterized either as:
• Labor characteristics
• Project work conditions
• Non-productive activities

Labor characteristics
• Age and experience of workforce
• Leadership and motivation of workforce

Project work conditions
• Job size and complexity.
• Job site accessibility.
• Labor availability.
• Equipment utilization.
• Contractual agreements.
• Local climate.
• Local cultural characteristics,
particularly in foreign operations.

Non-productive activities
• Indirect labor required to maintain the progress of the project.
• Rework for correcting unsatisfactory work.
• Temporary work stoppage due to inclement weather or material shortage.
• Time off for union activities.
• Absentee time, including late start and early quits.
• Non-working holidays.
• Strikes

Wages of construction workers
• A minimum wage is the lowest hourly, daily or monthly remuneration that
employers may legally pay to workers.
• Minimum wage is the wage that is able to provide not only for bare physical
needs but also for preservation of efficiency of worker plus some measure
of education, health and other things.
• The minimum wage must be paid irrespective of the extent of profits, the
financial condition of the establishment or the availability of workmen at
lower wages.

Fixation of Minimum Wages
• The appropriate government to fix minimum rates of wages in
Scheduled Employment as the provision of The Minimum Wages Act,
1948.
• In case of Industry where Central Government is Appropriate
Government, the Minimum wages are fixed by Central Government.
• In case of Industry where State Government is Appropriate
Government, the Minimum wages are fixed by State Government.

Payment of minimum rate of wages
• Minimum Wages are revised half yearly and notified for a period from
Apr-to-Sep and from Oct-to-Mar.
• In case rate of Minimum Wages is Different for Sate and Central, the
rate whichever is higher as notified from time to time as per the city
classification should be paid.
• Accordingly, We have to revise the rate of Payment to Contract
Workers/Employees.

The objective of this act is to provide:
• minimum wages to workers.
• To stop exploitation of the workers.
• To empower the government to take steps for fixing minimum wages
and to revising it in a timely manner

Minimum rates of wages may be fixed by any one or more of the following
wage periods, namely:
• By the hour
• By the day
• By the month
• By such other larger wage period

Building and Other Construction Workers Act 1996
• Applies to every establishment which employs or had employed ten or
more workers directly or through a Contractor / Subcontractor In any
Building or Construction work.
• Not applicable to building or construction work to which Factories Act,
1948 or Mines Act, 1952 applies.

The BUILDING & OTHER CONSTRUCTION
WORKERS WELFARE CESS ACT , 1996
• The purpose is to collect the Cess on Cost of construction incurred ,
for use of the Welfare of Construction workers who are registered
with the respective act.
• Cess act prescribes payment of Cess @ 1 %

Documents required for obtaining BOCW Registration
• Form-I (Triplicate) i.e. application
• Registration fee
• PF Challan
• Work Order
• List of Director
• Pan Card Copy

The other acts applicable for construction industry is
• The Petroleum Act 1934 & The Petroleum Rules 2002.
• Motor Vehicles Act, 1988
• The Water (Prevention And Control Of Pollution) Act, 1974 & Rules
1975.
• Air (Prevention And Control Of Pollution) Act, 1981

• The Noise Pollution (Regulation And Control) Rules, 2000
• Battery (Management And Handling) Rules, 2000
• Explosive Act 1884 & Gas Cylinder Rules 2004
• The Indian Electricity Act 2003 & Rules 1956

Construction Equipments

Classification of construction equipments

Factors affecting selection of construction equipment
• Use of equipment available with the organization.
• Suitability for job condition with special.
• Reference to climatic and operating conditions.
• Uniformity of type.
• Size of equipment

• Use of standard equipment.
• Country of origin.
• Unit cost of production.
• Availability of spare parts and selection of manufacturers.
• Suitability of local labour for operation

Earthwork Equipment
• Excavation and lifting equipment: backhoes, face shovels, draglines,
grabs or clamshell and trenchers.
• Earth cutting and moving equipment: bulldozers, scrapers, front-end
loaders.
• Transportation equipment: Tamping foot rollers, smooth wheel rollers,
pneumatic rollers, vibratory rollers, plate compactors

Factors affecting selection of earth moving equipment
• Volume of material to be removed.
• Height of the excavation.
• Disposal of the excavated material.
• Distance of excavation site to hauling units.
• Material to be removed from site.
• Type of soil to be excavated
• Duration of project (for excavation)3/22/2018 Department of CIvil Engineering,VVIET,Mysuru. 54

Power shovel

Back hoe

Drag line

Clam shell

Comparison between different types of equipment

Digging Effort
• The digging effort of the equipment depends upon the nature of the
soil.
Example: It is easy to dig in common earth than in stiff clayey soil.
• The typical soil factor which determines the comparative equipment
effort required in various types of the soil can be taken under:

Volume Conversion
• The Volume measure varies with the state of the soil.
• Three states of soil encountered in earth moving operations: Natural
soil, Loose excavated bulk soil and compacted soil.
• The volume of soil in its natural state is referred as bank volume.
• It swells when heaped in loose state after excavation, and shrinks when
mechanically compacted.

The typical relationship for volume conversion of soil into its three states is
given in Table:

Equipment output
• The equipment capability to perform an assigned earthwork can be
determined from on-site actual trials or can be assessed from its past
performance records of operation under similar site conditions.
• The equipments hourly output is determined by multiplying the earth
quantity moved(load) per cycle by the number of cycles per hour.

Example
A front-end loader on a given job moves a load of 1.5m3 of loose soil in
one cycle consisting of loading-lifting –travelling-unloading-return trip-
and ready for loading. If each cycle time is 1.2 minutes, then.

Equipment output/hour for planning purposes can be can be calculated from
haul volume per cycle, and the number of cycles using following formula:

Note

Estimation of Performance Efficiency Factor

Output planning data

Correction factors

Solution

Bull dozers
• Versatile equipment- Essentially a heavy steel blade mounted on the
front of tractor.
• Classification based on:

Bull dozers

Types of bull dozers blade

Application
• Spreading earth fill
• Clearing, opening up pilot roads
• Back filling trenches
• Clearing construction sites

Output of the Dozer
• The ideal output, measured in the bulk volume(loose soil),assumes
dozing speed of 3km/h, maneuvering time of 0.15minutes,easy going on
level ground and dozing of materials(bank) using a straight S-blade.

• The ideal production is corrected to conform to varying conditions as
under:

Earth compaction equipments
• Smooth – wheel rollers
• Sheep – foot rollers
• Pneumatic tyred rollers

Smooth – wheel rollers
• Plain steel rollers
• Self – propelled (5 to 25 tonnes)
• No deep compaction
• Rear wheels are larger in diameter and the front ones are Wider.
• Diesel engine type
• Compaction is by static weight of roller

Suitability:
• Granular soils
• Sand
• Gravel
• Crushed stones

• Hollow steel drum with projected feet mounted at 100 to 200 mmc/c
• Weight - 15 tonnes
• Speed - 25 km/hr
• Compaction is by kneading action
• In convertible rollers the foot plate can be Removed
• In turn foot rollers the individual sheep foot can Be changed
• Suitability: Clay, predominantly cohesive and impervious soil
Sheep – foot rollers

• Consists of a base platform mounted between two axles.
• Tracks of the rear wheel lie in between the tracks of the front
wheel.
• Compaction is by controlling the ground contact Pressure.
• Weight or width of the wheel can be suitably increased.
• Suitability: fine grained and well graded sands
Pneumatic tyred rollers

Production output of Roller Compactors
• The nature of soil dictates the type of compacting equipment required,
and the dry density which can be achieved.
• After the compacting equipment is selected ,its average output can be
calculated as under:

In the absence of actual data, the compacting factor can be assumed as
shown in the Table:

Notes

Motor Graders
“ Motor grader also named as road grader is a self-propelled machine
with an adjustable blade”
• Blade is positioned between the front and rear axle
• Blade is most commonly used for cutting, spreading and leveling of
material.

• Motor graders generally have engines up to 300HP.
• Grading distance of 500 meters and above give optimum equipment.
• For shorter distances, task efficiency gets reduced

Graders output
Graders optimum output for finishing is measured in m2/hour on area
basis or km/hour on linear basis.

Grader speed for various operation is taken as:

Cost Consideration
• The economic use of equipment is related to its employment cost.
• Hourly plant employment cost forms the basis for the cost estimation
of work executed by the plant.
• The Plant Employment cost can be determined by computing plant
owning and operating costs as follows.

Equipment Owning costs
• It represents the cost of the ownership equipment.
• These costs are incurred by the owner whether the equipment is used or
not.
• The equipment owning costs include:
 Depreciation cost
 Cost of Capital invested
 Taxes and Insurances

Depreciation cost
• Depreciation is the loss in market value of the plant over a period of time,
resulting from usage, wear and tear or age.
• There are several methods of calculating the annual depreciation that should
be charged to the project to cover the plant capital cost. These includes:
 Straight line method
 Declining fund Method
 Sum of digit method

Straight Line Method
• The straight line method is most commonly used for depreciation
estimation.
• It pre-supposes that equipment value reduces at a uniform rate over its
economical life period.

Declining Balance method
• This provides means of accelerating depreciation for tax purposes:

Sum-digit method
• It enables charging higher depreciation in the first year and reducing
gradually in subsequent years.

Investment Costs
• The cost cover interest on the money invested in equipment/plant, taxes
of all types, insurances, licenses and storage expenses.
• Rates on these costs vary with owners and locations.
• However these can be estimated based on the prevailing rates at the
project location using the following formula:

Equipment operating costs
The cost of operating the equipment/plant includes:
• Fuel costs
• Routine maintenance costs
• Major repair costs
• Operators costs
• Tyre replacement costs
• Overhead costs.

Fuel costs
• Most of the construction plants/equipments at project sites use
combustion ignition engines as the prime movers.
• These engines requires fuel.
• The requirement of fuel at full load can be approximately estimated
from engine flywheel horsepower BHP rating.

• The load factor depends upon the operating conditions, as the equipment
does not continue working at full load for long.
• The load factor under various operating conditions for some of the earth
moving plants are shown in Table:

Routine maintenance costs
• Maintenance costs includes the cost of lubricating oil, grease, filter,
batteries, minor repairs and the labour involved in performing
maintenance.
• The quantity of lubricating oil required for lubrication can be calculated
from the manufacturer’s manual showing the number of hours after
which the oil changing is needed.

• Depending upon the operating conditions, the oil changing generally varies
from 50 to 200 engine running hours.
• Generally the maintenance cost is approximately calculated as proportion of
hourly fuel cost and is given in the table:

Major repair costs
• These costs vary with the type of equipment, the condition of the
plant, the prices of spare parts, the maintenance charges and the
operating conditions.
• Generally the cost of repairs including cost of spare parts and labour
can be taken as:

• Repair cost vary appreciably, with the age of the equipment.
• The repair cost in the first year of acquiring the new equipment is far
less than say in the fifth year of its operation.
• An approximate year – wise repair cost can be estimated using following
relationship:

Manpower cost
• An equipment requires operators, drivers and helpers for its operation.
• The equipment operators are highly skilled persons.
• The number of persons working on the equipment varies with the type of
equipment.
• Some companies employ operators on a regular basis as operators
generally remain with the equipment even when it is idle.

Tyre costs for wheeled equipment
• It is not easy to forecast the tyre life due to a large number of
interacting variables.
• The tyre manufacturers provide indication of tyre life but these should
be taken as guidelines.
• The tyre life should be assessed by experienced plant engineers. In the
absence of such facility, the following estimate can be used:

Estimation of Tyre life of wheeled Equipment

Construction material management

Introduction
• Materials management is a vital function for improving productivity in
construction projects.
• The management of materials should be considered at all the phases
of the construction process and throughout the construction and
production periods.
• This is because poor materials management can often affect the
overall construction time, quality and budget.

• It is important for planning and controlling of materials to ensure that
the right quality and quantity of materials and installed equipment are
appropriately specified in a timely manner, obtained at a reasonable cost,
and are available when needed.

Definition
“ Material management is defined as planning, identification, procuring,
storage, receiving and distribution of materials”.
• The purpose of material management is to assure that the right
materials are in the right place, in the right quantity when needed.

Functions of Materials Management
The Primary functions Of Material Management are:
• Efficient materials planning
• Buying or Purchasing
• Procuring and receiving
• Storing and inventory control
• Supply and distribution of materials
• Quality assurance

Secondary Functions of Materials Management :
• Efficient production scheduling
• Prepare specifications and standardization of materials
• To assist in product design and development
• Forecasting demand and quantity of materials requirements
• Quality control of materials purchased

• Material handling
• Use of value analysis and value engineering
• Developing skills of workers in materials management
• Smooth flow of materials in and out of the organization

Activities involved in materials management
1. Materials Requirements Planning
2. Purchasing.
3. Incoming materials quality & quantity check
4. Inventory Control
5. Storage
6. Materials Handling
7. Transportation
8. Scrap & surplus disposal

“It is defined as comprehensive list of items which are required for
manufacturing the products and to maintain the plant facilities in working
conditions”.
The term inventory includes Materials: raw, in process, finished packaging,
spares and others stocks
Inventory

Inventory Management
• Inventory Management is primarily about specifying the size and placement
of the stocked goods.
• It is the system and processes which identifies the inventory requirements,
set targets, provides replenishments techniques and it reports the actual
and projected inventory status.

• Inventory management is required at different locations within a
facility or within multiple locations of supply network to protect the
regular and planned course of production against random disturbance of
running out of materials or goods.

Inventory Control
“ Inventory control is a planned approach of determining what to order,
when to order and how much to order and how much to stock so that costs
associated with buying and storing are optimal without interrupting
production and sales”.
• The inventory control system strikes the balance between the loss due
to non availability of the item and cost of carrying the stock of an item.

How to Achieve Inventory Control?
• Purchasing items of the right-quantity, at the right-place and at right-
time.
• Providing a suitable, secure, and sufficient place for storage.
• Developing a proper inventory identification system.
• Maintaining an up-to-date record keeping.

• Making proper requisition procedures.
• To avoid accumulation of work in progress
• To contribute directly to the overall profitability of the enterprise

Functions
•To meet anticipated demand
• To smooth production requirements
• protect against stock outs
• To help hedge against price increase

• To permit operations.
• To provide maximum supply service, consistent with maximum efficiency &
optimum investment.
• To provide cushion between forecasted & actual demand for a material

Module 2:Resource Management,Construction Equipments,Materials Inventory by Dr.Vinay Kumar B M

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