Measuring Effectiveness of Materials Management for Industrial Projects

Abstract

A measurement of the effectiveness of the material management process is needed in order to analyze problems, suggest solutions, and assess the impact of modifications to the process. Such measurement is also required for any benchmarking effort. Research was conducted to apply a set of key effectiveness measures on 17 ongoing industrial projects. This research showed that most of the measures were easily obtainable, but some were difficult to obtain. Research also showed that it was possible to obtain the highest score on all measures, indicating that best practice in industry is achieving highly successful results. Most of the projects appeared to have a highly effective materials management process, as indicated by the fact that median values of these measures were much closer to the best values than those of the mean values. A utilization plan for the measurement of the effectiveness of the material management process is presented.