METHOD STATEMENT

MATERIAL MANEGEMENT

MATERIAL MANEGEMENT
Inspection

The inspection authorities (End user or material indenter) should be informed

for inspection for material received in store. The inspection authorities shall
endorse the quality inspection remarks in Challan copy or by a separate
inspection report. The Stores In-charge shall inform these details to Vendors,
clients, H.O etc., as the case may be. Inspection must be completed within 3
days (can be less) of receipt of the material.

Material inspection authorities

Sr.N Materials Inspection Authorities

o.

1 Plant & Machinery spares & Project Mechanical Engineer

related
Or any person authorized by
Materials. him.

2 Electrical Materials Project Electrical Engineer

Or any person authorized by

him.

Or Stores- In charge

3 General Construction Material In Charge ( QA.&QC)

Or any person authorized by

him.

Or Stores- In charge

4 General Stores Material Store in charge

Or any person authorized by

him.

Or Stores- In charge

5 Fuel Store in charge

Or any person authorized by

him.

Or Stores- In charge

6 Consumable accessories Indenter

Or any person authorized by

 him.

Or Stores- In charge

Accepted Material

The Accepted material shall be transferred to Main store for stacking and
should be identified by proper tag or by other means.

Rejected Material

All rejected Materials shall be kept separately duly identified by Material

Rejection Tag in RED colour. For rejected materials rejection challan, gate
pass shall be prepared while returning them to vendors, branches etc.

Material Accounting & Control

After inspection and acceptance of materials, following records shall be

updated.

Computer system for receipt information (Qty. rate, etc.,) stocks shall
be updated simultaneously for quantity as well as value. Where
material is received frees of Cost (spares received along with new
equipments) a nominal rate such as Rs.1/- shall be used since
Computer system does not accept receipts without rate.
Every site should have their computer at stores from the very
beginning of the project.
MRF will be prepared / printed and distributed to accounts department.
After issue of material, following records shall be updated.

Computer system for issue information (qty., rate, activity code etc.,)
Issues shall be valued by weighted average method by computerized
store accounting system.
Issue slips also shall be properly preserved as a record.

It is essential that data entry in computer system is always up to date.

It is necessary to check entries pertaining to daily receipts & issues
everyday

Material Storage / Preservation & Issuance procedure:

Storage & Preservation

Storage shall be organized by allocating clear separate areas such as:

a. Receiving Section for incoming materials

b. Main Stores for inspected and accepted materials
c. Rejected Materials
d. Scrap-Yard
 e. Open yards for bulky materials like steel & shuttering materials with
proper fencing.
f. Cement shall be stored in separate go down or silos.
g. Gas cylinders shall be stored in sheds to prevent direct sunlight.
h. Separate area for Lubricants and oils under a covered shed
i. Consumer pumps/ bowser for diesel etc.,
j. Spares for different plant and equipment such as water pump, vibrator,
motors, needle etc, should be stacked separately.
k. Items like bearing , instruments etc should always be kept under safe
custody i.e. lock & key in stores only
l. Necessary action to be taken to prevent leakage and Pilferage.
m. Location / Material Identification marks should be provided by way of
labels / tags for easy traceability of material.

Sufficient racks and bins shall be provided in main store for proper stocking &
preservation of materials. All areas and locations shall be suitably marked
and placard should be displayed.

At regular intervals all the stores item should be visually inspected by the
store officer to observe the following:

a. Shelf Life item- Track Normal shelf Life period, as recommended by

Manufacturer for Paints, rubber items, Chemicals etc.
b. Hoses Ends should be plugged to avoid dust.
c. Filters should be properly covered with plastic bags
d. Paints Top lid should be tight. Try to avoid loose paint to site.
e. Chemicals / Petrol - Top lid should be tight
f. No material should be lying on floor use dedicated racks as far as
possible

A Manual register should be maintained for recording such inspection and

actions taken.
 1. Storage & Preservation - Cement

a. The Cement supplied by client / supplier shall be physically verified for quantities,
brand, grade, batch and Manufacturing date. Visual inspection to be carried out in
consultation with QA / QC.
b. The receipt of cement should be recorded. if it is supplied by client otherwise it should
be maintained in iPMS.
c. Verify the cement bag weight on sample basis.
d. Cement received in bags shall be stored in cement godown only and shall be protected
from moisture. Cement bags shall be stacked on the platform at least 6 high from the
ground level. While stacking care shall be taken to ensure that bags do not touch the
go down walls. Gap of at least 1 feet shall be maintained between go down walls and
bags.
e. Maximum 15 bags shall be placed on a top another. While stacking cement bags in go
down, attention shall be given so that the packaging down not gets damage.
f. Each batch truck load of cement shall be stacked at a particular place and shall be
identified by display board.
g. Samples for testing shall be collected from each batch and shall be informed to Quality
Control Dept for testing.
h. Cement shall be issued only when the same is found conforming to our site quality
requirement. Any non-conforming / rejected cement shall be kept separately and shall
be prevented from any use.
i. Cement is a shelf life item, so First in First out (FIFO) system shall be followed while
issuing the cement from the go down. If the cement is stored, whether in silo or go
down beyond three month from week of manufacture, the Q.C dept. shall be
contacted for ensuring the quality attributes of the same.
j. Cement bags shall be opened carefully from the mouth by cutting the thread. Care
shall be taken to ensure that workers do not cut the bags in the middle which
drastically reduces the resale value of empty bags.
k. In case of Bulk Cement receipt, same shall be stored in SILO. Cement shall be issued to
the works from SILO to Batching plant.
l. The consumption should be recorded in a register by collecting details from the
executed team.
m. Daily cement reconciliation to be done in consultation with Execution department.
n. Cement Bags returned should be maintained in the same register of cement issues
register.

2. Storage & Preservation - Steel

a. An exclusive area needs to be allocated at the beginning of the project for

reinforcement yard. The size of the yard will depend upon project size and quantity of
steel to be used.
b. The steel yard should be fenced properly and shall have adequate gates for trailer and
truck loads to enter. The steel yard should be nearer to the main store / Cutting &
Bending area, so that receipt and issues can be well controlled.
c. Steel yard should have proper concrete pedestal for storage of steel minimum 1 foot
above from the ground level. Steel should always be kept properly to avoid its rusting.
 d. Reinforcement Steel and structural steel are to be stored separately, size wise and
diameter wise in steel yard. Boards shall be displayed indicating size/quality of steel to
be kept on the pedestals.
e. Adequate security & lighting must be provided at the steel yard.
f. Steel scrap and waste needs to be stored separately in the yard.
g. Adequate bar cutting/ bar-bending machines to be provided.

3. Storage & Preservation Diesel

Diesel can be stored at site in Barrels or Underground Storage tanks provided by Oil
Companies. This decision should be taken in consultation with Project In charge. Store
officer should liason with oil co. and administration department for fulfilling statuary
requirements like No Objection Certificate Explosive License Lay out of pumping outlet
etc. Pump as well as metering device shall be periodically calibrated & record shall be
maintained.

Receipt: All Chambers seals of Diesel tankers should be visually checked for any
tempering. Vehicle should be parked at level ground for 20 minutes for settling, before
unloading of HSD. Dip stick reading should be carefully converted to liters by taking
into account Density and temperature.
Issue of Diesel to Bowser/Equipments/Sub-Contractors: Diesel will be issued to
bouser/Equipments/Sub-contractors against proper authorized MRIS. It should Cleary
specify the purpose of use. Issues to S/contractors / Hired Equipment should as per
Work order terms and condition.
Wastage: Leakage from Storage drums / Bouser should always be attended on top
priority. Store in charge to ensure that all safety procedures are followed for storage
and issues of HSD.

4. Storage & Preservation - Admixture

Admixtures / Chemicals shall be unloaded by rolling over the plywood or over the used
tyres to eliminate damage. This type of materials also shall be stored in sheds to
prevent direct sunlight.

5. Storage & Preservation Lubricants

Drums should be stored in rolled condition.

Rest drum on old tyre while over turning

Use separate barrel gun for Engine oil , Gear oil and Hydraulic oil.

Keep saw dust near to lub store and clean the floor regularly.

Keep measuring jars in big aluminum tray

 Issuance Procedure

1. Issue of Material

The Cement, hardware items like binding wire, nails, grease, plumbing items, spare parts,
petrol and oil should be issued by store keeper only on the receipt of MATERIAL REQUSITION &
ISSUE SLIP (MRIS) signed by authorized person.

MRIS Receipt Record:

a When new MRIS books are received by store, it is to be recorded.

b This will be useful for the details of MRIS books received at a particular site.
c The storekeeper is responsible for maintaining this record.

2. Return of Defective Materials to Vendors

If any stock material is found to be defective, issue entry shall be made and material shall be
returned to the vendor against rejection Challan.

3. Issue of Material to Sub-Contractor

Any material to Sub-contractor should be issued only after the presentation of approved MRIS
from Project Manager / authorized section in charge, clearly mentioning Contractors name
with specimen signature of their authorized representative who will draw the material from
stores. Indent should be clear whether on

1. Free Basis As per Work Order

2. Chargeable Basis

In case of chargeable rate that may be following two types:-

a. Fixed Rate
b. System Rate + Service charges as mentioned in work order or as decided by Project
Manager/Project Head.
Separate issue register shall be generated from computer for materials issued to contractors.
Sub-contractors shall be asked to certify the materials drawn by them from stores on monthly
basis. This shall be tallied with the issue record and differences, if any shall be settled
forthwith.

4. Material Requisition Authority Record:

a This authorizes employee of the company to use the MRIS book for issuance of Material from
stores.
b It will avoid the unauthorized use of MRIS for issuance of material from stores.
c A record is kept with storekeeper for authorized issuance.
d The Project In charge authorizes engineers / supervisors for allocating MRIS.

5. MRIS Book Issue Register :

a This document authorizes issue of materials from store.

b The Store In charge issues MRIS book to Site Engineers / supervisors who are
authorized
By the Project In charge.

c MRIS Book Issue Register would help in controlling the issuance and return of MRIS
Book.

d This register contains the detail of MRIS book issued.

e MRIS book issue register is to be kept in safe custody to avoid the chances of
Manipulation.

f Old MRIS Book, if any, should be returned before the new MRIS book is issued.
g Pages of old MRIS book, if any should be checked for proper utilization before
Issuance of new MRIS book.

6. Material Issuance Authority Record

a Only authorized store person is allowed to issue material from stores.

b A list of specified store persons with their names, designations as well as signature is
displayed in stores.
c It also authorizes a second person authority to issue the material from store in the
absence of the first person.
d The store keeper should actually count / measure / weigh the material and the
requisition quantity only should be issued.
e The storekeeper shall make entry in MRIS of material issued and sign.
f The signature of the person receiving material should be obtained on MRIS
g Petrol, oil, diesel, issued for roller, excavator, tractor etc. shall be recorded in the
logbook maintained for the vehicles. The storekeeper should verify this entry.
h MRIS will be pre-serially numbered and printed in duplicate and 1 st copy should be filled
by storekeeper. This book should be kept by team leaders.
i The MRIS for refundable material should be filed separately.
j The MRIS for chargeable material also should be filed separately.
k The format of MRIS (Material Requisition and Issue Slip
l Entry of material issued should be made in the relevant stock register. The page number
of stock register should be mentioned in MRIS and number of MRIS should be mentioned
in stock register
m The tools and equipment which are returnable at the end of the day should be recorded
in Daily Tools Issue Register.
n The tools issued to subcontractor which are returnable at the end of the project should
be recorded.
o In case of failure to return this tools amount for this tool should be deducted from his
bill.
p Receivable tools, tape, calculator etc. issued to MAGUS employees also should be
recorded in the same register.
q The material should be weighed/counted/measured and only requisite quantity should
be issued. Only authorized store person should issue the material. Subcontractor and
others should not be allowed to take material on their own.