International Journal of Civil Engineering and Technology (IJCIET)

Volume 8, Issue 1, January 2017, pp. 273280, Article ID: IJCIET_08_01_029

Available online at http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=1
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
IAEME Publication

OPTIMAL RESOURCES UTILIZATION IN

CONSTRUCTION INDUSTRY
J. RamaJogi
M. Tech Student, Department of Civil Engineering,
K L University, Vaddeswaram-522502, Andhra Pradesh, India

SS. Asadi
Associate Dean-Academics, Department of Civil Engineering,
K L University, Vaddeswaram-522502, Andhra Pradesh, India

ABSTRACT
Objectives: The main objective of the study is to discover the nature and degree of wastage, and
to find out the various causes of wastage. To quantify the effects of wastage and to propose a
technique for maximum utilization of resources. Resource planning and management is the most
important factor for profitability and competitiveness in todays Indian construction industry.
Construction projects are a bit typical to achieve due to time limitations and predetermined
objective.
Methods: selection of the project, Identification of nature & extent of wastage, quantifying the
effects of wastage, Finding out various causes of wastage, Finding out the variation between
perceived & driven, Establishing waste control indices, Design control measures.
Findings: Without leveling the resources which are scheduled and procured, not any activity
can be performed according to fixed time program. Different types of resources are affecting the
project time and cost like material, money, machinery, space etc. In addition to this some degree of
waste of material, manpower and equipment is inevitable in the construction process. The main
goal of this study is to control the construction resources wastage within prescribed limit for
achieving the planned profitability level and productivity of construction industry.
Applications: Study also highlights the failure of quality due to waste in construction process
and therefore, it is desired to quantify wastage and analyze its effect with a view to promote
economy in construction.
Key words: Resource Planning, Management, Resource wastage, Construction, Profitability.
Cite this Article: J. RamaJogi and SS. Asadi, Optimal Resources utilization In Construction
Industry. International Journal of Civil Engineering and Technology, 8(1), 2017, pp. 273280.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=8&IType=1

1. INTRODUCTION
The involvement of construction to the GDP at issue value in 2006-07 was Rs.1, 96,555/- crore, recording
an increase of 10.7% from the year 2010. The significance of construction activity in housing,
infrastructure and other accomplishments of buildings will be appreciated from the actual fact that the
element of construction includes nearly 60%-80% of the project value of infrastructure comes like housing,

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 J. RamaJogi and SS. Asadi

roads, etc. The employment elasticity of construction with regard to rate of employment and gross
domestic product in construction is determined to be high. In year 2009-2010 asset potential of the
construction business is calculable at Rs.380, 000 crores the share in the GDP works out be 12% in terms
of employment generation delivers 14% of employable subject. The manufacturing product (Construction
material, equipments and labor) accounts an approximate nearly 8.6% of GDP together with the gross
share. It is consequently established that construction, as afinancialentity has an impact on the economy of
the country and gross domestic product. Construction activity plays a vital role in sustaining the economy1.
Construction projects involves a number of inter-related and inter-dependent activities2. Present days,
due to fast changing environments impose number of legal, financial, logistic, ethical and environmental
constraints. They interact economically, socially and technically within the organization and systems.
These projects employ huge resources, but they will raise difficulties, risks and uncertainties. These
explore series of problems concerning resources alike where they are going to arise from, how far they
are required,where they should be housed, when they should be inducted at site, when to mobilizeand
how to optimize their utilization. Due to the nature of resource-driven in construction management, the
management of resources is really a difficult task. The project manager should develop an action plan for
controlling and directing resources of machines, workers and materials intimelyand coordinated manner in
order to deliver a project within the frame of limited time and funding.

2. RESOURCES MANAGEMENT
A resource is an individual that funds the execution of activities of a project such as manpower, material,
money, equipment, space or time3.

2.1. Significance of Resources in construction projects

The important issue in successful application of a construction project not solely depends within the
amount and value of the work, but also depends on assets availableness. All the activities which are
concerned in the construction project needs specific amount of resources. Every activity of a project is
allotted with a specific resource and it should be completed among the time limitation, otherwise it may
impact overall period of the project. The cost and time are directly dependent on the resources availability.
The time which is needed might be determined by distributing the output related to the resources used on
the activity into the outlined amount of the work for the activity. The best combination of resources for
performing an activity in construction is predicated on ability of contractors to spot the interdependencies
of various resources.

2.2. Construction Resources and Cost

Construction resources and its cost awareness is one of the major aspects in taking resource optimization
process various components/resources and their percentage weightage is shown in following [Table 1],
[Figure 1].

Table 1 Entire Project Cost Break-up

Material 35%
Labor 30%
Equipment 15%
Profit 10%
Indirect Cost 05%
Over Head 05%

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 Optimal Resources utilization In Construction Industry

Project Cost Break-Up

Over Head, 5%
Indirect Cost, 5%

Profit, 10%
Material, 35%

Equipment, 15%

Labor, 30%

Material Labor Equipment Profit Indirect Cost Over Head

Figure 1 Project Cost Break-Up

2.3. Labor Resources and Cost

Labor being consisting of about 15 to 20 percentage of total construction cost its analysis and
productivity4-7 check must be done which is as shown in [Figure 2], [Figure 3], [Figure 4], [Figure 5], and
the workers scenario of Indian construction industry was [Table 2].

TYPE OF WORKERS
Concreting Carpentry
7%
Barbender Welder
Helper Others
33%
25%

3%
12% 20%

Figure 2 Scenario of Workers

Types Of Labour

0%
30%
Independent
50% Departmental
Sub-Contract
20%

Figure 3 Types of Labour

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 J. RamaJogi and SS. Asadi

Gender Ratio

20%
33%
8% Male
Female

39%

Figure 4 Gender Ratio

Age Group

40

20

0
Age Group
< 18 18 - 30 -
years > 50
30 50 years
years years

Age Group

Figure 5 Age Group of workers

Table 2. Workers Scenario of Indian Construction Industry

Numbers In 1000s In Numbers In 1000s

Occupation % %
1995 In 2005
Technicians & Foreman 687 5.05 822 2.8
Skilled Workers 2241 16.48 3267 11.0
Unskilled Workers 10670 78.46 25600 86.23
Total 13598 100.0 29689 100.0

2.4. Material Resource and Cost

Materials use and reuse, recycling and reduction initiates in the development phases of any project. It
begins with the designer, continues over the engineer, the estimator, the purchaser, the project manager and
lastly to the contractors. Materials budget control and profitability initiates with a plan. But carefully
inspected operational techniques and construction practices,
practices, a plan can be developed and executed to save
important costs in materials.

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 Optimal Resources utilization In Construction Industry

2.5. Cost due to waste

The cost of waste is quite merely the price of obtaining it to a low land and selling it. The price of waste
very is: Original material cost + Delivery price + Management cost+ handling charge+ Tipping fee+
Cleanup price + water transportation cost = Over-all cost of waste in construction.

3. METHODOLOGY
The methodology followed for the work is represented in [Figure 6]

IDENTIFICATION OF NATURE&EXTENT OF
WASTAGE

FINDING OUT VARIOUS CAUSES QUANTIFYING THE EFFECTS OF

OF WASTAGE WASTAGE

FINDING OUT THE VARIATION BETWEEN

PRECIEVED & DRIVEN

ESTABLISHING WASTE CONTROL

INDICES

DESIGN CONTROL MEASURES

Figure 6 Methodology followed

4. PROJECT ATTRIBUTES
Attributes of the Project presents the details of a residential project in terms of cost variances and wastages
in each attribute.
Type Of Project : Construction of Residential building
Built up area : 100000 sq.ft
Number of storeys : Ground + Nine Floors

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 J. RamaJogi and SS. Asadi

4.1. Project Management

Project Scheduling was done by using MS Project Software.

4.2. Material Management

Materials were procured centrally for the whole of the project. Proper Inventory control was done and
ABC analysis of material management was used in order to have minimum inventory level.

4.3. Wastage Analysis

Based on the estimated inputs and actual inputs data, variance analysis was carried out. The wastage which
was perceived and the actual wastage as per the analysis tabulated below in the tables [Table 3], [Table 4].
It can be seen that the derived wastage is much less compared to the perceived wastage. This could be a
result of better project management as the project has sufficient staff to supervise different construction
activities.

Table 3 Estimated vs. Actual Consumption of materials and their variances

Sl. No Component Estimated Consumption Actual Consumption % variance

A STRUCTURE
1 Reinforced Steel 3690 MT 3892 MT 5.47
2 Brick work 4600 cu.m 4807 cu.m 4.5
3 M20 Concrete 32525 cu.m 33161.25 cu.m 1.95
a)Cement 28065 bags 29000 bags 3.33
b)aggregate (20mm) 4971.5 cu.m 5120.645 cu.m 3

c)aggregate (10mm) 20270 cu.m 20949.5 cu.m 3.35

d)Sand 15280 cu.m 15662 cu.m 2.5

4 Shuttering 248450 sq.ft 261140.75 sq.ft 5.10
B FINISHINGS
1 Internal Plaster 125000 sq.ft 138750 sq.ft 11
2 External Plaster 19000 sq.ft 20710 sq.ft 9

Table 4 Perceived wastage and the Actual wastage

ITEM PRECEIVED WASTAGE DERIVED WASTAGE
Cement 5 3.33
Reinforced Steel 10 5.47
Sand 10 2.5
Shuttering 10 5.5
Bricks 10 4.5

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 Optimal Resources utilization In Construction Industry

4.4. Wastage Cost Impact

The wastage in construction materials adds directly to the project cost considering the present day price of
construction materials, the additional cost due to wastage can be estimated as shown in [Table 5]

Table 5 Wastage and its cost impact

Sl. No Material Wastage Cost Impact
1 Cement 935 bags 935 bags X Rs.290 = Rs.271150
2 Reinforcement 202 MT 202MT X Rs.40000 = Rs.8080000
The above cost is just for the main contributor wastage i.e. Rs.8351150/-

4.5. Waste Control Indices

Waste Control Indices (WCI) for material can be developed as under the actual consumption of cement for
the project is 29000 bags whereas the estimated consumption is 28065 bags.
WCI (Cement) = Actual Consumption/Estimated Consumption = 29000/28065 = 1.033
This shows that WCI for cement for this project is 1.0333. The percent variance (wastage) of cement
for this project can be directly deducted from the figure of 1.0333 by multiplying this figure by 100 & then
subtracting 100 from it which was as follows
1.0333*100 = 103.33
103.33-100 = 3.33
This implies that 3.33 is the percentage wastage variance of the cement

5. CONCLUSIONS
It was identified that the causes of wastage can be categorized in two aspects: construction methods and
construction management. Under these two categories these were the common issues like excess
preparation of motor, use of dry cement, high silt content in sand not removed, improper cutting and
utilization of steel, changes in design, specification and materials, poor workmanship.
The results of this analysis illustrate the practices which was using in construction projects can be
adopted by lean principles for minimum utilization of resources by reducing the waste in the
construction industry.

6. RECOMMENDATIONS
The study brought out clearly that the use of machinery in construction produced the least wastage. Project
manager should properly select and plan the machinery and labor in order to eliminate the maximum
wastage and maximum utilization of resources. In addition to this, a new concept which is called as Lean
construction practices may be implemented in the construction industry rather than traditional
management. Workshops should be conducted for better understanding between Lean construction and
Traditional management. Also, managers should promote the lean construction into the people of the firm
which can bring an affordable savings to the firm. Managers and companies should change with time and
new technologies. This can be done by bringing change in culture of the organization by adopting the lean
principles mandatory, by enhancing new techniques and policies for waste minimization, and by partnering
with sub-contractors and suppliers to ensure that they follow Lean Construction methods.

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 J. RamaJogi and SS. Asadi

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