Material Management For Hospitals

8/13/2019 Material Management For Hospitals

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DefinitionIt is concerned with planning, organizing and

controlling the flow of materials from their initial

purchase through internal operations to the service

point through distribution.OR

Material management is a scientific technique,

concerned with Planning, Organizing &Control of flow

of materials, from their initial purchase to destination.


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The Materials Management Procedures

enable centralised procurement and

distribution of medical, biomedical,

pharmaceutical, medical & non-medicalfurniture and general items.


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AIM OF MATERIAL MANAGEMENT

To get

1. The Right quality

2. Right quantity of supplies

3. At the Right time

4. At the Right place

5. For the Right cost


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PURPOSE OF MATERIAL MANAGEMENT

To gain economy in purchasing

To satisfy the demand during period of replenishment

To carry reserve stock to avoid stock out

To stabilize fluctuations in consumption

To provide reasonable level of client services


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FUNCTIONS

The Materials management functions are asenumerated below:

Standardisation of Items

Purchase

Storage as per product requirements

Inventory Management

Distribution

Maintain Records utilisation pattern,

supplierslist, etc.


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Economy in material management

Containing the costs

Instilling efficiency in all activities


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ORGANOGRAM

Medical director

Purchase manager

Purchase and

stores

committee

Asst. manager

purchase & stores

Stores manager

Store asst.


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Four basic needs of Material

management1. To have adequate materials on hand when needed

2. To pay the lowest possible prices, consistent with

quality and value requirement for purchases

materials

3. To minimize the inventory investment

4. To operate efficiently


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Basic principles of material management1. Effective management & supervision

It depends on managerial functions of

Planning Organizing

Staffing

Directing

Controlling Reporting

Budgeting

2. Sound purchasing methods

3.Skillful & hard poised negotiations

4.Effective purchase system

5.Should be simple

6.Must not increase other costs

7.Simple inventory control programme


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Elements of material management

1. Demand estimation

2. Identify the needed items

3. Calculate from the trends in Consumption during last

2 years.

4. Review with resource constraints


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Functional areas of material management1. Purchasing

2. Central service supply

3. Central stores4. The print shops

5. The pharmacy

6. Dietary

& Linen services


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Standardisation of Items

All the items to be procured, stored and

utilised will be fixed by The Material

Standardisation Committee


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REDUCTION OF VARIETY AND HOSPITAL

STANDARDISATION

Item codes are designed to avoid

duplication, i.e. no item has two item codes

or no two items share the same code Yearly review of the entire inventory,

demarcating the non-moving items, slow

moving items and the fast moving items


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Contd...

Non-moving items are removed from theinventory, levels of slow moving items

inventory is reduced and adequate stock

of fast moving items is maintained

Inclusion of new items carried out through

proper authorisation. This is made

possible, if and only if, the respective

departmental head is able to justify its

utilisation on a regular basis.


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PRODUCT STANDARDISATION GUIDELINES Policy Statement: It will be the policy of the hospital

that any product or piece of equipment that isproposed for use within the hospital must firstundergo evaluation and approval by The MaterialStandardization Committee.

The Material Standardization Committee, wouldprioritise the quality of the product in relation to theprice. Products not been in the market for a periodless than 10 years and tested for its accurateperformance would not be considered for listed.

Exception to this will be only after authorisation by theMedical Director (Medical)/ Director (Administration)


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on ...Procedural Documentation:

All potential products are forwarded to the

Purchase and Stores Department by the Doctor,Departmental Head, Hospital Personnel, Sales

representativesetc.

All items are screened by the respective

department prior to forwarding to the Purchase

and Stores Department. Their recommendations

and comments about the item should accompany

all the requests.

An agenda is prepared and distributed to the

members one week prior to the next committee

meeting by the purchase/stores officer


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Committee Meetings

Arranged on a quarterly basis, or on aneed

base.

Committee actions are:

1. Evaluation of the product time period

determined

2. Non-acceptance of the Product

3. Acceptance of the Product


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Exception

All items must undergo the above procedure

with one exception. If the product is requested

on an emergency basis, it can be purchased,

and a justification would have to be providedwith in 24 hours by the Purchase Officer


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Emergency procedure

Send requisition to the stores

If the item available it is issued and if notavailable is forwarded to the purchase officer

The purchase officer or the next person in

authority would take authorisation from theManaging Director / Executive Director /

Hospital Administrator and purchase the

required item from the market. This would be

accounted for as an ad hoc purchase The item is handed over to the stores officer

who would issue the same to the

requisitioning party


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PURCHASE

The centralisation of all the purchase enables

to set up quality controls for all the items

being procured by the hospital. Items required

for all the departments are centrally monitoredat this level


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Purchases are made for

Pharmaceutical items by thepharmaceutical contractor/chief of

pharmacy

Medical Instruments - ExecutiveMaterials, along with stores and purchase

officers

Specific requirements of the Pathology

and the Imaging departments by the

respective purchase manager/officers


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Contd...

Bio-medical and General Maintenancebythe respective contractors

Stationery requirements of the hospital -

hospital stores and purchase officer

Furniture & Fixtures - hospital stores and

purchase officer

Capital Equipment - hospital stores and

purchase officer (under authorisation of theExecutive Director)

Kitchen equipment and suppliesby the

respective contractor


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PROCUREMENT

1. Direct from companies

2. Medical stores/hospital stores

3. Vendors/distributors of region

4. Receiving donations/grants/supplies


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Procurement cycle

Review selection

Determine needed quantities

Reconcile needs & funds

Choose procurement method

Select suppliers

Specify contract terms

Monitor order status

Receipt & inspection


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Objectives of procurement systemAcquire needed supplies as inexpensively as possible

Obtain high quality supplies

Assure prompt & dependable delivery

Distribute the procurement workload to avoid period of

idleness & overwork

Optimize inventory management through scientific

procurement procedures


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CALL FOR

OFFERS

CALL FOR

OFFERS

YESYES

DETERMINE DRUGS & DRUG

REQUIREMENTS


REQUIREMENTS

DRUG REQUIREMENTSDRUG REQUIREMENTS

DONATION

SOURCE

DONATION

SOURCE

GOVERNMENT

PRODUCTION

GOVERNMENT

PRODUCTION


REQUIREMENTS


REQUIREMENTS

PURCHASE

REQUIREMENTS

PURCHASE

REQUIREMENTS

OPEN TENDEROPEN TENDER RESTRICTED

TENDER

RESTRICTED

TENDERNEGOTIATED

TENDER

NEGOTIATED

TENDERDIRECT

PURCHASE

DIRECT

PURCHASE

REQUEST OFFERS FROM

ELIGIBLE SUPPLIERS

REQUEST OFFERS FROM

ELIGIBLE SUPPLIERSLOCATE

RELIABLE

SUPPLIERS

LOCATE

RELIABLE

SUPPLIERS

CONTACTRELIABLE

SUPPLIER

CONTACTRELIABLE

SUPPLIER

EVALUATE &

SELECT SUPPLIER

EVALUATE &

SELECT SUPPLIER

EVALUATE OFFERS

& SELECTSUPPLIERS

EVALUATE OFFERS

& SELECTSUPPLIERS

NEGOTIATE PRICE &

SUPPLY CONDITIONS

NEGOTIATE PRICE &

SUPPLY CONDITIONS

ESTABLISH

PRICE

ESTABLISH

PRICE

PURCHASE ORDER

/ CONTRACT

PURCHASE ORDER

/ CONTRACTPURCHASE ORDER /

CONTRACT

PURCHASE ORDER /

CONTRACTPURCHASE

ORDER /

CONTRACT

PURCHASE

ORDER /

CONTRACT

PURCHASE

ORDER /

CONTRACT

PURCHASE

ORDER /

CONTRACT

DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER / CONTRACT SPECIFICATIONS & CLEARED

FOR DISTRIBUTION

DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER / CONTRACT SPECIFICATIONS & CLEARED

FOR DISTRIBUTION

ADJUST

QUANTITIES

ADJUST

QUANTITIES

ADJUST

QUANTITIES

ADJUST

QUANTITIES

YES

NO

YES

NO

NO NO NO

YES YES

FLOW OF PROCUREMENT DECISIONSFLOW OF PROCUREMENT DECISIONS


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Open tenderPublic bidding, resulting in low prices

Published in newspapers

Term - 4 weeks

Quotations must be sent in the specific forms

that are sold, before the time &date mentioned inthe tender form

In technical items, two packets or two bins

system is followed. Offers are given in two

separate packets.1. Technical bid

2. Financial bid

Cont


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First technical bid is opened & short listed

Then financial bid of selected companies are

opened & lowest is selected

Delayed tenders & late tenders are not accepted.

But if, in case of delayed tenders, if the rate quoted is

very less, then it can be accepted.

Quotations are opened in presence of indenting

department, accounts & authorized persons of party

Validity of tendersgenerally 90 days


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Earnest money

2 % of the tender amount or as decided has to be paid

along with all quotations. In case of default 1/5 is withheld

Restricted or limited tender

From limited suppliers (about 10)

Lead-time is reduced

Better quality

Negotiated procurementBuyer approaches selected potential Suppliers & bargain

directly

Used in long time supply contracts

Direct procurementPurchased from single supplier, at his quoted price

Prices may be high

Reserved for proprietary materials, or low priced, small

quantity & emergency purchases


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Rate contractFirms are asked to supply stores at specified Rates

during the period covered by the Contract

Spot purchaseIt is done by a committee, which includes an officerfrom stores, accounts & purchasing departments

Risk purchaseIf supplier fails, the item is purchased from otheragencies & the difference in cost is recovered from

the first supplier


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Points to remember while purchasingPROPER SPECIFICATION

INVITE QUOTATIONS FROM REPUTED FIRMS

COMPARISON OF OFFERS BASED ON BASIC PRICE, FREIGHT &

INSURANCE, TAXES AND LEVIES

QUANTITY & PAYMENT DISCOUNTS; PAYMENT TERMS

DELIVERY PERIOD, GUARANTEE

VENDOR REPUTATION (RELIABILITY, TECHNICAL CAPABILITIES,

CONVENIENCE, AVAILABILITY, AFTER-SALES SERVICE, SALES

ASSISTANCE)

SHORT LISTING FOR BETTER NEGOTIATION TERMS

SEEK ORDER ACKNOWLEDGEMENT


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STORAGE

STORE MUST BE OF ADEQUATE SPACE

MATERIALS MUST BE STORED IN AN APPROPRIATE

PLACE IN A CORRECT WAY

GROUP WISE & ALPHABETICAL ARRANGEMENT

HELPS IN IDENTIFICATION & RETRIEVAL

FIRST-IN, FIRST-OUT PRINCIPLE TO BE FOLLOWED

MONITOR EXPIRY DATE


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FOLLOW TWO BIN OR DOUBLE SHELFSYSTEM, TO AVOID STOCK OUTS

RESERVE BIN SHOULD CONTAIN STOCK THAT

WILL COVER LEAD TIME AND A SMALLSAFETY STOCK

Issue & use

CAN BE CENTRALIZED OR DECENTRALIZED


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METHODS OF PURCHASEAll purchases are usually based on Yearly tender

system. The Standardisation of ProductsCommittee will decide the various suppliers for all

the items, by March of the preceding year for the

next financial year April to March. The call for

tenders will be publicised by the month ofDecember

All tenders are reviewed with utmost

confidentiality

The results declared and all the formalities

complete by the first week of march ensuring that

the products are received by the 1stof April


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The Purchase Function

Requisition for Purchase

As per Reorder levels (ROL)

Urgent requirement of stores / department

1. Purchase Order

2. Receiving Process

3. Transfer to Stores


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The requisition for purchase is generated

Either when the product stock levels reach the

ROL, which is explicit in a well maintained and

upgraded stock register. The Quantity is decided

as per Economic Order Quantity (EOQ), EOQ is calculated on consideration of the shelf

life, utilisation pattern, and procurement time.

Or as an emergency requirement, this product

might or might not be on the Standard Product

list.


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PURCHASE ORDER

PO is Generated when the requisition is

rechecked with the existing stock, and the

requirement is genuine. The PO is prepared

in duplicate to ensure that the productsreceived are as per the specifications laid

down in the purchase order.


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STORES

Centralised stores ensures reduced

inventory costs, more organised supply

and improved utilisation of space and

manpower. Stores control is necessary to

curtail the pilferage to a large extent.


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System of stores Establishes the initial inventories, sets up

quantities and supplies of all the items, up-grades the same

Specific day/s are fixed for the requisitioning of

various items Emergencies are attended through a recheck

with respective departmental head

All departments send their requisitions withappropriate authorisation to the stores

Stores department promptly delivers therequisitioned items to the respective department


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When the requisitioned items are not in stock

EITHER the items are delayed in thepurchasing process whereby store

communicates with the respective

department of the delay and provides the

items as and when procured,

OR the items are not stocked in the

stores, in such a case the stores

department is to return the requisitionwith same/similar items after confirming

the acceptance of the same from the user


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Receiving Process

Specifications are as per the request placed

by the respective department and/or

consultant

Items substituted without prior approval of the

purchasing department Shelf life of the items

Damaged and/or defective items

Excess / Shortage in quantity Supplies for which purchase orders have not

been placed (all the above should be verified

by reviewing the purchase orders)


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Contd...All the items when they arrive at hospital

will have a Goods Received Note (GRN),which is a counter check to the itemsordered to the items received. The GRN

would be verified during the physicalverification process

The Physical verification of the Items iscarried out by the Stores Officer along

with the respective departmental head /representative of the department toensure that the item received is the onerequisitioned item.


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Contd... Physical verification for general items require

verification of items in a random fashion, in

case of high value items verification is a

detailed verification of all the features

After physical verification the bills areforwarded to the Finance Department, where

the payment is made within the stipulated

number of days mentioned in the contract.

All the items are then transferred to the Storesalong with the item specifications and their

quantities after physical verification


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The Pharmacy Services

Definition:-Premises licensed for the retail sale or

supply to the Hospital Out Patient

department and/or In Patient area of drugs

which have qualified licensed person(s)and indulge in compounding of drugs.


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Functions of Pharmacy Services

1. Demand estimation

2. Compounding and manufacturing of sterile and nonsterile products.

3. Quality control of drugs purchased.

4. Supply of Drugs to In patient, Wards, I.C.U., O.Ts,Emergency etc.

5. Dispensing for Out Patients.6. Maintenance of formulary system.

7. Furnishing Drug information to Physicians and otherprofessional staff.

8. In-Service training, teaching and research and clinicaltrials.

9. Patient Education

10. Drug use review


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Types of Pharmacies

1. Pharmacy for O.P.D.

2. Pharmacy for In Patients Services

3. A combination of both.

4. A retail sale counter in the Hospital

5. A combination of above all type.


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Managerial Issues in

Pharmacy Services

1. Control of Drug costs.

2. Effective Staff utilization.

3. Human Relation.

4. Consumer Satisfaction.

5. Non availability of Drug.

6. Supply of Sub Standard Drugs.

7. Drug pilferage.

8. Drug distribution system.

D b i i i h


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Documents to be maintain in the

Pharmacy Service

1. Non expendable stores ledger.

2. Expendable stores ledger.

3. Indent file.

4. Formula file for manufacturingmedicaments.

5. Costing returns.

6. Report file.7. Stock verification returns file.

8. Hospital formulary.


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INVENTORY CONTROL

Ensures maximum efficiency in utilisation of

the items and enables to bridge the gap

between the forecasted and the actual

demand of the materials. Inventory control does not mean minimum or

lowest inventory levels


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FUNCTIONS OF INVENTORY

CONTROL

TO PROVIDE MAXIMUM SUPPLY SERVICE,

CONSISTENT WITH MAXIMUM EFFICIENCY& OPTIMUM INVESTMENT.

TO PROVIDE CUSHION BETWEEN

FORECASTED & ACTUAL DEMAND FOR AMATERIAL


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Guidelines for an effective Inventory Control Policy

Review past records, and analyse theutilisation of the all the items

Assign responsibilities with respect tovarious to various functions of inventory

management Co-ordinate the procedures of inventory

management with the internal auditors

and computer systems Clear instructions describing the

procedure of inventory procurement,issue, records maintenance and stock

audit


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Contd...All items should be identified with a distinct

code which are to be followed either in anautomated or manual system, the code is to

be clearly visible (specific colour can be

provided)

The Bin Cards and Stock Register should also

contain the specifications of the respective

item

Classify the inventory, and segregate physicalareas for the various items as per their

similarities in function and/or specifications


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Contd...All the items are arranged in the following

manner The items are segregated with respect to

medical, surgical, linen, spare parts(Electrical, Plumbing, air-conditioning,

ventilation etc.), equipment (all thedepartments), Radiology, Sonography,Laboratory, Pharmacy etc

Further the items can be arranged

alphabetically for easy access and retrieval ofitems

Sign boards are placed identifying the zoneswith similar items


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REPLENISHMENT SYSTEMS

Fixed Order Quantity

Economic Order Quantity (EOQ)

Quantity to be ordered is fixed for each and

every product

As the order is fixed, the orders are placed at

irregular intervals and reduces the ordering

cost and inventory carrying cost


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Contd...

The Re-Order Levels ( ROL ) for ordering

is reached when the item reaches the

quantity reaches the buffer stock plus

consumption required for the period ofprocurement

These two methods for quantity required

along with the time at which to orderwould maintain adequate stock and

reduce stock out situations to a large

extent


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Economic order of quantityEOQ= Average Monthly Consumption X Lead Time [in

months] + Buffer StockStock on hand

CARRYING

COSTPURCHASING

COST

ECONOMIC ORDER OF

QUANTITY(EOQ)


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Economic Order Quantity (EOQ)

Q =

Where,

Q = Economic Order Quantity or optimum number

of units per order to minimise the total cost C = Cost of one unit of item

I = Inventory Carrying cost, expressed as apercentage of the value of the average inventory

R = Total annual quantity requirement or total

demand

S = Ordering cost per order All the factors involved in placing an order are included in

determining the EOQ; hence it would reduce pilferage to a

large extent.

2RS

CI


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RE-ORDER LEVEL: STOCK LEVEL AT

WHICH FRESH ORDER IS PLACED

AVERAGE CONSUMPTION PER DAY X LEAD

TIME + BUFFER STOCK

LEAD TIME: DURATION TIME BETWEEN

PLACING AN ORDER & RECEIPT OF

MATERIAL; IDEAL2 TO 6 WEEKS.


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Re Order Level (ROL)

ROL = B + Lc + Rc/2 where

ROL = Re-Order Level

B = Buffer Stock

Lc = Lead Time Consumption Rc = Review Period Consumption

The ROL looks into all the aspects like

lead-time, buffer stock and theconsumption patterns, hence this wouldensure to reduce the stock possibilities toa large extent.


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ABC ANALYSIS(ABC = Always Better Control)

THIS IS BASED ON COST CRITERIA.

IT HELPS TO EXERCISE SELECTIVE CONTROL WHENCONFRONTED WITH LARGE NUMBER OF ITEMS IT

RATIONALIZES THE NUMBER OF ORDERS, NUMBER OF ITEMS &

REDUCE THE INVENTORY.

ABOUT 10 % OF MATERIALS CONSUME 70 % OF RESOURCESABOUT 20 % OF MATERIALS CONSUME 20 % OF RESOURCES

ABOUT 70 % OF MATERIALS CONSUME 10 % OF RESOURCES


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A ITEMS

SMALL IN NUMBER, BUT CONSUME LARGE

AMOUNT OF RESOURCES

MUST HAVE:TIGHT CONTROL

RIGID ESTIMATE OF REQUIREMENTS

STRICT & CLOSER WATCH

LOW SAFETY STOCKS

MANAGED BY TOP MANAGEMENT


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B ITEM

INTERMEDIATEMUST HAVE:

MODERATE CONTROL

PURCHASE BASED ON RIGID REQUIREMENTS

REASONABLY STRICT WATCH & CONTROL

MODERATE SAFETY STOCKS

MANAGED BY MIDDLE LEVEL MANAGEMENT


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C ITEMSLARGER IN NUMBER, BUT CONSUME LESSER

AMOUNT OF RESOURCES

MUST HAVE:ORDINARY CONTROL MEASURES

PURCHASE BASED ON USAGE ESTIMATES

HIGH SAFETY STOCKS

ABC ANALYSIS DOES NOT STRESS ON ITEMS

THOSE ARE LESS COSTLY BUT MAY BE VITAL

CUMMULATIVECUMMULATIVEANNUAL COSTANNUAL COST COS %


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3-11-2008 6820000050020

19950050019

19900050018

19850050017

19800050016

19750050015

19700050014

19650050013

196000150012

194500150011

193000175010

19125027509

18850040008

18450045007

18000050006

17500075005

16750075004

160000200003

140000500002

90000900001

CUMMULATIVECUMMULATIVE

COSTCOST [Rs.]ANNUAL COSTANNUAL COST

[Rs.]ITEMITEM COST %COST %ITEM %ITEM %

70 %70 %

20 %20 %

10 %10 %

10 %10 %

20 %20 %

70 %70 %

ABC

A

N

A

L

Y

S

I

S

WORK

SHEET

VED ANALYSIS


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VED ANALYSIS BASED ON CRITICAL VALUE & SHORTAGE COST OF AN ITEM

IT IS A SUBJECTIVE ANALYSIS.

Items are classified into:

VITAL:Shortage cannotbe tolerated.

ESSENTIAL:

Shortage can be tolerated for a short period.

DESIRABLE:

Shortage will not adversely affect, but may be using more

resources. These must be strictly ScrutinizedV E D ITEM COST

A AV AE AD CATEGORY 1 10 70%

B BV BE BD CATEGORY 2 20 20%

C CV CE CD CATEGORY 3 70 10%

CATEGORY 1 - NEEDS CLOSE MONITORING & CONTROL

CATEGORY 2 - MODERATE CONTROL.

CATEGORY 3 - NO NEED FOR CONTROL

SDE ANALYSIS


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SDE ANALYSIS

Based on availability

ScarceManaged by top level management

Maintain big safety stocks

Difficult

Maintain sufficient safety stocks

Easily availableMinimum safety stocks

FSN ANALYSIS Based on utilization.

Fast moving.Slow moving.

Non-moving.

Non-moving items must be periodically

reviewed to prevent expiry & obsolescence


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HML ANALYSIS

Based on cost per unit

HighestMedium

Low

This is used to keep control over consumptionat departmental level for deciding the frequency of

physical verification.


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Stores Systems Bin cards - product identification code,

product specifications, and stock ofproducts (procured, issued (to whichdept), and the balance stock as per date

Stock Registers - the stock received,issued, balance, their respective ROL andEOQ

Requisition/s issued file

Requisition/s pending file

Requisition for purchase file


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SALE OF SCRAP Sale of all the scrap and by-products

handled by the stores department i.e. co-ordinate procurement storage & sale

Authority to deem items as scrap lies withstore officer

Bio-medical items and Linen decided byMaterial Standardization Committee

Vendors for purchase of the scrap andby-products decided on an annual basisthrough tenders


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Stores Officer, Manager Finance and the

Hospital Administrator review the tenders,then decision is taken; and the contracts

are usually valid for one year, under the

approval of the competent authority like

executive director

After this scrap sold at rates fixed in the

contract

\Stores Officer, Manager Finance decide

about fresh tenders


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The by-products include (some of the itemsare):

a). Silver [Radiology Department]

b). Paper waste c). Plastics and glass ware

d). Furniture and fixtures

(Market survey is carried out to get the bestprice)


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Guidelines of MATERIAL

STANDARDIZATION COMMITTEE

STORESRequisition for items from the stores:

Stock of respective item reaches ROL

Fast moving, high cost and irregular/

consignment items

ACCOUNTS & BILLING

Maintain Accounts for the payment

against bills raised

Product Identification and requisition

for purchase

Procurement Process

Prepare and Release Purchase OrdersReceipt and Physical verification of

items and hand-over to Stores

department

(Forward the bills to the accounts for

payment)

PROCUREMENT PROCESS ACTIVITY FLOW


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RECEIPT OF ITEMS

Physical verification of items along with the

respective departmental representative

Ensure that the Goods received note is for theitems physically received

Transfer of items to stores

STORES MANAGEMENT

Uupdate the stock records

Pphysically place the item/s in the respective place

Eensure that the required environmentAC/ Moisture

free etc. is appropriate

Iinventory ManagementEOQ, ROL etc.

REQUISITION FROM USER

DEPARTMENTS

STORES AND INVENTORY MANAGEMENT


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PERIODICAL REPORTS:Monthly reports

Statement of revenue and expenditure

Manpower Planning

Cost Escalation and Inflation

Usage of surgical and medical items

Standardisation of new product/items


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Quarterly Reports

Linen Inventory and Usage Report

Pharmaceutical services

Stock outs

Electrical / Air-conditioning / plumbing

supplies utilisation


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Half Yearly Reports

Outstanding Purchase Orders

Physical Inventory

User review User review


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Annual Reports

Inventory levels

New requisitions by medical and other staff

for the next year

Requests for equipment / instruments for thenext year

j f i f


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1. To procure right thing at the right time from the right

place at the right price.2. To finalize contract for the continuous supply

3. To identify indigenous/import substitutes.

4. Preparation of Yellow page book of Vendors.

5. To finalize AMCs6. To identify procedures leading to reduction in Lead-time.

7. To maintain Economic Order Quantities & Minimum

Inventory Level.

8. To ensure that the activities of all user departments are insmooth flow.

9. To release Purchase order.

Major functions of purchase department

Receiving Indent From Stores


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Locate Vendor From Vendors Master Book

Find Out Import Substitutes If AvailableLocally.

Invite Quotations

Decide terms, Conditions & Issue P.O

Follow Up With Vendors & Action To Inform

To Concerned Dept:

Material To Be Laid Down In Store

FUNCTIONS OF SUPPLY & STORE DEPARTMENT


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1. To maintain minimum inventory level2. To maintain continuous & stable supply system

3. To ensure proper storage conditions as per the nature of the

items.

4. To take adequate measures to prevent pilferage.

5. To formulate Bin Card system6. To undertake ABC analysis.

7. To implement FIFO system, GRR system.

8. To prepare formats of various stores related documents.

9. To ensure that there is proper co-ordination with all the user

departments.

FLOWCHART OF THE STORES ACTIVITIES


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Receive requisitionfrom users.

Check in the stores

for availability

Issue to user if

available in the

store & record

If unavailable indent

sent to purchase

department

FLOWCHART OF THE STORES ACTIVITIES


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ON LUSION1. Material management is an important management tool which will

be very useful in getting the right quality & right quantity ofsupplies at right time, having good inventory control

2. Adopting sound methods of condemnation & disposal will improve

the efficiency of the organization & also make the working

atmosphere healthy in any type of organization, whether it isPrivate, Government, Small organization, Big organization and

Household.

3. Even a common man must know the basics of material

management so that he can get the best of the available resourcesand make it a habit to adopt the principles of material management

in all our daily activities


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Material Management For Hospitals

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