NICMAR University, Pune

Assignment Submission

By

SAYANA JAMES P2370082

SHUBHAM GOSWAMI P2370091

SYED MUSAVVIR KHADRI P2370113

ANOOP MEHER P2370114

PRATIK HARMALKAR P2370123

PRASAD PATIL P2370131

MBA ACM
(2023 – 2025)

Construction Material Management

Elective Group
PLC 634

MBA ACM
Table of Content
Chapter Description
Chapter 1 Company Overview
1.1 Company Name
1.2 Public/Private Status
1.3 Key Decision Makers
1.4 Turnover
Chapter 2 Project Overview
2.1 Project Name
2.2 Project Size
2.3 Delivery Mechanism
Chapter 3 Stakeholders and Resources
3.1 Major Stakeholders
3.2 Key Materials
3.3 Subcontractor Activities
Chapter 4 Supply Chain Process Analysis
4.1 Supply Chain Mapping
4.2 Major Equipment
Chapter 5 Procurement and Inventory Management
5.1 Inventory and Storage Policy
5.2 Material Tracking
Chapter 6 Logistics and Transportation
6.1 Transportation Methods
6.2 Material Transportation System
Chapter 7 Waste Management
7.1 Company’s approach to waste management and reverse logistics
7.2 Waste Generated
7.3 Waste Management Policy
Chapter 8 Supplier Relationship Management (SRM)
8.1 SRM Initiatives
Chapter 9 Use of Technology
9.1 Technology in Logistics and supply chain Planning
9.2 Customer Relationship Management (CRM)
Chapter 10 Supply Chain Performance Measures
10.1 Performance Metrics
 Chapter 1

1.1 Company Overview

Company Name: Bechtel Corporation

Bechtel Corporation, founded in 1898, is one of the world's most respected engineering,
construction, and project management companies. Based in Reston, Virginia, USA, Bechtel
specializes in delivering projects across various sectors including energy, infrastructure,
defense, oil and gas, and chemicals. Known for handling large-scale and complex projects,
Bechtel provides a wide range of services such as construction, engineering, procurement, and
technology consulting. Its reputation for successfully executing turnkey projects—delivering
everything from planning and design to construction—has helped it build a legacy in the global
construction industry. With a focus on innovation, sustainability, and safety, Bechtel continues
to lead in transforming ideas into reality.

1.2 Public/Private Status: Publicly traded multinational conglomerate

1.3 Key Decision Makers:

Brendan Bechtel - Chairman & CEO

Craig Albert - President & COO

Justin Zaccaria - Chief Human Resources Officer

1.4 Turnover: Approximately US$16.8 billion (2022)

 Chapter 2

Project Overview

2.1 Project Name: Crossrail Project

The Crossrail project had an estimated budget of £18 billion (about $23 billion USD). This
large budget reflects the scale of tunnelling, new station construction, and complex engineering
required for an underground urban rail line.

Duration:

 Initially planned for completion in 2018, the project faced various delays and was
completed in 2022, spanning over a decade from the start of construction in 2009. The
long duration was due to both the complexity of tunnelling under a bustling city and
the need to integrate the new line with London’s existing rail infrastructure.

2.2 Project Size:

 The Crossrail project includes 73 miles (118 kilometres) of track, with 42 kilometres of
newly constructed tunnels. The line passes through 10 new stations in central London,
including custom-designed underground stations at locations like Canary Wharf, Bond
Street, and Liverpool Street.
 Each of these stations was built to handle high passenger volumes with increased safety
and accessibility features, adding both capacity and resilience to London’s
transportation network.

Project Type: Infrastructure (Public Transit/Rail)

2.3 Delivery Mechanism:

Bechtel was the lead delivery partner for Crossrail Ltd., representing Transport for
London (TfL).
Oversaw engineering, procurement, and construction, managing materials and
equipment procurement.

Engineering:
 Managed complex designs for tunnels and stations with high-speed train capacity
and large passenger volumes.
 Addressed engineering challenges like durable tunnel linings, ventilation, fire
safety, and stringent electrical requirements.
Procurement:
 Sourced materials globally, including custom tunnel boring machines, fire-
resistant materials, and noise-reduction equipment.
 Managed long supply chains to prevent delays, especially for interior fittings,
signage, and station elements.
Construction:
 Supervised construction across multiple sites, including tunnelling under historic
buildings and populated areas.
 Conducted 24/7 construction in controlled environments to minimize surface
disruptions.
 Coordinated with contractors for specialized tasks, such as track installation,
electrification, and station architecture.
 Chapter 3

Stakeholders and Resources

3.1 Major Stakeholders:

1. Crossrail Ltd.
2. Transport for London (TfL)
3. Department for Transport (DfT)
4. London Underground
5. Ferrovial Agroman, Laing O'Rourke, Costain, and Dragados.

3.2 Key Materials: Key Materials Used in the Crossrail Project

The Crossrail project utilized a variety of materials, balancing traditional construction

elements with innovative, sustainable choices:

1. Concrete: One of the most used materials, especially for tunnel linings and station
construction. A significant innovation was the use of Cemfree concrete, a low-carbon
alternative to traditional cement, which reduced the project’s overall environmental impact.

2. Steel: Steel was vital for reinforcing tunnels, stations, and other structural elements. Its
strength and durability were crucial for the demanding nature of the Crossrail project.

3. Recycled Aggregates: To support sustainability, Crossrail incorporated recycled materials

into its construction, including recycled aggregates in the concrete mixture. This helped
meet the project's recycling targets.

4.Sustainable Energy Technologies: While not a material per se, the project made use of
LED and hydrogen fuel cell lighting, reducing energy consumption by 38% compared to
traditional lighting systems. Other materials used included rainwater harvesting systems
and photovoltaic panels at some stations.

5. Custom-made Cladding: For architectural finishes, custom-made cladding materials

were used to enhance the stations' aesthetic while maintaining durability and energy
efficiency.
3.3 Subcontractor Activities on-site

1.Tunnel Boring: Subcontractors managed the operation of tunnel boring machines (TBMs),
responsible for excavating the tunnels throughout the project. This complex task involved
coordinating the tunnelling operations, handling spoil removal, and ensuring tunnel stability.

2. Track Installation: Subcontractors handled the installation of the rail track, ensuring that
the alignment, ballast, and track work were completed to specification, with a focus on
minimizing disruption to the surrounding environment.

3. Electrification: The installation of the electrification systems required specialist

subcontractors to design and implement the electrical infrastructure necessary for high-speed
trains.

4. Station Construction: Specialized subcontractors were tasked with the design and
construction of stations, including structural work, architectural finishes, and the integration
of sustainable features like green roofs and energy-efficient lighting systems.

5. Signalling and Systems: Subcontractors also managed the installation and testing of
advanced signalling systems to ensure safe, efficient train operations, including both the
software and hardware necessary for operational integration.
 Chapter 4

Supply Chain Process Analysis

4.1 Supply Chain Mapping:

The supply chain process for the Crossrail Project follows a detailed, multi-phase structure
that spans from the procurement of materials to the final delivery of a fully operational rail
system. Here's a simplified process map outlining the major activities:
1. Procurement Phase:
Material Sourcing:
 Materials such as steel, concrete, and electrical components are sourced from global
suppliers, with a focus on quality and availability.
 Strategic sourcing for high-performance materials, including fireproof materials, rail
components, and tunnel boring machine (TBM) parts.
Supplier Selection:
 Evaluation and selection of suppliers based on cost, reliability, and adherence to
project specifications. This often involves multiple layers of contracting (e.g., tier-1,
tier-2 suppliers).
Contracts and Procurement:
 Contract negotiation and finalization with suppliers for raw materials, construction
machinery, and specialist services (e.g., tunnel construction, track laying).
2. Material Delivery & Storage:
Logistics and Shipping:
 Imported materials (e.g., steel, specialized equipment) are transported to central
storage depots before being dispatched to the work sites.
 Components such as TBM parts are imported and transported by sea and land, then
stored for assembly and use.
Site Delivery:
 Materials are delivered directly to various construction sites such as tunnels, stations,
or railway yards. Materials are dispatched to the specific area as needed for that phase
of construction.
3. Construction/Execution:
Material Use on Site:
 Materials are delivered and used at the construction sites. For example, concrete for
tunnel linings, steel for reinforcements, or track components for laying the rails.
Subcontractor Operations:
 Subcontractors perform specific construction activities such as tunneling, station fit-
out, electrical installation, and fire safety installations, following detailed schedules
and coordination with project managers.
 Major construction machinery (TBMs, cranes, etc.) is used to perform specific tasks
like excavation and tunnel boring.
4. Testing and Quality Assurance:
Quality Control:
 Testing and inspection of materials and construction methods to ensure compliance
with safety and engineering standards.
 For example, structural integrity of tunnels, quality of rails, and safety of electrical
systems are checked.
Final System Integration:
 Integration of systems, including rail tracks, signals, and communications
infrastructure, is handled by contractors.
5. Delivery Phase:
Commissioning:
 The final stage of the supply chain where systems are tested, commissioned, and
handed over to Transport for London (TfL) for operational use.
 The project’s performance is tested and fine-tuned, ensuring the safety and
operational efficiency of all systems.

4.2 Key Suppliers/Subcontractors:

1. Steel Suppliers
2. Concrete suppliers
3. Tunnel Boring Machines (TBM) suppliers
4. Electrical Equipment’s Suppliers
5. Track and Rail Suppliers
6. Fire Safety Equipment’s Suppliers
7. Subcontractors
Major Equipment:

 Tunnel boring machines

 Crawler Cranes

 Concrete mixers and pumps

 Earthmoving equipment

 Specialized railway construction machinery

 Chapter 5

Procurement and Inventory Management

5.1 Inventory and Storage Policy:

Bechtel employs a robust approach to inventory and storage management on the
Crossrail project to optimize space, reduce waste, and maintain efficient workflows on-
site. This policy covers the following:
1. Centralized Storage Facilities:
o A large, centralized storage facility is established near major construction sites,
designed to house bulk materials such as concrete, steel, and precast components.
o Specialized storage areas are allocated for sensitive materials, like electrical
components and signalling systems, which require climate-controlled conditions.
2. On-Site Temporary Storage:
o Materials are delivered to site-specific temporary storage areas as needed. For example,
for the tunnelling works, storage is located near the entry points of the tunnels.
o Heavy equipment and machinery are stored in designated yard spaces, with clear
separation from construction materials to prevent damage.
3. Just-in-Time Delivery:
o To minimize on-site storage space, Bechtel uses a just-in-time (JIT) delivery model,
ensuring materials are delivered only when needed. This reduces the amount of inventory
stored on-site and prevents overcrowding.
o For materials with long lead times (e.g., TBM parts), early procurement and delivery
schedules are planned, ensuring components arrive on time.
4. Material Segregation and Security:
o Materials are segregated by type (e.g., concrete, steel, electrical components) to
streamline handling and prevent cross-contamination or damage.
o High-value materials, such as TBM parts or electrical systems, are secured with
restricted access areas to minimize theft or damage.
5. Inventory Control and Replenishment:
o Inventory levels are continuously monitored through digital tools, and material
replenishment is planned based on usage forecasts and project timelines.
o Automated systems help track stock levels and facilitate the timely reordering of
materials.
5.2 Material Tracking:

Bechtel uses a combination of technology and manual processes to track materials from
procurement to their eventual use on-site in the Crossrail Project. Here’s how the
material tracking process works:
1. Integrated Supply Chain Management System:
o Bechtel implements an integrated Supply Chain Management (SCM) software system
that tracks all materials from procurement to installation.
o Each material and equipment item is assigned a unique identification number (e.g.,
barcodes or RFID tags) for easy tracking.
2. Digital Tracking and Real-Time Updates:
o Materials are tracked at each stage: from supplier dispatch, through transportation, to
arrival on-site, and finally, when they are used in the construction process.
o This system allows real-time updates on material status, including delivery schedules
and current stock levels, ensuring transparency across the project.
o Project managers and procurement teams can access this system to make informed
decisions about material orders, substitutions, or adjustments based on project progress.
3. Material Identification:
o When materials arrive on-site, they are logged into the inventory system and checked
for quality and quantity against procurement documents.
o Materials are then placed in temporary storage or directly sent to the appropriate work
area, with their status continuously updated in the system.
4. Warehouse Management:
o On-site warehouses or storage yards use barcode scanning or RFID tracking to manage
inventory. Each item is tagged and recorded in the system to track its location within the
storage area.
o Workers on-site can easily retrieve materials using handheld devices that scan the tags,
helping maintain accurate records and prevent misplacement.
5. Audit and Reporting:
o Periodic audits of materials and inventory levels are conducted, cross-referencing
physical stock with digital records.
o Inventory discrepancies or shortages are flagged for immediate resolution, ensuring
there are no delays in construction.
Material Handling:

Efficient material handling is a key aspect of the Crossrail Project to maintain safety,
minimize delays, and ensure smooth workflows. Bechtel has implemented several systems
and practices for material handling:
1. Heavy Equipment for Material Movement:
o Cranes, forklifts, and conveyor systems are used to transport heavy materials and
equipment from storage to the work site.
o For example, large precast concrete segments for tunnel linings are lifted by tower
cranes, while steel reinforcements are moved by forklifts and trucks.
2. Specialized Handling for Sensitive Materials:
o Sensitive equipment, such as electrical parts and signaling components, are handled
using specialized lifting equipment that ensures no damage occurs during transportation
or installation.
o These materials are often moved under the supervision of specialized technicians who
ensure proper installation procedures are followed.
3. Safety Protocols in Material Handling:
o Bechtel has strict material handling safety protocols to prevent accidents, such as
ensuring that workers are trained to operate heavy machinery safely and that proper
personal protective equipment (PPE) is worn during handling.
o A “tag-out” system is in place for machinery and equipment that require maintenance
to prevent accidental startup.
4. Efficient Sorting and Segregation:
o Materials are sorted and stored according to their intended use, reducing the time spent
searching for the correct item during construction activities.
o Temporary storage areas are designed for easy access, and materials are clearly marked
with their intended destination and use on-site.
5. Automation of Handling Processes:
o Some sections of the project may use automated material handling systems (e.g.,
conveyor belts for transporting materials within stations or tunnels) to reduce labor costs
and improve efficiency.
 Chapter 6

Logistics and Transportation

6.1 Transportation Methods:

 Rail

 Road

 Sea

 Air

Transportation Method Description Key Features

Road Transport Primarily used for bulk - Heavy Goods Vehicles

materials such as concrete, (HGVs) for bulk materials.
steel, and aggregates. - Specialized vehicles for
oversized equipment like
TBMs.
- Route planning to avoid
congestion.
- Just-in-Time (JIT)
deliveries.

Rail Transport Used for transporting bulk - Rail freight for aggregates
materials over longer and precast concrete.
distances, reducing road - Direct access to some
congestion. construction sites.
Water Transport Utilizes river and canal routes - Barges for heavy materials.
for transporting large, bulky - Ideal for difficult-to-reach
items like TBMs and tunnel locations like the Thames
linings. area.

Air Transport Occasionally used for - Helicopters used for quick,

specialized or emergency hard-to-reach deliveries.
deliveries, such as parts for - Typically for specific
tunneling machines. equipment or emergencies.
 6.2 Material Transportation System:

Component Description Integration into the Supply

Chain

Centralized Logistics A dedicated logistics team Ensures timely delivery and

Coordination manages and coordinates efficient coordination
transportation activities between procurement, site
across the project. managers, and subcontractors.

Scheduling and Delivery Materials are delivered in a Delivery times are carefully
Planning precise sequence to prevent aligned with site schedules to
site congestion and meet optimize material flow and
construction needs. avoid delays.

Real-Time Tracking and GPS and other tracking Allows for proactive
Monitoring systems are used to monitor management of delays or
the movement of materials in issues, ensuring materials
real-time. arrive as scheduled.
On-Site Handling and Specialized equipment Ensures materials are
Delivery unloads materials at the site delivered to the correct site
and delivers them to the locations, minimizing
appropriate zones. unnecessary movement
within the site.

Coordination with Subcontractors manage Subcontractors work closely

Subcontractors deliveries for specific with the logistics team to
materials (e.g., concrete ensure material deliveries are
pours, steel). synchronized with their tasks.

Transportation Management A software system that Optimizes routes, tracks

Software (TMS) integrates transportation costs, fuel consumption, and
management with project delays, providing full
logistics. visibility and enhancing
operational efficiency.

Sustainability Initiatives Focus on reducing the Reduces fuel consumption,

environmental impact of prioritizes water and rail
transportation, such as by transport to minimize carbon
using low-emission vehicles. footprint.
Contingency Planning Prepared plans to handle Ensures that alternative routes
potential disruptions such as or methods are available,
accidents or unexpected preventing delays in material
closures. deliveries.
 Chapter 7

Waste Management

Bechtel’s Waste Management Strategy

1. Waste Minimization Strategy
Strategy Description

Designing for Waste Reduction Collaboration with engineers and architects to

choose construction methods that reduce
material wastage, including using pre-cut,
prefabricated materials.
Efficient Use of Materials Careful planning, scheduling, and material
estimation to ensure only necessary quantities
of materials are ordered.
On-Site Waste Sorting Designated areas for sorting waste types
(metal, wood, concrete, plastics) to promote
recycling and reduce contamination.

2. Types of Waste Generated

Type of Waste Description

Construction and Demolition (C&D) Waste Concrete waste from cutting, drilling, or
demolition; excavation waste; leftover bricks
and blocks; scrap wood.

Packaging Waste Plastic, polystyrene, cardboard, and paper

used for packaging materials during
transportation.

Metal Waste Steel, aluminum, copper scrap from

construction and electrical systems.

Hazardous Waste Asbestos from demolition sites, chemical

waste like paints, solvents, oils, and
adhesives.

General Waste Non-recyclable waste such as food scraps,

paper towels, and sanitary products.
 3. Waste Management Policy
Policy Component Description

Waste Segregation and Recycling Materials are sorted on-site into labeled bins
for recycling, reuse, or disposal. Concrete,
wood, metal, and paper are examples of
materials recycled.

Reusing and Repurposing Materials Excavated materials like soil and rock are
reused; prefabricated components reduce on-
site waste.

Waste Disposal Compliance with local and international

regulations for proper disposal, especially of
hazardous materials. Efforts to minimize
landfill use.

Reverse Logistics Unused or excess materials are returned to

suppliers or repurposed; surplus materials are
resold or recycled. Equipment and machinery
are also returned for refurbishment.

Training and Awareness Regular training for workers on proper waste

handling and disposal, promoting
environmental responsibility.

Sustainability Reporting Bechtel tracks and reports its waste

management performance, demonstrating
progress toward sustainability goals.
 Chapter 8

Supplier Relationship Management (SRM)

Bechtel employs several strategies to manage and maintain good relationships with its
suppliers:
1. Collaboration as Partners: Treating suppliers as strategic partners, focusing on shared
goals, timelines, and quality standards.

2. Supplier Performance Monitoring: Using performance management systems to assess

metrics like delivery times, quality, safety, and cost, with regular feedback for
improvement.

3. Long-Term Strategic Partnerships: Prioritizing long-term relationships with key suppliers

for better terms, consistent quality, and risk reduction.

4. Early Supplier Involvement: Engaging suppliers early in design and planning to ensure
material specifications and identify potential challenges.

5. Risk Mitigation: Actively working with suppliers to develop contingency plans and
alternative sourcing strategies to manage supply chain risks.

6. Supplier Diversity and Sustainability: Focusing on working with diverse suppliers who
meet high environmental, social, and governance (ESG) standards.

7. Regular Supplier Engagement: Ensuring ongoing communication through meetings and

joint planning sessions to address issues proactively and build trust.
 Chapter 9

Use of Technology

Technology in Logistics and supply chain Planning:

1. Building Information Modelling (BIM): 3D visualization of project design, material

tracking, and procurement alignment.

2. Enterprise Resource Planning (ERP) Systems: Integration of procurement, inventory, and

logistics through platforms like SAP for streamlined operations.

3. Supply Chain Management (SCM) Software: Optimizes material flow, order tracking,
inventory management, and supplier coordination.

4. Automated Material Tracking & RFID: Real-time tracking of materials and equipment,
ensuring timely delivery and transparency.

5. Drones & Aerial Imaging: Monitoring construction progress, stockpile management, and
improving logistics planning through aerial data.

6. Mobile Applications: Real-time updates and coordination between teams, suppliers, and
project managers.

7. Cloud-Based Platforms: Data sharing and collaboration in real-time, improving decision-

making and project management.

Customer Relationship Management (CRM):

1. Customer-Centric Communication: Transparent, regular updates to clients via CRM

systems, ensuring real-time information access.

2. Stakeholder Engagement: Close relationships with clients, government bodies, and

communities through regular meetings and consultations.

3. Client Feedback & Satisfaction Surveys: Regular surveys to measure satisfaction and
improve future project performance.

4. Contract & Risk Management: Tracking contracts and milestones with CRM integration
to manage risks and deliverables.

5. After-Sales Support & Maintenance: Providing support after project completion to

address client concerns and ensure satisfaction.
 Chapter 10

Supply Chain Performance Measures

Bechtel, a global engineering and construction company, uses a variety of Key

Performance Indicators (KPIs) to manage and assess the performance of its supply
chain in large-scale projects like Crossrail.
1. On-Time Delivery (OTD): Tracks the percentage of materials delivered on the scheduled
date. Ensures that construction schedules are adhered to and delays are avoided.

2. Cost Variance (CV): Compares planned vs. actual costs of materials to help identify cost-
saving opportunities and prevent budget overruns.

3. Inventory Turnover: Measures how quickly materials are used relative to inventory levels.
High turnover minimizes wastage and storage costs.

4. Material Quality: Assesses the percentage of materials meeting required quality standards,
minimizing defects and the need for rework.

5. Supplier Performance Rating: Evaluates suppliers based on delivery performance, quality,

cost, and responsiveness to issues to ensure reliable material flow.

6. Lead Time: Measures the time taken from placing an order to receiving materials, with
the goal of minimizing delays.

7. Waste Reduction: Monitors material waste and recycling efforts, aiming for sustainability
and cost control.

8. Supplier Lead Time Compliance: Measures how well suppliers meet agreed delivery times
to prevent construction delays caused by bottlenecks.

9. Percentage of Stockouts: Tracks the frequency of material shortages, with a goal to

minimize stockouts and prevent project delays.

10. Order Accuracy: Evaluates the accuracy of delivered orders, ensuring that the correct
quantity and quality are provided to prevent errors and reordering.

11. Material Handling Efficiency: Assesses the efficiency of on-site material handling,
focusing on reducing time and ensuring worker safety during transportation and storage.

12. Risk Management and Mitigation Response Time: Tracks the speed of identifying and
addressing risks, such as supply disruptions, to prevent major delays in the project.

By focusing on these KPIs, Bechtel ensures that its supply chain operates efficiently and
contributes to the overall success of its construction projects.