Assessment Of Construction Material Inventory Management Practice And Its Effect On The Organization Performance: The Case Of Alemayehu Ketema General Contractor

Abstract

The main objective of the study was to assess Construction Material Inventory Management Practice and its effect on the organization performance in the case of Alemayehu Ketema General Contractor. To achieve the research objective, the study adopts qualitative and quantitative approach through primary and secondary data sources. The population of this study was select from Alemayehu Ketema General Contractor. Purposive sampling technique was used in the primary data collection from Alemayehu Ketema General Contractor located in Addis Ababa city which was selected to response the questionnaire. While the secondary sources of data would extract from the government publications, journals, Articles and Masters Dissertations related to inventory management. The primary data collected using questionnaires and interview. Tools such as, percentage calculation, Relative Important index (RII) and Statistical Package for the Social Sciences (SPSS) was used to analyze the collected data. Accordingly, the study results revealed that, there is adequate supervision at the project, there are skilled and competent man powers in the construction projects store that use inventory management tools properly were the current construction material inventory management practice. In addition, challenges faced in implementing construction material inventory management were; late delivery of ordered materials, rejection of materials due to non compliance to the specification, and insufficient storage space. Besides, problem on delay on project due to poor material management, inappropriate storage location were effects of poor construction material inventory management practice on the organization performance in building construction projects. Moreover, Always Better Control (ABC), Periodic inventory review, Economic Order Quantity (EOQ) was effective technique to improve construction material inventory management practice in building construction projects. Furthermore, the study concluded and recommended that all the professionals who participated in construction projects were need to do in collaborate and made proactive measures to improve construction material inventory management practice in building construction projects