National Institute of Construction Management and Research, Pune School of Distance Education

ASSIGNMENT 3 ON

MATERIAL AND EQUIPMENT MANAGEMENT NCP 24/25

____________________________________________________________________

SUBMITTED BY: Arunashish Mazumdar GPPM, REG NO: 212-06-14-10687-2141

____________________________________________________________________ DEPARTMENT OF GPPM NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH SCHOOL OF DISTANCE EDUCATION 25/1, BALEWADI, N.I.A. POST OFFICE, PUNE 411045

Date of dispatch: 27/08/2012

Date of receipt: ________________

Assignment on Material and Equipment Management NCP 24/25

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National Institute of Construction Management and Research, Pune School of Distance Education

CASE _______________________________________________________________________________ 1. Your company has been awarded a contract of developing and construction a new International airport 30 KM from a city. You have been appointed as Planning Engineer. Project is to be implemented in phases. In phase I, one strip of landing 100 m width is to be constructed in 100 days. The scope of work is as follows: (a) (b) Cutting and dozing of 1,00,000 cum of earth. Average height is 0.75 m. Transportation of 20,000 cum of surplus earth from site to dumping ground 3 KM away from site. Filling of 80,000cum of earth. (c) Bringing of 20,000 cum of sand from 20 KM (including of spreading and leveling). (d) Procurement of 1,50,000 litres of bitumen. Duration of work 30 days from the 60th day of starting work. Lead time for the procurement of bitumen is 45 days. Storage facility of 50,000 litres at site.

2. Estimate total cost of work and your plan of: (a) (b) Equipment planning procurement and development. Ordering and replenishing of Bitumen.

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National Institute of Construction Management and Research, Pune School of Distance Education

SCOPE OF WORK 1. The scope of Work in Phase I, comprises of construction of one strip of landing 100 m width is to be constructed in 100 days. The scope of work is as follows: (a) (b) (c) (d) Cutting and dozing of 1,00,000 cum of earth. Average height is 0.75 m. Transportation of 20,000 cum of surplus earth from site to dumping ground. 3 KM away from site. Filling 80,000cum of earth. Bringing of 20,000 cum of sand from 20 KM (including of spreading and leveling). (e) Procurement of 1,50,000 litres of bitumen. Duration of work 30 days from the 60 th day of starting work. Lead time for the procurement of bitumen is 45 days. Storage facility for bitumen is 50,000 litres at site.

DESCRIPTION OF EQUIPMENT CONSIDERED

1. The work can be divided into various sub tasks, for each of the sub tasks different type of earth moving plant should be used as mentioned against each in the table given below:

SL No (a)

Activity

Equipment Recommended

Remarks

Area Clearance and Cutting of Dozer D 80 A 12 earth.

(b) (c) (d)

Filling / disposal of earth. Leveling. Spreading of sand and Compaction.

Tippers / Dumpers Motor Graders Motor Grader, Rollers

Assignment on Material and Equipment Management NCP 24/25

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National Institute of Construction Management and Research, Pune School of Distance Education

2. Description of the Equipment. (a) Dozers - There is basically two types of dozers they are tracked and wheeled, both these equipment are manufactured. manufactured by BEML India, as the type of terrain has not been mentioned, tracked type of dozer has been considered as it has better traction and rolling resistance as compared to the wheeled dozer. D 80 A 12 has been considered for the said task it has the following salient characteristics: i. Blade capacity ii. Output 4.8 cum

- 50 cum/hour

iii. Diesel consumption - 18 litres/ hour iv. Blade can move up and down and can be tilted side wards to give an angle cut. (b) Excavator (E JCB 3 DX) - This equipment is manufactured by Tata Engineering, India and has the following salient characteristics: i. Bucket capacity ii. Output 1.5 cum

40cum/hour

iii. Diesel consumption 07 litres/ hour iv. The equipment is versatile and has many attachments and can perform many functions such as digging, dozing, hauling, loading etc. (c) Motor Grader - This equipment is manufactured by BEML Engineering, India and has the following salient characteristics: i. The equipment is predominantly used for leveling shaping, grading etc. It has a scarified that loosens the earth before the blade levels the area. The motor grader has a capacity of 100 cum per hour.

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National Institute of Construction Management and Research, Pune School of Distance Education

(d)

Compaction Equipment - After the area is leveled out the soil has to be compacted so as to prepare it for the laying of the wearing course this is achieved by the use of compaction equipment. There are various types of compaction equipment in the market they are: i. Smooth Wheel Rollers. The equipment comprises of one heavy roller that leading in front of the equipment and two smaller rollers that by virtue of its weight compact the loose earth. ii. Tandem Rollers. The equipment is similar to the smooth wheel roller except that there are only two wheels of the same width that by virtue of its weight compacts the loose earth. iii. Vibratory Roller. The roller in addition toits self-weight generates vibrations in static and dynamic mode that results in better compaction. The roller that is being considered is of 10 ton capacity. iv. Sheep Foot Roller. The surface of the roller has projections that help in exerting point pressure on the earth surface thereby enabling better compaction.

(e)

Tippers - The excavated earth has to be disposed of / transported to the filling sites in case it is beyond the economic haulage distance. This is done by the help of tippers. The loaded material can be unloaded from the vehicle either by tilting the body if the vehicle backwards or to the sides, in certain tippers the material is discharged from the base of the tipper. This equipment can be utilized for the transportation of construction material.

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National Institute of Construction Management and Research, Pune School of Distance Education

CALCULATION OF WORK PER DAY

1. Assumptions. The following are assumed. (a) (b) (c) (d) Type of equipment. As considered in the paragraphs above. Working Hours. 10 hours per day and max of 60 per week. Maintenance. 10 hours per week per plant (one day per week) Induction period. Three working days, (for dismantling, transport, reassembly testing). For a lead of 100 km. (e) (f) (g) Break Down Period Considered. Four days per equipment. Adequate spares and sub-assemblies are available with trained maintenance staff. Mass diagram of the area has been prepared and the plant operators are familiar with the task at hand. (h) (i) (j) Work is being executed as per the mass diagram. Plant operators are experienced are capable of achieving the planned output. No disruptions have been considered for reasons of inclement weather / other factors. (k) Plant / equipment as planned will be made available.

2. Cost of Equipment Operation per Hour. The cost has been calculated based on the equipment cost (including interest, depreciation,, maintenance charges, operator charges and fuel and lubricants)

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National Institute of Construction Management and Research, Pune School of Distance Education

S No

Equipment Name

Cost of Operation Rs / hour

(a) (b) (c) (d) (e) (f)

D 80 A 12 E JCB Wheel Dozer Motor Grader Dumper Roller

2,200.00 800.00 1,300.00 1,500.00 400.00 800.00

3. Cost of each Item of Work. (a) Cutting and Dozing. i. ii. iii. iv. v. vi. vii. viii. ix. x. Total earth cutting - 1, 00,000 cum Output of dozer Output per day - 50 cum/ hour; 10 hrs. per day - 500 cum in one day

Output of Excavator - 40 cum / hour Output per day - 400 cum in one day

Team of two dozers and Excavators 1800 cum No of days required - 55 days. Cost of Dozers =2* 55*10*2,200= Rs. 24,20,000.00 Cost of Excavator =2*55*10* 800= Rs. 8,80,000.00 Additional requirement of plant due to days lost for maintenance 10; (Rs 4,40,000 for Dozer and Rs 1,60,000)

xi.

Total for excavation Rs 38,80,000.00

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National Institute of Construction Management and Research, Pune School of Distance Education

(b) i. ii. iii.

Transportation and Spreading of Earth. Volume of earth to be shifted from site 20,000cum. Capacity of Dumper - 5 cum. No of trips per day - Dumping site total distance 6 Km o Travelling time 20min o Loading / Unloading time 10 min o Trips per day 2* 10= 20 trips o Volume of earth shifted per day 100 cum o Volume to be shifted in a day 364 cum o Number of dumpers required 4 o Cost of Dumpers 4*400*55 = Rs 88,000

iv.

Cost of leveling. o Motor graders used two. o No of Days -55 o Cost 2*55*1500 = Rs 1,65,000.00

v.

Cost of Rolling. o Rollers used two. o No of Days -55 o Cost 2*55*800 = Rs 88,000.00

Total Cost Rs 42,21,000.00

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National Institute of Construction Management and Research, Pune School of Distance Education

SELECTION OF EQUIPMENT

1. Selection of equipment for construction is based on many factors, the most important factor that require to be considered are: (a) Nature of Job. There are large number of equipment in the market, these are designed for various types of jobs and have specialized attachments for meeting specific requirements. Before the equipment is selected a detailed study of the available equipment in the market is required to be carried out and the most suitable one selected. (b) Equipment held. It is possible that similar equipment is held and is not being optimally utilized, even if this does not meet the specific requirement the equipment can be used, this could help in reducing the cost of the work. (c) Suitability of the Equipment for the Given Job. It is possible that the equipment is not suitable for the job at hand, and then there would be no other option but to procure suitable equipment. (d) Standardizations. As a large number of manufacturers manufacture similar

equipment, it would be preferable that the equipment be procured from a single agency as the following advantages accrue: i. ii. iii. iv. v. Easy availability of spares. Better understanding / liaison with the dealer. Reduction in inventory. Easier repair and operation of equipment. The above will lead to reduced down times.

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National Institute of Construction Management and Research, Pune School of Distance Education

(e)

Technical Considerations. The operational parameters of the equipment to a large extent plays an important role is the selection of the equipment. The parameters that are to be considered are: i. Strength. It is that property that enables the equipment to withstand specific loads / rigors of functioning in difficult conditions. It prevents the equipment from premature failure when acted upon by external emergency or accidental loads. This gives us an indication on the longevity of the equipment. ii. Rigidity. It is the ability of the equipment to withstand deformations due to various loads, it is dependent on the material selected. Deformations beyond a permissible value would affect the performance of the equipment. iii. Vibration Stability. The equipment in the normal course of its life would be subjected to various vibrations due to the functioning of the equipment was also due to accidental loads. The equipment should withstand these loads or it would result in failure due to fatigue stress. iv. Wear Resistance. Wear in the parts are induced due to friction due to o Abrasive wear leading to brittle surface failure. o Molecular / mechanical wear due to friction. o Corrosion due to weather / chemical action. o Thermal wear due to friction. v. Heat Resistance. When the equipment is fuctioning,it gets heated up due to o Heat of combustion in the engine.

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National Institute of Construction Management and Research, Pune School of Distance Education

o Friction between various parts. The heat would cause expansion and subsequently on cooling down, stresses are experienced. The repeated expansion / cooling would cause cracks in the parts. The equipment should be so designed as to withstand this.

vi.

Maintainability. The cost of maintenance should be low and also it should be easy to maintain.

vii.

Reliability. The equipment should operate optimally in various conditions without any problems.

MATERIAL MANAGEMEMT CONCEPTS

1. In the given situation there are a large number of plants and equipment operating; consequently the requirement of logistics would be considerable in terms of spares, fuels oils, lubricants, and other raw material like sand aggregate, bitumen etc. There a host of factors that is required to be planned in detail such as identification of requirement, placing orders, move of material from the place of origin, receipt and finally reach the site. These activities take time hence the planning is to be done in advance so as to ensure that the required material reaches the site in time and no delay is caused due to the lack of material. The major factors that are required to be kept in mind when planning logistics are: (a) Lead Time. The time taken for a supply to materialize from the time the requirement is felt is called lead time. Consider the case of bitumen, from the time the order is placed, it takes 45 days for the material to reach the site, and this is taken to be the lead time. Hence, the order for the material is to be placed a minimum of 45 days

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National Institute of Construction Management and Research, Pune School of Distance Education

before the requirement for use actually comes up. We will consider the case in detail: i. ii. iii. iv. v. vi. vii. viii. Bitumen required from day 60 of work commencement. Lead time 45 days. Total Requirement 1,50,000 litres. Storage capacity 50,000 litres. No of orders to be placed minimum three each of 50,000 litres bitumen. First order to be placed on 14th day of work. Material reaches site on 59th day of work. Average rate of consumption of bitumen 5000 litres per day. (Quantity/ Time)= (50000 litres /10 days) ix. x. xi. Second order to be placed on 24th day of work. Order materializes on 69th day of work. Similarly third order to be placed on 34th day of work and order materializes on 79th day of work. xii. (b) Work is completed on 90th day after commencement.

Safety Level. The above case was planned considering ideal conditions where there were no delays anticipated. However in case of any delays in the supply chain, the work would suffer, hence certain safety levels are maintained to cater for emergencies. In the above case a safety level can be incorporated by decreasing the order quantity and increasing the number of orders. Consider the above case with changed order levels; i. ii. Bitumen required from day 60 of work commencement. Lead time 45 days.

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National Institute of Construction Management and Research, Pune School of Distance Education

iii. iv. v. vi. vii. viii.

Total Requirement 1,50,000 litres. Storage capacity 50,000 litres. No of orders being placed Four. First order to be placed on 14th day of work for 50,000 litres. Material reaches site on 59th day of work. Average rate of consumption of bitumen 5000 litres per day. (Quantity/ Time)= (50000 litres /10 days)

ix. x.

Second order for 40,000 litres to be placed on 22nd day of work. Order materializes on 67th day of work. A safety stock of 10,000 litres is available to cater for delay in supply.

xi.

Similarly third order to be placed on 30th day of work and order materializes on 75th day of work.

xii.

Similarly fourth order is to be placed on 38th day of work and order materializes on 83rd day of work.

xiii. xiv.

Work is completed on 90th day after commencement. In the above case at every stage a safety stock of 10,000 litres of bitumen is present.

(c)

Economic Order Quantity. It is that quantity of order for which the sum of ordering cost and inventory holding cost is minimum.

To Calculate EOQ in above case. Assumptions: Consider a fixed cost of Rs 50,000 per order, irrespective of order size. Inventory holding cost to be 0.01% of Order cost. Cost of

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National Institute of Construction Management and Research, Pune School of Distance Education

Case I : Three orders of 50,000 litres each are placed. Total ordering cost = 50,000 * 3 = Rs1,50,000.00 Inventory holding cost would be 50,000 * 0.01 = Rs 500.00 Total Cost = Rs 1,50,500.00 Case II : Four orders are placed. Total ordering cost = 50,000 * 4 = Rs 2,00,000.00 Inventory holding cost would be 50,000 * 0.01 = Rs 500.00 Total Cost = Rs 2,00,500.00

It is assumed that the Inventory holding cost would remain same as the infrastructure for the holding of bitumen already exists. Hence in the above case EOQ is 50,000 litres of bitumen.

(d)

Re order Level. It is that level where quantity of stock held is such that, the next order has to be placed to bring the stock level back to the EOQ level. The lead time is considered so that there is adequate stock and the work is not affected due to want of stores.

(e)

In the case where lead time was calculated (Para 8 (b) above), the reorder level was maintained as 10,000 litres of bitumen. I.e. when the holding of bitumen came down to 10,000 litres the order for the next consignment of bitumen was placed.

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National Institute of Construction Management and Research, Pune School of Distance Education

RECOMMENDATIONS

1. The work is time bound with no cushion provided to cater for delays. The work has to be planned and executed with this fact kept in mind. The following recommendations are made: (a) (b) (c) (d) (e) (f) (g) Adequate serviceable equipment catered for. Skilled staff to be employed. Dedicated staff to be placed for the monitoring of works. Regular reviews to be carried out and corrective actions to be taken in case of delays. Well-equipped and dedicated maintenance team to be placed at site. Maintenance schedule of equipment to be adhered to. Close watch to be kept on the placing of orders of various material required for the work, with due consideration given to lead time.

BIBLOGRAPHY

As recommended in assignment and material from internet.

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