1. TITLE OF THE PROJECT

A STUDY OF MATERIAL MANAGEMENT ON MEP PROJECTS

AT LAFARGE CEMENT

   

2. 2. INTRODUCTION TO THE STUDY

The Material Management encompasses the planning and management of all activities involved in sourcing, procurement and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, the material management or supply chain management integrates supply and demand management within and across companies.

High-performance production and materials management starts with agreement on sales and production rates as well as the resulting inventory position. Production planning rates flow from the SPI planning process. Orders are promised against these rates by line/cell, then materials flow to the operation based on planning items and actual orders. MRP is used where applicable to plan long leadtime items and expensive materials. Work orders apply when needed, but are eliminated where possible. Suppliers and the shop floor are controlled through simplified kanban and surveillance methods.

Mechanical and Electrical engineers are specialists, commonly referred to as “MEP” (mechanical, electrical and plumbing) when engaged in the building design fields. Also known as “Building services engineering” in the United Kingdom, Canada and Australia. Mechanical engineers design and oversee the heating ventilation and air conditioning (HVAC), plumbing, and rain gutter systems. Plumbing designers often include design specifications for simple active fire protection systems, but for more complicated projects, fire protection engineers are often separately retained. Electrical engineers are responsible for the building’s power distribution, telecommunication, fire alarm, signalization, lightning protection and control systems, as well as lighting systems. The Material Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model.

 It includes all the logistics management activities noted above as well as manufacturing operations and it drives coordination of processes and activities with and across marketing, sales, product design, and finance and information technology. Materials management is part of logistics and refers to the location and movement of the physical items or products. There are three main processes associated with materials management: spare parts, quality control, and inventory management. Materials management is important in large manufacturing and distribution environments, where there are multiple parts, locations, and significant money invested in these items.

Materials management can deal with campus planning and building design for the movement of materials, or with logistics that deal with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing the said parts. The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for the customer base. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight budget, inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches. In large companies with multitudes of customer changes to the final product over the course of a year, there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management.

COMPANY OVERVIEW

 

 

 

World leader in building materials, Lafarge has an established presence across all major cities and towns in India.  The group responds to the needs driven by its customers, business associates, shareholders, regional authorties and local communities. Lafarge through its specialist solutions under – Cement, Aggregates and Concrete enable and empowers its customers by bringing innovation & sustainability to their construction.  Lafarge entered the Indian market in 1999, through its cement business, with the acquisition of Tata Steel’s cement activity. This acquisition was followed by the purchase of the Raymond Cement facility in 2001. Lafarge has cement plants in Chattisgarh, Jharkhand, Rajasthan and West Bengal. The total cement production capacity in the Indian market is currently over 11 MT.

In recent years, Lafarge has significantly enlarged its operations in India across its three business divisions – Cement, Aggregates and Concrete. In 2008, Lafarge acquired L&T’s concrete business and is today one of the leading players in the ready-mix concrete business with 65 plants across the country. Lafarge has 2 aggregates mines/ crusher one each at Badlapur (Maharasthra) and Kotputli (Rajasthan). Lafarge India is one of the leading players in the cement industry in Eastern and Central India, with its leading brands – Concreto and Duraguard. Lafarge Readymix concrete offers Mega series, Concrete Master, Artevia and Hydromedia.  Lafarge also partners with local developers to provide solutions making various stages of construction simpler, faster and affordable.

Lafarge India has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. To make advances in building materials, Lafarge India places the customer at the heart of its concerns. It offers the construction industry and its customer’s innovative solutions bringing greater safety, comfort and quality to their everyday surroundings. The Construction Development Lab in Mumbai, developed in early 2012, is undertaking research and development activities specific for the Indian market and Indian construction conditions. Safety is the cornerstone of the Company’s performance culture and long-standing people-centric tradition. All Lafarge India plants have an innate culture of safety consciousness and assured best-in-class Health & Safety standards.

3. RATIONALE OF STUDY

 

This Study will analyze the materials management issues at various MEP sites of Lafarge cement and by studying many operational issues, supplier partnering, inventory management and allocation of resources to the different departments involved in the organization; the profitability of the MEP business can be improved. It helps to incorrect estimation of the materials while quoting for the project and Lack of proper material management especially in site stores. Material management gives help to know the Delay in processing the various orders.

 

4. OBJECTIVES OF THE STUDY

Every study is carried out for the achievement of certain objectives.

1. To find out the materials management issues involved in various MEP projects of Lafarge cement.
2. To explore the significant factors influencing the materials management system in Lafarge cement.
3. To understand the stores management at various MEP sites.
4. To suggest ways and means to improve the system of Lafarge cement material management.
5. NEED FOR THE STUDY

 

 

By understanding the materials management issues at various MEP sites of Lafarge cement. By improving the professional operation the following advantages are expected.

• Will be able to meet the project schedules as per the set targets.
• The image of the company will improve and the market share of the company may increase in due course of time.
• Improved profitability of the projects will lead to the growth and expansion of the company
• Improved relationship with the customers will improve further business opportunities.
• Higher profitability will indirectly increase the chance of higher bonus; employee promotions and boost morale of the employees.

6. RESEARCH METHODOLOGY

 

 

The project being undertaken is exploratory research.

A research study has to be conducted with proper execution of methodology. The methodology gives you the complete picture of how the research is to be initiated, the process of research, designing of the research, tools to be used in the research and technique used for analysis etc. Research is a process through which we attempt to achieve systematically and with the support of data the answer to a question, the resolution of a problem, or a greater understanding of a phenomenon.

From data to action

 

Research is only as good as what it reveals and the knowledge gained. Providing pure data is not enough, we have to apply our skills to analyze and work with each situation to apply the findings or solutions according to the situation.

METHODOLOGY ADOPTED:- This research is aimed at studying the procedure of raw material procurement and accounting at Lafarge cement.

• RESEARCH DESIGN:- The research design used in this study is both ‘Descriptive’ and ‘exploratory’.
• DATA COLLECTION: For the purpose of study both the primary and secondary data will be collected. The data has will be collected in two phases:-
• In the first phase secondary data will collect to know the procedure of raw material procurement and the practices involved in accounting of raw material such as payment procedure, MRN confirmation and posting, vouchers, reconciliation etc.

In the second phase primary data will be collected through personal interview of the respondents.

• SAMPLE UNIT:– The study will be done at Lafarge cement.
• SAMPLE SIZE:- To make the study sample of 50 respondents will be chosen.
• SAMPLING TECHNIQUE:– The technique will use for conducting the study is Convenience Sampling Technique as sample of respondents will be chosen according to convenience.
• STASTICAL TOOLS: Statistical tools like percentage, average etc. will be used in study for the purpose of analysis of data. Charts, figures and graphs will also use in order to make the data more represent able and easy to understand.

7. EXPECTED CONTRIBUTION FROM THE STUDY

The study will help to introduce innovative subject to improve the material management which in turn will improve the efficiency of project scheduling and profitability of the projects.  In maximizing the profit potential of the company, enable the company to handle larger and complex MEP projects with improved professionalism. Materials management is ensuring that parts and materials used in the supply chain meet minimum requirements by performing quality assurance (QA). It contributed the major challenge that materials managers face is maintaining a consistent flow of materials for production. Material management give help to improve man power of the company and used efficient way of raw products and materials.

8. LIMITATIONS OF THE STUDY

 

The report may be beneficial to company. But there are some limitations of the study:-

• The size of the research may not be substantial and it is limited to area.
• There may be lack of time on the part of respondents.
• As only single area will be surveyed or covered, it does not represent the overall view of each field.
• It is very much possible that some of the respondents may give the incorrect information.

9. BIBLIOGRAPHY

 

1. Ahmed, S. (1992) “Transaction Issues in Collaborative Engineering,” ASCE Journal of Computing in Civil Engineering, Vol. 6, No. 1, January 1992, pp.85-105.
2. Ballard, G., and Howell, G. (1998) “Shielding Production: An Essential step to production control,” Journal of Construction Engineering and Management., ASCE, New York, NY, 124 (1) 18-24, January.
3. Chang, D.Y and Cook, E.L. (1996) “Construction Coordination: A Knowledge-Based Approach,” Proceedings, ASCE Computing in Civil Engineering Washington, C. pp. 559-568.
4. Korman, T. Tatum, R. (1998) “Improving the MEP Coordination in Building and Industrial Projects,” CIFE Research Report, Stanford University, Stanford, CA http://www.stanford.edu/~tkorman/MEP/descirption.html.
5. Jin, Y. and Levitt, R.E. (1996) “The Virtual Design Team: A Computational Model of Project Organizations,” & Math. Organ. Theory, 2 (3) 171-196.
6. Mokhtar, A., Bedard, C., and Fazio, P. (1998) “Information Model for Managing Design Changes in a Collaborative Environment,” ASCE Journal of Computing in Civil Engineering, Vol. 12, No. 2, April 1998, pp. 82-92.
7. Neggers and Mulert (1993). “Interference Detection with 3D Computer Models,” Proceedings, ASCE Computing in Civil Engineering Anaheim, CA, pp. 1279-1282 Riley, D.R. (2000). “Coordination and Production Planning for Mechanical, Electrical and Plumbing Construction,” Proceedings: ASCE Construction Congress VI, Orlando,
8. Tommelein, I.D. and Ballard, G. (1998). “Coordinating Specialists,” Journal of Construction Engineering and Management., ASCE, New York, NY, 126 (2) 56- 64, January.
9. Womak, J.P. and Jones, D.T. (1996). “Lean Thinking: Banish Waste and Create Wealth in your Corporation. Simon and Schuster, New York, NY, 350pp.
10. http://www.lafarge.in/

 

10. QUESTIONNAIRE

Dear Sir/Madam

             I am the student of MBA at doing a project “A STUDY OF MATERIAL MANAGEMENT ON MEP PROJECTS AT LAFARGE CEMENT.  Please co-operate to fill this questionnaire.

Q1. Do you think that material management gives help to solve various MEP Project issues in Lafarge Cement?

            Yes                                                                 No

Q2. Do you think that material management maintains and consistent flow of work in various departments of Lafarge?

            Yes                                                                 No

Q3. Did the services you received directly result in cost savings in labor, materials, energy, overhead, or other areas is possible because good using of material management process” Do you agree with above statement?

 

Yes                                                                 No

Q4.  “Good material management process is give help to increase profit or reduced cost of different MEP Projects” do you agree with it?

            Yes                                                                 No

Q5. Do you think that using the high level of IT technique will help to improve the MEP system of Lafarge Cement Material management?

            Yes                                                                 No

Q6. Do you think that material management process directly affected all MEP Projects or Department?

            Yes                                                                 No

 

Q7. Lafarge Cement needs high level material management process for all MEP Project?

            Yes                                                                 No

Q8. How would you assess the benefit of this Accelerate project in company Local MEP establishing/developing a relationship with material management system?

Extremely Helpful

 Helpful

 Somewhat Helpful

Not Much Help

Detracted From Progress

BACKGROUND DATA

1. Name _________________________________________

2. Sex: (a) Male (b) Female

3. Age: (a) Below 18 (b) 18-35

                                             (c) 35-50                              (d) Above 50

5. Occupation: (a) Service (b) Profession

                                                 (c) Business                (d) Others

6. Income: (a) Less than Rs. 50,000

                                                (b) Rs. 50,000 to 1,50.000

                                                 (c) Rs. 1,50,000 to 3,00,000

                                                 (d) Rs. 3,00,000 & above

7. Address __________________________________________

                   __________________________________________

                   __________________________________________

8.Phone no. __________________________________________

 

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