Material mgmt 1

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Information about Material mgmt 1

Published on September 10, 2015

Author: bhavikpatelstudy


1.  The management and control of goods,The management and control of goods, services and equipment from acquisition toservices and equipment from acquisition to disposition.disposition.  Since the materials are procured and kept in the store, the term Stores Management may also be used inter-changeably

2.  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

3. Materials are a major cost factor in any enterprise. In health care system materials costs is 40% Salaries 60%

4. 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.

5. 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

6.  Non Consumable stores:Non Consumable stores: Those stores whichThose stores which can be used again and again.can be used again and again.  Consumable Stores:Consumable Stores: Those stores which canThose stores which can be used only oncebe used only once

7.  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

8. • 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


10. • 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…..??

11. • Improving the knowledge on cost awareness • Optimizing resources • Balancing cost with quality. • What, when, how much to stock, how much to order & how often? •

12. • Utilization of modern management tools & techniques • Inventory control. • Information system, • Performance improvement • Equipment maintenance, • Condemnation and disposal of unserviceable items

13.  The basic objective to be achieved is un-The basic objective to be achieved is un- interrupted supply of items in wards andinterrupted supply of items in wards and departments at reasonable cost.departments at reasonable cost.

14. It seeks to provide from a right source Right materials Right quality Right quantity Right time

15.  Primary Objectives: Low Purchase Price High inventory turnover Low storage cost Maintaining continuous supply Development of Vendors Good Records

16.  Secondary Objectives Favourable reciprocal relations Economic make or buy Standardisation Product improvement Economic forecast

17.  Estimation of demand and purchasingEstimation of demand and purchasing  Receiving and inspectionReceiving and inspection  StorageStorage  Inventory controlInventory control  DistributionDistribution  DisposalDisposal


19. 1. Materials planning and budgeting • Selection • Quantification 1. Purchasing ◦ Codification ◦ Standarization ◦ Tendering system

20. 3. Receiving and inspection 4. Stocking and Distribution  Preservation of stores  Pilferages  MIS 3. Inventory Control

21. 6. Cost Reduction ◦ Utilization ◦ Repair and maintenance 6. Value Analysis 7. Disposal


23.  This requires: ◦ need assessment ◦ specifications ◦ quantification ◦ preparing materials budget

24. Purchasing is a basic function inPurchasing is a basic function in materials management department ofmaterials management department of

25.  Right qualityRight quality  Right priceRight price  Right quantityRight quantity  Right timeRight time

26.  Demand from the end user ◦ Specifications ◦ Quantity

27. Estimation of demand Estimation or forecasting (Estimation or forecasting (quantification) of demand can be done byof 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

28.  Methods of PurchasingMethods of Purchasing  DecentralisedDecentralised  CentralisedCentralised

29.  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

30.  Codification  Kodak System ◦ 10 digit numrical code  Brisch System ◦ 7 digit code  Bar code ◦ Black and white line of various thickness

31. 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.

32. Purchase Programme  Right VendorRight Vendor  NegotiationsNegotiations  Competitive BiddingCompetitive Bidding  DiscountDiscount  Right quantityRight quantity

33. Tender Enquiry  Limited Tender enquiry – selected firms  Open tender - advertisement in news papers  Global Tender

34. Quality Control  The materials supplied conform to the laidThe materials supplied conform to the laid down specifications or notdown specifications or not

35.  This involves receipt of stores from suppliers as per predetermined specifications

36.  Stores received must be stocked and preserved.  A product has little value until it is with those who utilize it.

37.  This involves physical control of materials,  It helps in ◦ proper preservation, ◦ minimisation of obsolescence and ◦ efficient handling of stores.

38.  Cost containment measures must be undertaken to optimize the resources.

39.  It is an organized approach to identify non- essential costs which are incurred.  This process is essential for cost reduction.

40.  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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