MATERIAL & EQUIPMENT MANAGEMENT

Machines and Materials are a vital resource to the accomplishment of any

construction project. They enable effective working at any construction site for
works that cannot be practically be executed only by manpower.
SCOPE OF WORK
Civil works for development of 100m wide landing strip, International Airport.
Carrying out earthwork in excavation in any material met on site, up to the
required level by mechanical means i.e. excavators.
Backfilling in burrow to achieve required level 80,000 Cum earth, disposal
of overburden waste of 20,000 Cum to a lead of 3Kms and spreading the
same.
Proving and laying sand over leveled surface, 3,000 Cum from 20kms,
including spreading & leveling.
Procure, store and applying Bitumen over sand bed, from Bangaigon,
Assam, of 150,000 Liters.
DESCRIPTION OF EQUIPMENTS CONSIDERED FOR THE WORK
Earthmovers: These machines used for earth cutting, moving or transporting large
volume of earth. A brief description of the equipments used for excavation is
reported as follows.
Here we have considered the following machinery for the task to be executed:
1 Nos. crawler mounted Hydraulic excavator, TATAEX350 LCH - V Super
BUCKET CAPACITY: 1.30 - 1.90 m3. For excavation & loading to dumptruck.

1 Nos. Motor Grader-Articulated TATA Hitachi Motor grader TG-14 for

dozing, surface dressing, leveling spreading of sand.

5 Nos. Truck Tipplers TATA HYVA 2516 for Hauling of earth excess
earth mass 20000 Cum 3kms away from the site & dumping of earth
where filling is required 80000 Cum, also to bring sand from 20Kms of
Vol.3000 Cum.

Hydraulic Excavators-Crawlers: These are Single-bucket excavators

names as classified according to running gear as crawler-mounted, wheeled,
walking, rail, floating, and combination rubber-tyres. These are used for
excavation, moving earth & loading. The benefit of crawler is that it can
easily move in any type of soil. Easily load earth to the hauling machine.

Motor Grader- Articulated: These commonly referred to as a road grader, a

blade, a maintainer, or a motor grader, it is a construction machine with a
long blade used to create a flat earth surface. These machines have blades
which can be positioned at front as well as centre depending on site and
nature of work. These are generally used for area grading and where low
cutting and filling is to be done.

Truck Tipper: A tipper, is a dump truck used to haul earth mass, rock, sand
gravel, asphalt, trash and anything else that needs hauling and dumping. It is
widely used for construction purpose, mining purpose, domestic goods
transportation purpose and many other. It is rubber mounted, uses hydraulic
hoist to dump the materials mechanically. Generally it is rear duping system.
There are also dumpers with side unloading systems.

Asphalt Paver: The asphalt pavers are capable of laying large quantities of
hot asphalt and leveling it to the required condition.

Asphalt Sprayer: The asphalt sprayer melts the bitumen and sprays it at the
required area. It has a burner in it which can maintain the temperature of the
bitumen at over 350 degree C.

 CALCULATION OF PER DAY WORK

The total work to be planned for execution per day can be

calculated as below.

Total No. of days = 100.

Working Hours. = 10 hours/ Day.

IDENTIFICATION OF ACTIVITIES:

The major activities can be listed as below:

1. Earthwork in excavation 100000 Cum.
2. Hauling of overburden 20000 Cum. Up to lead of 3Kms.
3. Bringing Sand 3000 Cum. From 20Kms.
4. Leveling of surface & spreading of sand.
5. Procurement of 150000 liters of Bitumen.
6. Planning for application of bitumen and procurement keeping in view that
total available storage at a time is 1/3 of total requirement

PLANNING OF ACTIVITY:

ity

Activ

Earth
wok

excav
ation

10
20
30
40
50
60 70
80
90
100

and

of

of

in

Leveling
dressing

Sand
filling

Order
Bitumen

for

Delivery
Bitumen

Replenishin
g

Bitu

men

val

Remo
of
burde

Spreading
of Soil

Factors That Affect Selection of Equipment

1. Earth Moving Equipment:

The selection of earthmoving equipment mainly dependents on: Quantity of earth to be moved.
Completion Time.
The decision to choose between crawler-mounted earthmoving
equipment and a wheel-mounted one depends to a large extent on the
prevailing job conditions.
Payload & Cycle time
The number of associated equipment required to support the main
equipment i.e. Loaders& Dumpers.
Cost of Owing & Operation.
Average age In-Service & Equipment useful age.
2. Earth Hauling Equipment:
The selection of earth hauling depends mainly dependents on: Quantum of Work
Space for maneuvering & terrain.
Cost of Owing & Operation.
Fleet equipment characteristics
Expected project duration.
Nature of Work.
Distance of Hauling.

Average age In-Service & Equipment useful age.

Mass Diagram

CUMMULATIVE METRIC VOLUME

END

AREAS

STA
(

TION
SQ)

UT
ILL

86

3.5

0 66

0 5

0 4

0 2

0 19

VOLUME (CUM)

CUT

0.000

0 594

0 70

0 08

05

ALGEBRIC

SUMS
VOLUMES,

CUMULATIVE

FILL

0.000

17836.

0.000

0.000

0.000

0.000

0.000

0.000

0.000

30264.672

31031.837

30502.562

27273.981

21928.298

9622.641

-5276.466

-529.276

0.000

25584.964

0.000

767.16

17836.594

4679.7

7748.3

0.000

3228.581

5345.683

12305.657

14899.107

9.08

10

10.5

11

12

13

0 2

0 1

01

05

0 08

2493.2

8071.452

191.79

-185.246

0.000

0.000

767.16

4679.7

0 00

18

16.5

17

4
87

6
2

16

2
3

15.0

0
2

0 2

15

18

14

5
6

9282.7

4
704

2
657

04

0 05

0 48

-979.160

0.000

21595.
2117.102

19984.
3175.653

345.22
238.174

2109.7

0.000

1150.7

0.000

0.000 793.913

0.000 4551.770

-11827.245

-11589.356

-6909.647

0.000

-10848.086

-12356.521

-529.276

0.000

-10854.631

2373.053

21851.655

38660.658

38767.709

40877.413

42028.161

41234.248

36682.478

19

20

0 57
9
5

9
72

10717.830

6367.4
12332.120

0.000

25964.648

20000.000

Cost Analysis:

Cost of equipment operation per hour and cost of each item of work.
Calculation of Per day work.
Total Quantity of Earth= 1,00,000 Cum
No. of Days= 60 Days.
Volume of Earth to be moved per day per hour= 100000/60/10
Hence Hourly production required=166.66 Cum per Hour.

1. Determine of the material type and bucket fill factor.

Average Soil = 85 to 90%

2. Estimate the Cycle Time

Referring to the supplier's equipment cycle time estimating chart

Average = 0.43 to 0.52 minute

3. Calculation of Effective Cycles per Hour

Divide the 60 minute hour by cycle time and adjust for availability and
efficiencies.

Cycle Time

0.48 minute
Cycles/60 minute hour
60 / 0.48 = 125

 Operator Skill/Efficiency

Machine Availability

Gen
Efficiency

Effective

0.9 (90%)

(95%)
Operati
onal

0.83(50 min/hr)

Cycles
125 x .9 x .95 x .83 =
per
89

Hour

4. Calculate the Required Bucket Capacity

Divide hourly production requirement by effective cycles per hour, adjust for
material density and fill factor.

Hourly production
Required

166 Cum / hour

Effective cycles / hour

89

= Required Payload

166 / 89 = 1.87 Cum

Material Density / Loose

1.6 Ton / m3

= Bucket Payload Volume

1.87 / 1.6 = 1.17 m3

Fill Factor

0.85 (85%)

= Nominal Bucket Size

1.17 / .85 = 1.38 m3

Hence Considering TATA EX350 LCH - V Super BUCKET

CAPACITY: 1.30 - 1.90 m3

The cost breakdown structure for owning and operating cost of all the
fleet equipment has to be paid larger importance as this is the vital statistic
which can make the project into Profit and if not considered may lead to
financial loss to the project.
Equipment operation cost accounts for the three main categories of cost.
1. Owing cost
2. Operation cost.
It is the cumulative sum of expenses an owner experiences by working a
machine on the project. It is sum of expenses like fuel, lube oil expenses,
grease, repair & maintenance of machinery.

Fuel expenses are determined by measurement of the job. This can be

determined by records of consumption of fuel in liters per hour knowing
job conditions, viz. if the soil is loose machine can do more volume of
work in comparisons to the work where the strata of soil is harder.
Average hourly consumption of fuel can be calculated directly knowing
the soil properties of the project from previous recorded statistics.
Similarly, the cost of lube oil and replacement of tier required can be
worked out by knowing the machine characteristics and abrasion, life tier

3. Wages of Equipment Operators.

Operator wages may be included in Operation cost, but due to the
variance of projects , it is generally practiced to keep the Wages of
Equipment Operator is a separate category. The justification behind this is,
since every project may have different scheme, sometimes the operator
may be paid on hourly basis sometimes may be in Percentage and
sometimes in the volume or work done.

The cost should include all benefits paid by the company as per its policy.

Cost of Owing can be determined by knowing

1. Estimated Ownership Period in years.

2.

Estimated Usage (Hours/year)

3. Ownership usage (Total Hours)

Operating Costs:

1. Fuel Cost & Consumption rate (Units/hours)

2. Lube Oils, Filters, Grease.
3. Tyres
4. Repair reserve (Extended use & Basic repair)

Fuel cost can be calculated on the theoretical basis.

The resulting theoretical values must be adjusted by time and load

factor that account for working conditions. Time factor-Actual working
time of machine. Load factor-Percentage of rated horsepower.

NAME OF EQUIPMENTS:

1. FOR EQUIPMENT USED DEPARTMENTALLY

(I) Ownership charges:

(a) Total investment at site of work (this includes A/T cost,

Sales tax, excise, custom and other duties, transport expenses

consisting of freight (by ocean & rail) insurance loading/unloading charges
and
erection
and
commissioning
on
receipt)
.Rs. 50,00,000.00

(b) Deduct salvage value@15 percent of A

 . Rs. 7,50,000.00

(c) Total investment to be depreciated = A-B

...Rs. 42,50,000.00

(d) Economic life of the machine in hours as per appendix 7.II

(as per Ministry norms, it is 9000 Hrs.) Hrs.

(e) Depreciation per hour

[ C/D ]
....Rs.472.22

(f) Storage charges per hour (1 percent of c spread over the economic
life) = 0.01x (C)/(D).Rs 4.72

Total ownership charges = (E)+ (F) Rs.476.94(I)

II Operational Charges

Repair charges per hour including maintenance and replacement of tyres

(150 percent of C spread over

Economic
life
=1.5xC/D....Rs.708.33(II)

III Overhead Charges:

@ 5 percent of ownership and operational charges=5(I+II)/100

Overhead charges per hourRs. 59.23
(III)

IV Running Charges:

 Operating staff/labour & wages: No. Wages/month

Designation
(i) Operatior @ 584.21 per day
(ii)Helper @ 428.00 per day
(iii)
Cleaners @ 89.36 per day
(iv)
Misc. Expenses (Welder) @5%
(v) TA. Etc.@ 15%
(H) Wages Per hour

Total Operating Cost per Hour.Rs.165.23

(J)

(J) Servicing Chages: Fuel Lubricants,

etc.

Rate/Litr Cos
Consumption/hr.
e
t/hr.

1. Fuel @7liters per Hour....cost per hour = 14Liters X Rs.41.29 per

Liter= Rs.578.06

2. Lubricants, Grease, Hyd.Oil, gear oil, Cotton Waste, etc. @ Rs.52.73per

Hour. Total Service Charge per Hour.Rs.630.79
(K)
K Cost of Lub. Oil, Fuel etc. hr.

Total Running charges per hour (J + K)

.Rs.796.0
(IV)

 V. Overhead charges @ 5 percent of the total charges

per hour = 5 x L/100 = Rs.39.80

(V)

Summing up:

=Rs.476.94
Ownership charges
=I
(I)

=
Operational Charges
= II Rs.708.33(II)

= III
= Rs.
Overhead of I and II
59.23(III)

= IV
= Rs.
Running charges (as in 5)
796.02(IV)

= V = Rs.39.80
Overhead charges on IV
(V)

Cost of Equipment Operation per hour= (I+II+III+IV+V) =

Rs.2080.32.

Approx. Rs.2081.00 per hour

Calculation for Dumper:

Earth haulage or transportation. It is to determine not only the most

suitable method of hauling material, but also to determine most
effective and economical means or equipment to use for operation of
shifting earth. The rear dumpers & tractors with hydraulic dump are
mostly used in transportation of earth. These units have the body that
is mounted on a frame of a truck. Dumping is carried out by raising
the box with a hydraulic system. There are common types of trucks
that are capable of handling all types of earth material. Physical site
conditions and economic considerations may operate as controlling

factors in selecting the equipment based on its size. optimum

assignment of dumpers to the excavators and minimize the idle time
of the excavator. The excavation-loading seeks to combine two basic
equipment in view of achieving efficiency and productivity. If the
excavation rate of a machine remains constant, and if the loads and
cycle times of the dumpers to remain constant, it would be fairly
simple to determine the most economical number of dumpers to
employ on a specified project. However, it is well known that dumper
cycle times do not remain constant even though the haul road profiles
and the number of dumpers operating remain constant. There may be
times when dumpers are waiting in a queue to be loaded; then later,
for no apparent reason, the excavator may have to wait for a dumper.
This results in a loss in production. If more dumpers are employed,
there will be an excess of dumper capacity. But often there is not
enough benefit to compensate for an increased cost of extra
dumper(s). This loss of productivity occurs because of a mismatch
which causes bunching of the hauling units. The improvement can be
done by minimizing both the idle time of equipment and handling cost
per cubic meter of earth. The number of dumpers required for the
earthwork is determined by comparing various fleet production
capabilities and costs. Requirement of selecting the lowest cost fleet
with adequate production capability. In other words, dumper fleet
requirements are affected by many factors; site conditions, output
requirements, loading equipment, equipment performance and cycle
time, operating methods and practices, matching of loading equipment
and dumpers, and equipment availability and utilization. The
suitability of a loading equipment to a hauling dumper and the
selection process of a dumper fleet consist of
1. The maximum capacity of a dumper depends upon the site conditions and
quantum of work. This differs from project to project, but generally, it is
about eight times the bucket capacity.

2. The minimum capacity of the dumper should be approximately four

times larger than the excavator bucket capacity.


Match Factor= number of haulers x loader cycle time/ number of
loaders x hauler cycle time. The perfect match point from the
theoretical standpoint is 100 percent, the dumper-shovel fleet efficiency,
which occurs when the match factor equals to1.

CYCLE : VOLUME CALCULATION

Measured

parameters

Excav

Dumper
ator

Avg.

loadin
Avg.

Bucket g
Cycle

cycle

Time
time

time(s

(min)
ec)

(min)

28.8

2.75

12.15

Calculated parameters

Num
ber

of
tch

dump or

er

1
3

2
5

3
8

4
1

4.5
2

5
3

Ma

Total
fact
Efficiency
(%)

0.2

22.63

0.4

45.27

0.6

67.90

0.9

90.53

1.0

101.85

1.1

113.17

1.3

1.5

135.80

158.44

Truck considered of 9MT capacity & 5.5 Cum in loading volume.

Cost of Dumper per day @ Rs 2100.00 X 5nos X 60 days= Rs.6,30,000.00
(Additional One Truck is required for transportation of sand & Removal of
Overburden)
Total Cost of Work:

Excavation:
Total Earthwork to be done= 100000.00 Cum
No.of days = 60 Days.
60 days X 10 Hours X 2081= Rs. 12,48,600.00

Total cost of Excavation & Hauling= Rs.17,52,600.00

Motor Grader for leveling the site @ Rs.2,450.00 per Hour

Cost of Sand.

Sand Quarry Lead 20Kms, Cost at quarry Rs.

79 .00 Carriage charge @ Rs.6.08 per Kms= 121.60

Sacking charge@ Rs.3.05 per Cum. (Including labour, Loading & Unloading
Charges) Cost of sand spreading & leveling at Site@ 55.00 per Cum

Cost of sand = Rs.79+ Rs.121.60+Rs.3.05+ Rs.55.00

=Rs.258.65 Total Cost of Sand = 3000 Cum. X Rs.258.65 =
Rs.7,75,950.00


Cost of Bitumen.

Cost of Bitumen at Bongaion Plant.Rs. 38170.00

Cost of transportation= Rs.568.10 per Truck. Additional

Rs.8.34per Kms Consider site 1000kms from Plant

Hence cost of transportation= Rs568.10+Rs.8340.00=

Rs.8964.91 Consider Stacking, loading unloading cost @ 2%=
Rs.167.93 Per MT

Cost of Bitumen= Rs.38,170.00 + Rs. 163.93 + Rs.896.49= Rs.39,230.42

Per MT Cost of 1,50,000.00 Lit=2403 Kg per cum, = 360.45 MT
Total Cost of Bitumen = 360.45MT X Rs.39230.42

 =Rs.1,41,40,604.89 say Rs. 1,41,40,605.00

TOTAL COST OF WORK= Rs. 17,52,600.00

Rs.7,75,950.00

Rs. 1,41,40,605.00

Rs. 1,66,69,155.00

MATERIAL MANAGEMENT

Material management plays a vital role in achieving the target completion

date. Material management is planning & controlling of the functions
supporting the complete cycle of materials, and the associated flow of
information. These can be achieved by Identification of Critical & Most
Critical materials required, Standardizing by formulation & Implementation
of Guidelines to achieve harmony within the activities. Determining the
period, start & end of the project preparing schedules, procure materials as
per schedule, storage, inventory control, distribution as per requirement &
dispose.
It confirms that the material reaches the site before the time of its
requirement at the same time it also ensures that the fund is not blocked by
purchase of material too before they are required at site.

EOQ economic order calculation.

As we are procuring Bitumen from Indian Oil Corp. Bangaigaon, Assam,

how many would we order at a time? If we order a large quantity each
time we order, well end up holding some bitumen in inventory for a longer
time & than if we had ordered a smaller quantity. With a higher quantity,
inventory cost goes high.
If we order a small quantity, well end up paying any setup and/or fixed
costs more frequently. For example, the driver of the truck delivering the
bitumen is paid the same, whether the truck is loaded with 10MT bitumen or
2MT bitumen. If we order only 2MT

bitumen at a time, well have to pay transportation 5 times more than if

we had ordered 200MTbitumen at a time. With a smaller quantity, setup

and/or fixed cost goes high.

Since a higher quantity is not best and a lower quantity is not best
there must be some middle quantity where the total cost (inventory cost
PLUS setup and/or fixed cost) is least expensive. Below is a chart that
illustrates the relationship:

Total Cost

Inventory Cost

s
Setup Cost

Quantity

The point of lowest total cost can be seen to be at the very bottom of the
Total Cost curve. The quantity associated with that point just also happens to
be the same quantity at which the two other lines intersect. To calculate the
quantity at that point, use the formula below:

_______________________________________
EOQ = [ 2 (Demand) (Setup Cost) ] / (Inventory Cost)

That formula results from using calculus to take the derivative of the Total
Cost function at zero. When this formula is used to calculate how many to
MAKE at a time (instead of
How many to BUY at a time), it is sometimes called the Economic
Manufacturing Quantity . or EMQ.
Calculation of EOQ.

R = Forecasted monthly usage 1,50,000.00 Lit=2403 Kg

per cum, = 360.45 MT

C = Cost per order event (not per unit) .Rs. 3,53,073.60

(9MT in One Truck)

P = Purchase cost per unitRs.

38170.00 (Cost at plant)

H= Holding cost factor.......................................................................Rs.

41,987.00 (F=1.1 X P)

Q*= 77.86 MT ~ 32401 Liters Approx.

Re-order level (ROL)

Receiving and issuing of inventories are the common and recurring

phenomena in a manufacturing organization. When the inventories fall

below a particular level, they are replenished by the fresh purchases. The
prescription of re-order level (ROL) is an important technique of inventory
control. It fundamentally deals with when to order to replenish the
inventories. Re-order level is predetermined point, and when the existing
stock of inventories reaches this point of falls below it, the purchase action is
initiated to replenish them. The ROL is mentioned in the bin-card of each
inventory item. What should be the quantity of replenishment order is also a
matter of policy. Generally, size of

the order is determined on the basis of the economic ordering quantity

(EOQ) which is also an important technique of inventory control.
Detailed treatment is given to this technique separately.

The re-order level is decided for each important item of inventory on

the basis of following considerations:

1) Lead time

2) Average periodic consumption (daily consumption)

3) Safety stock

Re-order level is decided as under:

ROL= (Lead time x average daily consumption) +

safety stock Here, Lead Time = 4 days.

Average periodic consumption per day = 5000

Liters Safety Stock 5000 Liters.

ROL= (4x5000)+5000 = 25000 Liters

Ordering schedule, for Bitumen.

As per the given criterion, the site has a storage capacity of only 50,000
liters of bitumen at a time. Hence the schedule for procurement of bitumen can be

decided as follows to ensure timely consumption of bitumen and also timely

procurement. It is given that the lead time for bitument from a refinery in
Bongaigaon in Assam is 45 days. Hence:

Order for bitumen to be placed in lots of 50,000 liters each as follows:

Lot number Day of indent from

Day of receipt
for consumption

1st day

1
2
3

15th day
25th day
35th day

60th day
70th day
80th day

10 days
10 days
10 days

Days

BIBLIOGRAPHY:

A Statistical Analysis Of Construction Equipment Repair Costs Using Field

Data & The Cumulative Cost Model by Zane W. Mitchell, Jr.

Managing Construction equipment S. W. Nunnally

Construction Planning Equipment & Methods- Peurifoy/Schexnayder/ Shapira

Optimizing Economic Order Quantity (EOQ)- By Dave Piasecki

GOVERNMENT OF INDIA CENTRAL PUBLIC WORKS DEPARTMENT

2012 DELHI SCHEDULE OF RATE