material mgmt 1
TRANSCRIPT
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The management and control of goods, The management and control of goods, services and equipment from acquisition services and equipment from acquisition to disposition.to disposition.
Since the materials are procured and kept in the store, the term Stores Management may also be used inter-changeably
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Hospital - Hospital stores to the departments
Health Care - State central stores to the health facilities
Pharma Industry - Supplies from the stores to the production unit
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Materials are a major cost factor in any enterprise. In health care system materials costs is 40%Salaries 60%
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The aim of materials management in a hospital is to ensure that
◦ there is adequate stock of required items ◦ there is a continuous supply, ◦ there are no surplus, ◦ there is appropriate storage, ◦ items are easily retrievable, ◦ distribution to the point of usage ◦ effective and efficient utilization of available
resources.
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Management is the function responsible for
the co-ordination of planning, sourcing, purchasing, storing and controlling materials in an optimum
manner so as to provide a predetermined services at the minimum cost
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Non Consumable stores: Non Consumable stores: Those stores Those stores which can be used again and again.which can be used again and again.
Consumable Stores: Consumable Stores: Those stores which Those stores which can be used only oncecan be used only once
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Surgical StoresSurgical Stores Medical & Drug StoresMedical & Drug Stores General StoresGeneral Stores Linen StoresLinen Stores Dietary StoresDietary Stores Stationery StoresStationery Stores Engineering and Maintenance StoresEngineering and Maintenance Stores
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• Fast changing technology.• Increased number of diversified services• Increased in-patient & out-patient load• Customer expectations are high • Scarce resources• Demand & supply gap.
Increased expenditure on medical stores
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“EFFECTIVE & EFFICIENT UTILISATION OF AVAILABLE RESOURCES”
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• Identify items and obtain specifications of
items• Quantify the needs• Procure quality items at lowest cost• Ensure timely ordering of the items.• Ensure timely receipt consistent with quality & quantity.• Efficient system of distribution• Proper storage without deterioration.
How to Address…..??
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• Improving the knowledge on cost awareness
• Optimizing resources • Balancing cost with quality.• What, when, how much to stock, how
much to order & how often?•
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• Utilization of modern management tools & techniques• Inventory control.• Information system, • Performance improvement
• Equipment maintenance, • Condemnation and disposal of
unserviceable items
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The basic objective to be achieved is un-The basic objective to be achieved is un-interrupted supply of items in wards and interrupted supply of items in wards and departments at reasonable cost.departments at reasonable cost.
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It seeks to provide from a right source
Right materialsRight qualityRight quantityRight time
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Primary Objectives: Low Purchase Price High inventory turnover Low storage cost Maintaining continuous supply Development of Vendors
Good Records
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Secondary Objectives Favourable reciprocal relations Economic make or buy Standardisation Product improvement Economic forecast
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Estimation of demand and purchasingEstimation of demand and purchasing Receiving and inspectionReceiving and inspection Storage Storage Inventory controlInventory control DistributionDistribution Disposal Disposal
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DEMAND DEMAND ESTIMATING ESTIMATING
ANDANDPURCHASINGPURCHASING
DISTRIBUTIONDISTRIBUTION
STORAGESTORAGE
RECEIVING ANDRECEIVING ANDINSPECTIONINSPECTION
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1. Materials planning and budgeting• Selection • Quantification
2. Purchasing◦ Codification◦ Standarization◦ Tendering system
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3. Receiving and inspection4. Stocking and Distribution
Preservation of stores Pilferages MIS
5. Inventory Control
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6. Cost Reduction◦ Utilization◦ Repair and maintenance
7. Value Analysis 8. Disposal
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FUNCTIONS OF STORES FUNCTIONS OF STORES MANAGEMENTMANAGEMENT
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This requires: ◦ need assessment ◦ specifications◦ quantification◦ preparing materials budget
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Purchasing is a basic function in Purchasing is a basic function in materials management department of materials management department of hospital. hospital.
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Right qualityRight quality
Right priceRight price
Right quantityRight quantity
Right timeRight time
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Demand from the end user◦ Specifications◦ Quantity
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Estimation of demand Estimation or forecasting (Estimation or forecasting (quantification)of demand can be done by of demand can be done by The past consumption methodThe past consumption method
◦ Expansion of hospital facilitiesExpansion of hospital facilities◦ Epidemics, disasterEpidemics, disaster
Morbidity patternMorbidity pattern Adjusted consumption method
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Methods of PurchasingMethods of Purchasing
DecentralisedDecentralised
CentralisedCentralised
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Codification Reduction in number of items and
avoiding duplication. Systematic grouping of similar items
avoids confusion Serves as starting point of simplification
and standardization Easy recognition of an item in stores
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Codification Kodak System
◦ 10 digit numrical code Brisch System
◦ 7 digit code Bar code
◦ Black and white line of various thickness
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Standardization A standard is defined as model or general
agreement of a rule established by authority, consensus or custom with which to measure quantities, value, dimension or quality etc.
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Purchase Programme Right VendorRight Vendor NegotiationsNegotiations Competitive BiddingCompetitive Bidding DiscountDiscount Right quantityRight quantity
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Tender Enquiry Limited Tender enquiry – selected firms Open tender - advertisement in news
papers Global Tender
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Quality Control The materials supplied conform to the laid The materials supplied conform to the laid
down specifications or notdown specifications or not
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This involves receipt of stores from suppliers as per predetermined specifications
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Stores received must be stocked and preserved.
A product has little value until it is with those who utilize it.
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This involves physical control of materials,
It helps in ◦ proper preservation, ◦ minimisation of obsolescence and◦ efficient handling of stores.
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Cost containment measures must be undertaken to optimize the resources.
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It is an organized approach to identify non-essential costs which are incurred.
This process is essential for cost reduction.
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Surplus pharmaceutical products and non-functional equipment which are either obsolete or beyond economic repair will require disposal.
Non-disposal of these causes increase in the holding costs and decrease in the storage capacity.
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