FEASIBILITY STUDY OF JUST IN TIME INVENTORY MANAGEMENT ON CONSTRUCTION PROJECT

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1 FEASIBILITY STUDY OF JUST IN TIME INVENTORY MANAGEMENT ON CONSTRUCTION PROJECT Patil Yogndra R. 1, Patil Dhananjay S. 2 1P.G.Scholar, Dpartmnt of Civil Enginring, Rajarambapu Institut of Tchnology, Islampur, Maharashtra, 2HOP Construction Managmnt, Rajarambapu Institut of Tchnology, Islampur, Maharashtra, India *** Abstract Abstract: Just in tim philosophy has lot of Potntional for managing movmnt of construction matrial from manufacturing yard to construction sit. Th traditional approach to matrial dlivry has bn usd in construction industry for many yars. It is imbddd in th corporat structur as th way to procur matrials. Major Construction Industris hav bn trying to adopt nw businss initiativs in ordr to stay aliv in th nw comptitiv markt plac. Companis must striv to crat high quality, and Low cost products that can gt to th customrs in th shortst tim possibl. Just-in-tim production systm is on of ths initiativs that focus on cost rduction by liminating non-valu addd activitis. This Papr Dals with Implmnting Just in Tim Invntory Control Approach on Highway Construction. JIT has Trmndous Effct on Matrial Dlivry Opration. During Implmntation of JIT Organization is rquird, to put dsird fforts on all lvls of th work. Kywords: just in tim, Cost Rduction, Non valu addd activity. 1. Introduction Incrasing Global comptition has forcd th Indian construction Industris to look for som nw tchniqus to mt th challngs in Construction Industry. During last two or thr dcads construction nvironmnt all ovr th world has xprincd mor changs, particularly, th construction nvironmnt has bcom on of th most important lmnts in crating th valu addd contnts for th products and srvic [1], [2]. Th traditional approach to matrial dlivry has bn usd in construction industry for many yars [3]. Th approach cratd lot of problm to construction industry. Fast dvlopmnt in communication, bttr quality matrial and fast matrial transportation systms has bcom global in natur. Construction industry also dmands mor product varity that mans rducd lot siz and high flxibility in construction work. Manpowr cost has also risn [4], [5]. All ths factors tnd to incras th matrial and projct cost. But th industry has to maintain th cost at a rasonabl lvl. To ovrcom matrial dlivry problm just in tim mthod is usd for larg projcts [6[, [7]. Just in Tim mthod application on dlivry of concrt is don in Japan. Rady mix concrt is prototypical xampl of batch procss whr a customr procss rlass an ordr to batch for th supplying procss and rcivs product as a rsult. This batch procss dos not allow any invntory of product to b maintaind bcaus th product is prishabl [8]. Prcast concrt supplir xamin if contractors ar rady to adopt th JIT philosophy for rciving and installing prcast concrt componnts on-sit. Lssons ar drawn from th mpirical findings to dtrmin how contractors can prpar for JIT managmnt of prcast concrt componnts [9]. JIT principl was introducd by Toyota Company in Japan. JIT is a systm that producs th rquird itm at th tim and in th quantitis ndd. By using JIT principl w can maintain quality of th ntir projct and incras fficincy of th workrs. JIT principl says that invntoris ar not mor important and should b considrd as wast [10], [11]. Concptually, JIT is an approach that combins difficult objctivs of low cost, lss spac rquirmnt for matrial stock, high quality and dlivry dpndability [12]. 2015, IRJET.NET- All Rights Rsrvd Pag 686

2 JIT Implmntation dpnd on supplir.th charactr of vry supplir is strongly rlatd to th succss or failur of any matrials-managmnt systm. Thus, slction of vndors is th critical initial stp, bcaus slction of vndors affcts th construction itslf. Thrfor, good vndor slction is important for an ffctiv matrials-managmnt systm, which lads th succssful compltion of a projct [13]. 2. CONCEPT OF JUST IN TIME Just in Tim (JIT) production is a manufacturing philosophy which incrass spd of production. JIT Concpt is, Company producs only what is ndd, whn it is ndd and in th quantity that is ndd. Th producs only what th customr rqusts, to actual ordrs, not to forcast. JIT can also b dfind as producing th ncssary units, with th rquird quality, in th ncssary quantitis, at th last saf momnt. It mans that can manag with thir own rsourcs and allocat thm vry asily. Schduling: schduling givs clar ida about daily work. Submit advanc schdul to vndor. Mak storag facility and safty stock for matrial. Plan includs dat, tim, plac, quantity, plac and no. of quipmnt. 3. Cas study 3.1) Introduction about : Plac: Aland (Gulbarga) Typ of work: Road Construction Typ of Road: Black Top Road (Flxibl Pavmnt) Lngth of Road: 63KM Cost of Projct: 37Cr.Nam of Company: Patil and Company Stat-Maharashtra, Dist-Solapur, Country-India Nam of Incharg: Vijay Patil Mo No: Fig no1: Shows JIT Concpt Various Stps in Implmntation of JIT: Sourc idntification: Just in Tim mans produc right quantity of matrial at right tim. Not bfor or aftr th work. Larg has thir own sourc but small construction industry is facing problms in matrial managmnt. Vndor analysis: vndor is a organization who supplis matrial to. Vndor may b singl or mor it s dpnding upon. 2015, IRJET.NET- All Rights Rsrvd Pag 687

3 3.2) JIT Implmntation Procss: On of th major objctivs in implmnting a JIT Systm Tabl No 1: Shows ABC Analysis is to achiv a common goal of th whol. First stp is idntification of matrial dlivry problm in and provid solution to. Scond stp is Matrial Quantity Calculation. ABC, HML, VED, SDE Itm Cost Annual consumpt Total cost % Cum Catg ory Analysis is don. Analysis hlps to slct matrial for JIT ion Application. Third Stp is prparation of JIT plan. Equipmnt productivity calculatd. Find out numbr of days rquird to complt work. Plan includs dat, plac of matrial dlivry, tim and no. of quipmnt rquird. Fourth stp is vndor slction. Analytical Hirarchical Procss is usd for vndor slction. Thn matrial procurmnt plan prpard. JIT Plan Submit to plant and vndor. Maintain propr communication btwn sit nginr, vndor and plant suprvisor. GSB ,37,36,31 1 BM ,11,83, WMM ,95,69,05 I&II 0 LAYER A A A ABC Analysis: MURU M ,59,98, B A class itms rquird tight invntory control, A class tm hav high consumption valu. Spcial car must b takn bcaus consumption valu is high and Wastag SDBC ,20,59, C Crats mor conomical loss to th. B class itms In btwn A and C modratly car must b takn. B Class itms hav low consumption valu than A Class itms but highr consumption valu than C Class itms. Grouping of ABC itms largly usd in matrial managmnt. By using this mthod w can slct itms for just in tim application. TOTAL COST 14,25,46, , IRJET.NET- All Rights Rsrvd Pag 688

4 % COST 100 Output = = = x = x 0.76 = 10.38m 3 /hr. III. Gradr = no of passs x distanc Spd x fficincy = 6X (mil) 2.3x 0.84 ) = 1 hour= 34 cum IV. Pavr: = Quantity x 60 TIME A B (murum) C (SDBC) % OF ITEMS = 13.44X = 36 cum. Tabl No: 2 Shows Equipmnt Productivity Calculation Fig No 2: Shows ABC Analysis Graph 3.3) Equipmnt productivity calculation EQUIPMENT EFFICIEN CY EQUPMENT PRODUCTIVT Y Capacity of Tippr I. Hindustan front nd loadr Production Volvo- 930(Gradr) 84.33% 34 Loadr Output II. Tippr Production No. of buckt loads = = =104.78m 3 /hr = = buckts Loading tim=loadr cycl tim X No of Buckts= 86X5=430sc=7.16min Cycl tim = Loading Tim = 7.16 min + Haul Tim = 31 min Pavr 84.33% 36 Hywa % Hywa % Hywa % Hywa % Hywa % Hywa % Hywa % Hywa % Hywa % Dump Tim +Rturn Tim = 2 min = min Cycl Tim = 59 min 2015, IRJET.NET- All Rights Rsrvd Pag 689

5 3.4) Monthly Consumption of ach itm Total monthly targt= 3.5 km 1) Convntional Mthod Cost Tabl No: 5 Shows Matrial Consumption cost GSB rquird for 1 km = 660 cum. (lxbxh) For 3.5 km G.S.B rquird = 3.5x660=2310 cum. itm Quantity (cum) Cost pr (cum) Total cost WMM rquird for 1 km=979 cum. For3.5kmWMM Rquird=979X3.5= BM rquird for 1 km=297 cum. For 3.5 km WMM Rquird=297X3.5= cum GSB ,01,938 WMM ,29, BM ,12, ) Economical analysis Btwn Convntional Mthod and JIT Mthod 4.1) JIT Mthod Cost Total cost= 1,18,44,039.5 Tabl No: 3 Shows Matrial Consumption cost Tabl No: 6 Shows Equipmnt cost itm Quantity (cum) Cost pr (cum) Total cost Typ of itm Typ of quipmnt Cost pr hour/day Total cost GSB ,01,938 GSB GRADER ,89,000 WMM ,29, WMM GRADER ,31,000 BM ,12, BM PAVER Total cost= 1,18,44,039.5 ALL 3 MATERIAL HYWA 4000(PER DAY) Tabl No: 4 Equipmnt cost TOTAL COST= 14,13,500 Typ of itm Typ of quipmnt Cost pr hour/day Total cost GSB GRADER ,05,000 WMM GRADER ,26,000 BM PAVER ,000 JIT Mthod Total Cost for 3.5 km rquird = 1, 18, 44, , 89,000 = 1, 25, Convntional Mthod Cost saving by using just in tim mthod= 1, 18, 44, , 13,500 =1, 32, 57,539.5 Total Cost Saving BY using JIIT mthod is ALL 3 MATERIAL HYWA 4000(PER DAY) 4,16, ,57, ,25,33,039.5= To complt 3.5 km targt pr month: TOTAL COST= 6,89,000 Convntional mthod rquirs 47 days and for just in tim it rquirs 26 days. 2015, IRJET.NET- All Rights Rsrvd Pag 690

6 5) Monthly matrial procurmnt plan Tabl No: 7 Shows Matrial Procurmnt Plan (3.5Km) Nam Of Itm Quantity of Itm (CUM) Mon th Vndor nam GSB 231 Jun Paranjap GSB 231 Jun Paranjap GSB 231 Jun Paranjap Equipmnt rquird 13.44(CAPA CITY ALL) Dvloping procurmnt plans whn to buy, from whr and how much Monitoring flow of matrials, dlivry and consumptions. Vndor valuation is th ranking of supplir s prformanc in trms of quality of matrial, cost of matrial, coopration of vndor to, documnt submission within tim. Slction of vndor s critical procdur but slction procss ssntials to larg whr invstmnt is mor this analysis past prformanc of vndor is rcordd. Rating dpnds upon vndor prformanc. Cost, srvic, coopration, quality ar som things in which vndor maintain his lvl usually, th most important masur of a supplir's srvic is his rcord of past prformanc. From litratur rviw Slction critrion for Vndor is don. Fiv critria ar slctd such as cost, quality, providing documnt in tim, srvic and coopration. For Murum Hindustan Company, Trimurti Company, Moraya Company ar th Vndors. For GSB and WMM- Paranjap Company is vndor and for BM and SDBC- RUDRA COMPANY is Vndor. GSB 231 Jun Paranjap GSB 231 Jun Paranjap WMM Jun Paranjap WMM Jun Paranjap WMM Jun Paranjap WMM Jun Paranjap Slction Critria from Litratur Rating of Critria by using qustionnair filld by xprts from industry. Dvlopmnt of Hirarchy Synthsis of Prioritis Masurmnt of Consistncy Slction of Vndor Fig No 3 Shows AHP Procss: 2015, IRJET.NET- All Rights Rsrvd Pag 691

7 Dscription of itm Dat Tim of dlivry of matrial Quantity (cum.) Plac (chainag) Equipmnt Rquird Tabl No: 8 Shows JIT Implmntation Plan (3.5Km) GSB :00 TO 1: TO 5:30 GSB :00 TO 1: TO 5:30 GSB :00 TO 1: TO 5:30 GSB :00 TO 1: TO 5: To To To To Study of causs of dlay in matrial dlivry on sit: Problm: Impropr Communication btwn sit nginr, plant suprvisor and vndor W obsrvd impropr communication btwn plant suprvisor and nginr during Construction Work. This is a first rason about lat matrial dlivry. W suggst to nginr and vndor, prpar plan and according to that communicat ach othr. Scond Problm is poor flt managmnt. Thr is no propr spcial staff for flt managmnt. Managrs not maintain rcord of inspction and maintains of flt. Managr not carful about ful purchasing systm. W suggst to for prparation of plan for flt rplacmnt. Company must hav propr ful purchasing systm. Third problm is poor planning of matrial dlivry. W suggst to for vndor slction. Prpar monthly procurmnt plan. W submit JIT plan to. JIT Plan hlps to to rduc cost of construction 6. CONCLUSIONS: 1) JIT Mthod usd to complt 3.5 Km. as pr plan Th Compltion of 3.5 Km Road Construction work.jit Mthod Rquird 26 days. Convntional Mthod taks 47Days to Complt Sam Targt. 2) JIT Mthod Savs 5% Cost of Construction. 3) No of Tippr usd During JIT Application 104. No Of Tippr Usd during Convntional Mthod 230.JIT Mthod Hlps to Rduc quipmnt Rquird. 4) During JIT Application Matrial Production was 100% as pr targt. But Convntional affcts matrial production. As Pr Convntional Mthod Matrial Production was only 50% as pr Targt. 2015, IRJET.NET- All Rights Rsrvd Pag 692

8 8. REFERENCES: 1] Dlbridg R., 1995, Surviving JIT: control and rsistanc in a Japans transplant, Journal of Managmnt Studis, Vol. 32, pp: ] Ebrahimpour, M. and Schonbrgr R. J., 1984, Th Japans Just-in-Tim/Total Quality control production systm: potntial for dvloping countris, Intrnational Journal of Production Rsarch, Vol.22, pp: ] Garg, D., 1997, Rlvanc of JIT purchasing in Indian industris. 4] Vikas Kumar., 1992, Employ involvmnt in JIT succss: Eichr xprinc. Productivity, Vol: 33, pp: ISSN: ] D.K Singh and Satyndra SINGH (1997). Managing productivity in construction.jit oprations and masurmnts. 7] Low siu phng and Choong Joo Chuan, Just in tim Managmnt of prcast componnts 8) Iris D. Tommlin1 and Anni En Yi Li2,(2001) Just in Tm Concrt Dlivry. 9) By Low Sui Phng1 and Choong Joo Chuan2, Just in Tim Managmnt on Prcast Concrt Componnts 10] Williams J. rady mix concrt supply. 11] Ankintoy, A.1995, Just in tim application and implmntation for building matrial managmnt. 12] Gupta y.p a fasibility study of JIT Purchasing systms implmntation in a manufacturing facility. Intrnational journal and production managmnt. 13] Mondn, Toyota Production systm [institut of industrial nginrin 6] Bandyopadhyay, j.k and jay ram, implmnting just in tim production and procurmnt stratgis. Intrnational gnral and managmnt , IRJET.NET- All Rights Rsrvd Pag 693