Neeraj Lal

MATERIAL MANAGEMENT

Store @ Types:
General Store

Pharmacy Store

Main Store

Sub Stores

General Store:

Mission The mission of the General Store Department is the acquisition of the right goods, in the right quantity, at the right place, from the right supplier, at the right cost, with a minimum inventory and operating investment, in order to service the needs of the Medical Center.

Core Tasks:
Stores purchase Inventory Control Material Management

Terms Clarity:
PURCHASE: An act of obtaining an article by making payments in terms of money or its equivalent, to buy for a price. INVENTORY: is itemized list of goods with their estimated worth, specifically annual account of stock taken in any business. CONTROL: An act of exercise, directing, guiding or retaining power over.

PURCHASE: After forecasting demand and after verifying budgetary allocation, purchase is initiated.

1) 2)

3)

4)

5)

The basic steps are as follows: Preparing detailed specifications Inviting offers by (a) quotations (b) tenders (c) direct enquiry Preparation of tabulated comparative statement of the offers received. Testing of samples/taking demonstration Placing purchase order.

INVETORY:refers to the physical stocks of items which are kept idle in the store, but are essential for smooth functioning of the hospital.
1. 2. 3. 4. 5.

Importance & Need: To facilitate uninterrupted supply To guard against the risk of unpredictable changes in demands To take advantage of price fluctuations To exercise effective control over a) procurement b) holding c) distribution Effective inventory management seeks to determine optimal level of stores items.

Techniques for Inventory control:

ABC analysis: (Always Better Control) About 10% of the items take away the budget allocation to the extent of 70% of the total allocation. These are grouped as A category items. About 20% of items consume 20% of the budget. These are grouped as B category items. About 70% of the inventory which will amount to only 10% of the total expenditure. These items are grouped as C category items.

Cont.
ABC ANALYSIS
ITEMS QUANTITY % CONS. OF BUDGET ALLOCATION

A B C

10% 20% 70%

70% 20% 10%

VED Analysis: (Vital, Essentials & Desirable)

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Vital: Items without which treatment comes to standstill i.e. non availability cant be tolerated. Essentials: Items whose non availability can be tolerated for 2-3 days, as similar or alternative items are available. Desirable: Items whose non availability can be tolerated for a longer period.

Cont
VED ANALYSIS
Item Vital Essential Desirable Percentage 10% 40% 50%

Economic Order Quantity: (EOQ)

According to EOQ approach optimum level of investment in inventory is one where total cost of ordering cost and investment carrying cost will be minimum. EOQ = 2 AO PI A = Annual requirements in units O = Ordering Cost P = Price per unit I = Inventory carrying cost

Material Management:

Materials management for, General medical supplies Housekeeping and sanitary supplies Stationary and printing forms Operating room supplies Plant engineering, mechanical equipment

Materials management has 4 main components:

1)

2) 3) 4)

Obtaining or acquiring Storage Distribution Exercising control

Acquisition of materials can be done by following methods:

a.

b.

c.

At departmental or sectional level i.e. decentralized At Hospital level centralized purchase By a group or chain of hospitals: Having same management control e.g.. Municipal or government hospital Chain of corporate hospitals having common governing body e.g. Apollo hospitals, Wockhardt hospital etc. Three or four hospitals situated in the same city making joint, common purchase.

Personnel:

Materials Manager or over all in-charge Store Keeper Store assistants Helpers Security personnel

An overview of PHARMACY STORE:

Hospital Pharmacy store is the dept., service or a domain in the hospital organization managed under the direction of a professionally competent, legally qualified individuals. Pharmacy is an essential and extensively used facility. It caters to out patients, indoor patients, other treatment areas like operation theatre, clinical laboratory etc. pharmacy is efficiently organized to meet patient medication needs and comply with applicable laws and regulations and control medications through out the organization.

Objective:

To ensure the availability of right medication at the right time, the right dose, at the minimum possible cost in a proper manner.

Activities of Pharmacy :
1.

2.

3. 4.

Procuring Pharmaceutical Items Requisitioning Purchasing Receiving Checking Storing Dispensing Items Preparing Packaging Labeling Dispensing Distribution of Items to different departments as per their requirements. Quality control of drugs received by the hospital Check on Arrival Periodic check Random check Dispensing

Cont.
1.

2.

3. 4.

Implement policies and procedures decided by the hospital to ensure rational drug therapy. Have up to date information of drugs, which have been banned in India or other countries. Maintain adequate stock of drugs as per hospital formulary. Comply with rules and statutory requirements prescribed by food and drugs administration and also drugs and cosmetic act. E.g. licensing, maintenance of registers etc.

Set up of the Hospital Pharmacy:

Hospitals Clinical Staff

Patients

Hospital Administration

DEPT. OF PHARMACY

Hospitals Nursing Staff

Hospitals Committees

Hospitals Other depts.

Location, Area & Facilities:

While finalizing the site for the pharmacy, following details are kept in mind. Number and direction of flow of outpatients. Turn over of items Receipt and storage of raw material and total output. Lay out of the hospital-whether horizontally spread or vertical. Whether the pharmacy is manufacturing any items like intravenous fluids, ointments etc.

Desirable Location:
o

Should be close to out patient dept because the pharmacy is used more by out patients. To avoid criss cross movements of patients, it is advisable to locate the pharmacy near exit gate. For production activities a separate site may be needed and also needs to be clean, dust free and infection free. Routine preparation of mixture, compounds etc can be carried out in the main pharmacy.

Area & Space:

AREA
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Total area required depends on the following: Policy of the hospital: a) If the hospital patients need to be dispensed exclusively from hospital pharmacy, sufficient area is required. b) If the hospital gives prescription to the patients, it may not be necessary for pharmacy to store slow moving used items in large qty. Storage area, number of dispensing counters space for production unit depend on work load.

o
o o

o
o

SPACE Waiting area Dispensing counters Cash counter General storage space for tablets, capsules, injections, dressing materials etc. Clod storage for temperature alike products Administrative Space Space for production unit as per FDA guidelines Space for receiving bulk items from suppliers.

Infrastructure & Facilities:

Cold Storage: Depending on the qty of items to be stored at old temperature , should have refrigerator, deep freezers, air conditioned room etc. Temperature of this area must be regulated and monitored as well. Areas where power supply is likely to be interrupted, additional care is required. Shelves and stands: For storing item category wise .e.g. liquids, tablets, capsules, injectables ,surgical etc. Equipments for production unit. Stands with counter for dispensing Routine furniture like cupboard, chairs, tables etc. Fire safety precautions.

Personnel:

Head pharmacist having qualification in pharmacy. i.e. B.Pharm or M.Pharm Pharmacists: trained pharmacists having diploma in pharmacy are required. One pharmacist for each 100 beds and one senior pharmacist for every 5 pharmacists will take care of the functions. Servants for cleaning, transporting items etc. Clerk or record keeper for maintaining important records.

Quality & Safety assurance:

The individuals of pharmacy participate in clinical activities relevant to the provision of drug therapy for the purpose of optimizing patient care. Activities may include but are not limited to; comprehensive medication review and drug utilization reviews. The pharmacists participate in the review of medication related incidents like adverse drug reaction (ADR), medication error and provide recommendations to prevent recurrence The pharmacist contribute in Pharmacy & therapeutic committee which evaluates the clinical use of drugs, develops policies for managing drug use and drug administration, and manages the hospital formulary system. Clinical pharmacists identify important clinical indicators and apply appropriate monitoring techniques. Synchronize in the quality improvement and patient safety program in the organization.

Computerized software for material management:

Salient Features/ Modules:

Quotation Purchase order Online approval, Pharmacy drug configuration Pharmacy stores configuration Drug issue to patients and billing Unit dosage facility Supplier information Maintenance of drug inventory Automatic reorder level setting Purchase Requisitions

Purchase Order Online request for stock from various sub-stores Online stock transfer Maintenance of stock at different sub-stores Return of items nearing expiry Destruction of expired items Physical stock verification and adjustment Goods receipt Stock Transfer (inter store stock transfer) Stock Adjustment Stock in Hand reports

Thank You