Material management for Construction

Material management for Construction

Date

Date

08 Sep 2024

08 Sep 2024

Tags

Tags

Tags

SaaS, Revamp, Web, Mobile

SaaS, Revamp, Web, Mobile

Company

Company

Powerplay

Powerplay

Enhancing the Construction Material Supply Chain: From Ordering to Usage in Construction Projects


💪🏻 This was the project that I (Akash Bulbule) and my fellow PMs (Milan & Anamika) were responsible during our Journey in Powerplay, Aimed to increase our renewal rates on Quarterly basis.


About this project?

  1. Gives holistic view on both Problem phase & Solution phase

  2. Has both Desktop & Mobile designs (SaaS)

  3. I Made it simple & easy for Non Construction Background


Project Content:

  • Context on Construction industry

  • Powerplay (Current company) X Construction

  • Major problem / Metric / Pod structure

  • Defining scope for project

  • Discuss few problems & Solutions

  • Approach

  • Other screens


General Context:

Project type:
  • Residential Projects: Projects which involve in building Homes, Apartments, other types of dwellings where people can live.

  • Commercial projects: Projects which involve in building Office, Complexes, Industries etc

  • Infra projects: Projects which involve in building Roads, Railway project, Bridges, Airports etc.

Company type:
  • Developers: Own complete scope in construction from acquiring land, secure financing, obtain necessary permits to overall development of the projects often hiring builders (10% of market)

  • Builder : Manage actual construction process, hire subcontractors, and ensure the project is completed according to plans, focusing on the physical creation of the structure. (40% of market)

  • General contractor & Subcontractor: Responsible for executing specific construction tasks or projects under contract with Builders or Developers (50% of market)



About Powerplay

  • Powerplay is a B2B SaaS Product brings Tech solutions in Construction industry in India

  • Project Execution tool helping construction owners to Make more profits.
    How?

    1. Helping in completing Projects on time

    2. Better use of Resources (Material & Labour)

  • Powerplay helps Manage different sectors in construction Task + Attendance + Material + Expense

  • Enhance Communication between site and office teams, and improve overall Efficiency for construction projects, from planning and scheduling to tracking and reporting



How construction owners make profit?

  1. Increase in Sales by increasing working Projects
    How?
    • Increase in team size

    • Accelerate project completion through improved monitoring.


  2. Decrease in Cost (Resource Mgt)
    How?
    • Avoid losses in labour, Machine & Materials

    • Better execution in labour, Machine & Material resources
      A) Visibility on Next day work
      B) Visibility on Available material inventory Stock
      C) Labour v/s Work analysis - Connected payments
      D) Choosing right vendor for material ordering
      E) Better Communication of Work progress



Problem Statement🕵🏻‍♂️ 

  • Back in 2022, the our existing product was Optimised for Residential projects

  • When Business team started scaling the same product to both Commercial and Infrastructure projects, it struggled to meet user demands due to complex workflows.

  • Due to which our 1st Quarterly renewal rates reduced from 30% to 22%, hindering our Major Goal of achieving $1M in Annual Recurring Revenue (ARR).
    Eg- Out of 100 Owners buying 1st subscription in Jan 2022, Only 22 Owners renewed May 2022



Company Goal:

Scale existing product for Commercial & Infra project catering 80% of the Total construction industry boosting quarterly retention rates & New sales



🫛 Pod Structure

  • I was 1/5 designers

  • Each designer led a specific module within their Pod, working closely with 2 PMs.

  • Modules included: Material Management, Task Management, Attendance Management, Expense Management, and Team Management.

  • I was responsible for leading the Material Management module.


Why I was Best fit? 🤩

  • Past 6 months, I’ve led the Retention POD, which has given me a deep understanding of the Material flows that Powerplay was previously lacking.

  • In 2022 Pod Structure, I worked on Most critical funnels—Acquisition, Engagement, and Retention

  • Have been recognised for my Managerial skills with Effective collaboration (PM/ Success/ Dev/ Business)



So let’s Focus on Material Mgt for this project ⚡️



My Goal:

Scale existing Material Management system for Commercial & Infra project catering 80% of the total construction industry.


Project Scoping

  • As Sales team started scaling, 532 Paid customers highlighted 1,548 Problems related to their flows (Excel link)

  • Among which 628 related to Material module alone & I owned Material module from Design

  • Material in Construction is maze in its own, but also contributes to 65% of over all project cost



let’s focus on a few key issues within the Ordering flow for case study ⚡️



Before getting into problem:

Let’s Understanding Our Users

1. User Personas (Skip if bored- I Got you covered)

Site Team

Office Team

Owner

Site supervisor (He be at site)

  • Requests for materials on site

  • Daily notifying Store Manager of the materials received via WhatsApp.

  • Record and report any damaged materials.

  • Collect Invoice and Challan numbers from the Delivery drivers.

  • Provide a signed copy/slip to the driver, confirming the material delivery.

  • logging materials to the right work on site. Who (Self Labour/ Subcontractor Labour), Where, What Qty, Location etc

Store Manager

  • Get details on Material delivered to site from Site Supervisor via Whatsapp/ Calls

  • Receive signed Challan, Invoice, Slip from Site Supervisor after material delivery

  • Share received docs to Account Team

  • Compare ordered materials with received materials for inventory accuracy

  • Makes strategic & Vision of company

  • Takes care of Financial management

  • Key Business Decisions maker

  • Drive Growth & Profitability

  • Paying Persona

  • Communication with Office team

Site Engineer (Manages multiple site)

  • Efficiently allocating & logging materials to the right work on site. Who (Self Labour/ Subcontractor Labour), Where, What Qty, Location etc

  • Provide material consumption information to Project manager on site for tracking

Project Manager

  • Resource management

  • Analysis with Site Supervisors & Site Engineer for consumption Who (Self Labour/ Subcontractor Labour), Where, What Qty, Location etc

  • Streamline process of Material return from Subcontractors & Inventory logging from Site Engineers


Subcontractor (Hired for Work)

  • logging materials to the right work on site. Who (Self Labour/ Subcontractor Labour), Where, What Qty, Location etc

  • Keep log of Project progress along with Material consumed to meet quality standards

  • Track Project progress and get paid in timely manner (Weekly/ Biweekly)

Procurement

  • Stay updated on material requirement on various sites (Running/ Low stock) to avoid delays at working site

  • Have visibility on Material delivered to site from Site Supervisor via Whatsapp/ Calls

  • Create list of materials required for projects with their specific details

  • Collaborate with Project Manager to compare Vendor Quotations with Budget estimated on project

  • Keep a track of approved Purchase orders and ensure effective communication between Site team


Let’s take only have 3 type of Users?

Owner (Subbu)

Office Team (Sam)

Site Team (Raju)

  • Paying Persona manages Business

  • Business Decisions maker

  • Drive Growth & Profitability

  • Strategic & Vision of company

  • Financial management

  • Communication with Office team

  • Planning Daily Project

  • Scheduling Tasks

  • Accounts & Payments

  • Cost Analysis (Labour/ Material)

  • Project Budgeting

  • Communication with Owner & Site

  • On-site operations

  • Communication with Office



Now Let's understand,

Complete Material flow (Ordering & Consumption)



Ordering flow & Personas Involvement

Site Team

PM/ Procurement

Owner

  • Make a request of materials required on site

  • Collect material when delivered on site (GRN)

  • Keep updated on stock & Required material on site for projects

  • Make list of material to be ordered

  • Ask of RFQ from vendors

  • Analyse quotation from Vendor and make send PO to vendor

  • Track & Inform ST about upcoming deliveries

Check & PO approval


Scenario & few problems

More projects

Got questions?

I’m always excited to collaborate on innovative and exciting projects!

Got questions?

I’m always excited to collaborate on innovative and exciting projects!

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