Saner Tanju Atis_ Material Management System Industrial

STRATEGIC APPROACHES TO MATERIAL
MANAGEMENT SYSTEM AT SITE
INDUSTRIAL PROJECTS......

CONFIDENTIAL – Saner Tanju ATIS

1

AGE
NDA
1 -W
hat is the Strategic M
aterial M
anagement System at
Site?
2 -W is it important?
hy
3 -Strategic M S analysis at Site
M
4 -Principles of W
arehouse design
5 -E
ssentials Symbols for handling and storage
6 -Receipt and Incoming Stages
Inspection F
low
Inspection of Incoming P
rocess- IIP
W
hat constitute a material deviation ?

7 -Objectives of the M C – M
T
aterial T Certificates
est
8 -Storage – a P
illar of Category P
rocess
9 -In-W
arehouse P
reservation – Improving the work
M
ethods
10-P
roven Issue methods – L ID Cycle
B
11-Question /
Closing

2

What is the Strategic Material Management System at Site?


Scientific technique, Concerned with planing,
Organizing & Control of flow of ..

... Good Overview, Comprehensive view of Inventory
...A well- organized design on effective stores layout
...E
nhance performance to support operations......
...T consolidate and efficiently handling process...
o
...Safety, K
nowledge and Data transfer...
...Quality control is integral to the continuing
of operation..



Ability to anticipate needs, forecast conditions, set
goals and standarts, plan and schedule work and
measure results.

3

Why is MMS important at site?



Support us organisation’s strategic and complimantary planing at
site



Increase ability of workforce to utilize operations bases



Creates and enable a learning , sharing and focus an practical
application



Quality and technical skills improvement.



Improved internal teamwork and communication



Streamlined our work for better time and business process



F
ocuses on making changes to simplify and become more efficiency

4

STRATEGIC MMS ANALYSIS at Site
Strategic Action View

Strategic Look-ahead View

T
ransportation

Selection Criteria
H
andling P
lan

- Review
- Needs
-Time Period
- Knowledge
Transfers

- Detect lists
- Classify

- Indivudual
materials
group

- Internal & Exter.
Communications

- Storage
objective
- Storage
strategies
P
lanning

Observed
Shipment Data

Observed
P
acking Analysis

Organ.Chart
- People/
Positions
- Seperate
disciplines

M
anagement
P
lan
- Procedures

Action P
lan
- Analysis
Prioritize

- Instructions
- Review plan
- Training

- Workforce
Planing

SUCCESS

- Execution
plan
Planing
P
lanning

Observed
Data Analysis


5

Principles Of Warehouse design
Sco pe o f Wo rk ;
Storage instructions based on materials specifications and
manufacturers instruction
.......T
ake over facilities for warehouse and site store
......... T
ype, condition,number of facilities
 T
emporary site facilities arrangement
..... location of quarantine store, clear separation
 T
echnical specification for warehousing
.... .M
aterials handling details,organizing principals
........Organize storage areas in compliance with
storage instructions
...........Designation of storage areas by
categories(open air, covered,with air-conditioning, etc)

Install computer hardware and software



6

The factors elements


7

-

T
ype Of Storage (T
OS)=A + B + C + D
A=The Scope of items Supplied
Piping, Electrical, Equipments, Steel Structures
B=Material Specifications
Instructions Specified by Manufacturers
C=Order Volume
Project Material Orders (Acc.. BOQ)
D=Safety Measures
Detrimental Conditions (by moisture,rain, snow,sandstorm,insects),dirt(by bird
droppings,dust,tar), static and dynamics load.

T
OS

Closed Area

Lockable,
Air condioned,
Dry
Open
With Fence, Area
Without Fence,
Roofed

8

1.3 Features of Database System

9

1.4 Subgroup of Database
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

1-Define Storage Location.... Store / storage place
2-Material Receipt .... Against part shipment no, PO no, by item.
2.1- Material Arrival ..... Delivery Editor for pt. Shp.no, PO, material.
2.2- Material Receiving Report .... Ordered qty,arrived qty,Order status per parts no.
3-Material Planning
3.1- Filter Setting...... Tracebility and range of data
3.2- Piping Material Reservation.... Scheduling- reserve
3.3- Reservation Cancellation.... Cancellation existing reserve
4- Material Issue....
4.1- MIF Filter Setting .... Piping, E+I, Eqp...
4.2- Piping Material Issue.... Issue list Editor, Individual form
4.3- Non-piping Material Issue...E+I and EQP issues Editor
5- Material Take Back....Store transaction,Takeback
6- Material Ordering .....Ordering Editor,Type of Pack
6.1- Ordering Additional Material ....New PO
6.2- Ordering Missing BoM Material ..Bulk order editor,QTY missing
part
7- Additional Store Transactions .... Storege list editor
a- Stock Adjustment
b- Stock Movement
c- Block and unblock material
8- Certificate Management ..... Store / Material certificate, HEAT no

10

1.5 Material
Handling Process

ISTANBUL
BuL & MTO via e-mail
Data Feedback

SITE

BUL=Order and delivery record
MIF=Material Issue Form

1.1 Logistic Organization Delivery
System
M
aterial T
racking
•

Goods to be ordered...........

•
•
•
•

- equipment (pumps, vessels,..)
- piping (valves,pipe,elbows,..)
- electrical (motors,cabinets,..)
- instrumentation (transmitter,cables,..)

1

Material Purchase
Order data supplier adresses

2

Types,Quantities,etc.

Ordering
System

2
Record of
Orders (RO)

P.O
2
Part Shipment

Supplier/
Manufacturer

Labels

3

Arrival of goods on Site

6

4 (loose Part)
Goods
5*

Packing &
Loose Parts Package
Transport Agent part shipment

5

Loose parts package
information part shipment
information

LOADS

5,8

Info, When and What kind of material is expected at site and feedback RO

Loose Part: Smallest
individually labelled item

AT
SI
T
E

Goods
Received

Computerized
System

7
Material
Management
System

2*
*=data transfer via filetransfer

1.2 DATA Flow and Sources of
Information

Quantities received /
reserved / issued
Delivery
Work
Progress
Controller

data
Quantities
supplied

PO data
Quantities
Ordered

Material
Receving
system
(Loose
Part Level)

SMS Material
Management
• Materials inventory control
(ord./rec./iss./arrived)
• Parts list management
(scheduled/current
requirement)
• Piping prefab./construction
plann.

Construction
Cost
Estimation.
Construction
costs/Scope

3.3 Implementation of Material Work
Flow at Qatar

WAREHOUSE

Document
E- System

Essentials Symbols for handling and storage
The Symbols for handling storage marked on the packages and equipment items in accordance with EN ISO
780 should be observed.
Symbols for the handling of equipment
•
•
•
•
•
•
•
•
•
•
•
•
•
•

1 = This is up
2 = Fragile, handle with care
3 = Keep dry
4 = Keep away from heat
1
5 = Use no hooks
6 = Centre of gravity
7 = Sling here
8 = No hand truck here
9 = Clamp here
6
10 = Do not use fork lift truck here
11 = Roofed storage
12 =Storage in closed rooms
13 =Storage at ambient temperature of >0
14 =Storage in air condition
11

2

3

7

4

8

12


9

13

5

10

14

15

Lifting and Slinging gear


16

Receipt and Incoming Stages
•
Tasks

Inspect incoming materials, check
for damage, completeness and
compliance with delivery documents
and speciation’ s as well as data
transferred

Mark any damaged materials,
transfer to quarantine store

Prompt and coordinate corrective
action, e.g. inspections by transport
insurance company, repair work

Content
Any damage, incomplete
delivery, variance from delivery
specification
Type of damage, planned
measures if any
Detailed description of damage,
detailed description of planned
repair work, etc.



Quarantine store status



Inspection log, repair
procedure, repeat order



Implement storage instructions
correctly



Database stroge list, special
instructions




Prompt any additional preservation
or special measures and document in
accordance with regulations (e.g.
continuous inerting, turning of
shafts, etc.)

Specification of storage location
and characteristics, measures in
case of emergency (failure of
HVAC)
What measures when and how
often – times, duration, tests



Preservation and special
measures log











Result
Notification of receipt of
material, damage report,
NCR, certificate filing

17

Inspection Flow
Project site

Port

Transport
Agent
Checking the packing
for damage during the Ship

Loaded
On Truck
LOT

Receipt
Of
Package

Unpacked

Reports

Checking the outside packing
for damage during transport to site
Checking the packing lists against the number of packages received,
Checking the outside packing for damage,
Checking the inside packing (e.g. welded plastic sheets) for damage,
Checking damaged packages for completeness and damage to the contents,
Checking any protective inert-gas fillings.

Essential Reports
(MRR,etc..)

Checking the contents for completeness,
Checking the outer condition of the
indivudual components.
(e.g. corrosion protection, preservation),
Checking the technical details


18

Inspection of Incoming Process IIP – Specific Projects
Materials
Equipment &
Steel Structures

Piping
Materials

IIP

• • checking for damage in transit,
checking for damage in transit,
• • checking the accessories (gaskets, bolts, etc.) supplied
checking the accessories (gaskets, bolts, etc.) supplied
for completeness and correctness
for completeness and correctness
• • checking the material for completeness,
checking the material for completeness,
• • checking the material for being undamaged (damage in
checking the material for being undamaged (damage in
transit),
transit),
• • visual inspection for compliance with the technical
visual inspection for compliance with the technical
specification (e.g. sealing faces, supporting surfaces of
specification (e.g. sealing faces, supporting surfaces of
bolts, welding edges, etc.),
bolts, welding edges, etc.),
• • checking for correct stamping, coding, batch number and
checking for correct stamping, coding, batch number and
compliance with certificate,
compliance with certificate,
• • checking the marking of valves,
checking the marking of valves,
• • dimensional checking (mating dimensions, wall
dimensional checking (mating dimensions, wall
thickness, weld edge preparation, thickness of flanges, bolt
thickness, weld edge preparation, thickness of flanges, bolt
holes, roundness),
holes, roundness),

Electrical &
Instrumentation

• • checking the name plate data for compliance with the
checking the name plate data for compliance with the
purchase order specification,
purchase order specification,
• • comparing the characteristic data of the material supplied
comparing the characteristic data of the material supplied
with the data sheets,
with the data sheets,
• • checking the material for being undamaged (damage in
checking the material for being undamaged (damage in
transit),
transit),
• • checking for completeness, especially the accessories.
checking for completeness, especially the accessories.

Fragile, Others

• • Sensitive Materials
Sensitive Materials
• • checking the package properly
checking the package properly


19

What Constitutes a material Deviation ?
Deviations

Overage
Shortage

Damage

Hold

Rejection

Deficiency Report
Dimensional
Technical Specification
Elimination of Defects
Faulty Assembly

20

Objectives of the Material Test Certificates









Tasks
Create filing system for
certificate management




Check incoming certificates
for correctness and
completeness and
completeness, and enter in

Database
Initiate and expedite corrective
measures

Put material with no or
incorrect / incomplete
certificates in quarantine store

Content
Classification, structure



Result
Certificate management
in Database

Checklist based on check
criteria



Updates incoming
materials log

Type of corrective action,
critical deadlines



Correspondence

Reason why certificates are 
not O.K., name of material 


Quarantine store status
Correspondence

21

Face the Fact




A control necessary to meet the control objectives is available or...
Identified material and Match with Test Certificates to ensure..
Material Safety Data Sheet (MSDS),Chemical and Hazardous Materials
.... Work place safety
.... Physical and chemical datas
..... Storage and handling informations
Item Code (P
art

No)
AST Standart
M

H
eat Number

Dimension

90 Degree E
lbow

22


23

Storage – a Pillar of Category Process
...............Technical Specification
The individual groups of components must be characterized by boards, marked with part number, dimension
and material.
Technical International Standarts.
Stored in accordance with the technical specification
...................Im
plem Instruction (Vendor)
ent
In accordance with the manufacturer’ s instructions either outdoors,indoors, in cooled or in dry rooms.
Material Data Sheet instruction to be followed.
......................Safetyand SecurityR
egulations
Safety regulations for chemicals and dangerous materials should be applied.
The products which would be damaged through exposure from sunlight should be protected by adequate
covers or stored indoors.
Adequately protected and guarded against theft, pilferage,fire.
........................Segregation (Storage P
rofiles and Lay
outs)
External and internal storage areas (aisles,bin,section,yard plots etc.) should be clearly defined and identified
with appropriate
storage location sign as per material storage plan.
Designated Area in the basis of Unit Process.
............................Traceability
Identify Locations data transfer to material Tracking system.
Completeness of the information for every step in a process.
Refers to the capability to gain materials in the timely manner.
Monitor and issued “first come-first go” basis..

24

Storage – Creating a Plan to achieve your goals !





Anticipation to deliveries schedule for priority plan
Make a adequate reserve place of estimated capacity for
materials
Knowledge sharing with team,information, Skills, or
expertise
Build and Organize , motive your team to get to do
deliveries and storage conditions


25

Open area (Laydown)


26

Storage – Individual Stock
Piping components
Pipes, spools, fittings, elbows, flanges and valves.
stored outdoors on timber baulks of approx. 150 mm thickness or on timber pallets.
Flange faces shall not be damaged.
Pipes may be stacked to a height of approx. 1.5 m if properly secured.
In the case of pipes . DN 500, only two pipes should be stacked one upon the other.

Equipment & Vessels, Steel Structures
dcsSteel structures, vessels, machinery, and the like should be stored outdoors on timber baulks of
approx. 150 mm
thickness. Placing the equipment on unprotected, bare, or machined surfaces as well as on flanges is not
permitted. Care shall be taken not to damage nozzles, shaft ends, or other protruding parts.

Electrical & Instrumentation
Transformers for outdoor service, cable supports, cable drums and sectional steel for fixtures
may be stored outdoors.
Other electrical, measuring and control equipment should be stored in dry and well ventilated
rooms on timber pallets or on shelves.
Instruments shall be stored on shelves. The original packing shall only be removed at the place
of installation.


27

Storage – Individual Stock
.
Rubber-lined equipment and plastic equipment shall be
stored with special care.The temperature within rubber-lined
equipment should not drop below -10oC if the hardness of the
rubber lining is > 75 Shore D and not below -20oC if the
hardness of the rubber lining is < 75 Shore D

Coating materials shall be stored at temperatures between
5 C and 30 C in dry and well ventilated rooms.

Bricks (for refractory linings),
Polyester resins
Solvents, fuels, lubricants, and corrosive chemicals
Oils and insulating fluids

28

Matrix for Storing Facilities and Locations
SN

Item

Inside the warehouse
Air Condition

No Air Condition

1

Steel Plates, Shapes, Fittings, etc

2

Materials with Machined Parts

3

Valves

4

Gaskets, O-rings, bolts and nuts



5

Out Side the warehouse

< 4” Fitting

> 4”

<4”

Remaining

<4”

>5”

Welding Wires and Electrodes



6

Paints and adhesives

As per MSDS

NA

7

Insulation and Refractory

8

Machinery and Equipments

9

Civil Materials sands, Mortars,
Cement Aggregating

10 Architectural Material
11 Anchor Bolts

12 Electrical and Instrumentation




As per MSDS





As per instruction Measuring Equipment,Switch
Transformer, cable,Supports,Cable
Board,Distrubution board,Contol
Drum and steel structure
Panel,Instrument Tubes


29

In-W
arehouse P
reservation – Improving the work M
ethods










Create a preservation communication and application plan
Make an Assessment, Classified group of materials, safety
regulations
Establish priorities, Designated Storage areas,P
reservation
team for tasks..
Identified needed resources, vendor specific
documents,M
anufacturers Instructions
Identify short and long term activities, storage and
maintenance duration
Develop a strategy to increase preservation, enhance
performance result of implementation
Application of preservation agents instructions ( e.g.
Table.1..),recommendations
Tracibility of Preservation Matrix, Requirements, Interval,
Referance documents,Storage areas
Execution at site, L
abeling – J Card and Recording
ob

30

In-W
arehouse P
reservation – P
reservation
R
ecommendation


31

In-W
arehouse P
reservation – R
egular Checking P
eriod


32

KEEP
ME
CLEAN

Before

After

33

Proven issue Methods


Issue starts and an ongoing with engaged the
project time schedule



Compliance of essential circumstances to issue



Indivudal groups materials



Return, Take back to Store


LBID Cycle – J
ourney to M
ovement
........ From our initial engagement with all movements
to the end of Material journey to adhere to the
stipulated time for Individual Projects.

34

Proven issue Methods - LBID CYCLE
Le an
B akthro ug h
re
ASSURE

Piping – Prefabrication

Inspection

Isometric -Reservation

AUTHENTICATED

Pipes, Fittings....
MTC- MSDS

Equipment

REALIZE

Electrical

Availablity

Delivery + Order
Piping - Erection
Isometric -Reservation
Commissioning

Valves, Bolts,Gaskets...

Piping - Erection

Equipment, Others

Equipment, Others

E+I

E+I

De cisive

Recy
cling


I
ncre me ntal
35

Proven issue Methods – Variable Rates

1
% 55 Piping > % 20 Eqp. + % 15 Elec.

2

3
% 58
% 75
E+I > Piping E+I > Eqp

% 55 Eqp > % 30 Piping + % 20 E+I

% 40
Eqp > Piping

% 65 E+I > % 25 Eqp. + % 15 Piping

36

%

Proven issue Methods - Progress Zone Coordinates

Eqp.
P
E+I

Z2
65
55
50

.

30
25
20
15

.

Initial Line

..
.
12

.

.

End Line

.
.

Z1
Z1 > Z2

3

Zone
37

Sample - Cycle of Project Materials
Required
Piping

2950000

Delivered

Issued

1416707

1042755

Equipment

15000000 15500000 10500000

6570000

E+I

10500000

7560000

5470000

3260000

1500000

1650000

1100000

950000

Others

2800000

Ordered

Kg

Kg


38

MIF- Material Issue Form


39

MMS – Closing

......Facilitate having good inventory improve the efficiency
organization
.........Organizational goal settings
.............Additional strategic planning initiatives
.................Evaluation of correct performance indicators






Development of additional internal and external performance
measures for the Organization
B
uilding an integrated Warehousing system
It is an integrated process that demands integrated processes and
databases to become truly effective.
The need for sharing processes and databases throughout the
entire organization
Additional education and employee empowerment lead to
increased job satisfaction and personal performance


40

M S – Closing
M

Open Discussion
Questions

Saner T
anju AT
IS
saneratis@yahoo.com

41

Saner Tanju Atis_ Material Management System Industrial

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