Construction Materials and Management

Location and types of stores

A. Aswin Bharath (1869002)

M.E. Construction Managementt
Store Management
Store Management is an important aspect in a construction site. Material requirement
should be calculated and the orders should be placed in advance so that material is readily
available when work begins. The site stores in this site mainly manage receiving, issuing and
storing of material and the maintenance of plant & equipments.
The storage quantity should neither be too much as it would increase the storage cost and
the material may get deteriorated. On the other hand the stock levels should not be too low as a
material shortage may lead to delays of the project. The optimum may vary from site to site, item
to item or supplier to supplier. Yet it is a good practice to keep one week’s requirement in stock.
Material should be stored in such a manner that they are easily accessible, not subjected to
environmental damages and would not obstruct the site traffic.
A properly maintained recording system facilitating the preparation of usage reports,
regular stock counts, monitoring the inward and outward movements.

Location of stores :
The point of receiving the material and the point of use are not always the same. In
between them, the materials are housed in the store room. The store room provides the space for
materials. The storage space may be in the form of constructed buildings or godowns, temporary
structures or even in the form of vast open yards. The size and the type of the storage space is
dependent on varied factors such as number of items to be stored, quantity, characteristics of the
materials to be stored, space, due consideration should also be given to the space required for the
movement of material handling equipment inside the store area. The ways inside the store room
are divided between the main tracks and side streets. The main track must provide for two way
movement and the side streets for one way.
Every cubic inch of the store room costs to the organization. For the economic use of the
stores area, vertical stacking within the limits of the heights of the ceiling, weight of the
materials, capacity of the container etc, is done. For the economic use of the space and efficient
handling of the materials, various types of stores equipment are used.

1. Economy in cost of transportation

Location of store building or storeroom layout has a wear on the cost of transportation. The store
location should be such that unnecessary material handling is avoided. For example, store
building should be located within the factory premises or near to the place of work where
materials are required.
While selecting a place of store building, the material handling facilities for transporting
materials from and to the store should be taken into account. Proper rail sidings and road
facilities to the store should be ensured so that materials can be brought directly up to the receipt
counters.
2. Approachability by railroad transport
Raw materials like coal, coke, manganese and ores should be stored in open and in such a way
that they can be easily removed by trucks, cranes and conveyors. Also the location of the store
should be approachable by rail or road transport.

3. Efficient service
Location of the store should result in extending efficient service to the user departments. As a
general rule, raw material store, forgings, castings, bar-stock, etc., should be located near to the
shops where initial operations are performed. Finished parts store should be located in the
proximity of shipping operations. Jigs and fixtures should be stocked near the materials. Tools
and supplies required on daily basis should be stored near production shops.

4. Reduced fire risks

Materials should be stored in locations which minimize fire hazards. For example, inflammable
materials like petrol should be stored separately. Consumable material such as paints, oil, grease,
cotton waste, etc., should be kept away from one another and from general stores. Oxidizing
agents should be kept away from combustible materials.

5. Safety and Security

For security reasons, storeroom should be away from the main gate of premises. Storeroom
should not be located near the factory wall where they are likely to scaled by outsiders. Main
stores should be located in such a way that suppliers’ representatives, drivers and others do not
have easy access to it.

6. Minimization of risk of spoilage and deterioration

While selecting a suitable site for the store, due consideration should be given to temperature,
humidity, and lighting requirements.

7. Flexibility for future expansion

While selecting the store site, future expansion needs must be considered. Sufficient space
should be available for future expansion of the store department to prevent crowding/congestion
or for avoiding the need for shifting the store to another location at a later stage.

The types of equipment commonly used in storing materials:

1) Pallets and skids
2) Open and closed shelving
3) Cabinets (with or without counters)
4) Bins
5) Tacking boxes
6) Special storage racks
7) Gravity feed racks
8) Outdoor platforms and racks

The location of the stores is also an important consideration which has a direct bearing on
the product cost. The basic principles of stores location are – straight line movement with
minimum of backtracking, minimization of handling, re-handling and internal transportation
costs, minimization of waste motion for personnel and reduced human hazards, efficient
utilization of storage space and provision for the flexibility and expansion of the store area.

Types of stores :
In industries, about 80-90% of capital may be invested in the materials. So, severe losses
may have to be suffered by the industries, unless the stores are efficiently managed. The main
objectives that must be fulfilled while managing the stores efficiently are mentioned below:
1. Smoothly receiving & issuing materials.
2. To maintain stocks at desired levels.
3. To protect stock from pilferage, theft, evaporation, deterioration, sublimation etc.

Depending on the type of industry, size of the business, location & policy of the
management, stores may be of three types:
a. Centralized stores i.e. materials are supplied to all departments by one store
b. Decentralized stores i.e. for each department there is a separate store
c. Centralized stores with sub-stores, i.e. there is one central store which holds the stocks in
general with separate sub stores for each department which gets supply from the central
stores.

From the receiving department, the materials are received by the stores & then materials are
supplied to the production & service departments. So near the receiving department should be
the location of the store & at the same time, it should also be near the departments which
requires supply from it. For the location & layout of stores the factors to be considered are: - (i)
highest efficiency, (ii) lowest cost of internal transport, & (iii) easy accessibility to all
departments which require materials.

Centralized Store:
In small factories, it is desirable to centralize the materials so that they may be brought under the
control of one store-keeper and the store-room should be as far as possible near the place, where
material is to be used.
If there are several manufacturing departments, the store-room will be most conveniently
situated, where it is near to all departments. This will reduce handling and a lot of manual work
is eliminated. This type is called Centralized Store.

Merits & demerits of Centralized Store:

Merits:
1. Better control & layout.
2. Technical skill is high & supervision is better.
3. Less storage space is needed because stocks should be kept as low as possible.
4. Replenishment should be quicker.
5. As maintenance of record of same material need not be required in different departments,
less clerical work, stationery & other costs is involved.
6. For stores audit there is better facility.
7. Stock taking is easier.
 8. Insurance cost is lower etc.

Demerits:
1. Cost of internal transport is higher.
2. In the flow of materials to production, possibility of bottle-neck is there.
3. Risk of obsolescence is greater.
4. All the production departments are affected by any disturbance.

Decentralized Store:
In large factories, where there are several departments, each using different type of materials, it
becomes beneficial to separate the stores.
For example, near the welding department, store the materials required for welding; near the
foundry department, store the items which are used there; near assembly department, store the
parts that are required there and so on.
Some stores that are common to several or all departments, as for example, soap, stationary,
printed forms, cotton waste etc., should be kept at a central place.

Merits & demerits of Decentralized Store:

Merits:
1. Cost of internal transport is avoided.
2. Production is not affected by the disturbance in the central store.
3. Delay in getting the issues can be avoided.
4. Chance of obsolescence is lower.

Demerits:
1. Cost of organization & space is increased by separate cost for each department.
2. Departmental heads, in addition to their normal work, will have to maintain the store.
3. Technical skill obtainable is less.

Centralized Store with Sub-stores:

In this case, near the receiving department, is located a central store & each department
has a sub store with it. From the central store, the materials are received by the sub-store on
imprest system & issues to the department are made.
When, from the central store, work sites are fairly distant, this system is essential. Bottlenecks in
the supply of materials for production are avoided by the system. However, the system is costlier
than the centralized store.