Performance Management & Resource Optimization

CoTM 4171

Construction Performances Management

Construction Resource Performance Management

Instructor: Welday T.
Resources Management
Project Resources Management can generally possess two major
processes: Project Resources Definition and its Change Monitoring
(Figure 2.1).
The Project Resources Definition is aimed at developing a
written resources requirement statement as a basis for future
project decisions following subdivided project deliverables
during Project scope definition.
The Change Monitoring Process is a gauge to scan the major
deliverables or outputs of the project and carryout change
management.
Project Resources Definition and Change Monitoring Process
Resources Management
For any construction Industry to be efficiently operating
and be successful the elements or the resources should be
well known, planned and made available
For most of the construction projects, the resources to look
into are the following;
i. Human Resources / Labour or Workmen
ii. Financial Resources / Fund
iii. Information Resource
iv. Physical Resources (Materials, Equipment and
Plant etc.)
v. Services and Management.
Human Resource
Management
(HRM)
Human Resource Management
All works involved in construction projects cannot be
executed without human/manpower.
These include Professional, Skilled, SemiSkilledand
Unskilled labourers.
Therefore careful planning, organizing and monitoring of
workmen are mandatory.
Human resources can be understood in two values:
Capacity and Capability.
While the first refers to the quantity of labour for the
scope defined; the second covers knowledge, technology
know-how and skill as per the demands of the scopes
ability.
Human Resource Management
Cont’d

Concept of HRM
 Broadly, there are three meanings attached to the
concept of HRM.
a. Persons working in an organization are regarded as a
valuable source (needs to invest time and effort for
development).
b. They are human resources (have own special
characteristics and cannot be treated like others).
c. It do not merely focus on employees as individuals, but
also on other social realities, units and processes in the
organization.
Human Resource Management
Cont’d

Objectives of HRM
The primary objective of HRM is to ensure the availability of
competent and willing workforce to an organization.
Apart from this, there are other objectives too.
Specifically, HRM objectives are 4 fold:
 Societal,
 Organizational,
 Functional,and
 Personal
Human Resource Management
Cont’d

1. Societal Objectives
The societal objectives are socially and ethically responsible
for the needs and challenges of society.
While doing so, they have to minimize the negative impact of
such demands upon the organization.
The failure of organizations to use their resources for society's
benefit in ethical ways may lead to restrictions.
For example, the society may limit human resource decisions to
laws that enforce reservation in hiring and laws that address
discrimination, safety or other such areas of societal concern.
Human Resource Management
Cont’d

2. Organizational Objectives
The organizational objectives recognize the role of human
resource management in bringing about organizational
effectiveness.
Human resource management is not an end in itself; it is only a
means to assist the organization with its primary objectives.
Simply stated the human resource department exists to serve
the rest of the organization.
3. Functional Objectives
Functional objectives try to maintain the department's
contribution at a level appropriateto the organization's needs.
The department's level of service must be tailored to fit the
organization it serves.
Human Resource Management
Cont’d

4. Personal Objectives
Personal objectives assist employees in achieving their
personal goals,
At least in so far as these goals enhance the individual's
contribution to the organization.
Personal objectives of employees must be met if they are to be
maintained, retained and motivated.
Otherwise, employee performance and satisfaction may
decline giving rise to employee turnover.
Human Resource Management
Cont’d

Human Resource Management functions

The major functional areas in human resource management are:
 Planning,
 Staffing,
 Employee development,and
 Employee maintenance.
Manpower Planning
Manpower planning is the process - including forecasting,
developing and controlling - by which a firm ensures that it has the
right number of people and the right kind of people at the right
places at the right time doing work for which they are
economically most useful.
Human Resource Management
Cont’d

Objectives
To have an accurate, estimate of the number of employees
required with matching skill requirements to accomplish
organizational goals.
To know about existing deployment
To know the skill requirement
To know the manpower requirement over a period of time
To indicate lead time availability to select and train required
additional manpower
To keep Inventory of existing personnel.
Typical Manpower Planning
Determining expectedlaborproductivity
Estimating workers requirement foreach work package
Scheduling date-wise,category-wise, project direct labor
Establishing a construction teams
Organizing task forces
Allocating laborduring executionstage
Monitoring workers productivityat site
Recording productivitydata
Costing and controlling manpower costs
Controlling manpowermobilization, distribution& demobilization
Defining job requirement forkey executive and staff appointments
Assist in recruitment/staffing ofpersonnel
Assist in designing incentive/motivation system
Assist in controlling manpower costs
Assist in training andinductionofmanpower
Human Resource Management
Cont’d
Performance Appraisal & Reward System
Performance means the process of carrying out a work,
demonstrating capabilities, to a specific standard, withperfection.
Appraisal means an assessment of individual-measurable
conspicuous contributions, both qualitatively & quantitatively, in
fulfilling a particular task.
PA helps to appreciate employee’s strength and to find out the
areas needs improvement that can be supported to facilitate them
to improve their performance continuously.
The effective appraisal system is extremely important for a
growing, expanding and diversifying organization
It envisages in a formal way the Team Leader and Team Members
Relationship.
Human Resource Management
Cont’d
Performance Appraisal & Reward System
Every individual in the organization has certain basic needs in
relation to his work. These may be stated as:
“Agree with me, what is expected of me”
“Give me an opportunity to perform”
“Develop me to do my job perfectly”
“Reward me according to my contributions”
It attempts to focus on work and on reducing subjectivity as far as
possible.
It incorporates the stating of clearly defined objectives between the
Team Leader andTeam Members.
It is based on actual Performance andactual behaviour on the job.
It focuses on individual potential and its development.
Human Resource Management
Cont’d
Staff Appraisal
While the candidate is progressing with the job, the personnel
manager should continuouslyconduct a staff appraisal.
The staff appraisal system is a mechanism for gauging the attitude
and performance of the employee at the work place.
The main purposes of an appraisal areto:
(a) Create two-way communicationbetween management andemployees
(b) Establish the strengths and weaknesses of individuals and try to build on
the strengths or overcome the weaknesses
(c) Indicate the needfor training andstaff development
(d) Generate inputs for human resource planning, especially manpower
planning, career-pathplanning and successionplanning
(e) Assist managers to determine the future use of an employee, e.g. whether
he/she shall remain in his/ her present job or be transferred, promoted or
dismissed.
Human Resource Management
Cont’d
Appraisal Methods
The six main methods of appraisal are outlined in the following.
(a) Rating Scale:
The appraiser has a scale by which he or she can judge the degree of
achievement or non-achievement of the appraisee on a particular factor or
issue.
The judgments of such factors are called quantifiers: they reflect the
intensity of the particular judgment involved.
For example, the performance criteria couldbe:
(i) Volume of work produced (v) Innovation
(ii) Quality of work (vi) Staff development
(iii) Knowledge of job (vii) Communication skill
(iv) Dependability (viii) Teamwork spirit.
The quantifiers could be: (1) high; (2) medium; (3) low; (4) not acceptable.
Human Resource Management
Cont’d
(b) Ranking:
Theranking format is used when the manager wants to place a number of
subordinates in order of merit, usually on their total ability in the job
but sometimes according to a few separate characteristics.
(c) Semantic DifferentialScale:
Diagrammatic rating scale is another means of measuring intensity of
judgment and the semantic differential is the most popular form of this
type of scaling.
In this method the appraiser indicates his/her judgment on a seven-point
bipolar scale definedwith contrasting adjectivesat each end.
Can be best applied when the performance of different groups on a
particularmatterneedsto be compared.
Examples could be rating good-bad, strong-weak, satisfied-dissatisfied.
The seven-pointbipolar scale can be presentedin a numericalformat, e.g.
Good _ _ _ _ __ _Bad
3 2 1 0 - 1 -2 -3
Human Resource Management
Cont’d
(d) The open-ended method:
• In this method, the appraiser creates a free discussion environment
with the employee to encourage him/her to express their feelings in
their own way.
• Here, the manager is expected to write a few sentences about the
subordinaterather than to make ticks in columns.
• This method has many varieties, a common one being for the
manager to answer the following 4 questions about the subordinate.
(i) What are the employee's strong points inrelation to the job?
(ii) What are the employee's weak points inrelation to the job?
(iii) What is the employee's promotion potential?
(iv) What are the employee's training needs?
Human Resource Management
Cont’d
(e) Behaviorally Anchored Rating Scale (BARS):
• This is a relatively recently developed approach which requires the appraiser
to select some aspect of a subordinate's behavior considered by the assessor to
be typical of the appraisee's performance in a certain aspect of a job.
• For example, the superior of an employee being assessed under the heading
'ability to cope with stress' would be asked to complete a form which begins
with the words, 'I would expect this employee to (behave in the following
way)',followedby a list of statements from which the appraiser must choose.
• Alongside each statement are a certain number of points indicating the
relative desirability of the behavior.
• Among the statementsin this example might be:
remain calm and collected 5
become frustrated 4
show irritability 3
act erratically 2
fly off the handle 1
Human Resource Management
Cont’d
(f) Objective Outcome:
• This approach - sometimes referred to as Management by Objectives
(MBO) - is usually associated with a sophisticated performance
appraisal scheme and rating scale.
• It requires the appraiser to assess a tangible outcome of the employee ,
e.g. the number of units produced, number of contracts awarded,
number of projects delivered on time, etc.
Financial Resource
Management
Financial Resource Management
It is obvious that one of the basic resources in the construction industry
is Fund,which should be arrangedbefore starting any project.
The project to be conceived shall be within the fund available for it.
Usually funds are available from among Governmental institution ,
Private institutions and Donors in the form of loan or assistance.
In the case of Governmental entities, since budgetary resources are
scarce it is advisable and in almost all cases that a priority shall be
given to projects which are very useful and necessary to the society.
However, in the case of private organizations it is the business what
mater.
The objective and goal of the project is achieved successfully if and
only if the fund is sufficiently flowing to carry out the project as
planned. That is, it is the regular supply of fund that keeps projects
moving progressively . It is necessary to ensure Financial Planning for
smooth cash inflow and outflow to avoid delays in project activities.
Financial Resource Management
Cont’d
Financial resources shall be planned and managed with special care
due to the fact that all other resources very much depend on the
availability of funds.
For Cost Management and Control on a project, the construction
plan and the associated cash flow estimates can provide the baseline
reference for subsequent project monitoring and control.
For schedules, progress on individual activities and the achievement
of milestone completions can be compared with the project schedule
to monitor the progress of activities.
Contract and job specifications provide the criteria by which to
assess and assure the required quality of construction.
Financial Resource Management
Cont’d
The final or detailed cost estimate provides a baseline for the
assessment of financial performance during the project.
To the extent that costs are within the detailed cost estimate, then
the project is thought to be under financial control.
Overruns in particular cost categories signal the possibility of
problems and give an indication of exactly what problems are being
encountered.
Expense oriented construction planning and control focuses upon
the categories included in the final cost estimation.
Apart from the work plan and schedule for time management,
contractors are required to show their budgetary forecast (cash flow
diagram) indicating the gross and net cash requirements of projects.
Often projects are observed running into difficulties from short of
cash flow.
Financial Resource Management
Cont’d
Projects by nature require to be financed from other financing
securities especially during the early phases of the construction
period until they reach a stage of self-financing date.
Hence for successful performance of projects, one has to prepare a
cash flow diagram andmonitor progress during the contract period.
Contract budgets may be presented in graphical or tabular form.
The budget prepared is compared at weekly or monthly intervals
with the actual performance achieved.
This enables discrepancies to be assessed & management
investigation and action implemented where adverse trends are
evident.
Graphical presentations highlight the relationship between budget
and actual performance (Chapter 4).
Material Resource
Management
Materials Resource Management
The very large portion of a project cost is gone to material cost.
As the material cost component of the construction industry covers
between 55 – 70% of Total Construction Cost, proper consideration
shall be given in the planning stage to design with easily available
material without compromising the quality for the intended
purpose and for proper flow and storage of materials.
Care shall be provided for materials easily spoiled by climatic and
expiryconditions.
This undoubtedly will affect the project if not properly managed.
Materials Resource Management
Cont’d
Definition of Materials Management (MM)
Materials management is that process of management which co-
ordinates, supervises and executes the tasks associated with the flow of
materials to, through and out of an organization in an integrated fashion.
Another Definition
Materials Management is an integrated process of planning and
controlling all necessary efforts to make certain that the quality and
quantity of materials and equipment are appropriately specified in a
timely manner, are obtained at a reasonable cost and are available when
needed. The Materials Management Systems combine and integrate the
off-take, vendor evaluation, purchasing, expediting, warehousing,
distributionand disposingof materials functions.
Definition: It is concerned with planning, organizing and controlling the
flow of materials from their initial purchase through internal operations
to the service point through distribution.
Materials Resource Management
Cont’d
Aim of Material Management (Objective)
To get:
The Right quality
Right quantity of supplies
At the Right time
At the Right place
For the Right cost
Scope of MM
Procurement (including Planning & Scheduling)
Inspection & QC
Stores & Inventory Control
Transportation & handling
Distribution (logistics)
Materials Resource Management
Cont’d
Objective of Material Management

Primary Secondary
Right price Forecasting
High turnover Inter-departmental
Low procurement & harmony
storage cost Product improvement
Continuity of supply Standardization
Consistency in quality Make or buy decision
Good supplier relations New materials &
Development of products
personnel Favourable reciprocal
Good information system relationships
Materials Resource Management
Cont’d
Purpose of Material Management
To gain economy in purchasing
To satisfy the demand during period of replenishment
To carry reserve stock to avoid stock out
To stabilize fluctuations inconsumption
To provide reasonable level of client services
Four basic needs of Material management:
(1) To have adequate materials on hand whenneeded
(2) To pay the lowest possible prices, consistent with quality and
value requirement for purchases materials
(3) To minimize the inventory investment
(4) To operate efficiently
Materials Resource Management
Cont’d
Basic Principles of Material Management
1. Effective management & supervision
2. Sound purchasing methods
3. Skilful & hard poised negotiations
4. Effective purchase system
5. Should be simple
6. Must not increase other costs
7. Simple inventory control program
Materials Resource Management
Cont’d
Functions of the MM Department:
Identification and Estimation of materials requirement.
Procurement and allied functions
Stock or inventory control
Storage
Disposal of surplus, obsolete, scrap and empties.
Control and analysis through a well designed information
system.
Integrated approach to MM
Materials Resource Management
Cont’d
Materials Policy
Importance of a Policy Manual
Complex nature of the materials management function requires
standard set of rules which should be known to all.
Thus policy and procedures are consistently followed leading to
efficient achieving of corporate objectives.
Periodic review of the manual is necessary in order to keep up
with the changing requirements of an organization.
Materials Resource Management
Cont’d
Typical policy aspects with respect to the Materials Management
Department (MMD)
MMD only to serve as a point of contact between suppliers and the company.
MMD can question the quality, quantity and price of the materials asked by the user
department.
MMD shall be responsible for analysis of requisitions, sending out enquiries, analysis of
quotations, placement of purchase orders, expediting and controlling inventory.
MMD shall keep user departments informed of delivery schedules, accounts payable,
receipts etc. in order to ensure smooth operations.
Market price levels, new product developments etc. shall be communicated to the
concerned departments by MMD.
For effective performance of its function the MMD will be assisted by finance department
for supplier bills payment and insuring goods in transit and stores.
Marketing, business development and planning department shall keep the MMD
informed of future plans.
MMD shall assist the top management in capital equipment procurement through source
location, analysing various alternatives, documentation, including for imports if any.
Materials Resource Management
Cont’d
Organizing for Materials Management
Various models are available to the Materials Manager
Centralized Vs De-centralized
Organizing based on product category.
Organizing based on Project Location.
Organizing based on functions – purchasing, stores, material receipts,
transportation etc.
Important aspects for Projects
Storage at site where conventional storage aspects are not relevant.
Flexibility of the set-up to spot interchangeable materials and
equipment between projects to avoid delay and idling of equipment.
Ability to forecast costs accurately which will assist in correct costing
of the project.
Materials Resource Management
Cont’d
Classification of Materials
Why should we classify materials?
We deal with hundreds of different types of inventory items.
With so many items, complexity of managing the process increases.
To manage these inventories effectively grouping is essential.
Grouping together of materials of technical affinity is known as
classification.
Classification can be based on various attributes:
By size
By names
By values
By end use
By product category
Materials Resource Management
Cont’d
ABC Analysis
It enables management to place efforts where the results will be
greatest.
This technique is popularly known as Always Better Control.
This technique tries to analyse the distribution of any characteristic
by money value of importance in order to determine its priority.
Principles of ABC analysis:
The analysis does not depend upon the unit cost of the items but only
on its annual consumption value.
It is independent of the importance of the item.
The limits of ABC analysis are not uniform but depend upon the size
of the undertaking, its inventory as well as the number of items
controlled.
Materials Resource Management
Cont’d
Applications of this Technique
For:
Inventory Control
Criticality of items
Obsolete stock control
Purchase orders
Receipt of materials
Inspection
Store-keeping
Verification of bills
Materials Resource Management
Cont’d
Basis of ABC Analysis
This technique is based on Pareto's Law (an Italian Economist) which
statethe rule of 80:20.
Based on the principle that:
Few are vital
Many are trivial
This aims to direct efforts where results are important. ABC -
emphasizes % value of consumption.
Use of ABC Analysis
Helps in rationalizing the number of orders and reduce the overall
inventory even though overall purchase orders are the same, the
average inventory can be reduced substantially.
Materials Resource Management
Cont’d
Steps for classifying the items into ABC categories.
 List out all the items in the inventory.
 Ascertain the unit cost of each of the items.
 Ascertain the number of units issued in a year. Assumption:
Issues and consumption are the same.
 To obtain the annual consumption value multiply the unit cost
of each item with the number of units issued in a year.
 Sort the list of consumption value of each item in the
descending order.
 Starting at the top of the list compute the cumulative total of
the Birr consumption value.
 Compute for each item the cumulative percentages for the item
count and cumulative annual value.
Materials Resource Management
Cont’d
This is based on cost criteria.
It helps to exercise selective control when confronted with large
number of items it rationalizes the number of orders, number of items
& reduce the inventory.
About 10 % of materials consume 70 % of resources
About 20 % of materials consume 20 % ofresources
About 70 % of materials consume 10 % of resources
“A” ITEMS
Small in number, but consume large amount of resources
Must have: Tight control, Rigid estimate of requirements, Strict
& closer watch, Low safety stocks and Managed by top
management.
ABC analysis does not stress on items those are less costly but
may be vital.
Materials Resource Management
Cont’d
“B” ITEMs
Intermediate
Must have: Moderate control, Purchase based on rigid requirements,
Reasonably strict watch & control, Moderate safety stocks and
Managed by middle level management.
“C” ITEMS
Larger in number, but consume lesser amount of resources
Must have: Ordinary control measures, Purchase based on usage
estimates and High safety stocks.
Materials Resource Management
Cont’d
Limitations of ABC analysis:
Over reliance on this method tends to overlook the VED (Vital-
Essential and Desirable) nature of items in the inventory.
Items on the border line of the ABC classification need to be
scrutinized for placing them under A/B or B/C.
In the face of frequent fluctuation of price of the items accurate data
needs to be maintained for working out the cost of each item.
Materials Resource Management
Example: Table 2.1 ABC Analysis worksheet
Item Annual Cost (Birr) Cumulative Cost (Birr) % of Sum Cost (%) Item (%)
1 90000 90000 45.0
2 50000 140000 70.0 70 10% Item A
3 20000 160000 80.0
4 7500 167500 83.8
20 20% Item B
5 7500 175000 87.5
6 5000 180000 90.0
7 4500 184500 92.3
8 4000 188500 94.3
9 2750 191250 95.6
10 1750 193000 96.5
11 1500 194500 97.3
12 1500 196000 98.0
13 500 196500 98.3
10 70% Item C
14 500 197000 98.5
15 500 197500 98.8
16 500 198000 99.0
17 500 198500 99.3
18 500 199000 99.5
19 500 199500 99.8
20 500 200000 100.0
Sum 200000
Materials Resource Management
Cont’d
H-M-L Classification
High, Medium, Low value of items.
Focus: Cost per unit of items.
Useful for:
 keeping control over material consumption at the departmental
level
 For deciding the frequency of physical verification
 Controlling purchases.
Materials Resource Management
Cont’d
V-E-D (Vital-Essential-Desirable) Classification
Focus: To determine the criticality of an item. Mainly useful for the
purchase department.
Based on critical value & shortage cost of an item
It is a subjective analysis.
Items are classified into:
 Vital: Shortage cannot be tolerated (maintain large stock of
inventory).
 Essential: Shortage can be tolerated for a short period (an In-
between policy).
 Desirable: Shortage will not adversely affect, but may be using
more resources. These must be strictly Scrutinized (minimum
stock is enough).
Materials Resource Management
Cont’d
F-S-N Classification
Fast moving– Slow moving – Non-moving.
Focus: Inventories
Useful for: Stores department and inventory control. Enables the
adoption of the right type of inventory policy to suit a particular
situation.
Also useful for controlling obsolescence.
Categorization is based on value, criticality and usage.
To determine the number of months lapsed since the last transaction
the date of receipt or the last date of issue is taken whichever is later.
Materials Resource Management
Cont’d
F-S-N Classification
Fast Moving items: most inventory models are aimed at managing
the fast moving goods, which exhibit a regular consumption pattern.
Slow Moving items: Many spare parts come under this category,
they require different management approach.
Non-moving items: Optimal stock disposal rules rather than
inventory provisioning rules are to be determined.
F-S-N – emphasizes frequency of use.
Materials Resource Management
Cont’d
Managing Slow Moving Inventory
If spares are required only at a pre-specified time, such as the time of
scheduled major maintenance for replacement, then it is desirable not
to stock them but to place procurement orders sufficiently well in
advance, keeping leadtimes in view, so that spares arrive just-in-time.
If the part gives adequate warning of an impending breakdown, then
the best policy is to place an order the moment a warning is received.
Adequate warning means when the lead time required is less than the
warning time.
In situations where adequate warning is not obtainable, some stock
should be kept.
Materials Resource Management
Cont’d
Managing Slow Moving Inventory
In general one-for-one ordering policy is useful. This means placing an
order for one spare when one is consumed.
Classificationfor accounting and valuation (Type of Inventory)
Raw Materials
In-process or WIP (Work In Progress)
Finished Goods
Goods in Transit
MRO–Maintenance, Repair and Operating. Supplies which are
consumed during the construction process but do not form part of the
product itself. (e.g. oil, lubricants, cutting blades, grinding, polishing
wheels).
Materials Resource Management
Cont’d
Source Selection & Vendor Development
What is Supply Chain Management (SCM)?
A supply chain is a stream of processes that begins with the raw materials
needed to make a product or service and deliver it to customers.
Supply chain management flows can be divided into 3 main flows
 The product flow
 The information flow
 The finances flow
There are 5 basic components for SCM
 Plan
 Source
 Make
 Deliver
 Return/rectification
Materials Resource Management
Cont’d
Plan
This is the strategic portion of the SCM.
A strategy for managing all the resources required is developed.
This involves developing a set of metrics to monitor the supply chain
so that it is efficient, costs less and delivers high quality and value to
customers.
Source
Aim is to choose those suppliers that will deliver the goods and
services you need to create your product or service on your terms
mainly.
It includes developing a set of pricing, delivery and payment
processes with suppliers.
Creating metrics for monitoring and improving the relationships.
Materials Resource Management
Cont’d
Sourcing
The objective of sourcing is the identification and selection of the
Supplier whose costs, qualities, technologies, timeliness, dependability
and service best meet the firm's needs.
Strategic Sourcing is a systematic process that directs a materials
manager's plan, to manage and develop the supply base in line with a
firm's strategic objectives.
It is the application of current best practices to achieve the full
potential of integrating suppliers into the long-term business process.
The supplier as an asset
Organizations should view suppliers as potential assets and think of
developing them in the long run.
Materials Resource Management
Cont’d
Apart from the goods or services that they supply they are a good source of
information about:
 Market conditions
 Price trends
 General industrial climate Importance of source development
For:
 Import substitution
 Cost reduction
 Quality improvement
Source selection & development should be viewed as continuous activity by a firm.
Materials management steps
There are several functions or steps within the scope of material management and
each of these steps can give rise to potential problems. The more the responsibility is
divided the more potential problems that exist.
Table 2.2 shows the steps in material management and the pertinent actions related to these steps.
Materials Resource Management
Cont’d
Sequence Contributing Action/Documents
1. RFQ (Requisition)  Drawings, specifications
  Material bills
 Terms and conditions
2. Bids  Approve bidders list
  Pre-qualification of bidders
 Bid evaluations
3. P.O (Purchase Order)  Bid classification
  Notice of award
4. Expediting  Vendor data
  Manufacturer inspection
 Delivery
 Routings
5. Transport  Carrier and route
  Ownership en route
 Customs
6. Receive  Inspection and acceptance
  Receiving report
 Storage
7. Inventory  Dispersal (i.e. Material handling)
  Inventory level
 Surplus disposal
Equipment Resource
Management
Equipment Resource Management
These days various plants, equipment, tools etc., are used very often
in construction activities.
Provision of equipment is replacing the hard work that can be made
by human labour taking much time within reasonable period of
time.
it increases efficiency and economy. Its initial cost though high, it
works for long period of time under adverse conditions with less
manpower than working in its absence which will result to be
economical for long term investment.
Depending on the types and nature of construction, machinery at
site includes batching plant, mixers, trucks, tractors, excavators,
dampers, cranes, vibrators, pumps etc.
Equipment Resource Management
Cont’d
The selection of the appropriate type and size of construction
equipment often affects the required amount of time and effort and
thus the job-site productivity of a project. It is therefore important
for site managers and construction planners to be familiar with the
characteristics of the major types of equipment most commonly
used in construction.
Choice of Equipment and Standard ProductionRates
Typically, construction equipment is used to perform essentially
repetitive operations, and can be broadly classified according to
two basic functions:
 Operators such as cranes, graders, etc. which stay within
the confines of the construction site, and
 Haulers such as dump trucks, ready mixed concrete truck,
etc. which transport materials to and from the site.
Equipment Resource Management
Cont’d
In both cases, the cycle of a piece of equipment is a sequence of tasks which is
repeated to produce a unit of output. For example, the sequence of tasks for a crane
might be to fit and install a wall panel (or a package of 8 wall panels) on the side of
a building; similarly, the sequence of tasks of a RMC truck might be to load, haul
and unload two cubic yards (or one truck load) of fresh concrete.
In order to increase job-site productivity, it is beneficial to select equipment with
proper characteristics and a size most suitable for the work conditions at a
construction site. In excavation for building construction, for examples, factors that
could affect the selection of excavators include:
 Size of the job
 Activity time constraints
 Availability ofequipment
 Cost oftransportationofequipment
 Space constraints
 Weather andtemperature
 Probable average speed
Equipment Resource Management
Cont’d
Size of the job: Larger volumes of excavation will require larger excavators, or
smaller excavators in greater number.
Activity time constraints: Shortage of time for excavation may force
contractors to increase the size or numbers of equipment for activities related to
excavation.
Availability of equipment: Productivity of excavation activities will diminish
if the equipment used to perform them is available but not the most adequate.
Cost of transportation of equipment: This cost depends on the size of the job, the
distance of transportation, and the means of transportation.
Space constraints: The performance of equipment is influenced by the spatial
limitations for the movement of excavators.
Weather and temperature: Rain, snow and severe temperature conditions
affect the job-site productivity of labour and equipment.
Probable average speed: The average speed of the haulers to and from the
dumping site will determine the cycle time for each hauling trip.
Information Resource
Management
Information Resource Management
Information can be understood in two terms: data whether processed
or not; and its technology. Both are vital for the successful
implementation of projects.
Contextual information, data useful for estimating duration and
costs; etc. are some of informational resources used in projects.
Information technology both the hard and software have brought
the processing and management of such information becomes
important and helpful in facilitating the comparison of several
alternatives.
This helps in optimization or maximization of uses of project
resources. As a result, informational resources need to be managed.
PMIS, MS-Project, Think tool, etc. are some of the software
developed in managing information resources.
Services and Management
Resource Management
Services and Management Resource Management
SERVICES:
Services such as acquisition of land, provisions of water supply,
electric power, communication systems, etc., are very much
necessary in the construction industry.
Without acquiring such services, it is too hard to implement
constructionactivities successfully.
Therefore, well thought and due consideration shall be given to
services and shall be considered as one of the resources required for
civil works projects.
Services and Management Resource Management
Cont’d
MANAGEMENT:
Management has come to employ a disciplined approach to the use
of availableresources.
To coordinate these resources and achieve the required goal, a
system shall be devised to plan, organize, execute, and control, the
project.
Such system which helps to achieve the necessary goal is called
Construction Management, without which it will be a catastrophe
both in cost and completion time to the project.