A strategy for a computer-based materials management system for the building industry

Dawood, N N (1996) A strategy for a computer-based materials management system for the building industry. Journal of Financial Management of Property and Construction, 1(2), pp. 17-28. ISSN 1366-4387

Abstract

Previous studies have indicated that materials management is a major target area where substantial cost saving can be made in the construction industry. As materials can constitute 30-50% of the cost of a project, material wastage and late ordering need to be minimised and addressed, in order to keep costs down, especially in today's competitive market. The objective of the paper is to discuss and introduce a strategy for a materials management system for the construction industry for forecasting and controlling materials. In order to achieve the objective, a survey of the current practices of materials management in the industry was conducted. The aim of the survey was to establish the current practices and the ways of improving such practices. This is followed by developing the strategy and verifying it by conducting survey interviews with project managers. It is concluded that the current practices of materials management are basic and depend on gutfeeling and subjective decisions. This has contributed to late ordering and delivery of key materials and high wastage. It was also concluded that some form of systematic and integrated approach is needed to manage materials and minimise the cost associated with late delivery and wastage. Specifications of a new strategy for material management are presented.

Item Type: Article
Uncontrolled Keywords: materials management, integrated systems, survey, scheduling
Index terms: construction industry, cost saving, integrated system, building industry, project manager, forecasting, materials management, strategy, survey, interview, integrated approach, scheduling, specification
Subjects: operations research, operations management, contractual arrangements, prediction and forecasting, profession, data collection methods, design methods, industry analysis, economics, management, contractual condition
Topics: Roles and Professions, Business Strategy, Cost Management, Research Practice, Contract Administration, Time Control, Site Management, Design Practice, Procurement
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here