Engineering Encyclopedia

Saudi Aramco DeskTop Standards

Managing Materials During Construction

Note: The source of the technical material in this volume is the Professional
Engineering Development Program (PEDP) of Engineering Services.
Warning: The material contained in this document was developed for Saudi
Aramco and is intended for the exclusive use of Saudi Aramco’s employees.
Any material contained in this document which is not already in the public
domain may not be copied, reproduced, sold, given, or disclosed to third
parties, or otherwise used in whole, or in part, without the written permission
of the Vice President, Engineering Services, Saudi Aramco.

Chapter : Project Management For additional information on this subject, contact

File Reference: PMT10508 Rod Kuan on 873-9701
Engineering Encyclopedia Project Management
Managing Materials During Construction

Content Page

THE PURPOSE OF AN EFFECTIVE MATERIALS MANAGEMENT PLAN ................... 3

Introduction .............................................................................................................. 3
Purpose of Materials Management Plan ..................................................................... 3
Identification of Critical Materials.............................................................................. 3
Significant Materials Procurement Issues ................................................................... 3
Procurement Responsibility............................................................................ 3
Procurement Preferences—In Kingdom or Out of Kingdom........................... 3
Consideration in Successful Materials Procurement ................................................... 3
LOGISTICS, SITE HANDLING AND STORAGE OF MATERIALS IN THE
FIELD .................................................................................................................................. 7
Introduction .............................................................................................................. 7
Logistics Consideration ............................................................................................. 7
Site Handling Consideration ...................................................................................... 7
Storage of Materials .................................................................................................. 7
Maintenance .................................................................................................. 7
Record Keeping ............................................................................................. 7
ISSUES RELATED TO MANAGING PROJECT SURPLUS AND EXCESS
MATERIALS ....................................................................................................................... 7
Introduction .............................................................................................................. 7
Procedures to Return Surplus Materials..................................................................... 7
Procedure to Return Excess Materials ....................................................................... 7
Steps to Avoid Surplus and Excess Materials Generation........................................... 7
WORK AID 1: GUIDELINES IN THE MANAGEMENT OF MATERIAL
ACTIVITIES DURING THE CONSTRUCTION PHASE ................................................... 7

GLOSSARY......................................................................................................................... 7

Saudi Aramco DeskTop Standards

Engineering Encyclopedia Project Management
Managing Materials During Construction

THE PURPOSE OF AN EFFECTIVE MATERIALS MANAGEMENT PLAN

Introduction

The effective Materials Management Plan provides the Project Engineer with management level
information about project materials sources, schedules, expediting, and transportation. Materials
coordination and expediting are important to the success of the project. The effect of these
activities is particularly important in projects which are fast tracked.

Materials are involved throughout a project and particularly in construction. Early delivery of the
materials usually can not speed up construction progress, but late delivery definitely can delay
construction progress.

The elements of materials management can be broken down into:

• Planning and scheduling

• Materials takeoff and design interface

• Vendor inquiry and evaluation

• Purchasing

• Expediting and transportation

• Quality control

• Field material control

• Warehousing

• Installation, plant operations and maintenance

Purpose of Materials Management Plan

The Materials Management Plan is used by the Project Engineer to control the materials
management system and movement of materials in order to:

• Assure the materials are used in the facilities.

• Assure that other materials are not used in the facility.

• Track costs and measure progress.

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Engineering Encyclopedia Project Management
Managing Materials During Construction

• Assure materials are available when needed during construction.

Identification of Critical Materials

The Project Engineer should regularly track material items which are on or close to the critical
path. The CPM Schedule and Project DC Requisition Status Report are the key tools for the
Project Engineer in identifying which materials are critical.

The Project Engineer must identify any problems related to materials deliveries before they get to
be a problem. The earlier a potential problem can be identified the better opportunity the Project
Engineer has to get the delivery back on track and the greater the number of available alternatives.

Significant Materials Procurement Issues

The Project Engineer responsible for construction on the project is primarily interested in ensuring
that the material is on site and available to meet the construction sequence. The Project Engineer
should secure from the design office, copies of the material status reports to check arrivals at job
site.

A carefully planned Materials Management System offers the Project Engineer several benefits.
Some of these include:

• Improved Contractor performance (cost, quality, schedule)

– Improved craft labor productivity

– Crafts relieved of materials management responsibility

– Rework is minimized

• Reduced SAMS materials excess

• Reduced management manpower

• Cash flow savings

• Reduced warehouse storage, handling, maintenance

• Reduced risk (obsolescence, damage, insurance)

• Improved ability to meet project schedule

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