Sei sulla pagina 1di 20

NCP 28 Management Information System

Page
1

NCP 28 Management Information System

ASSIGNMENT
NICMAR / SODE OFFICE

Course

- NCP 28

Course Title

- Management Information System

Assignment No.

- Three

Last date of receipt

- 30.11.2014

Of Assignment at SODE office


Module No.:- 12

Assignment:You are a project Manager on a construction of Hydel Power project


comprising of four main works viz. Main Dam, Weir, Electrical Power
Station and Tunnel. The requirement of ten-construction materials
including cement, steel (six sizes), sand, aggregate etc. needs to be
monitored daily Consumption, requirement, resources on site and in
depot need to be checked every day. Design an M.I.S. for efficient
working suitable data.

INTRODUCTION
Scope of work: Construction of Hydro-Project Project:
Page
1

NCP 28 Management Information System

The above project is divided into four parts i.e.:

1. Main Dam
2. Weir
3. Electric Power station
4. Tunnel

1. MAIN DAM:
Normally dams are being constructed with Earth material, Masonry
works and concrete works. In accordance with the huge scope of work,
amount of material and manpower required for such project is huge.
Due to the huge scope of work proper material planning is required.
The types of material required for Main dam are basically Murom,
rubble for soling & U.C.R., (sand, metal, steel, and cement for R.C.C.
work), structural steel etc.

2. WEIR:
Normally weir is being constructed inside the dam wall towards the
water catchment area. The structure will be round RCC walls with
structural steel for supporting the gates. The gates are being
fabricated with structural steel. So the types of material required for
the weir is cement, sand, reinforcement, aggregates, structural steel
etc.

3. ELECTRIC POWER STATION:


Page
1

NCP 28 Management Information System

Power station consists of main switchyard control building and


switchyard. Building required RCC works, U.C.R. Masonry, brick
masonry work, plaster, tiling, paints, doors and windows and
switchyard equipments. Switchyard consists of structural tower, hightension power lines, and 40 mm aggregates for metal packing, proper
drainage systems, and proper permanent fencing with gates. The
average height of the fencing should be minimum 2.00 m. Proper road
for the movement of equipments and vehicles. The road should WBM
with two layer of bitumen.

4. TUNNEL:

Tunnel is specialist job. For tunnel you need to have dragging


equipment. Excavation should be with rock breaker & shifting of
materials from tunnel site to outside area .

DESIGN OF MIS FOR CONSTRUCTION PROCESS:


Due to vast development of construction technology and techniques
of construction management, it has becomes necessary to build up
proper management information system to fulfill the need of the
management to monitor and control the project effectively.
M.I.S. is a communication process in which information is recorded,
stored and used for decision making with respect to planning,
operating and controlling. MIS is not new but only computerization has
taken place in it. Due to computerization, speed and accuracy can be
Page
1

NCP 28 Management Information System

achieved and large volumes of data can be stored, which helps in


variety of alternatives to take decisions.
When a MIS is to be designed, its scope objective, need and nature
should be properly defined. The objective of the MIS is derived from
the objective of the Company.

MATERIAL MANAGEMENT ORGANIZATION:


The basic materials required for all above project: -- Cement,
Aggregates, sand, reinforcement, Murom, rubble for soling, rubble for
UCR masonry walls, structural steel for weirs and gates, structural
steel with coating for switchyard towers, 40mm aggregates for switch
yard etc.
The basic needs of quality material management is to have readily
available quality materials required by the organization and to keep
optional levels of stock of essential & more used items.
Strategic
Developing vendors for critical items
Determining optimal levels of inventory

Reducing varieties of inventory

Tactical
Developing vendors performance measures
Determining the impact on material cost, availability and
procurement with design changes and now product introduction
Determining optimal re-order levels
Controlling high value inventory
Page
1

NCP 28 Management Information System

Operational

Goods received, rejected and issued


List of excess and deficient items received
List of items rejected & backlog of supplies
Critical items received and value of inventory in hand
Stores in transit and in inspection

INVENTARY CONTROL:
In material management, INVENTARY CONTROL is an important
function. The basic need of I.C. is to ensuring the continuity of the
construction work with minimum investment in material is fulfilled. It
is mainly concerned with laying down the policies regarding how much
quantity of material should be held in stock so that the main aim of
the material management can be fulfilled.

MATERIAL MANAGEMENT CALCULATIONS:


The Economic Order Quantity or Lot Size can be worked analytically.
The relation between various parameters was developed by R.H.
Wilson and F. Harris and is known as the Wilson Harris Square Root
formula.
The relation is worked out below and is based on the assumptions:
a) Demand over the period of cycle is constant and is known in
advance
b) Consumption of material occurs at uniform rate.
Page
1

NCP 28 Management Information System

c) The price of material is independent of the lot size of order.


d) There is no lead time in the replenishment
Let
A=be the annual demand in terms of units.
Q=is the lot size order at a time in units.
P=Price of material in terms of Rupees per unit.
H=Annual inventory carry cost/holding cost expressed in rupees of
inventory.
S= ordering cost.
Since the stock is depended at uniform rate over the cycle period,
inventory carrying cost/holding cost can be the cost over the average
stock.
As Q, increases the number of order hence ordering cost reduces, but
inventory carrying cost increases, and vice-versa. The economic lot
size we have to balance the two cost of opposite nature.
If Q is the lot size the average inventory will be Q/2.
i) Inventory carrying cost will be
= (Q/2) x P x h
ii) Number of orders over a year
= A/Q
Total ordering cost = (A/Q) x S
Thus the total cost T= i) + ii) = QPh/2 + AS/Q
We have to find the most economical order quantity for which T is
minimum value i.e.

dT/dQ should be equal to zero.

i.e. dT/dQ =Ph/2-AS/Q2


Page
1

NCP 28 Management Information System

AS/Q2=Ph/2
Q2/AS=2/Ph
Q= (2AS/Ph) (i)
ECONOMIC ORDER QUANTITY:
The economic order quantity can be worked out graphically on the
basis of the balancing the cost of opposing nature. From the careful
examination of the graph (see attached), it is found that the graph the
total cost is rather flat in the region of the cost. This indicates that the
EOQ in this region will not very much and as such one costs and
inventory cost or (a) working out the ordering costs and inventory
carrying cost or (b) pinpointing the exact EOQ.
EOQ= (2*A*S/P*h)
LEAD TIME:
Material procurement is based on lead-time of material to be
procured. As the name implies, it is the period that elapses between
the points of time when the need for a material is contemplated and
the point of time the material actually available on the site of
construction for use.
If no lead-time is necessary (a rather imprecation proposition) it would
be very easy to purchase material knowing its need in construction.
Even if procurement through purchase involves a lead time which is
certain, the problem could be tackled by planning sufficiently in
advance so that the need for the materials assessed well ahead of the
its actual use and the lead time is taken the care. So lead time is very
Page
1

NCP 28 Management Information System

important while purchasing the material otherwise its affect will be as


per following:
The lead-time in purchase is uncertain and if it is delayed it will
result in stoppage of work.
There may be unexpected shortages due to scarcity of material
or some unexpected difficulties in transportation.
The continuously rising prices and small quantities purchased
frequently may make the material costlier.

SAFETY LEVEL:
At is always better to have safety stock on site. Because any
circumstances the material is not coming on the site is stopped. Then
it will cause lot financial impact on the project. So you need to have
safety level of each stock of the material

KINDS OF MIS REPORTS REQUIRED


Various MIS reports on inventory should be submitted to management
frequently and at regular intervals. This will enable the management
to take necessary action where there is any deviation from the
budgeted figures or the target. The following MIS of inventory prove to
be effective to achieve this goal.
Statement of General Purchase items of Inventory
Recording of Inventory Report
Product Cost Monitoring Report,
Page
1

NCP 28 Management Information System

Freight Cost Monitoring Report


Monitoring Finished goods Reports
Inventory Dispatch Report
Stores Inventory Report
Dead Stock Disposal Report
FREQUENCY OF MIS REPORTS
I.

Name of report

II.

Frequency of Report -Daily /Weekly /Monthly

III.

Freight Cost Monitoring Report

IV.

Monitoring Finished Goods Reports

V.

Inventory Monitoring Report

VI.

Inventory Dispatch Report

VII.

Stores Inventory Report

VIII.

Recording of Inventory Report

IX.

Dead stock Disposal Report

X.

Product Cost Monitoring Report

XI.

Statement of General Purchase

ITEMS OF INVENTORY:
The frequency of above reports conform to some particulars sets of
facts and circumstances and can be adopted with little modification to
meet individual need and requirement
Inventory Monitoring Report
Page
1

NCP 28 Management Information System

Materials Management Organization


Inventory control measures
Two bin system

SITE STORAGE AND REPORTING:


In Construction projects store department plays a very important role.
When any new projects start the Project Manager will first think about
the site office and site store. In addition to that the Project Manager
needs to prepare the Project Implementation Plan. In the project
Implementation plan Project Manager needs to think about the store
and storage area.
There are two types of stores:
Open storage
Closed storage
Before making the open storage yard, Project Manager needs to think
logistics of the projects. Project Manager needs to think internal roads
and access roads to the open storage area.
Integrated reporting system
System development, data processing and flow charting
Computer applications, file design
Data communications, file design
System design specification
System analysis and design.

Page
1

NCP 28 Management Information System

MIS FOR INVENTORY CONTROL


The main goal of materials management is to have readily available
materials needed by the organization and to keep optimal levels of
stock of items. To achieve this goal the certain types of information
would be needed. This information is discussed in this chapter.
Introduction

Since materials arc equivalent to cash, and since they make up an


important part of the total cost, it is essential that materials should be
properly safeguarded and correctly accounted for. Proper control of
material can make a substantial contribution to the efficiency of
business. The success of a company largely depends upon efficient
purchasing, storing, consuming and reporting of materials. Besides,
material pilferage, obsolescence, careless handlings, negligence in
checking materials may lead to reduce profit and hence it is desirable
to have a good stores organization to obtain the maximum
advantages out of it. A good system of material cost control reduces
the cost of storage, capital tied up in inventories and risk of loss from
fraud and theft. It helps in keeping perpetual inventory and other
records to facilitate the preparation of accurate material reports to
management. It eliminates waste in the use of material. Moreover, it
prevents production delays due to lack of materials by supplying
proper quantities at the right time. Proper material control system can
make a substantial contribution to the efficiency of a business. Even a
small saving in material costs results in an increase in profits, so it is
imperative to operate an efficiency system of material control.
Page
1

NCP 28 Management Information System

OBJECTIVES OF MATERIAL DEPARTMENT


The main objectives of Material department for the purpose of MIS
reports are
1. To

maintain an uninterrupted supply of materials.

2. To keep records of loss of production due to non-availability of


material
3. Reduce the time and costs of detefll1ining and ordering material
requirements.
4. Allow non-disruptive changes to production schedule.
5. Forecast future needs for ordering material.
6.

Forecast

changes

in

material

requirements

resulting

from

production schedule change.


KINDS OF INFORMATION REQUIRED FOR MIS REPORTS
The following information are usually required by material department
for MIS reports.

Inventory Monitoring
Vendor Payment
Vendor Satisfaction
Present Stock Position
Efficiency of Buying
Statement of Price Revision
Recording of Material
Dead stock Disposal
Loss of Storage
Critical Shortage
Page
1

NCP 28 Management Information System

Excess Material Issue Monitoring


Product Cost Monitoring
Scrap, Spoilage, etc.
Statement of General Purchase Items
Material Budget

KINDS OF MIS REPORTS ON MATERIALS REQUIRED


Various MIS reports on Materials should be submitted to management
frequently and at regular intervals. This will enable the management
to take necessary action where there is any deviation from the
budgeted figures or the target. The following MIS reports on materials
prove to be effective to achieve this goal.

NAME OF REPORT

Critical Shortage Report


Production Loss Report
Inventory Monitoring Report
Vendor Payment Report
Vendor Satisfaction Report
Price Revision Report
Recording of Material Report
Dead stock Disposal Report
Excess Material Issue Monitoring Report
Product Cost Monitoring Report
Statement of General Purchase Items
Material Budget Report
Bin Card
Schedule of Quotations
Stores Inventory Report
Page
1

NCP 28 Management Information System

Besides above reports the reports on the following matters on a period


to period basis should also be made available1.
2.

Summary of materials receipt, issue, etc.


Quantities and values of materials regarding receipt, issues and

stock should be included with cumulative figures.


3.

Turnover rate: Management may be interested in total figures and

possibly in turnover rate of very expensive materials or products.


4. Availability of stocks and market trends: The market position with
regards to future deliveries and market trends together with price
movements.
5.

Present stock position: Any significant decrease or increase in

amount of present stock with that of last period may be reported to


management. As stock reflects, capital unavailable for other purposes,
management may be interested to the ratio of stock to net working
capital.
6.

Efficiency of buying: This report shows how efficiently the

purchasing department served the production departments. It reports


how many working hours were lost due to delays caused by lack of
materials; was there much discrepancy between the price paid for
materials and supplies and market price at the time of purchase,
purchase department efficiency, etc.
7.

Value analysis: This report shows the result of investigations into

such problems as:


a. Could components manufactured internally be bought at less cost
Page
1

NCP 28 Management Information System

from specialists?
b. Would a cheaper material do the job?
c. Would less costly designs work as efficiently as existing designs?
8. Variances: If standard costing is in operation the material cost
variance should be analyzed into

further details. Materials price

variance would reveal the buying efficiency or market fluctuations;


material usage variance would reveal efficient or inefficient use of
materials or bad quality of materials. Materials mix variance would
show the effect of changes in the mix of materials.
9.

Input-output ratio: In process industries it is a valuable report to

show the percentage losses that have occurred at each stage. It


measures the productivity of material.
10. Scrap, spoilage, loss of storage: Special reports on scrap,
obsolescence and abnormal losses of material amounting to a figure
in excess of a certain amount should be submitted to management.
SYSTEM DEVELOPMENT LIFE CYCLE
The traditional software development methods are structured system
analysis and design (SSAD) by Ross: the Requirement Driven by Alford
and the Structured Analysis and Structured Design (SASD). All these
methods deal with function and data separately. The modern
methodology is object-oriented, where the functions and data
separately. The modern methodology is objected oriented, where the
functions and data definitions are viewed together as an object.
Page
1

NCP 28 Management Information System

System Development with the SSAD the similar approaches are

difficult to maintain. The reason is that for each function and its
behavior the data structured is defined. The functionality behaves
correctly under the conditions of rigid data definition and structure.
However in real life time the data format changes, call-in for change in
the programmed.
DATA PROCESSING:
In any information system application, the method generally followed
is to design modular and hierarchical steps of processing leading to an
output in a report form or information having certain value specific or
perceived as seen by the user. The steps involved are data processing,
transaction processing, application processing and system processing.
Data is the smallest automatic entity in the information system which
is basic to build the information system. The automatic data entity is
defined as the value attached to an attribute which has a character,
meaning

and

presentation

providing

specific

message

and

understanding to its viewer or user.


Hence, data processing means following steps or stages to be
implemented before the data is accepted in the system for
usage.
Confirming the character, the structure and presentation Vis--vis
data design.
Checking the value of the data Vis--vis data value specification
such as single specific value, range of value and limit ranges.
If a non-conformance is seen, point out the error and seek
Page
1

NCP 28 Management Information System

corrective response before the processing controls shifts to a new


field.
SYSTEM FLOW CHART

Page
1

NCP 28 Management Information System

Hydel Power project

Resources Document procured at site including mobilization of man power

Consumption records of files pertaining to a


Utilization of resources
Resource allocation

Wastage ofUpdate
resources
Records depending of physical balance

Valid File of All Data


Master File

Data Processing
Records related to completed jobs

Progress related to billing amount


Out Put File

Screen Display
Information Report related to completion of task

Back Up

Page
1

NCP 28 Management Information System

RECOMMENDATION / CONCLUSION
MIS play a very important role in the organization. With a good MIS
support, the management of marketing, finance, production and
personnel becomes more efficient.
The MIS satisfies the diverse needs through a variety of systems such
as query systems, analysis system, Modeling system and Decision
support system.
MIS helps in Strategic planning, Management control, Operational
control and Transaction processing

BIBLIOGRAPHY
Management information system -------- Waman S Jawadekar
Study material of NICMAR

Page
1

Potrebbero piacerti anche