Improving the poor material management in construction projects using value stream mapping

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VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

TRAN HOANG ANH

IMPROVING THE POOR MATERIAL MANAGEMENT IN CONSTRUCTION PROJECTS USING VALUE STREAM

MAPPING

Major: CONSTRUCTION MANAGEMENT Major Code: 8580302

MASTER’S THESIS

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THIS THESIS IS COMPLETED AT

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY – VNU-HCM Supervisor 1: Dr Bui Phuong Trinh

Supervisor 2: Assoc Prof Dr Do Tien Sy

Examiner 1: Assoc Prof Dr Tran Duc Hoc

Examiner 2: Dr Nguyen Hoai Nghia

This master’s thesis is defended at HCM City University of Technology, VNU-HCM on July 10th, 2023

Master’s Thesis Committee:

1 Assoc Prof Dr Luong Duc Long - Chairman 2 Assoc Prof Dr Pham Vu Hong Son - Secretary 3 Assoc Prof Dr Tran Duc Hoc - Reviewer 1 4 Dr Nguyen Hoai Nghia - Reviewer 2 5 Dr Pham Hai Chien - Member

Approval of the Chairman of Master’s Thesis Committee and Dean of Faculty of Civil Engineering after the thesis being corrected (If any)

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VIETNAM NATIONAL UNIVERSITY-HO CHI MINH CITY

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY Independence – Freedom – Happiness SOCIALIST REPUBLIC OF VIETNAM

THE TASK SHEET OF MASTER’S THESIS

Full name: Tran Hoang Anh Student code: 2170463

Date of birth: September 27th,1997 Place of birth: Ho Chi Minh City Major: Construction Management Major code: 858032

I THESIS TOPIC:

Improving the poor material management in construction projects using Value Stream Mapping (Cải thiện việc quản lý vật liệu xây dựng trong các

dự án bằng phương pháp Sơ đồ chuỗi giá trị) II TASKS AND CONTENTS:

- Evaluating the material management procedures in Vietnam construction firms

- Analyzing numerous significant aspects affecting poor material management in the case study project

- Proposing the coordination process, construction process of work in material management using value stream mapping (VSM) to minimize the

causes of waste and bring efficiency to the business III TASKS STARTING DATE: February, 2023

IV TASKS ENDING DATE: June, 2023

V SUPERVISORS: Assoc Prof Dr Do Tien Sy and Dr Bui Phuong Trinh

Ho Chi Minh City, June 10th, 2023

SUPERVISORS HEAD OF DEPARTMENT

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ACKNOWLEDGEMENT

I would like to express my highly appreciation to all the people who directly and indirectly supported me during this study Without their direction, encouragement, and participation, this study would not have been possible

Firstly, I sincerely appreciate Assoc Prof Dr Do Tien Sy and Dr Bui Phuong Trinh They provided me with plenty of insightful comments, advice, and supervision, as well as supportive encouragement Moreover, I would like to give a great altitude to Dr Nguyen Thanh Viet, who had also supported and guided me to finish my thesis Sincere thanks to my friends and the professionals in Vietnam's construction industry who patiently and sincerely offered me numerous suggestions and their opinions during the data collection and interviews Without their assistance, this master's thesis would not have come to an end

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ABSTRACT

The improper management of materials during site activities is a crucial factor that has a negative impact on the performance of construction projects Materials management is problematic by shortages, supply delays, price fluctuations, damage, wastage, and a lack of storage space Numerous studies were conducted to identify the issue causing poor material management, and solutions were offered These solutions, however, only help to enhance a portion of the materials management In the grand scheme of things, improper detail procedure control prevents proper material management in the construction project Therefore, Lean tool and Value Stream Mapping (VSM) were brought in this thesis to answer the question

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management process This means that the company can reduce costs, waste, and effectively use the company's human resources In other word, leaner processes will make it simpler to identify waste and quality problems, enhancing the productivity of material management in construction projects Moreover, the shortcomings of the previous material management procedure are studied, and the new procedure's application is verified This helps investors or companies have an objective view and easily accept new effective proposals As a result, production in general and material controlling in particular will be completed much faster and more efficiently, giving the company more flexibility to respond to shifting customer demands In lean production, there is always a more effective way to complete every task because a business must keep up with the changing market in order to satisfy these new customer demands

Key words: Construction Material Management, Lean tools, Lean in Construction,

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TÓM TẮT LUẬN VĂN THẠC SĨ

Việc quản lý vật liệu không hiệu quả trong các hoạt động tại công trường là một yếu tố quan trọng có tác động tiêu cực đến hiệu suất của các dự án xây dựng Việc quản lý nguyên vật liệu gặp nhiều vấn đề do thiếu hụt, cung ứng chậm trễ, biến động giá cả, hư hỏng, lãng phí và thiếu kho bãi Nhiều nghiên cứu đã được thực hiện để xác định vấn đề gây ra việc quản lý vật liệu kém và các giải pháp đã được đưa ra Tuy nhiên, những giải pháp này chỉ giúp cải thiện một phần công tác quản lý nguyên vật liệu Nhìn chung, quy trình quản lý chi tiết không phù hợp sẽ ảnh hưởng tiêu cực đến việc quản lý vật liệu trong dự án xây dựng Vì vậy, cơng cụ Tinh gọn và Sơ đồ dịng giá trị (VSM) được đưa vào luận văn này để trả lời câu hỏi trên

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phí và sử dụng hiệu quả nguồn nhân lực của công ty Hơn nữa, những thiếu sót của quy trình quản lý vật liệu trước đây được nghiên cứu và ứng dụng của quy trình mới được xác minh Điều này giúp nhà đầu tư hoặc cơng ty có cái nhìn khách quan và dễ dàng chấp nhận những đề xuất mới hiệu quả Do đó, hoạt động sản xuất nói chung và kiểm sốt ngun vật liệu nói riêng sẽ được hoàn thành nhanh hơn và hiệu quả hơn, giúp công ty linh hoạt hơn trong việc đáp ứng nhu cầu thay đổi của khách hàng

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AUTHOR’S COMMITMENT

The undersigned below: Name: TRAN HOANG ANH Student ID: 2170463

Place and date of born: Ho Chi Minh City, September 27, 1997 Address: Ho Chi Minh City

Declaring that the author completed the master's thesis with the title "IMPROVING THE POOR MATERIAL MANAGEMENT IN CONSTRUCTION PROJECTS USING VALUE STREAM MAPPING" under the guidance of the supervisors All

works, ideas, and materials that were obtained from other sources have been properly cited

Ho Chi Minh City, June 10th, 2023

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Table of contents

CHAPTER 1 INTRODUCTION 1

1.1 Problem Statement 1

1.2 Objectives of the topic 4

1.3 Scope of study 4

CHAPTER 2 LITERATURE REVIEW 6

2.1 Material management in Construction Projects 6

2.2 The process of construction materials management 7

2.2.1 Construction Material Planning 8

2.2.2 Material Management Procedure 8

2.2.3 Construction Materials Handling 12

2.2.4 Stock and Loss/Waste Control 14

2.3 Construction materials management issue 17

2.4 Effect of poor materials management 24

2.4.1 Effect of construction waste 24

2.4.2 Effect on quality of work 26

2.4.3 Effect on profitability of the project 27

2.5 Current Materials Management Method 29

2.6 Lean Definition 33

2.7 Value Stream Mapping (VSM) 40

2.8 Waste in Value Stream definition 42

CHAPTER 3 RESEARCH METHODOLOGIES 44

3.1 Research design 44

3.1.1 Case study 44

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a Document analysis and observation 45

b Interviews 45

3.2 Research process 46

CHAPTER 4 CASE STUDIES ON CURRENT INDUSTRY PRACTICE 51

4.1 Case study and limitation of research scope 51

4.2 VSM application for the existing material management process of the project554.3 VSM application for the future material management process of the project66CHAPTER 5 CONCLUSION AND RECOMMENDATION 79

5.1 Conclusion 79

5.2 Scientific and practical significances 80

5.2.1 Practical significances: 80

5.2.2 Scientific significances 81

5.3 Recommendations and directions for research development 81

5.3.1 Recommendations 81

5.3.2 Directions for research development 82

References 83APPENDICES 86Questionnaire Design 86Flow chart A 89Flow chart B 90Flow chart C 91

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List of Figures

Figure 1 Components of material management [6] 8

Figure 2 General Procedure for Material Management of Large firms [6] 9

Figure 3 General Procedure for Material Management of Medium firms [6] 10Figure 4 General Procedure for Material Management of Small firms [6] 10

Figure 5 Recommended Procedure for Material Management [6] 11

Figure 6 Preferred Materials Flow [13] 13

Figure 7 Proposed Road Map for the Implementation of Lean Manufacturing System [3] 36

Figure 8 Examples of lean tools and principles in construction implementation and suggestions [32] 40

Figure 9 Value stream mapping icons 42

Figure 10 The process of the research 50

Figure 11 Sample of one shop drawing _ Floor drawing (floor 7-26, block B) 57Figure 12 Value Stream Mapping diagram for the existing material management process of the project 65

Figure 13 Comparison of Manual and BIM Software based estimation (Usman Haider, 2020) [36] 67

Figure 14 3D model of the Case Study Project using Revit software 68

Figure 15 3D model of the Foundation using Revit software 70

Figure 16 3D model of the typical floor, column and wall using Revit software 71

Figure 17 Purchasing control using AMIS 75

Figure 18 Inventory control using AMIS 75

Figure 19 Using AMIS to manage MEP material in case study project 76

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List of Tables

Table 1 Ratio of Loss to Total Investment by Construction Type [2] 1

Table 2 Waste in construction: compilation of existing data ([16] 16

Table 3 Causes of Material Wastage on Building Construction Sites[15] 18

Table 4 Factors Affecting Effective Material Management on Building Construction Sites[15] 19

Table 5 Measures for Effective Material Management on Building Construction Site [15] 19

Table 6 Material management problems from Kasim’s Case Studies[8] 20

Table 7 Material management issue in Materials Identification Phase [10] 21

Table 8 Material management issue in Vendor Selection Phase [10] 22

Table 9 Material management issue in Procurement Problem Phase [10] 22

Table 10 Material management issue in Construction Phase [10] 23

Table 11 Summary of Material Management Affecting Project Performance [11] 24

Table 12 Effect of poor materials management on materials waste [24] 25

Table 13 Effect of poor materials management on quality [24] 27

Table 14 Effect of poor materials management on profitability[24] 27

Table 15 A literature review on the materials management factors and methods in construction project 30

Table 16 Conceptualization of lean thinking principles in construction [31] 37

Table 17 General information of three construction companies 46

Table 18 The material management flowchart 47

Table 19 Number of years of work experience of the respondents in Semi- structured interviews 48

Table 20 Activities classification table according to Mohamed M Marzouk (2012) [35] 53

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Abbreviations

The following abbreviations are used throughout this thesis: 1 VSM – Value Steam Mapping

2 JIT – Just In Time

3 ICT – Information and Communication Technology 4 NFC – Near Field Communication

5 GPS – Global Positioning System 6 PMM – Poor materials management 7 RFID – Radio Frequency Identification 8 PDA – Personal Digital Assistant

9 ABC – Activity-Based Costing / Always Better Control 10 QFD – Quality Function Deployment

11 TOPSIS – Technique for Order Preference by Similarity to Ideal Solution 12 VA – Value Added (activity)

13 NVA – Non-Value-Added (activity) 14 LPDS – Lean project Delivery Tools 15 LPS – Last planner System

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CHAPTER 1 INTRODUCTION

1.1 Problem Statement

It is clearly seen that construction field acts a key role in creating facility and technique for society Regarding the economic structure in 2022 reported by General Statistics Office of Vietnam [1], the construction and industry sectors grew by 7.78% when compared 2021 and contributes 38.24% of the gross domestic product This also means that construction field is a decisive factor in changing economic structure, promoting growth and development to country economic However, wastes and failures in construction is a hot issue not only for construction enterprises alone but also for an intitle society There are many opinions that wasting in construction accounts for 20-30% of total investment fund [2]

Table 1 Ratio of Loss to Total Investment by Construction Type [2]

No Type of construction Ratio of loss to total investment

1 Civil and industrial 9.24%

2 Water supply and drainage, electricity grid 23.32% 3 Infrastructure, irrigation, information 18.53%

4 Others 16.4%

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A building project should achieve its goals within the budget that was originally projected Cost overrun is a common problem that are almost always associated with the more important portion of the operations connected to one another in the construction industry This problem becomes more severe in underdeveloped countries that the outcomes may exceed the task's regular cost by more than half For instance, 63% of projects sponsored by the World Bank have gone above their allotted budget [4]

Moreover, one of the most common, notable, and difficult problems that leads to cost overrun is material wastage, including bricks, blocks, concrete rubble, metal, wood, and packaging waste which can be reduced, reused, and recycled to a great extent Poor construction waste management is hindered by a lack of knowledge about the waste stream, cost concerns, the influence of attitudes, and other people-related variables

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manageability The goal of process refinement should bring the better procedure and less time consuming for ordering and controlling the quantity and quality of material on site’s storage

Therefore, thesis focuses on gathering the information about material management procedures of different firms in Vietnam and finding the current waste of the process Such waste can be highly predicted and prevented by using lean tools and techniques which is Value Steam Mapping (VSM) in this study

Lean tools and Lean in Construction have been interested and intensively researched in recent years because managers have seen outstanding results when applying the Lean process and based on the following objective and subjective reasons:

- Dissatisfaction with the ineffective working of the project management method; -The need to compete effectively in the current global economy is accompanied by constant pressure from customers and on-time delivery of products;

-The inadequacies of the old process are mentioned and the application of the new process is verified This helps investors or companies have an objective view and easily accept new effective proposals

One of the lean management tools is Value Stream Mapping (VSM) VSM, also known as "material- and information-flow mapping," is used to assess the present situation and plan for the future for the sequence of actions that take a good or service from the start of a particular process until it reaches the customer[7] In other words, VSM will be applied to understand the current state of mapping of waste generated and to develop a lean procedure or mapping for better controlling and time consuming in management

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With the VSM’s feature of recording all events occurring in the product such as time, working conditions, etc., all activities including value added activities and non-value-added activities are recorded These non-value-non-value-added activities will be detected, eliminated and replaced by better methods The leaner and better procedure is now made Hence, the company's board of directors will have a clear view of the improvement in terms of progress, quality, and quantity in order to approve and implement the suggested process for existing and upcoming projects Therefore, the study of Lean application using VSM tools in the process of managing materials in Vietnam projects is extremely practical nowadays

Some questions or problem needed to be solved can be:

+ What is the material control process at the current Vietnam project?

+ Is the current process optimized or not? What problems exist that need to be solved? + What is the solution or method can be used to predict, prevent material wastage, and control the construction site materials?

+ How can the Value Streaming principle illustrate the time-consuming procedure and waste minimization potential and how VSM can be used to improve material management in construction?

1.2 Objectives of the topic

- Evaluating the material management procedures in Vietnam construction firms - Analyzing numerous significant aspects affecting poor material management in the case study project

- Proposing the coordination process, construction process of work in material management using value stream mapping (VSM) to minimize the causes of waste and bring efficiency to the business

1.3 Scope of study

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Survey subjects, focusing material management that happens in construction site in order to compare and study by using Value Stream Mapping methods

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CHAPTER 2 LITERATURE REVIEW

2.1 Material management in Construction Projects

The construction firm is a very important industry in the economy and the successful measure with accomplishing within schedule and budget according to the specification and satisfying of the stakeholders Construction is the process of physical handling the project and transferring construction materials, tools, supplies, supervision, and management needed to complete the task Therefore, it is easy to understand that the construction projects are usually complex with the involvement of many parties, for example clients, designers, engineers, contractors, sup-contractors, suppliers, and vendors The diverse and numerous processes used in building projects produce one-of-a-kind, enormous, and immovable products with a supply of resources including cash, tools, materials, and labor [8]

One of the most important tasks facing all construction participants during the construction stage is the management of construction materials Material management is defined as the procedure of providing the correct material at the right place at the right time in the right quantity in order to reduce project costs[6] The material management in construction projects is an essential function that partly determines the success of the projects The bigger and more complex the construction project is, the more difficult material management is This is when appropriate tools, techniques, management skills and procedure are needed to ensure, apart from other things, that the materials are delivered on time, well managed and stocked, the waste is on the minimum and the construction is effective and meets the demand of the clients

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an important part of the budget for a construction project The cost of materials may make up 52% of the total cost [9] or even more than 70% of the total cost of a construction project[10] Despite these facts, labor and cost reduction are discussed when project budgets and efficiency are taken into account[11] Materials management is frequently overlooked, although successful projects are the outcome of a successful combination of labor, materials, and equipment management Project time can be optimized, costs can be reduced, and quality can be increased when materials are tracked effectively Therefore, it is necessary to have an efficient materials management in construction projects

2.2 The process of construction materials management

The process of material management involves organizing or planning the sourcing, buying, transporting, storing, and controlling of materials while minimizing waste and maximizing profitability by lowering material costs The aim of material management is to guarantee that materials are readily available at the point of use when required The material management system works to guarantee that the right kind and amount of materials are carefully chosen, bought, delivered, and handled on site in a timely manner and at a cost that is reasonable[10]

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Figure 1 Components of material management [6] 2.2.1 Construction Material Planning

The process of planning construction methods has been defined as first comprehending what needs to be built, then determining the best approach in the most cost-effective way to suit the client's needs In the case of materials, proper planning is required, which must be done concurrently with engineering, construction, and other project plans The materials planning process includes creating and keeping records for each part utilized in each facility in order to calculate desired inventory levels and delivery frequency The need for efficient materials planning is to boost the company's production and profit while also facilitating the completion of construction projects As a result, better material planning on site can help to prevent project delays and reduce activity times, resulting in better service [8]

2.2.2 Material Management Procedure

The phrase procurement refers to a wide variety of operations that include the purchase of equipment, materials, labor, and services needed for project construction and implementation The goal of procurement in materials management is to offer high-quality materials at the proper time and location, all while staying within a

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predetermined budget Many construction companies face difficulties in obtaining materials from the best source, at the greatest price, and on time As a result, a control plan is required during material purchase to obtain the desired results All requests for estimates and purchases must go via a fully authorized requisitioning procedure, which is generally overseen by the Project Manager The Project Manager must ensure that the materials are purchased in accordance with the standard requirements, time and quality [8]

According to the data gathered from previous study questionnaire surveys, there are general procedures for material management for three sizes of construction enterprises For Large Firms, general procedure of material management can be defined as below

Figure 2 General Procedure for Material Management of Large firms [6]

The general procedure for material management of medium firms can be seen as below

1 • Planning by project manager

2 • Requissition form or indent preparation 3 • Study of various indents

4 • Centralised purcahse from corporate office5 • Sending enquiry to various supplier

6 • Study of receiving quotations

7 • Preparation of comparative statement8 • Negotiotion of rates

9 • Approval form respected authority 10 • Preparation of purchase order

11 • Sending purchase order to selected supplier12 • Tracking of delievery of material

13 • Inspection of received materials

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Figure 3 General Procedure for Material Management of Medium firms [6]

The general procedure for material management of small firms can be seen as below

Figure 4 General Procedure for Material Management of Small firms [6]

It is also recommended that the following procedure given below effectively implements the construction material management

1 • Planning for project

2 • Estimation of required quantity3 • Surveying the market

4 • Date of delivery and prices fixed with selected supplier5 • Order Given (Lowest cost)

6 • Tracking of delievery

7 • Inspection of received material8 • OK => Stored in storage

9 • Not OK => Reject & wait for new delivery10 • Special sheds for material storage

11 • Material supplied as demand on site

1 • Planning for project

2 • Estimation of required quantity3 • Placement of order

4 • Ordering by phone call or by personal visit to different suppliers5 • Order record is kept

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Figure 5 Recommended Procedure for Material Management [6]

1 • Planning by project manager2 • ABC analysis of the inventory

3 • Requisition form or indent preparation4 • Study of various indents

5 • Centralised purchase from corporate office6 • EOQ analysis of the reuired materials

7 • Sending enquiry to various supplier in written format8 • Study of receiving quotations

9 • Preparation of comparative statement (written format) 10 • Negotiation of rates wwith the selected supplier

11 • Approval from respected authority (written format)12 • Preparation of purchased order (written format)

13 • Sending purchase order to selected supplier (written format)

14 • Tracking of delivery of material (record should be kept in written format)15

• Inspection of received materials (inspection report should be kept in written format)

16

• If materials rejected in quality control process, use dead stock or extra stock kept for emergency

17 • Issue to store department & supply as demand

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2.2.3 Construction Materials Handling

Material handling can be simply defined as loading, moving, and unloading materials Other definitions of construction material handling can be pointed out as:

• Materials handling is the movement and storage of materials at the lowest possible cost by employing proper methods and equipment

• Materials handling is the movement of materials or products by any means, including storage, with the exception of processing operations and inspection; • Materials handling is the science and art of conveying, elevating, positioning,

transporting, packaging, and storing materials

When materials handling is referred to as mechanical handling of materials, various types of tackles, gadgets, and equipment are used to do it safely and economically Materials handling is not a production process and thus does not add value to the product It also costs money, so it should be eliminated or minimized as much as possible However, the most important benefit of materials handling is that it aids production Mechanical handling of materials may become unavoidable depending on the weight, volume, and throughput of materials In many cases, mechanical handling lowers the cost of manual handling of materials, which is highly desirable All of these facts point to the fact that the type and extent of materials handling should be carefully designed to suit the application while remaining cost effective.[12]

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Figure 6 Preferred Materials Flow [13]

The following are the essential requirements of a good materials handling system [12]

• Efficient and safe movement of materials to the desired location • When necessary, timely movement of materials

• Material supply at the desired rate

• Material storage that takes up as little space as possible

• The most cost-effective solution for material handling activities

A well-designed materials handling system strives to accomplish the following goals[12]:

• Increase the efficiency of a production system by ensuring that the right amount of material is delivered at the right place at the right time in the most cost-effective manner

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• Reduce material damage during storage and transportation

• Increase space utilization through proper material storage, lowering storage and handling costs

• Minimize accidents while handling materials • Lower total costs by improving material handling

• Improve customer service by supplying materials in an easy-to-handle format • Increase the efficiency and resale value of plant and equipment by

incorporating material handling features

All of the preceding points clearly demonstrate the significance of materials handling in an industry or a material transportation system However, the disadvantages of material handling should not be overlooked They are as follows:

[12]

• Any materials handling system incurs additional capital costs

• Once a materials handling system is in place, the flexibility for future changes is severely limited

• When an integrated materials handling system is installed, any failure/stoppage in any part of it causes increased downtime in the production system

• Because the materials handling system requires maintenance, any addition to the materials handling system entails additional maintenance facilities and costs

2.2.4 Stock and Loss/Waste Control

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frequently stacked in accordance with the vendor's or manufacturer's specifications Some recommendation for storing material can be listed as [10]

• Impurities and atmospheric agencies should have no effect on the materials • Materials such as cement must be stored in covered sheds and stacked on

raised timber platforms

• Reinforcing bars should be stacked yards away from moisture and oil and lubricants to prevent rusting To facilitate issues, bars of various classifications, sizes, and lengths should be stored separately

In the context of construction, "loss" and "waste" both refer to inefficiencies and the misuse of resources, but they are not necessarily interchangeable terms In construction, "loss" typically refers to any reduction in the value of materials, time, or labor that occurs during the construction process These losses can result from various factors, including errors, defects, damages, theft, or accidents Losses in construction can lead to financial setbacks and delays in project completion On the other hand, "waste" in construction specifically refers to the unnecessary or excessive use of materials or resources that lead to avoidable inefficiencies Wastage can occur due to poor planning, improper construction techniques, lack of supervision, or insufficient training of workers

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delivered to construction sites are used for the intended purpose "Any losses produced by operations that generate direct or indirect costs but do not add any value to the product" is the definition of waste [15]

Construction activity can generate a massive amount of waste, and material waste has been identified as a major issue in the construction industry It is also stated that construction waste contributes approximately 29% in the United States It contributes more than 50% in the UK and 20-30% in Australia This is evidence of good construction material control during the construction process The source of waste in construction projects indicates that waste can occur at any stage of the construction process, from conception to design, construction, and operation of the completed facility [8]

Partially completed studies from various countries can be used to estimate the magnitude of non-value-added construction activities According to the data in Table 2, there is a significant amount of waste in the construction industry However, because conventional measures do not address it, this waste is invisible in total and deemed unactionable

Table 2 Waste in construction: compilation of existing data ([16]

Waste Cost Country

Quality costs (non-conformance) 12% of total costs USA The cost of external quality

(during facility use)

4% of total costs Sweden

Incapability to build 6-10% of total costs USA Inadequate material management 10-12% of total costs USA Excessive material consumption

on-site

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Waste Cost Country Working time spent on

non-value-added activities on the job site

Approximate 2/3 of total time

USA

Inadequate security 6% of total costs USA

A key factor in lowering construction costs and duration is the rational management of materials to prevent waste As a result, effective material management is required to manage productivity and expense in construction projects Hence, the main goals of any on-site management activity should be to ensure complete protection for construction materials and to carry out effective usage of such materials[15]

2.3 Construction materials management issue

Many factors contribute to poor material management in construction projects Waste, transportation issues, improper on-site handling, specification misuse, a lack of a proper work plan, inappropriate materials delivery, and excessive paperwork all have a negative impact on materials management Material shortages contribute to delays in material management on the construction site In materials management, late delivery of ordered materials is also a problem Furthermore, the following are common materials management issues:[8]

• Receiving materials before they are needed, resulting in higher inventory costs and the possibility of quality deterioration;

• Failure to receive materials on time, resulting in productivity waste; • Material take-off from drawings and design documents that is incorrect; • Continuing to follow design changes;

• Items are damaged or lost;

• Contract type selection for specific material procurement; • Criteria for evaluating vendors;

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According Jian Li (2014) [17], there are three key issues that have been recognized with traditional management techniques, which are primarily dependent on 2D documented resources, and which could affect how a construction project turns out: 1) Construction is constantly moving forward, but dynamic asset management

can hardly keep up;

2) Materials quantities can be dynamically undated, but this is very labor- and time-intensive;

3) Quantity take-off is very challenging to implement accurately

The responses to the list of causes of material waste on building construction sites are shown in Table 3 below[15]

Table 3 Causes of Material Wastage on Building Construction Sites[15]

No The causes of material waste on construction sites

Rank Order A Mishandling damage and rework due to poor

workmanship

1

B Insufficient supervision, 2

C Inadequate site security 3

D Inadequate on-site storage facilities, 4

E Material supply delay, 5

F Vandalism and theft 6

G Design modifications, 7

H Over-ordering of building materials, 7 I Weather and other natural events, 9

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Table 4 Factors Affecting Effective Material Management on Building Construction Sites[15]

No Factors Affecting effective Material Management on Sites

Rank Order

A Ineffective workforce 1

B Design modifications 2

C Inadequate work planning and scheduling 3 D Fraudulent or negligent behavior, as well as

corrupt behavior

4

E Storage space 5

F Inadequate security personnel 6

G Construction site waste 7

Table 5 summarizes the responses to the measures for effective material management on construction sites

Table 5 Measures for Effective Material Management on Building Construction Site [15]

No Effective Material Management on a Building Construction Site

Rank Order A Employing skilled craftsmen and operators 1 B Training for both management and other

employees

2

C Ensuring proper building work planning and scheduling

3

D Procurement requisition detailing quality, quantity, and delivery date

4

E Employment of storekeeper and security personnel

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No Effective Material Management on a Building Construction Site

Rank Order F Implementing material management during the

design phase

6

G Remain aware of the weather conditions 7

Six construction projects were studied by Narimah Kasim (2008) to investigate current practices and problems in materials management The case study findings in table 6 show that the major issues in terms of materials management activities are related to constraints on site storage, site logistics in terms of materials handling and distribution, and ordering and delivery of materials to construction sites Late delivery problems and site storage constraints were clearly the most common problems, with four cases (Cases A, B, D, E) experiencing late delivery problems and another four (Cases A, C, D, E) experiencing site storage constraints With three case studies, logistics issues were the second most common (Case B, C, F).[8]

Table 6 Material management problems from Kasim’s Case Studies[8]

Materials management problems

Case A Case B Case C Case D Case E Case F

Delivery was delayed X X X X

Storage issues on the job site

X X X X

Logistics problem X X X

Inadequate delivery X X

Insufficient loading space X X

Access issues on the site X X

Consideration of Regulation

X X

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Materials management problems

Case A Case B Case C Case D Case E Case F

Others: Inadequate delivery X Storage constraint compound X Material losses X Lack of materials X Inadequate handling X

Distribution issues with tower cranes

x

Supply chain difficulty X

Project size challenge X

Project location difficulty X

Moreover, construction materials management problem can be defined in these phases [10]

Table 7 Material management issue in Materials Identification Phase [10]

Problem Definition

Unspecified scope No good definition of what is wanted Communication breakdown Lack of communication between parties

involved

Drawings that are incomplete Plans are not completed and details are missing

Noncompliance with requirements Nonstandard specifications

What is wanted by the customer is not what is prepared

Meetings that are incomplete or ineffective

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Problem Definition The distinction between plans and

specifications

Issues not resolved during meetings

Not knowing when and what materials are required

Don’t communicate exactly what is wanted to suppliers

Unspecified scope

Table 8 Material management issue in Vendor Selection Phase [10]

Problem Definition

Unmanageable bid list Have too many suppliers and too little information

Proposals that are incomplete Suppliers do not include all documents required

Time spent researching unqualified suppliers

Table 9 Material management issue in Procurement Problem Phase [10]

Problem Definition

Material availability Quantity is available

Price matching to a competitor's price Price reduction to match competitor’s price

Late deliveries Materials are not delivered on time Submissions that are late or incorrect

Ineffective communication Parties' failure to communicate Noncompliance with requirements What is desired is not what is ready Dates of delivery that are unrealistic Delivery deadlines are impossible to

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Problem Definition

Unspecified requirements Communication breakdown

Regarding material handling Materials must be moved from one location to another Storage areas are limited or located far from the work area

Materials storage

Theft Damage caused by handling or other

factors

Damaging Materials are not delivered on time

Table 10 Material management issue in Construction Phase [10]

Problem Definition

Incorrect type of material delivered There are differences in material ordered and delivered

Incorrect sizes delivered Delivered incorrect quantities

Material management Not knowing where materials are at a certain period of time

Material re-handling Material storage Material loss Damage

There is no supplier QA No quality assurance from supplier Regarding material handling

Ineffective communication

Unused materials are received, handled, and stored

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common issues that can arise during the process and, most importantly, having an efficient material management procedure can help construction teams address and mitigate these issues effectively

2.4 Effect of poor materials management

Due to excessive waste, poor quality, and over labor working hours, poor materials management (PMM) can have a detrimental effect on time, cost, quality, productivity and waste which will hinder project completion and profitability

Table 11 Summary of Material Management Affecting Project Performance [11]

No Authors Criteria of Project Performance

Time Cost Quality Productivity Waste 1 Gulghane & Khandve

(2015) [14] X X X X X 2 Pejman Alanjari (2014) [18] X X X X 3 Barry et al (2014) [19] X X X 4 Caldas et al (2015) [20] X X X 5 El-Gohary (2014) [21] X

6 Hughes & Thorpes (2014) [22]

X X X

7 Safa et al (2014) [23] X X X

2.4.1 Effect of construction waste

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materials on construction sites is what causes cost overruns Construction waste is said to be produced efficiently at every step of the project, from planning to completion, with the pre-construction phase accounting for a sizeable portion The effect of PMM on materials waste is as follows[24]:

Table 12 Effect of poor materials management on materials waste [24]

Statement Level of effect

Increasing waste production High effect Having a negative effect on the waste

management strategy

Low effect & High effect

Having a negative effect on the proposal for the recycling, recovery, and disposal of material waste

Moderate effect

Causing mixing of waste Low effect Complicating the waste management

plan's oversight

Moderate effect

Complicating the management of waste-related Key Performance Indicators

Moderate effect & High effect

Complicating the management of site waste management plan cost information

High effect

Discrediting the endeavor to use resources as little as possible

Moderate effect

Affecting the requirement to evaluate and identify material waste sources

Low effect

Making it challenging to calculate material waste