CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The Nigerian building and construction industry continues to
occupy an important position in the nation’s economy even though it contributes
less than the manufacturing or other service industries, (Aibinu and Jagboro,
2002). The contribution of the building and construction industry to national
economic growth necessitates improved efficiency in the industry by means of
cost effectiveness and timeliness, and would certainly contribute to cost
savings for the country as a whole. It is also common knowledge that the
implementation of the construction project in the industry is usually
accompanied with poor quality delivery and delivery time delay and cost
increase as well as owner dissatisfaction (Hafez, 2001). Thus, the efficient
use and management of material have an importance influence on a company's
profit and can delay project construction (Abdul Rahman and Alidrisyi, 1993). The
researchers will examine the impact of material management on project delivery
in Nigeria.
Material management is a
planned procedure that include, the purchasing, delivery, handling and
minimization of waste with the aim of ensuring that requirement are met
(Illingworth and Thain, 1998). According to Culvert (1998), a
detailed material schedule and co-ordination of the requisition and order of
material are important in assuring material availability. Efficient material
planning is a key to high productivity on site. Material planning embraces
quantifying, ordering and scheduling-. Productivity will suffer if
the material planning process is not executed properly (Kaming, Olomolaiye,
Holt and Harris, 1997).
Kwik (1994) stated that another
issue (which is sometime beyond management control) is material shortages, for example yearly cement shortages have
long been a topic of debate within the construction industry. Bell and Stukhart
(1987) investigated a total concept for a Material Management System (MMS),
which combined and integrated the take-off, vendor evaluation, purchasing
expediting, and warehousing and distribution functions of material. The system
resulted in improved labour productivity, reduced material surplus, reduced
material management, manpower and cost saving. A1-Jibouri (2002) described a
computer simulation model, which helps to solve the problem of order and
deliveries of materials in real life by keeping a predetermined list of order
and delivery time of all the materials on site. The delivery of each kind of
material then takes place automatically at the specified time.
Ineffective materials management
for projects can result in significant cost blow-outs and delays in project
completion. Such cost inefficiencies will negatively impact global
competitiveness, and owner operators and engineering, procurement, and
construction companies are trying to streamline work processes for their
projects. Inaccurate materials information, such as incorrect bills of
materials, inaccurate cycle counts, shipping errors, receiving errors and so
on, will also affect the overall project life cycle and increase project costs.
Having to deal with subcontractors outside of the materials management process
impacts the overall project supply chain as there is an increased risk of data
inconsistencies.
Material management
is the system for planning and controlling to ensure that the right quality and
quantity of materials and equipment are specified in a timely manner. Materials
should be obtained at a reasonable cost, and be available for use when needed.
The cost of materials represents a large proportion of the cost. A good
management system for materials management will lead to benefits for
construction. Cash flow has become crucial for the survival of any business, if
materials are purchased early, capital may be tied up and interest charges
incurred on the excess inventory of material. Material may deteriorate during
storage or be stolen; also delays and extra expense may be incurred if
materials required for particular activities are not available.
Despite the
importance of the materials, very little research has been directed towards
understanding the management of materials from order to production; most
research is focused upon the management of the design and procurement process
and on labour site productivity. Materials management, which includes
procurement, shop fabrication, logistics, supply chain management, production
on site, and field servicing, requires special attention to achieve cost
reduction. The supply chain is a convenient term used to describe a complex web
of activities. The use of new equipment and innovative methods of materials
handling has influenced changes in construction technologies in recent years.
Modern methods of
material management have been embraced by the manufacturers across a wide range
of industry sectors outside of construction.
1.2 STATEMENT OF THE PROBLEM
Ogunlana and Proukumtong (1996) studied
construction delays in a fast growing economy: comparing Thailand with Nigeria
and some of the construction delays were attributed to material management: the
study blames material shortage on site on unreliable supply from material
suppliers occasioned by the general shortage in the industry, although there
were specific instances in which poor communication between sites and head
office purchasing, planning and co-ordination could be cited. However, much
research has not be done on material management and project delivery in Nigeria
considering the economic situation of Nigeria and the market full of
substandard products. This study will therefore examine the impact of material
management of project delivery in Nigeria in terms of quality and time.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To
examine the impact of material management on project delivery time in Nigeria.
2. To
examine the impact of material management on project quality upon delivery in
Nigeria.
3. To
determine the advantages and disadvantages of material management in project
construction.
1.4 RESEARCH QUESTIONS
1. What
is the impact of material management on project delivery time in Nigeria?
2. What
is the impact of material management on project quality upon delivery in
Nigeria?
3. What
are the advantages and disadvantages of material management in project
construction in Nigeria?
1.5 HYPOTHESIS
HO:
Material management does not affect project delivery in Nigeria
HA:
Material management does affect project delivery in Nigeria
1.6 SIGNIFICANCE OF THE STUDY
This study
will be of importance to building professionals and the general public because
it would not only clarify but also create awareness
of the extent to which inadequacies in material management can adversely affect
project delivery. The study will also help contractors, clients,
consultants and all parties involved in construction projects about ways of
improving their current method of material management. This research will also
serve as a resource base to other scholars and researchers interested in
carrying out further research in this field subsequently, if applied will go to
an extent to provide new explanation to the topic.
1.7 SCOPE/LIMITATIONS OF THE STUDY
The scope of this study on impact of material
management on project delivery in Nigeria will cover all the project
construction in Nigeria looking at their level of adoption of material
management approach considering their successes with respect to project delivery
quality and time.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).
Time
constraint- The researcher will simultaneously engage in this study with
other academic work. This consequently will cut down on the time devoted for
the research work.
REFERENCES
Abdul-Rahman,.
H. and Alidrisyi, M. N. (1994) “A
Perspective of Material Management Practices in a Fast Developing Economy;
the case of Malaysia”. Construction Management and Economics, 12, 412-422.
Aibinu
A.A and Jagboro G.O (2002): “The Effects
of Construction Delays on Projects Delivery in Nigeria Construction Industry”.
International Journal of Project Management, 20, 593-599.
Al-Jibouri,
S. (2002): “Effects of Resource
Management Techniques on Projects Schedules”. International Journal of
Project Management, 20, 627-632
Kwik.K.G.
(1994): “Cement and Its Problem in
Indonesia”. Kompas October. 10
Illingworth,
J. and Thain, K. (1998): “Material
Management is it Worth It?” Technical Information Service, The Chartered
Institute of Building ASCOT. 93, 1-5
Kaming,
P.F, Olomolaiye, P. O., Holt, G.O. and Harris F.C. (1997): “Factors Influencing Construction Time and
Cost Overruns on High-Rise Project in Indonesia”. Construction Management
and Economics, 15, 83-94
Hafez,
N (2001): “Residential Projects Obstacles and problems in Kuwait MS Project”,
Department of Civil Engineering, Kuwait University.
Culvert,
O. (i998): “Correlates of time Overrun in
Commercial Construction”. ASC Proceedings of the 40th Annual
Conference. Brigham Young University, Provo, Utah, April 8-10.