Common Pitfalls of Material Management & Keys to Solve Them

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There can be different options between the construction management contractor, engineering firm and facility owner so as to how construction projects will be executed. In case of project material management, all parties however generally agree the concept dealing with materials purchased & delivery to the construction site on time pursuing to the construction delays. In order to achieve 100% Material Management in the Oil & Gas Industry, the project management system needs to be properly setup from the initial stage. Maintaining accurately over this agenda is crucial to ensure material time and ready for construction activities.

Now, there can be certain common pitfalls and challenges that could lead to material delay that could in tend result to increased project schedule and costs impact in the event. Here is a given list of examples that can be overcome with right technology, controlled procedures and comprehensive planning.

Common Material Management Challenges are:

- Inventory adjustments

- Inaccurate material inventory counts

- Receiving and shipping error causing inaccurate inventory levels

- Purchase order inaccuracies and revisions

- Engineering requisition issues

- Partial bills or inaccurate material listing

Project setup within the material management in the oil and gas industry system is the foundation to ensure effective execution. In here, we have listed out some basis requirements that ensures accuracy and consistency for a well run material management leading to accurate real time inventory levels.

Keys to Setup Material Management System

- Implementing site materials management process for receiving and inventory counts

- Material release and acceptance from storage processes and forms are to be followed

- Logistics documentation & requirements should be available at all costs

- Record keeping and prevention requirements must be updated

- Certifications, inspections, hold points and quality requirements must be tracked digitally

- Key shipping dates should accurately be ensured with proper availability of equipment to off lead materials

- Marking and defining of material storage locations (field and vendor shops, module yards, laydown yards, warehouses)

- Finalizing of construction work packages prior to the start of construction

- Placing of project control cost coding structure a the beginning of the project for avoiding any confusion

- Material classifications, unit of measure and material descriptions must be accurate and descriptive with all ensures to find material efficiently and quickly

- Using of bulk material, commodities, sub components, tagged equipments for using the defined part number catalogues. Then ensure names in the material management system to match the construction drawings

- Manage the assigned unique project number schemes in event multiple projects

Maintaining accurate real time data in material management setup can be challenging; however it is important for any project success. One should constantly monitor and audit the systems and inventory level and guarantee the accurate reporting of the project. Nowadays, management software can monitor the material data and automate the maintenance using trace technologies and track like mobile and web applications and other different sensor technologies. This correctly ensures accurate reporting for project management and construction teams.