MATERIALS AND EQUIPMENT

MANAGEMENT
COURSE NO- NCP 24/25
ASSIGNMENT - 3

SUBMITTED BY
Ms. ELA SHARMA
Registration No. 212-07-11-10731-2141

Course- PGPCM

National Institute of Construction Management and

Research
School Of Distance Education, Pune
ASSIGNMENT

Page |2
NICMAR / SODE OFFICE

1. Course No.

2. Course Title

NCP 24/25

Materials

and

Equipment

Management
3. Assignment No.

THREE

Assignment- Materials and Equipment Management

1. Your company has been awarded a contract of developing aand construction a new
International air port 30 KM from a city.You have been appointed as Planning
Engineer. Project is to be implemented in phases. In phase I, one strip of landing 100
m width is to be constructed in 100 days. The scope of work is as follows:
(a)

Cutting and dozing of 1,00,000 cum of earth. Average height is 0.75

m.

(b)

Transportation of 20,000 cum of surplus earth from site to dumping

ground 3 KM away from site. Filling of 80,000cum of earth.

(c)

Bringing of 20,000 cum of sand from 20 KM (including of spreading

and levelling).

(d)

Procurement of 1,50,000 litres of bitumen. Duration of work 30 days

from the 60 th day of starting work. Lead time for the procurement of
bitumen is 45 days. Storage facility of 50,000 litres at site.

2. Estimate total cost of work and your plan of:

(a)

Equipment planning procurement and development.

(b)

Ordering and replenishing of Bitumen.

Page |3
SCOPE OF WORK
1. The scope of Work in Phase I, comprises of construction of one strip of landing 100 m
width is to be constructed in 100 days. The scope of work is as follows:
(a)

Cutting and dozing of 1,00,000 cum of earth. Average height is 0.75 m.

(b)

Transportation of 20,000 cum of surplus earth from site to dumping ground 3

KM away from site. Filling 80,000cum of earth.

(c)

Bringing of 20,000 cum of sand from 20 KM (including of spreading and

levelling).
(d)

Procurement of 1,50,000 litres of bitumen. Duration of work 30 days from

the 60 th day of starting work. Lead time for the procurement of bitumen is 45 days.
Storage facility for bitumen is 50,000 litres at site.

DESCRIPTION OF EQUIPMENT CONSIDERED

2. The work can be divided into various sub tasks, for each of the sub tasks different type
of earth moving plant should be used as mentioned against each in the table given below:

Activity

Equipment

No
(a)

Area Clearance and Cutting of

Recommended
Dozer D 80 A 12

(b)

earth.
Filling / disposal of earth.

Tippers /

Levelling.
Spreading of sand and

Dumpers
Motor Graders
Motor Grader,

Compaction.

Rollers

(c)
(d)

Remarks

Page |4
3. Description of the Equipment.
(a)

Dozers. There are basically two types of dozers they are tracked and wheeled, both

these equipment are manufactured. manufactured by BEML India, as the type of terrain
has not been mentioned, tracked type of dozer has been considered as it has better traction
and rolling resistance as compared to the wheeled dozer. D 80 A 12 has been considered for
the said task it has the following salient characteristics:
(i)

Blade capacity

4.8 cum

(ii)

Output

(iii)

Diesel consumption - 18 litres/ hour

(iv)

Blade can move up and down and can be tilted side wards to give an angle

- 50 cum/hour

cut.

(b)

Excavator (E JCB 3 DX). This equipment is manufactured by Tata Engineering,

India and has the following salient characteristics:

(i)

Bucket capacity -

(ii)

Output

(iii)

Diesel consumption 07 litres/ hour

(iv)

The equipment is versatile and has many attachments and can perform many

1.5 cum

40cum/hour

functions such as digging, dozing, hauling, loading etc.

(c)

Motor Grader. This equipment is manufactured by BEML Engineering, India and

has the following salient characteristics:

(i)

The equipment is predominantly used for levelling shaping, grading etc It has a

scarifier that loosens the earth before the blade levels the area. The motor grader has a
capacity of 100 cum per hour.

Page |5

(d)

Compaction Equipment. After the area is levelled out the soil has to be compacted so

as to prepare it for the laying of the wearing course this is achieved by the use of
compaction equipment. There are various types of compaction equipment in the market
they are:
(i)

Smooth Wheel Rollers. The equipment comprises of one heavy roller that leading in

front of the equipment and two smaller rollers that by virtue of its weight compact the loose
earth.
(ii)

Tandem Rollers. The equipment is similar to the smooth wheel roller except that the

there are only two wheels of the same width that by virtue of its weight compact the loose
earth.
(iii)

Vibratory Roller. The roller in addition toits self weight generates vibrations in static

and dynamic mode that results in better compaction. The roller that is being considered is
of 10 ton capacity.
(iv)

Sheep Foot Roller. The surface of the roller has projections that help in exerting

point pressure on the earth surface thereby enabling better compaction.

(e)

Tippers. The excavated earth has to be disposed off / transported to the filling

sites in case it is beyond the economic haulage distance. This is done by the help of tippers.
The loaded material can be unloaded from the vehicle either by tilting the body if the
vehicle backwards or to the sides, in certain tippers the material is discharged from the base
of the tipper. This equipment can be utilised for the transportation of construction material.

CALCULATION OF WORK PER DAY

Page |6
4. Assumptions. The following are assumed.
(a)

Type of equipment. As considered in the paragraphs above.

(b)

Working Hours. 10 hours per day and max of 60 per week.

(c)

Maintenance. 10 hours per week per plant (one day per week)

(d)

Induction period. Three working days, (for dismantling, transport,reassembly

testing). For a lead of 100 km.

(e)

Break Down Period Considered. Four days per equipment.

(f)

Adequate spares and sub assemblies are available with trained maintenance staff.

(g)

Mass diagram of the area has been prepared and the plant operators are familiar

with the task at hand.

(h)

Work is being executed as per the mass diagram.

(i)

Plant operators are experienced are capable of achieving the planned out put.

(j)

No disruptions have been considered for reasons of inclement weather / other

factors.
(k)

Plant / equipment as planned will be made available.

5. Cost of Equipment Operation per Hour. The cost has been calculated based on the
equipment cost (including interest, depreciation,, maintenance charges, operator charges
and fuel and lubricants)

S
No
(a)
(b)
(c)
(d)
(e)
(f)

Equipment Name

Cost of Operation
Rs / hour

D 80 A 12
E JCB
Wheel Dozer
Motor Grader
Dumper
Roller

2,200.00
800.00
1,300.00
1,500.00
400.00
800.00

Page |7

6. Cost of each Item of Work.

(a)

Cutting and Dozing.

(i)

Total earth cutting -

(ii)

Out put of dozer

(iii)

Out put per day

(iv)

Out put of Excavator - 40 cum / hour

(v)

Out put per day

1,00,000 cum

- 50 cum/ hour; 10 hrs per day

-

500 cum in one day

- 400 cum in one day

(vi)

Team of two dozers and Excavators 1800 cum

(vii)

No of days required - 55 days.

(viii)

Cost of Dozers =2* 55*10*2,200= Rs 24,20,000.00

(ix)

Cost of Excavator =2*55*10* 800= Rs 8,80,000.00

(x)

Additional requirement of plant due to days lost for maintenance 10; (Rs

4,40,000 for Dozer and Rs 1,60,000)

(xi)

Total for excavation Rs 38,80,000.00

(b)

Transportation and Spreading of Earth.

(i)

Volume of earth to be shifted from site 20,000cum

(ii)

Capacity of Dumper 5 cum

(iii)

No of trips per day (aa) Dumping site total distance 6 Km

(ab) Travelling time 20min
(ac) Loading / Unloading time 10 min
(ad) Trips per day 2* 10= 20 trips
(ae) Volume of earth shifted per day 100 cum

(af) Volume to be shifted in a day 364 cum

Page |8
(ag) Number of dumpers required 4
(ah) Cost of Dumpers 4*400*55 = Rs 88,000

(iv)

Cost of levelling.
(aa) Motor graders used two.
(ab) No of Days -55
(ac) Cost 2*55*1500 = Rs 1,65,000.00

(iv)

Cost of Rolling.
(aa) Rollers used two.
(ab) No of Days -55
(ac) Cost 2*55*800 = Rs 88,000.00

(c)

Total Cost Rs 42,21,000.00

SELECTION OF EQUIPMENT

7. Selection of equipment for construction is based on many factors, the most important
factor that require to be considered are:
(a)

Nature of Job. There are large number of equipment in the market, these are

designed for various types of jobs and have specialised attachments for meeting specific
requirements. Before the equipment is selected a detailed study of the available equipment
in the market is required to be carried out and the most suitable one selected.

Page |9
(b)

Equipment held. It is possible that similar equipment is held and is not being

optimally utilised, even if this does not meet the specific requirement the equipment can be
used, this could help in reducing the cost of the work.
(c)

Suitability of the Equipment for the Given Job. It is possible that the equipment isnot

suitable for the job at hand, then there would be no other option but to procure a suitable
equipment.
(d) Standardisation. As a large number of manufacturers manufacture similar equipment,
it would be preferable that the equipment be procured from a single agency as the
following advantages accrue:

(e)

(i)

Easy availability of spares.

(ii)

Better understanding / liaison with the dealer.

(iii)

Reduction in inventory.

(iv)

Easier repair and operation of equipment.

(v)

The above will lead to reduced down times.

Technical Considerations. The operational parameters of the equipment to a large

extent plays an important role is the selection of the equipment. The parameters that are to
be considered are:
(i)

Strength. It is that property that enables the equipment to withstand specific loads /

rigors of functioning in difficult conditions. It prevents the equipment from premature

failure when acted upon by external emergency or accidental loads. This gives us an
indication on the longevity of the equipment.
(ii) Rigidity. It is the ability of the equipment to withstand deformations due to various
loads, it is dependant on the material selected. Deformations beyond a permissible value
would affect the performance of the equipment.

P a g e | 10
(iii) Vibration Stability. The equipment in the normal course of its life would be subjected
to various vibrations due to the functioning of the equipment as also due to accidental
loads. The equipment should withstand these loads or it would result in failure due to
fatigue stress.
(iv) Wear Resistance. Wear in the parts are induced due to friction due to
(aa) abrasive wear leading to brittle surface failure.
(ab) molecular / mechanical wear due to friction.
(ac) Corrosion due to weather / chemical action.
(ad) Thermal wear due to friction.
(v) Heat Resistance. When the equioment is fuctioning,it gets heated up due to
(aa) Heat of combustion in the engine.
(ab) Friction between various parts. The heat would cause expansion and subsequently on
cooling down, stresses are experienced. The repeated expansion / cooling would cause
cracks in the parts. The equipment should be so designed as to withstand this.

(v) Maintainability. The cost of maintenance should be low and also it should be easy to
maintain.
(vi) Reliability. The equipment should operate optimally in various conditions without any
problems.

MATERIAL MANAGEMEMT CONCEPTS

8.

In the given situation there are a large number of plants and equipment operating,

consequently the requirement of logistics would be considerable in terms of spares, fuels

oils, lubricants, and other raw material like sand aggregate, bitumen etc. There a host of

P a g e | 11
factors that are required to be planned in detail such as identification of requirement,
placing orders, move of material from the place of origin, receipt and finally reach the site.
These activities take time hence the planning is to be done in advance so as to ensure that
the required material reaches the site in time and no delay is caused due to the lack of
material. The major factors that are required to be kept in mind when planning logistics are:
(a)

Lead Time. The time taken for a supply to materialise from the time the requirement

is felt is called lead time. Consider the case of bitumen, from the time the order is placed,
it takes 45 days for the material to reach the site, this is taken to be the lead time. Hence,
the order for the material is to be placed a minimum of 45 days before the requirement for
use actually comes up. We will consider the case in detail:
(i)

Bitumen required from day 60 of work commencement.

(ii)

Lead time 45 days.

(iii)

Total Requirement 1,50,000 litres.

(iv)

Storage capacity 50,000 litres.

(v)

No of orders to be placed minimum three each of 50,000 litres bitumen.

(vi)

First order to be placed on 14th day of work.

(vii) Material reaches site on 59th day of work.

(viii) Average rate of consumption of bitumen 5000 ltrs per day. (Quantity/ Time)= (50000
litres /10 days)
(viii) Second order to be placed on 24th day of work.
(ix)

Order materialises on 69th day of work.

(x)

Similarly third order to be placed on 34th day of work and order materialises on 79th

day of work.
(xi)

Work is completed on 90th day after commencement.

P a g e | 12
(b) Safety Level. The above case was planned considering ideal conditions where there
were no delays anticipated. However in case of any delays in the supply chain, the work
would suffer, hence certain safety levels are maintained to cater for emergencies. In the
above case a safety level can be incorporated by decreasing the order quantity and
increasing the number of orders. Consider the above case with changed order levels;
(i)

Bitumen required from day 60 of work commencement.

(ii)

Lead time 45 days.

(iii)

Total Requirement 1,50,000 litres.

(iv)

Storage capacity 50,000 litres.

(v)

No of orders being placed Four.

(vi)

First order to be placed on 14th day of work for 50,000 litres.

(vii) Material reaches site on 59th day of work.

(viii) Average rate of consumption of bitumen 5000 ltrs per day. (Quantity/ Time)= (50000
litres /10 days)
(viii) Second order for 40,000 litres to be placed on 22nd day of work.
(ix)

Order materialises on 67th day of work. A safety stock of 10,000 litres is available to

cater for delay in supply.

Similarly third order to be placed on 30th day of work and order

(x)

materialises on 75th day of work.

(xi)

Similarly fourth order is to be placed on 38th day of work and order materialises on

83rd day of work.

(xi)
(xii)
bitumen is present.

Work is completed on 90th day after commencement.

In the above case at every stage a safety stock of 10,000 litres of

P a g e | 13
(d)

Economic Order Quantity. It is that quantity of order for which the

sum of ordering cost and inventory holding cost is minimum.

To Calculate EOQ in above case.
Assumptions:
Consider a fixed cost of Rs 50,000 per order, irrespective of order size.
Inventory holding cost to be 0.01% of Order cost.
Cost of
Case I : Three orders of 50,000 litres each are placed.
Total ordering cost = 50,000 * 3 = Rs1,50,000.00
Inventory holding cost would be
50,000 * 0.01 = Rs 500.00
Total Cost = Rs 1,50,500.00
Case II : Four orders are placed.
Total ordering cost = 50,000 * 4 = Rs 2,00,000.00
Inventory holding cost would be
50,000 * 0.01 = Rs 500.00
Total Cost = Rs 2,00,500.00

It is assumed that the Inventory holding cost would remain same as the infrastructure for
the holding of bitumen is already existing. Hence in the above case EOQ is 50,000 litres of
bitumen.

(e)

Re order Level. It is that level where quantity of stock held is such that, the

next order has to be placed to bring the stock level back to the EOQ level. The lead time is
considered so that there is adequate stock and the work is not affected due to want of stores.

P a g e | 14
(f)

In the case where lead time was calculated (para 8 (b) above), the reorder

level was maintained as 10,000 litres of bitumen. ie when the holding of bitumen came
down to 10,000 litres the order for the next consignment of bitumen was placed.

RECOMMENDATIONS

9. The work is time bound with no cushion provided to cater for delays. The work has to be
planned and executed with this fact kept in mind. The following recommendations are
made:
(a)

Adequate serviceable equipment catered for.

(b)

Skilled staff to be employed.

(c)

Dedicated staff to be placed for the monitoring of works.

(d)

Regular reviews to be carried out and corrective actions to be taken in case of

delays.
(d)

Well equipped and dedicated maintenance teamto be placed at site.

(e)

Maintenance schedule of equipment to be adhered to.

(f)

Close watch to be kept on the placing of orders of various material required

for the work, with due consideration given to lead time.

BIBLOGRAPHY

As recommended in assignment and material from internet.