Material Procurement, Storage, Disposal

7 TH M A R C H 2 0 1 2 PROJECT MANAGEMENT

Material scheduling
It covers Critical Equipment and bulk material divided into

Mechanical Electrical Instruments Refractories Construction equipment Civil engineering materials And other bulk materials

Raw Material and feed stock

Lubricants, spares and manufacturing consumables

Materials Delivery schedule

Motor Procurement

Motor delivered on site

Buffer time

Motor installation starts

Motor Installation

Motor installation finishes

Procurement Planning
Procurement Activity

Procurement through turnkey contracts

Procurement Activity
1. 2. 3. 4. 5. 6. 7.

8. 9.

Procurement Packaging Indenting Making buying decision Specification and Standards Prequalification of Vendors Enquiry or invitation to bid Documents and details to be provided to prospective bidders Bid opening Bid evaluation

10. Negotiation 11. Purchase decision and 12. 13. 14. 15. 16. 17.

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placement of order Purchase order copies Vendor order confirmation Inspection and quality control Expediting and reporting Risk purchasing From readiness to dispatch to on site delivery Replacement supplies

Procurement Initiated

Manufacturing and Testing of Motor(days)

Delivery Ex factory

Obtain Bids(days)

Orders Issued

Transport (days)

Procurement Planning

Bids received

Issue Orders(days)

Delivered On site

Evaluate bids(days)

Purchases Approved

Buffer Time(days)

Work finished

Evaluation completed

Obtain approval (days)

Work Started

Work(days)

Procurement through turnkey contracts

Logistics Planning
Loading

Transport
Port clearence Unloading

Storage facilities
Site transportation

Objectives of Logistics

Arrival at site Unloading, unpacking and checking

Documented by check report cum Goods Inward Notes

On-Site Logistics Flow Chart

Stacked or stored following the logics of WBS and the sequence of work operations Through requisition and issues

Storage in open yard, or covered shed or special rooms according to the nature and size of goods Work site for consumption, installation, usage

Fit up and preassembly Erection/Installation/I ncorporation in the wotk

Need for Material Procurement

Procurement is the acquisition of goods or services. It is favorable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location. Corporations and public bodies often define processes intended to promote fair and open competition for their business while minimizing exposure to fraud and collusion.

TYPES Indirect Direct procurement Direct procurement procurement and indirect (Raw material and (Maintenance, repair, procurement
production goods) and operating supplies)

Capital goods and services

Features Quantity

Large

Low Relatively high

Low Low High

Frequency High Value

Industry specific Low

Nature
Examples

Operational
Crude oil in petroleum industry

Tactical
Lubricants, spare parts

Strategic
Crude oil storage facilities

Materials Procurement and Management

Planning
Purchasing Inventory Control

Receiving
Incoming Inspection

What are the benefits of outsourcing material and component procurement

Saves money Reduces cycle time Frees up more time for value-adding activities Significantly reduces the number of components to order

Material Handling
Material Handling is concerned with the Movement Storage Control Of materials in process

Storing materials
Handling & Storing materials involve diverse operations such as (examples) hoisting tons of steel with a crane driving a truck loaded with concrete blocks carrying bags or materials manually and stacking palletized bricks or other materials such as drums, barrels, kegs, and lumber

Traditional View v/s Modern view

Traditional Modern

Not Value adding, only

Provide Space and time

cost adding Minimize as much as possible Support Automation

Utility Maximize flexibility Support Integration

Rules of material handling

Uses the right METHOD

To provide the right AMOUNT

Of the right MATERIAL To the right PLACE

At the right TIME

In the right SEQUENCE In the right POSITION

In the right CONDITION

At the right COST

By Material
Gases Liquids Bulk materials Discrete Loads Documents and Money Livestock People

By Method
Manual Mechanized Automatic

By Equipment
Conveyors Cranes and Hoists Industrial trucks Containers and Supports Storage Equipment Auxiliary Equipment Storage/retrieval systems Robots Pipelines

Classification by method
Capability Type Manual Mechanized Labor Human Machine Control Human Human

Automated

Machine

Machine

Members
Name Roll No. Division

Moona Shaikh
Abhijith Balan Amishi Sheth Sana Merchant Mittal Makwana Forum Sheth Zenab Khan Nikita Pradhan

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