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SCRIBE12373

Course No. : NCP24/25

Title: Materials and Equipment Management

Assignment No.: Three

I.

SCOPE

OF

WORK

&

DESCRIPTION

OF

EQUIPMENTS

CONSIDERED:
Scope of Work:

1. Cutting & dozing of 100,000 m3 of earth. Average height is 0.75m. 2. Transportation of 20,000 m3 of surplus earth from site to dumping place 3 km away from site (including spreading). Filling of 80,000 m3 of earth material in landing strip. 3. Bringing in 3000 m3 of sand from 20 km (including spreading & leveling at site). 4. Procurement of 1, 50,000 liters of bitumen. Duration of work is 30 days from 60th day of starting of work. Bitumen to be obtained from refinery at Bongalgaon in Assam. Lead time up to site is 45 days. Storage facility available at site is 50,000 litres tank.

We have to estimate total cost of work & plan of 1. Equipment planning Procurement & Deployment. 2. Ordering & replenishing of bitumen.

Description of Equipments:

Earthmoving machines: Equipments used in heavy constructions especially civil engineering projects, which require moving millions of cubic feet of earthwork. Earth moving machinery is divided in two groups according to function are, 1) Excavate the earth 2) Removal of the earth material.

On irrigation projects, depending on type of work & nature of quarry material, the E.M. is grouped as,

i. ii. iii. iv.

Tractors, Scraper unit. Excavator, damper unit. Loader, tipper unit. Truck with manual labours.

Therefore, from above description about earth moving machines, we will consider excavator, damper unit for cutting of earth work in our project.

Apart from this, we will consider the dumpers or tippers unit for transportation of earth material from site to dumping area.

After that, for leveling of dumping area dozer is necessary. So, for this project, we will consider the crawler dozer so that it can work in loose & muddy soils also. Crawler dozer can also operate in rocky formation without damage.

Then, for spreading of earth material in landing strip we will consider crawler dozer. For compaction & leveling of sand over that earth material we will take vibratory roller into consideration.

Vibratory roller: These rollers exert both static & dynamic pressure due to vibration. It is believed that this roller gives almost double compaction of the non-vibratory roller of the same weight. The roller is effective on non cohesive soils.

That means following is the machinery & equipments list which we considered for this project are, Sr. No. 1 EX-100 ( Tata Hitachi ) 2 For cutting & dozing of earth material. 2 Tauras dumper ( Ashok Leyland14 m3 capacity) 3 Crawler dozer ( D-41 L & T Komatsu) 4 Vibratory roller ( L & T- 752 ) 2 For leveling of sand layer. 2 6 For transportation of earth material. For spreading of earth material. Machinery/ Equipments Numbers Use

Let us assume all above machinery & equipments are owned by the company.

II.

CALCULATION FOR PER DAY WORK:

According to given data,

Total quantity of cutting = 100,000 m3

Width of landing strip = 100 m

Average height of cutting = 0.75 m

Therefore, average length of cutting = 100,000 / (100 * 0.75)

= 1333.3 m (approximately)

Total duration of the project = 100 days.

Let us consider Sunday as a rest & maintenance,

Therefore, total Sundays = 3*4 = 12 days

Let us consider 2 days as holidays for festival.

Therefore, total working days = 100-12-2 = 86 days.

Let us consider day & night shift both for 1 working day.

Assume, working Hrs per shift = 10:00 Hrs

Deducting 10% for break down period, Therefore, working Hrs per shift = 10 0.1*10 = 9:00 Hrs.

That means for 12 Hrs shift, we considered 9 Hrs as a working Hrs, 1 Hr for rest, 1 Hr for maintenance & 1 Hr for any type of breakdown.

Therefore, working Hrs for 1 day = 2 * 9 = 18 Hrs

&

Total working Hrs for the project = 18*86 = 1548 Hrs.

Therefore, from above calculations,

Total planned no. of working days = 86 days.

&

Considering 18 Hrs per each working day,

Total no. of working Hrs for whole project = 1548 Hrs.

Following are the activities involved in the whole project, P = Cutting & dozing of 100,000 m3 of earth material. Q = Transportation of 20,000 m3 of surplus earth from site to dumping place which is 3 km away from site (including spreading). R = Filling of 80,000 m3 earth in landing strip. S = Bringing in 3000 m3 sand from 20 km (including spreading & leveling at site). T = Procurement of 1, 50,000 liters of bitumen. Bitumen to be obtained from refinery at Bongalgaon in Assam. Lead time up to site is 45 days.

Calculation of duration for each activity: 1. Cutting & dozing of 100,000 m3 earth material. i.e. for P : For this work we considered 2 Ex-100 machines, Average Capacity of 1 Ex-100 (Tata Hitachi) = 60 m3/Hr.

Therefore, capacity of 2 Ex-100 machines = 2*60 = 120 m3/Hr. For 1 working day, Total working Hrs = 2*9 = 18 Hrs. Therefore, for 1 working day, Quantity of cutting & dozing = 18*120 = 2160 m3/day. Therefore, Number of days for cutting & dozing of 100,000 m3 earth material = 100,000 / 2160 = 46.29 days Considering if any delay happens for work, Number of days for cutting & dozing of 100,000 m3 earth material = 48 days.

2. Transportation of 20,000 m3 of surplus earth from site to dumping place which is 3 km away from site (including spreading) i.e. for Q : Let us assume, when cutting & dozing of 100,000 m3 earth material is started, simultaneously transportation of earth material by using 6 dumpers for 2 Ex-100 machines is also started. Then, total quantity of earth material to be excavated per day = 2160 m3/day. Therefore, for transportation of 20,000 m3 earth material from site to dumping area 3 km away from site, Number of days = 20000 / 2160 = 9.26 days = 10 days. 3. Filling of 80,000 m3 earth in landing strip i.e. for R: This activity will start only after the completion of activity Q. i.e. Activity R will start on 11th day from starting of the work. Then, total quantity of earth material to be excavated per day = 2160 m3/day.

Therefore, for filling of 80,000 m3 earth in landing strip, Number of days = 80,000 / 2160 = 37.04 days = 38 days.

4. Bringing in 3000 m3 sand from 20 km (including spreading & leveling at site) i.e. for S: This activity will start only after completion of activity R. i.e. Activity S will start on 49th day from starting of work. After completion of activity R, the dumpers are in idle condition. So, we can use these 6 dumpers for transportation of sand to the site. Lead distance = 40 km (up & down) Let us assume, number of trips for 1 dumper in 1 working day = 5 trips. Therefore, number of trips for 6 dumpers in 1 day = 5 * 6 = 30 trips. Consider average capacity of 1 dumper to carry sand = 12.5 m3 per trip. Therefore, For 1 day, quantity of sand to be dumped on site = 30 * 12.5 =375 m3 per day. Then, for 3000 m3 of sand to bring on site, considering lead distance 40 km (up & down), Number of days = 3000 / 375 = 8 days.

5. Procurement of 1, 50,000 liters of bitumen i.e. for T: From given data Bitumen to be obtained from refinery at Bongalgaon in Assam. Lead time up to site is 45 days. Storage facility available at site is 50,000 liter tank. &

Duration of work = 30 days from 60th day of starting of work. So, from above calculated durations for each activity, we can draw PRGRAMME EVOLUTION REVIEW TECHNIQUE (PERT) network.

As PERT network is event based network, consider each activity as an individual event.

Sr.No.

Activity

Preceding Activity

Duration (days)

1 2 3 4 5

P Q R S T

_ _ Q P,R S

48 10 38 8 30

Cost of each item of work: 1. Cutting & dozing of 100,000 m3 earth material. i.e. for P : We have calculated the rate of Ex-100 per Hr.

Operating cost of Ex-100 per Hr. = 680.00 Rs. Therefore, for 2 Ex-100 machines, operating cost = 2*680 = 1360.00 Rs. /Hr. Each shift consists of 9 working Hrs. Therefore, for 1 shift, cost incurred for 2 Ex-100 machines = 1360*9 = 12240.00 Rs. Therefore, for day & night shift, Cost incurred for 2 Ex-100 machines = 2 * 12240 = 24480.00 Rs. We planned 48 working days for this activity. Therefore, Total cost for activity P = 24480 * 48 = 1175040.00 Rs. . (a)

2. Transportation of 20,000 m3 of surplus earth from site to dumping place which is 3 km away from site (including spreading) i.e. for Q : We know, Total number of trips per shift = 6 * 15 = 90 trips. Total number of trips per day = 2 * 90 = 180 trips. Lead distance for 1 trip = 6 km (up & down). That means, for 90 km running distance in 1 shift, cost incurred for 1 dumper is 2274.00 Rs. Therefore, cost dumper for 1 trip having 6 km lead (up & down) = 2274/15 = 151.60 Rs. = 152.00 Rs. Therefore, cost incurred for 180 trips per day = 152 * 180 = 27360.00 Rs. As we planned, for transportation of 20,000 m3 earth material from site to dumping area 3 km away from site, no. of days required = 10 days.

Therefore, total cost for transportation for 10 days = 10 * 27360 = 273600.00 Rs. .. (1) For spreading we planned 2 crawler dozers, Operating cost of crawler dozer = 720.00 Rs. /Hr. Total working Hrs. For 1 day = 18 Hrs. Therefore, for 2 crawler dozers, operating cost for 1 day = 2*720*18 = 25920.00 Rs. For 10 days, operating cost for 2 crawler dozers = 25920 * 10 = 259200.00 Rs. (2) Therefore, total cost for activity Q = (1) + (2) = 273600 + 259200 = 532800.00 Rs.

3. Filling of 80,000 m3 earth in landing strip i.e. for R: This activity we can start only after the completion of activity Q. that means activity R starts on 11th day. So, after completing the spreading of 20000 m3 earth in dumping area, we will transfer that 2 crawler dozers to site for spreading of earth material. That means, on starting of 11th day, cutting & dozing of earth & also, filling & spreading of earth is going on simultaneously. Here, we have to fill earth material in landing strip, i.e. on site only. Therefore, we will consider average lead per trip = 3 km (up & down). As we calculated, rate of dumper = 26.00 Rs. per trip. Therefore, cost incurred for 1 trip = 26 * 3 = 78.00 Rs. Number of trips per day = 180 trips. Therefore, cost incurred per day = 180 * 78 = 14040.00 Rs. Duration for activity R = 38 days. Therefore, for 38 days, total cost incurred = 38 * 14040 = 533520.00 Rs. (1) For spreading we planned 2 crawler dozers,

Operating cost of crawler dozer = 720.00 Rs. /Hr. Total working Hrs. For 1 day = 18 Hrs. Therefore, for 2 crawler dozers, operating cost for 1 day = 2*720*18 = 25920.00 Rs. For 38 days, total cost incurred = 38 * 25920 = 984960.00 Rs. Therefore, Total cost incurred for filling & spreading of 80000 m3 earth in landing strip = (1) + (2) = 533520 + 984960 = 1518480.00 Rs. (2)

4. Bringing in 3000 m3 sand from 20 km (including spreading & leveling at site) i.e. for S: This activity will start only after the completion of activities P & R. For this activity, we planned 2 crawler dozers for spreading & 2 vibratory rollers for leveling. i. First we will calculate the purchase cost of sand (excluding transportation cost) : We know, the purchase cost of sand = 360.00 Rs. / m3. Therefore, purchase cost for 3000 m3 of sand = 3000 * 360 = 1080000.00 Rs. ii. Transportation cost for sand : We have considered 6 dumpers having sand carrying capacity of 12.5 m3 each. We know, number of trips for 1 dumper in 1 day = 5 trips. Therefore, total trips for 1 day for 6 dumpers = 5 * 6 = 30 trips per day. Rate of dumper per km = 26.00 Rs. Here, total lead = 20 + 20 = 40 km. (up & down). Therefore, for 1 trip of dumper, cost incurred = 26 * 40 = 1040.00 Rs. For 1 day, for 30 trips of dumper = 1040 * 30 = 31200.00 Rs. Duration of activity S = 8 days.

Therefore, total cost of transportation of sand for 8 days = 31200 * 8 = 249600.00 Rs. iii. For spreading of sand : We know, Operating cost of crawler dozer = 720.00 Rs. /Hr. Therefore, for 2 crawler dozers, operating cost for 1 day = 2*720*18 = 25920.00 Rs. Therefore, for duration of 8 days, Total cost for spreading of sand = 8 * 25920 = 207360.00 Rs. iv. For leveling of sand : We know, operating cost of vibratory roller = 480.00 Rs. /Hr. Therefore, for 2 vibratory rollers, cost incurred for 1 day = 2*18*480 = 17280.00 Rs. Therefore, for duration of 8 days, Total cost for leveling of sand = 8 * 17280 = 138240.00 Rs. Therefore, total cost incurred for bringing in 3000 m3 sand from 20 km (including spreading & leveling at site) = i + ii + iii + iv = 1080000 + 249600 + 226080 + 138240 = 1693920.00 Rs. 5. Procurement of 1, 50,000 liters of bitumen i.e. for T: For this activity we will find out the cost for Procurement of 1, 50,000 liters of bitumen only. According to given data, Duration for activity T = 30 days. Lead time up to site = 45 days. Storage facility available at site = 50000 liters tank. Now we will find Economic Order Quantity (EOQ) for procurement of bitumen. By Wilson Haris square root formula,

Q = [(2AS) / (PH)] Where, Q = lot size ordered at a time in units. A = Annual demand in terms of units. S = ordering cost i.e. cost of placing 1 order. P = price of material. H = annual inventory carrying/holding cost expressed in Rs per rupee of inventory. = Q/2 For this case, A = 150000.00 liters, P = 35.00 Rs. Assume inventory carrying cost = H = 3.50 Rs. Per liter i.e. 3.50 per 35.00 Rs. = 10% = 0.1 assume S = 30000.00 Rs.

Therefore, Q = [(2*150000*30000) / (35*0.1)] 1/2 = 50709.25 liters. Let us assume Q = 50000 liters. Therefore, purchase cost = 3 * 50000 * 35 = 5250000.00 Rs. Ordering cost = 3 * 30000 = 90000.00 Rs.

Average inventory = Q/2 = 50000/2 = 25000 liters. Inventory carrying cost = 25000 * 3.50 = 87500.00 Rs. .. (1)

Therefore, total cost = 5250000 + 90000 + 87500 = 5427500.00 Rs.

Consider second option, Assume Q = 25000 liters. Therefore, number of orders = 150000/25000 = 6 orders.

Purchase cost = 6 * 25000 * 35 = 5250000.00 Rs. Ordering cost = 6 * 30000 = 180000.00 Rs.

Average inventory = Q/2 = 25000/2 = 12500 liters. Inventory carrying cost = 12500 * 3.50 = 43750.00 Rs. . (2)

Therefore, total cost = 5250000 + 180000 + 43750 = 5473750.00 Rs. From (1) & (2), we can say that first option is economical.

Therefore, Economic Order Quantity (EOQ) for procurement of bitumen = 5427500.00 Rs. Ordering schedule, logistics, plan of conveyance of bitumen, we will discuss later. At last total cost of work is, 10347740.00

III.

SELECTION OF EQUIPMENT :
Following factors are considered while selecting the equipments, a. Suitability : The equipment selected should obviously match the dimensions of the job & ground conditions. Climatic & other operating conditions also required to be born in mind. A piece of equipment designed & manufactured for operations in temperate climatic conditions will not necessarily function satisfactorily under hot climatic conditions.

b. Standardization :

Standardized equipment manufactured in large number is generally readily available & cost effective. Spare parts availability is also an advantage. The resale value of the standardized equipment is always higher. c. Technical considerations : The effective performance of any piece of any piece of equipment & its service life are conditioned by the following factorsi. ii. iii. iv. v. vi. vii. Strength Rigidity Vibration stability Resistance to wear Heat resistance Reliability Maintainability

By taking all above factors into consideration we selected type & number of equipments which we have discussed earlier.

IV.

MATERIALS MANAGEMENT CONCEPTS :

a. Lead time : As the name implies, it is the period elapses between the point of time when the need for material is contemplated & the point of time the material actually available on the site of construction for use. It comprises time required for:1) Users intimation to the materials manage department regarding the time & quantity of material required. 2) Materials management to decide that the materials purchased. 3) Selecting the source, fixing the price & ultimately placing the order. 4) To deliver the material. 5) Transportation & receiving the material including inspection & testing of material if necessary. b. Safety level : From the users point of view, the problem arises due to following factors1) The lead time in purchase is uncertain & if it delayed it will result in stoppage of work. 2) There may be unexpected shortage due to scarcity (or total non-availability) of material or some unexpected difficulties in transportation. 3) The continuously rising prices & small quantities purchased frequently may make the Materials costlier. So, if the user will overcome all these problems then & then only he will be in safety level.

c. EOQ (Economic order quantity) :

The curve AMB indicates the grapg of inventory carrying costs for various frequencies of ordering. Please note that low ordering frequency means large order, which in turn means inventory & hence inventory carrying costs. It also means few orders & hence less ordering cost. OMG shows the graph of ordering costs corrosponding to various frequencies. If we add the two costs we get a graph of PQRwhich indicates the total invent cost corrosponding to various frequencies. Q is the least & hence the intercept OS shows the most desirable frequency of

ordering for which the total inventory cost is minimum. The quantity of ordecorrosponding to the frequency is known as Economic Order Quantity (EOQ).

V.

Ordering schedule, logistics & plan of conveyance of bitumen :


We know, total quantity of bitumen to be procured = 150000 liters. As we have calculated with the help of EOQ, the bitumen have to be procured in 3 orders , each order having quantity of 50000 liters capacity of bitumen. Lead time up to site = 45 days. Activity T starting on 57th day from starting of work. We will consider that there should be stock of bitumen before starting the work. Storage capacity available at site = 50000 liters tank. So, we will give order on 9th day from starting of the work so that, the bitumen will reach on site on (9 + 45) = 54th day from starting of work. Duration of activity T = 30 days. That means, we have to consume 150000 liters of bitumen within 30 days. Therefore, bitumen consumption per day = 150000/30 = 5000 liters. That means, for each shift, bitumen consumption = 5000/2 = 2500 liters. Therefore, for 50000 liters consumption of bitumen, Number of days required = 50000 / 5000 = 10 days. That means ordering schedule is as follows, First order = 50000 liters = 9th from starting of the work. Second order = 50000 liters = 19th day from starting of the work.

Third order = 50000 liters = 29th day from starting of the work.For conveyance of bitumen, we considered the transportation of required quantity of bitumen is the responsibility of manufacturer. He will supply the required quantity of bitumen to site depending upon the capacity of bitumen tankers he is having.

VI.

RECOMMENDATIONS / CONCLUSIONS :
In conclusion, I would like to say that, if the project will move according to schedule whatever we have planned, definitely we will complete the project within 100 days.

VII.

ASSUMPTIONS & REFERENCES :


For this project, we have made following assumptions,

1. All the equipment & machinery is owned by the company. 2. For Procurement of 1, 50,000 liters of bitumen i.e. for activity T, we considered only purchase cost (including transportation) of bitumen. We have not considered expenditure for the activity T within its duration i.e. within 30 days.

VIII.

BIBLIOGRAPHY / READINGS :
1. Dr. Mahesh Varma, construction equipment & planning. 2. Dr. B. S. Patil, construction equipments & planning. 3. Lesson books, NICMAR, NCP 24 & NCP 25.