Materials Management: The Key to Successful Project Management
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A successful engineering and construction project fulfills the customer's needs while profiting the engineering company. But when money is tight, clients look for engineering companies that can provide the best product at the lowest cost. Materials management is often overlooked as method of cutting costs. Considering that for a typical industrial facility 50 to 60% of the total cost is for equipment and materials, companies obtaining those items at the lowest possible cost will provide the greatest savings. Materials management is a management system that integrates the traditional areas of purchasing, expediting and controlling the progress of the vendor. An essential part of project management, materials management can be integrated with engineering to provide an end product that meets the client's needs and is cost effective. A typical engineer-procure-construct project can be divided into seven distinct stages: planning, preliminary design, final design, procurement, vendor control, construction and ...