Week 6

Question 1

What are the three categories of resources?

Answer 1

Labour

• Salaried staff
• Hourly workers

Equipment

• Construction equipment
• Installed equipment

Materials

• Construction materials
• Installed materials

Question 2

What is Resource Allocation?

Answer 2

Resource allocation is the assignment of the required resources to each activity, in the required amount and timing. Resource allocation is also called resource loading.

Question 3

What is Resource Levelling?

Answer 3

Resource levelling is minimizing the fluctuations in day-to-day resource usage throughout the project. It is
usually done by shifting noncritical activities within their available float. It attempts to make the daily usage of
a certain resource as uniform as possible.

Question 4

What is Material Management?

Answer 4

Material management is defined as an integrated process for planning and controlling all necessary
efforts to make certain that the quality and quantity of materials and equipment are obtained at a
reasonable cost, and are available when needed.

Four important objectives
• Ensure that materials meet the specifications and are on hand when and where they are required.
• Obtain the best value for purchased materials
• Provide efficient, low-cost transport, security, and storage of materials at construction sites.
• Reduce any surplus to the lowest level possible

Question 5

What are the different perspectives of cost?

Answer 5

A cost perspective
• Purchase costs
• Order costs
• Holding costs
• Shortage (unavailability) costs

Question 6

What are two extreme material management theories?

Answer 6

Just in time theory and inventory buffer theory

Question 7

What is Just-in-time theory?

Answer 7

It calls for delivering materials at the time of
installation only. Thus, materials are not
stored at the site.

Advantages: less handling, no storage, no
frozen capital, less vulnerability to theft and
deterioration.

Disadvantages: higher probability of not
having the materials on time.

Question 8

What is inventory buffer theory?

Answer 8

It calls for all materials to be purchased, delivered,
and stored on-site prior to installation.

Advantages: lower purchase, order, and
shortage costs.

Disadvantages: higher holding costs.