Published on September 10, 2015
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
9. “EFFECTIVE & EFFICIENT UTILISATION OF AVAILABLE RESOURCES”
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
18. DEMANDDEMAND ESTIMATINGESTIMATING ANDAND PURCHASINGPURCHASING DISTRIBUTIONDISTRIBUTION STORAGESTORAGE RECEIVING ANDRECEIVING AND INSPECTIONINSPECTION
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
22. FUNCTIONS OF STORESFUNCTIONS OF STORES MANAGEMENTMANAGEMENT
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 hospital.hospital.
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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