CASE STUDY ON:ABC AND VED ANALYSIS OF THE PHARMACY STORE OF A TERTIARY CARE TEACHING, RESEARCH AND REFERRAL

HEALTHCARE INSTITUTE OF INDIA

Presented By:

Nitika chaudhary (A01)

Ngangbam Bheigyapati Devi (A04)

Ragini Maddheshiya (A18)

CONTENTS

Objectives of the study

Introduction

Importance of drug inventory management in hospitals

Tools used

Case analysis

Suggestions

Conclusion

OBJECTIVE OF STUDY

To analyze the annual consumption and expenditure

• To use various tools and techniques

To Identify and classify the items in the pharmacy

INTRODUCTION

PGIMER

1500BED

Hospital conducted ABC,VED and ABC-VED matrix

analysis of the pharmacy store.

For identifying the categories of necessary

drug items

Helps to eliminate the stock-out situation and for effective

control.

IMPORTANCE OF DRUG INVENTORY MANAGEMENT IN HOSPITALS

Pharmacy is largely used for therapeutic activities or

services of the hospital.

Large amount of hospital budget is spending on

purchasing and maintaining.

The supply of medicines are irregular most of the time.

To eliminate the out of stock situation.

To minimize the cost incurred in purchasing and

maintaining (holding cost) of the drug inventory.

IMPORTANCE OF DRUG INVENTORY MANAGEMENT IN HOSPITALS

To maintain the consistent supply of the drugs

throughout the hospital.

It is help in decreasing the total cost and increase the

efficiency of the hospital services.

TOOLS

Three type of toots are used

ABC analysisVED

analysisABC-VED

matrix analysis

ABC ANALYSIS

It is the method in which the items or activities are classified according to their priority

B itemsConsumption of

items is 20-25% but expenditure incurred is 20% of total cost.

VED ANALYSIS

VED analysis is based on critical values and shortage cost of the items. It classified drugs into three different

categories

Vital Essential Desirable

ABC-VED MATRIX ANALYSIS

It is a combination of ABC and the VED analysis and useful in controlling the material supplies.

Category 1Vital and

expensive items i.e.,AV,BV,CV,A

E,AR.

Category 3Desirable and

cheaper

ABC ANALYSIS OF PHARMACY STORE IN THE PGIMER HOSPITAL

Category No. of items % of items ADE (Rs.) % of ADE of the pharmacy

A 58 13.78% 27,996,865 69.97%

B 92 21.85% 7,981,331 19.95%

C 271 64.37% 4,034,416 10.08%

FIGURE: ABC ANALYSIS CUMULATIVE CURVE

 

10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Percentage of ADE of the pharmacy

Cumulative % of items

Cum

ula

tive A

nnual expendit

ure

%

Category No. of items % of items ADE (Rs.) % of ADE of the pharmacy

V 51 12.11% 6,857,814 17.14%

E 250 59.38% 28,963,447 72.38%

D 120 28.51% 4,191,351 10.48%

VED ANALYSIS OF PGIMER HOSPITAL

VED ANALYSIS OF PGIMER HOSPITAL 2007-2008

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Series1; 17.14%

72.38%

10.48%

Percentage of ADE of the pharmacy

Cumulative % of items

Cum

ula

tive A

nnual expendit

ure

%

ABC-VED MATRIX ANALYSIS OF PGIMER

 Category No. of

items% of items ADE (Rs.) % of ADE

of the pharmacy

I 93 22.09% 29,691,956 74.21%

II 230 54.63% 8,895,160 22.23%

III 98 23.28% 1425,496 3.56%

FIGURE :ABC- VED MATRIX ANALYSIS 2007-2008

20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00%0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Series1; 74.21%

22.23%

3.56%

cumulative % of items

Cum

ula

tive A

nnual expendit

ure

%

SUGGESTIONS

Computerized Inventory management software. good customer services and good relationship with

supplier. Reviewing of the inventory level should be

occasionally done to know the seasonal usage of drug items and to ensure how much inventory we have in hand.

The pharmacy department should carefully monitor the order cycle time as fluctuation in it leads to over stock or shortage of inventory.

For high valued drug EOQ method can be used to

determine the order quantity and for lower value items

fixed order interval method can be used.

For small stores like IPD and OPD two bin systems

can be used for inventory control.

CONCLUSION

The ABC and VED techniques helped the pharmacy store to eliminate the out of stock situation and better supervision and efficient control of drugs to eliminate the interruptions in day to day operation of hospital.