IRJET- Inventory Management System in Building Construction

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INVENTORY MANAGEMENT SYSTEM IN BUILDING CONSTRUCTION RISHITHA RAMACHANDRAN ------------------------------------------------------------------------***----------------------------------------------------------------------ABSTRACT: The concept of inventory management system has been one of the analytical aspects of management establishing control over purchase, storing and to keep track of the materials, workforce, equipment and production units involved in construction projects. The proper management of this component can improve the productivity and cost efficiency of a project.

One of the major problem in delaying construction projects is poor managing systems. The inventory management system for construction industry involves procurement, identification, transport and storage of materials in construction projects. The main objective of our study is to investigate the efficiency and its impact in application of inventory management system in construction of small scale projects. Identification of impacts and risk influence of inventory management systems in small scale projects. The lack of proper handling and storage of material in construction site has made it difficult to track and locate the material availability and suggestion about inventory management system and its control over efficiency construction projects will be analysed and the outcome of the effective utilization of inventory at construction site of small scale project to overcome the difficulties by giving best the possible recommendations. ABC analysis is one of the most conventionally used inventory management system suited for construction buildings.

CHAPTER 1 INTRODUCTION 1.1 General: The term inventory means referring the goods and materials used by a firm for the production and sales. It is also essential to provide flexibility in operating a system of organization. Inventory management is known as the construction companies and suppliers can stores and keep tracks their material, workforce, equipments and plants in construction projects.

One of the most important aspects of any business is inventory management. Without stock management it is difficult for any company to maintain control and to handle customer needs. It is more important when the construction companies has multiple projects to be executed at the same time. Approximately 60% of money was allotted to the project of inventory.

Inventory management is defined as the function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling inventories in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost. Inventory management is simply the process by which an organization supplied with the goods and services that it needs to achieve its objectives of buying, storage and movement of materials.

1.2 Inventory cost: The inventory cost known as the purchase of materials, delivery and excise custom duties. The inventory of valuation was done by using FIFO, LIFO or specific identification method of periodic inventory method.

The different inventory costs are,     

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Material cost, Ordering cost, Holding or carrying cost, Under-stocking cost, Over-stocking cost

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1.2.1 Material cost: The purchasing of goods, addition of transports and handling charges are comes under in material cost. The mutually beneficial partnership with reliable suppliers will makes to keep the inventory purchasing costs low and develops in long term.

1.2.2 Ordering cost: Ordering cost are based on two factors cost of ordering excess and cost of ordering too less. The Ordering quantity was comes underthe cost of inventory. And ordering less quantity will result in replenishment cost. The ordering cost are also an Total Stocking Costs.

1.2.3 Holding and carrying cost: Storing inventory either in warehouse or in a sales outlets incurs additional costs. The Just In Time inventory model can reduce the cost of handling and carrying cost in construction projects.

1.2.4 Under stocking cost: The stocking orders will be profitable or loss when they stored delay in inventory. The overflow of an inventory makes additional cost and wastages of materials.

1.3 Inventory management system: Inventory management system means the system of operation followed in companies to track and controlling the inventories.

Inventory is a list of goods and materials are available in stockings. It required a locations within a facility or within multiple locations of a supply network to product the regular and planned course of production against the random disturbance of running out of materials. The ability to measure inventory in a timely and accurate manner is critical for having uninterrupted business operation. Because inventory is one of the largest current assets on a company’s balance sheet.

There are two types of inventory management systems are followed,  

Perpetual System, Periodic System

1.3.1 Perpetual system: The perpetual inventory system means a companies are able to maintain a continuous record of changes in inventory. It is used as a permanent inventory account to track inventory purchases and the uses of that purchased material. When the company sells goods from the existing inventories means the sale directly decreases the balance of inventory account. They will get up to date information about their inventory holdings at any point of time.

1.3.2 Periodic system: The periodic inventory system is used for purchasing temporarily and inventory account are in periodic basis. The company sells goods from the existing inventories it does not makes to track the inventory reduction through the inventory account as it occurs. The sales also does not affect the purchasing account. The purchasing details will goes to the account not affecting the inventory account at the time during a business cycle. Finally the balance of offering inventory is added when the purchasing account was closed at he end of business cycle.

1.4 Objectives of Materials Management These objectives of materials management, contributes to the attainment of overall objectives of the company.

1. Primary Objectives: If the contribution of the objectives is direct they are called as “primary objectives”. They are:

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i. Effective material planning. ii. Low cost for procurement. iii. Efficient storage and inventory control. iv. Continuity in supply and circulation of materials. v. Quality assurance. vi. Good supplier relations. vii. Development of personnel. viii. Good information system.

2. Secondary Objectives: If the contribution of the objectives is indirect they are called as “secondary objectives”. They are: i. Efficient production scheduling. ii. Decision to make or buy. iii. Prepare specifications and standardisation of materials. iv. Provide assistance in product design and development. v. Predicting material demand and quantity. vi. Quality assurance of materials purchased. vii. Material handling. viii. Practicing value analysis and value engineering. ix. Evolving labour skills in materials management. x. Uninterrupted material flow 1.5 Classification of inventory: There are three main types of inventories are present, Raw Materials Work in Progress Finished goods

   1.5.1 Raw materials:

Raw materials is an unprocessed natural substance used in manufacturing process and that are converted by a manufacturer into finished product. It is consists of raw material and the resources purchased a input for process of transformation that not have been transformed. The raw materials is the original materials that are taken usually from the ground. It was held only in manufacturing companies because they have to manufacture goods from raw materials.

1.5.2 Work in progress: Work in progress is also known as an stock in progress because goods in the intermediate stage of production. It was refers to partially produced goods and also the raw materials engaged in various phases of production schedule. The purpose of work

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in progress inventory is to uncouples the various operations in the production process so that machine failures and stops in one operation will not affect their operations.

1.5.3 Finished goods: Finished goods are completed products awaiting sale. They are final output of the production process in a manufacturing firm.

It is an type of inventory comes existence after the production process is complete. The wholesalers and retailers are generally referred to as merchandise inventory.

1.6 Techniques of inventory: ABC Analysis EOQ Analysis FSN Analysis HML Analysis JIT Analysis SDE Analysis GOLF Analysis SOS Analysis

        1.6.1 ABC analysis:

The ABC method is an analytical method of stock control which aims at concentrating efforts on those items where attention is needed most. It is based on the premise that a small number of the items in inventory may typically represent the built money value of the total materials used in production process, while a relatively large number of items may represent a small portion of the money value of stores used and that small number of items.

The material stocks may be classified into a number of categories according to their importance. The first category item A may consists of small amount of total items but it has large stock value. The second category item B is relatively in average value.

The third category item C has an large number of items and the value is not high.

Table 1.1 Stock Items and its cost – ABC Analysis GROUP ITEMS

TOTAL ITEMS

INVENTORY COST

A

10%

70%

B

20%

20%

C

30%

10%

1.6.1.1 Benefits of ABC Analysis ABC analysis is beneficial in the following ways: 1. It is a technique of allocating direct and overhead expenditures first associated with the critical activities of the firm. This process defines the areas generating maximum profit to the company in a better way.

2. It aids stringent and better controls of high-priority inventory.

3. It promotes efficient use of its resources to prioritize control of inventory over its impact on final outcome.

4. Resource allocation is more efficient during cycle counts.

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5. It objective is to achieve economy by efficiently managing the materials.

1.6.2 EOQ analysis: The term EOQ is termed as Economic Order Quantity. It is the most economical purpose quantity which maintains a balance between two costs. Two most important categories of inventory cost are ordering cost and carrying cost. Ordering cost are incurred on obtaining, additional inventories and also including the cost of order, transport etc. carrying cost incurred on holding, storage, insurance taxes, deterioration cost.

1.6.3 FSN analysis: The FSN stands for Fast-moving, Slow-moving, Non-moving. There may be several reasons of items has got into N category. It has been changed in technology of specification or a particular spare part. It takes appropriate action to increase number of orders or quantity per order against fast moving items.

F – Fast ( Items that are frequently issued say more than once a month) S – Slow (Items that are issued less than a month ) N – Non Moving (Items that are not issued for more than 2 years ) 1.6.4 HML analysis: The HML was classifies them H stands for High price, M stands for Medium price and L stands for Low price. It is more concerned of purpose department people analysis the materials. The purchasing responsibility should be delegated to right level of people. The frequency of stock taking then very frequently Hcategory, very rarely L category, averagely M category.

Table 1.2 Stock Items and its cost – HML Analysis GROUP ITEMS

TOTAL ITEMS

INVENTORY COST

H

10-15%

10,000-1,00,000

M

20-25%

1000-10,000

L

60-70%

0-1000

1.6.5 JIT Analysis: The term JIT refers as Just in Time, it is conceptually very appealing, is difficult to implement because it involves a significant change in the total production and management. The company produces only the what is needed, when it is needed and in the quantity that is needed. It is also defined as producing necessary units, with the required quality, in the necessary quantities, at the last safe moment.

1.6.6 SDE Analysis: SDE analysis takes care about various purchasing problem normally comes on day to day basis like non- availability, Scarcity, Longer lead time, Supplies.

S – Scare materials are those materials which hardly available D -Difficult materials are those materials, which are available with difficult.

E – Easy materials are those materials which are available easily.

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1.6.7GOLF Analysis: The GOLF analysis is similar to SDE analysis. Its based on nature of suppliers and type of market from where the purchase are made.

G – Government suppliers O – Ordinary or non government suppliers L – Local suppliers F – Foreign suppliers 1.6.8 SOS Analysis: SOS analysis is based upon season ability of the items depending the item purchasing and workload problems will be vary.

S – Seasonal items OS – Non seasonal items 1.7 Factors identification: The factors which are influencing inventory management system were identified based on literature review.     

To identify the allocation of cost for inventory To identify the need for stock inventory To analysis the importance of inventory system in construction project To identify the importance worker/labours in inventory To analysis the affects of inventory.

1.7.1 Factors influencing inventory system: Inventory risk is the potential for loss due to inventory planning and control failure. Inventory risk is managed with standard risk management process of identifying, analysing, treating and monitoring risks. Some of the risk factors in construction projects are,      

Theft Inventory waste Damage Out of stock Financial factors Suppliers

1.7.2 Inventory waste: Inventory waste is stock and work in process in excess of requirements necessary to produce goods or services in Just in Time analysis. The major cost of inventory waste are delays, inventory defects and transportation.

1.7.3 Damages: The damage inventory required huge investment. The value of damaged goods must be documented so that its worth can be deducted from taxable income. It was found a description of the damage has to be written before cleaned it. Inventory costs may have gone up with checking the vendor to find out how much it would cost to replace the lost inventory.

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1.7.4 Out of stock: Out of stock is an event that causes inventory exhausted. It arrives because of under estimating the demand for a product. The shortage of working capital and late delivery by suppliers. Product quality issue and safety stock level that is too low.

1.7.5 Financial factors: Some of the financial factors are,   

Income or profit Cash flows Working capital

1.7.5.1 Income or Profit: There is any errors occurred in calculating inventory it would causes cost of goods sold, profit and income. Some instances old goods which might have to be sold at some discount.

1.7.5.2 Cash flows: If a business uses FIFO when prices are rising and inventories are also rising and net income would be higher. As a result the company would have to pay the highest taxes.

1.7.5.3 Working capital: The working capital is defined as current assets minus current liabilities, when inventory goes up in the income statement, the working capital would also go up.

1.7.6 Suppliers: Suppliers having an huge influence on inventory control. Successful businesses require reliable suppliers in order to plan spending and arrange production. It can be a good idea to ensure you have a reliable back up supplier to prevent product shortage or delay in the manufacturing process.

1.8 Objectives of inventory management system:   

To analyze the possibility of applying inventory management system in construction sectors.

To make an analysis about suggestion of experts through questionnaire survey about inventory management system in construction industry.

To identify the impact and influence of inventory management system in reducing time delay and material scarcity.

1.9 Scope of inventory management system:   

The inventory management system concerns the fine lines between replenishment of lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory prices forecasting, physical inventory, quality management, returns and defective goods.

It also defined the left out stock of any item used in an organization.

Measuring the change in inventory allows the company to determine cost of sold during the period.

1.10 Benefits of inventory management system:  

The inventory management has several benefits like increases profitability, improves cash flow, decision making and customer satisfaction etc.

Reducing the overall cost of the materials in construction projects.

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Better field material control and relations with suppliers.

Improvements in labor productivity and project schedule.

Accuracy improvement and time savings in addition to reducing the fixing of costly mistakes, and considerable cost saving an organization.

CHAPTER 2 LITERATURE REVIEW 2.1 General: In inventory management system there are various techniques are obtained in the various factors. The factors of influences are might be studied in different researches based on inventory management in varied relationships.

2.2 Literature review: Ashwini R. Patil et.al., (2013) Inventory system was analysed detail in tender and quoted accurately. The nontender will not having an basic rate of materials difference day by day. The item should be quoted as an profitable to contractor and client instead of any quantities. The total cost of inventory after adopting EOQ analysis is less than without adopting EOQ. The construction industry is the tool which the society achieve its goal urban and rural development.

Contactors improper planning and scheduling have more influence on project duration , as well as lack of experience will affect the ability of decision making.

Aditya, (2015) The material management system was used to identify the functions of planning, material usages, vendor selections, material purchasing, transporting, receiving and material distribution. They preparing the scheme of material management in construction of building and making the survey of an building. The software was developed for an proper management system to tracking the materials.

Aravinth K G S et.al., (2016) It is the system for planning, executing and controlling the field and office activities in construction. Analysis the results in construction industries maintenance, safe and storing of materials. Inventory management for construction field and to create the effective utilization of inventory at construction site. Finally explained about inventory management system is considered to perform a key role I organization, which is responsible to complete the company project in a specific budget within a certain period of time.

Brindha G et.al., (2014) In this discussed about the effective use of resources available to the company and also to avoid the out of stock danger to supply the inventory materials at the right time. They discussing about the reduction of risk to avoid high obsolescence. There are some different kinds of tools in inventory management system such as ABC analysis, Economic Order Quantity and FSN analysis are explained detailed using the available data. The inventory system was gained more importance in our country past few years. Economic in purchasing in effective quantity are buying raw materials in market. The market managers has the responsibility to ensure that inventories are properly monitored and controlled.

EduinaGuga, (2015) The detailed investigation of using EOQ model in inventory management can reduce the cost of ordering and inventory holding costs for shpresa ltd. This method of inventory management was not suitable for shpresa company because the distance between the place to supply, and also the less amount of reorders. Important variables such as annual demand for wholesale were left out of the analysis. The limitations of this method is the use of incomplete information, in relations to products, as in the analysis made. It is suitable for the model of perfect theoretically, but not suitable for practical perspective of firm.

Ehrenthal, (2014) The value of accounting was investigated for demand seasonality in inventory control, and their problem is motivated by discussions with retailers who admitted to not talking perceived seasonality patterns into account in their replenishment systems. After they find not accounting for demand seasonality it can lead to substantial optimality gaps and incorporating some of the demand seasonality that does not always lead to cost savings.

Jongchul Song et.al.,(2006) Inventory management system is known as the automatic tracking system of materials on construction projects has the potential to improve performance of the project. To operate the technical feasibility of the

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materials are suggests to a mathematical model has been developed the job site is representing the grid and the location of materials within the grid is determined by combination of proximity read from a discrete range. The cell models adopted to current ADC technologies can be used in the developing localization algorithm of small that are envision in wireless sensor network to set additional sensing models such as heat and vibration.

Konimozhi G et.al., (2014) Inventory system was detailed coordinating function responsible for planning and controlling material flow. An effective material management system can bring many benefits for company. Avoiding delay in construction project will makes an company profit of cost. One of the major problem in delaying construction project is poor material and equipment management. Material will be on site in needed an in the quantity required. Improvement in labor productivity and project schedule will increase cost of profit to construction companies. More than 70% of the total cost for the typical cost may constitute about the construction materials and equipment shown in the research.

Miss. Monika et.al., (2017) Inventory management is the concept that has more analytical aspects in project management. The inventory management should optimize ensuring the stocks are neither too lower or too higher. It can be done effectively by using ABC analysis and EOQ. Inventory management system minimizes the wastage of materials ultimately saves the cost of a project. The average material cost is 64% of the implementation price and 36% of the cost goes to the salaries, overhead and profits are shown in this survey. it minimizes the wastages of materials which saves the cost of the projects.

Phani Madhavi T et.al., (2013) The study of inventory management was noticed that the material are improperly procured and stored and there is a lack of inventory control and improper management. The procurement process was detailed studied and attempt has done to meet effective transportation system. And the purchase can be done with technological measures and also determines the profit and loss that occur under particular schedule based on purchasing and inventory stores. Material purchasing, material usage and storage are the three important phases that holds the key to a successful material management system.

Rathinakumar V, (2018) In construction site the material was controlled through inventory control techniques was present in detailed. The issues can be avoided by properly implementation of material management that ensures the time flow of materials to the job site which turns increases the labor productivity and reduces the cost of the project. By focusing on these causes the contractors and owners can improve their material planning and keep overall project cost under control. The engineers and contractors may use simple and simple inventory control techniques which are beneficial and economical instead of using the costly software.

Shravan M, (2018) The material management is an important element in project management. Material represented a The major expense in construction was represented by material, so minimising the procurement costs to improve the opportunities for reducing the overall project costs. The centralized material management team co-ordination between the site and the organization. The system required proper tracking, monitoring and control. The organization will create the awareness and accountability. The material management of builders in Ahmedabad carried an investigation of survey for the main result.

Sindhu S et.al., (2014) In this detailed focus on construction of industries and involvement of contractors in material management, managing the stock will helps in growth of company, maintaining safety in storing is important while comparing with others. Inventory management system is acts as very important role in an organization, it has an responsibility to complete the company’s project in a specific budget within the certain limited period of time of the project. It reflects the main factors that affects the inventory management system which are able to achieve the efficiency of project management. And reducing the wastes of materials in the construction of industry.

Subramani T, (2017) The Material is the main component in any of the construction projects. If the material not managed properly it will create a project cost variance. The total cost of the project can be well controlled by following the management correctly. They includes time and cost overruns due to inadequate project formulation, poor planning for implementation , lack of proper contract planning and management. It is described as the procedure to right fabric at proper region at proper time in proper quantity with a purpose to limit the price of assignment.

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Subramani T, (2016) It contains three contributions like various existing initiatives construction supply chain development are related to SCM. It was revised in supply strategies and trading relations with subcontractors and suppliers.

They mainly focused in supply chain of a main contractor and noted in construction projects and estate owners also may drive supply chain development. Develop the models that helps to support the decision making and planning of the construction industries. The research based on to find out why only trucks are using majorly for transportation in construction industry.

Subramani T, (2015) The long introduced industrialized building system has promised to solve and improve the current construction method in our country. The project management software tools are mostly used in industries such as construction projects, engineering sectors, transports and security service. Involvement of contractors in material management should maintain the stock list and the purchase list. A component of supply chain management, inventory management supervises the follows of goods from manufactures to warehouses and from these facilities to point of sale. inventory management can perform key role in organization.

CHAPTER 3 METHODOLOGY 3.1 General: Methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or the body of methods and principles particular to a branch of knowledge. The term Research methodology can be defined as investigation purposive of facts with an objective.

3.2 Research Methodology: The collection of detailed information about inventory management system. The systematic and purposive investigation of facts with an objective determining the effective relationship among such facts and research between two or more phenomena.

Administered to collect various data by surveying. The respondent have been ask to express their opinion on the variable point scale. It has been checked and analysed the most common types of risks in inventory management system.

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Inventory Management System

Literature Collection

Factors affecting inventory management system

Identification of critical factors

Questionnaire preparation

Collection of response

Results and suggestions 3.2 RESEARCH METHODOLOGY CHAPTER 4 4.1 Analysis of data: After the study of literature review a plan for collecting the field information using the inventory management systems in construction companies. The main important factor is to collect the detailed information of some risks and advantages are using in small scale building directly to the respondent. It shows the several impacts on performance of the inventory management system in small construction works.

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This questionnaire survey was conducted through the construction professionals, engineers, project managers in construction and construction companies to identify the risk factors in inventory management system. The given data was analysed to find the frequency of response in various risk factors.

4.2 INVENTORY MANAGEMENT SYSTEM IN CONSTRUCTION OF SMALL SCALE BUILDINGS QUESTIONNAIRE SURVEY PROFILE OF RESPONDENT:1 Please fill in the blank or tick (√) in the box as shown, 1. Name: …………SIBINSON V J…………………………..

2.Gender: Male ... Female 3. Age : a. Below 25 years b. 26-30 years c. 31-35 years 

d. Above 35 years

4. Name of the company: ARC ONE DEVELOPERS 5. Position in company: a. Project manager b. Quantity surveyor c. Site engineer d. Others (…OWNER……………………)

6. Location of the project: …CHUNDEL,WAYANAD…………………………..

7. Experience in construction: a. Below 5 years 

b. 6-10 years

c. 11-15 years d. Above 15 years

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4.2.1 COMMON RISKS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

1

1

Inventory management system must be in organization/companies handling multiple projects

2

Skilled manpower required for managing

3

Inventory management is more important comparing to other works

4

Inventory management is most useful for construction projects in future

5

Inventory management helps growth of the company

2

3

4

5

an

4.2.2 SEVERAL DAMAGES OCCURING IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

6

Inspection is required when the goods arriving to the location of project

7

Maintaining safety in storing materials

8

Proper space required in assembly of materials

9

Periodical system (periodic checking) is suitable for construction projects

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Damages mostly occurs during transportation to project location

10

4.2.3 CAUSES OF INVENTORY WASTE: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

1

11

Pre-ordering of the material

12

Purchasing material more than required quantity

13

Control in stock overflow in construction site

14

Lack of experience in material management

15

Wastages are occuring mostly by labours

2

3

4

5

4.2.4 OUT OF STOCKS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

S.No

Statements

16

JIT (Just in Time)method is suitable management for small scale buildings

17

Estimation of future demand in project

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18

Maintaining stock is important comparing others

19

Accepting goods before the scheduled delivery date is better for avoiding demand of material

20

Maintaining daily records of goods in-stock and outstock

4.2.5 SUPPLIERS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

S.No

Statements

1

21

Selection of vendor

22

Impact of price in vendor selection

23

Better relationship with vendors and customers will reduce the cost of purchase

24

Maintenance of reliable information on stock levels

25

Involvement of contractor in material management

2

3

4

5

4.2.6 FINANCIAL FACTORS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

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S.No

Statements

1

26

Checking appropriate cost of materials

27

Handling and transportation charges of inventory

28

Procurement and holding cost spent on inventory

29

Material delay affects the profit to be gained in the project

30

Storage of capital or financial support

2

3

4

5

THANK YOU FOR YOUR RESPOND 4.3 INVENTORY MANAGEMENT SYSTEM IN CONSTRUCTION OF SMALL SCALE BUILDINGS QUESTIONNAIRE SURVEY PROFILE OF RESPONDENT:2 Please fill in the blank or tick (√) in the box as shown, 1. Name: …AKHIL TRIFFO THOMAS…………………………………..

2.Gender: Male Female 3. Age : a. Below 25 years 

b. 26-30 years

c. 31-35 years d. Above 35 years 4. Name of the company: LIVING SPACES 5. Position in company: a. Project manager b. Quantity surveyor 

c. Site engineer

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d. Others (………………………)

6. Location of the project: …KALPETTA…………………………..

7. Experience in construction: 

Below 5 years

b. 6-10 years c. 11-15 years d. Above 15 years 4.3.1 COMMON RISKS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

1

1

Inventory management system must be in organization/companies handling multiple projects

2

Skilled manpower required for managing

3

Inventory management is more important comparing to other works

4

Inventory management is most useful for construction projects in future

5

Inventory management helps growth of the company

2

3

4

5

an

4.3.2 SEVERAL DAMAGES OCCURING IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as:

S.No

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

Statements

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6

Inspection is required when the goods arriving to the location of project

7

Maintaining safety in storing materials

8

Proper space required in assembly of materials

9

Periodical system (periodic checking) is suitable for construction projects

10

Damages mostly occurs during transportation to project location

4.3.3 CAUSES OF INVENTORY WASTE: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

1

2

3

4

5

S.No

Statements

1

11

Pre-ordering of the material

12

Purchasing material more than required quantity

13

Control in stock overflow in construction site

14

Lack of experience in material management

15

Wastages are occuring mostly by labours

2

3

4

5

4.3.4 OUT OF STOCKS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

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S.No

Statements

1

16

JIT (Just in Time)method is suitable management for small scale buildings

17

Estimation of future demand in project

18

Maintaining stock is important comparing others

19

Accepting goods before the scheduled delivery date is better for avoiding demand of material

20

Maintaining daily records of goods in-stock and outstock

2

3

4

5

inventory

4.3.5 SUPPLIERS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

S.No

Statements

21

Selection of vendor

22

Impact of price in vendor selection

23

Better relationship with vendors and customers will reduce the cost of purchase

24

Maintenance of reliable information on stock levels

25

Involvement of contractor in material management

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4.3.6 FINANCIAL FACTORS IN INVENTORY MANAGEMENT: Kindly mark your level of agreement to the following statement as: Strongly disagree

Disagree

Neutral

Agree

Strongly agree

1

2

3

4

5

S.No

Statements

1

26

Checking appropriate cost of materials

27

Handling and transportation charges of inventory

28

Procurement and holding cost spent on inventory

29

Material delay affects the profit to be gained in the project

30

Storage of capital or financial support

2

3

4

5

THANK YOU FOR YOUR RESPOND CHAPTER 5 CONCLUSION This paper has presented a review of inventory management system. In phase I the literatures are collected and the detailed study has been completed. it is important to manage all materials and inventory throughout the construction activity and processes. The different literatures are collected and deep study has been done. By the studies the methodology has been framed and questionnaire survey is conducted. By these survey i can concluded that inventory management is a crucial element in construction field and it is necessary for future development of a company.

ACKNOWLEDGEMENT First and foremost, I would like to thank lord almighty for making everything possible for me. Without him, nothing would have been possible.

I convey my thanks to our chairman Vijayshree K.V.KUPPUSAMY, RVS Technical Campus for providing all the facilities to complete my project work successfully.

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We would like to express our sincere thanks to our institution Director Dr.S.RAJASEKARAN, M.E.PhD., for forwarding us to do our project and offering adequate duration in completing our project.

We are also grateful to the Head of The Department of Civil Engineering Dr.A.G.MOHANDAS GANDHI, M.E.Ph.D., for his valuable suggestion and encouragement during this project.

We also take this opportunity to express our sincere thanks to our project coordinator Ms.S.JANANI,M.E., Assistant professor of Civil Engineering for her endless support during the course of project work.

With deep sense of gratitude, we extend our earnest and sincere thanks to our guide Mr.C.JUSTIN RAJ,M.E., Assistant Professor, Department of Civil Engineering for his kind guidance and encouragement during this project.

We also express our indebt thanks to all our teaching and non-teaching Faculty membersrendering their valuable help in completing this project successfully REFERENCES 1) Ashwini Arun Salunkhe, Rahul S.Patil ,Jan 2014. Effect of construction delays on project time overrun Indian scenario.

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2) Ashwini R.Patil, SmitaV.Pataskar, Oct 2013. Analysing material management techniques on construction project, vol.

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3) Aravith K G S, IndhuB,April 2016. Case study on inventory management system followed by major builders in Chennai region and proposing recommendation to improve the system. International journal of innovative research in science, engineering and technology, vol.5,issue 4.

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13) Rohan J.Madgi, Prof.ShanshankVanakudari U, July 2018. Inventory control techniques in materials management.

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15) Shravan M, Satheesh Raju G, Sardar Parminder Singh, NagendarYamsani, D.Mahesh, Dec 2018. Construction materials management on construction sites. International journal of civil engineering and technology. Vol.9, issue 13, pp.809818.

16) Sruthi P S, M.Kavitha, T.Subramani, June 2016. Causes of cost overrun in construction. IOSR journal of engineering, vol.4, issue 6.

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18) Subramani T, Rajiv S R, May 2016. Improving construction efficiency and productivity of industry using SPSS. International journals of application of innovation in engineering and management. Vol.5, issue 5, pp.239-250.

19) Subramani T, Bhaskarannair V, David A, Mohmaedghouse B, Sivakumar N, May 2015. A study of inventory management system in construction industry. Vol.6, issue 5.

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21) Subramani T, Suresh Kumar T, 2018. Analysing inventory material management control techniques on residential construction project using SPSS.International journal of engineering and technology.

22) Sindhu S, Nirmal Kumar N, Krishnamoorthy V, April 2014. Performance analysis of inventory management system in construction industries in india. International journal of innovative research in science, Engineering and technology, vol.3, issue 4.

23) VipuleshShardeo, April 2015. Impact of inventory management on financial performance of the firm. IOSR journals of basis and management.

24) ZHAO Huifang, March 2017. Dependability analysis of inventory management in construction project based on joint inventory management model. International journal of science, engineering and technology research. Vol.6, issue 3

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