Need of Effective Utilization of Material Management on Construction Site

INTRODUCTION

Inventory management (2014) G.Brindha Author has presented a paper on Inventory management which gives an idea about importance and investment in inventories in working capital. This paper highlights different inventory control techniques like ABC, FSN, HML, VED, SOS, SDE and their applicability. This paper gives an idea about basic costs involved in inventory management and the system to control them. Also paper highlights the problem of management and control of inventories in any sector. It is necessary for the company to maintain the balance between inventories. Basically, Inventory management includes development, administration, systems and procedures related to the inventories to reduce inventory cost. It is found that inventory system has gaining importance due to competition in the market. Many companies are searching for inventory control methods to avoid unnecessary investment in the inventories.

that growth pattern of inventory usage should take into consideration while ordering the inventory. In this, The ABC analysis technique for the inventory control system was first carried out to identify the most important products and then the economic order quantity of each product is developed. The paper concluded that proper inventory management is useful to determine the optimum level of inventory and only effective inventory management will provide the solution to the problem of safety stock and lead time. Author emphasis on the use of EOQ in the respective company for inventory control as it was seen best suitable to maintain an optimum level of materials in the store. Inventory management and its controlling techniques at Wheels India limited (2012) N. Padmavathy [3], Author investigated the inventory position of wheels India Pvt, Chennai for five years .Previously the studies were made at this company but only a few factors were taken into consideration such as annual reports and the analysis were made accordingly. But In this paper, the study of inventory management and its control techniques deals with annual reports as well as store ledger of the company but also with the stores ledger of the company. With the help of store ledger, the study was made on each item and results obtained for each item separately. The investigation is done using ABC analysis, Economic Order Quantity. The Author suggested that more priority should be given to class ‗A‘ materials by keeping track on them. Also, the company should pay attention to such materials whose Economic Order Quantity is high. Such study helps to maintain the efficiency level of inventory management of the organization. The study reveals that the inventory management is a complex action because of the large amount of material that is being used. The company must follow some technique to control the inventory. It is better for the company to reduce the inventory level as it blocks the capitals. The efficiency level of inventory management has revealed here. The recommendations and suggestions were given to improve the level of the inventories in wheels India limited.

and handling of raw materials not for finished products. The study thus suggested recommendations to improve certain things in the company such as Review of stock levels, Cycle Counting and identifying the potential of consignment. Study on Stock Management practices in construction Companies (2013) Arunprakash N. and Nandhini N [Authors have addresses the inventory control techniques adopted by construction companies. The study is carried out using annual reports and stock sheets of the company. ABC and FSN analysis are highlighted in this paper. The questionnaire survey was carried out to check the inventory management systems of various companies. Questionnaire study reveals that most of the companies use stock management to control project cost and stock flow. Maintaining receipts for the stock is the only record to check the inventory. They also transfer the stock and use the stock in other activity when there is stock overflow. The company itself uses most of the stock. Most of the companies keep the material access as centralized. The Case study was carried out in a village in which classification was achieved by using ABC and FSN analysis .The paper concluded that almost 60% companies use ABC analysis for inventory control. It is found that every organization considers about the safety stock in the planning. All companies believe that stock management and proper documentation will help to gain profit. Analysis of Inventory control techniques; A Comparative study (2013) Tom Jose V and Akhilesh Jayakumar Authors addresses the problem of inventory management of the company which is the manufacturer of washing machines. ABC, FSN, EOQ analysis carried out to understand the inventory management of company including safety stock available. The analysis shows that organization does not follow EOQ for purchasing so the inventory management is not satisfactory. From the calculation of safety stock, it was found that how much safety stock company has. From ABC analysis it is found that company maintains its inventories based on its value. According to analysis, it was found that there are no Non-Moving items. Also, it was seen that fast moving materials are low as compared to slow moving materials which may be blocking the capital.

is the number of criteria. When the number of criteria is small, a specification of ranking is not required. When a number of criteria is large, it is not an easy task for the decision maker to rank all criteria. ABC inventory classification based on multicriteria optimization (2007) YE weilong In this paper, Author has proposed an inventory classification method based on multicriteria optimization. In classical ABC classification, annual consumption is taken into consideration and other criteria are not taken into consideration. The method takes the decision makers preferences into account and determines the weights of the criteria by genetic algorithm. At last, the multicriteria inventory classification problem converts to single criteria inventory classification problem and the classical ABC classification can be used. Simulation experiments show that the proposed method and genetic algorithm are feasible and effective. In this paper decision makers only choose one item as their most preferred item. Through the modification of the genetic algorithm in this paper, the multicriteria inventory classification can be easily extended to the case where decision makers may choose multiple items as their preferences. Inventory control using FSN analysis–A case study on a manufacturing Industry (2015) Shibamay Mitra, Authors applied the inventory control technique on Electric multiple unit (EMU) manufacturing industry. As we know, In any manufacturing industry, the materials are not required all the time. Some materials are quite regularly required, yet some others are very occasionally and some materials are never.FSN analysis groups them intro fast moving, slow moving and non-moving groups. So here FSN analysis is performed based on the turnover ratio. The graphs are plotted for each material depending upon the % annual demand versus % cumulative annual usage. Some graphs were showing little deviation from other graphs. It is found that very low percentage materials are in fast moving class. Non-moving items are more and thus they are blocking the capital. In order to maintain the stock of inventory periodic and continues review techniques can be used.Also,it is important to determine the level(maximum or minimum) at which a particular items stock needs to be maintained. They found that the priorities of the items change according to different inventory analysis techniques. It‘s up to management which process to follow taking into consideration their budget, supply demand inventory carrying capacity.

number of items of the under frame assembly.

CONCLUDING REMARK

Corresponding Author Mr. Arbaz Akthar*