store management in hospitals

8/14/2019 STORE MANAGEMENT IN HOSPITALS

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HOSPITAL STORES

MANAGEMENT


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Store Types

General Store Pharmacy Store

Main Store Sub Stores


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General Store:

MissionThe mission of the General Store Departmentis the acquisition of the right goods, in theright quantity, at the right place, from theright supplier, at the right cost, with aminimum inventory and operating

investment, in order to service the needs ofthe Medical Center.


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Core Tasks:

Stores purchase

Inventory Control

Material

Management


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Terms Clarity:

PURCHASE:

An act of obtaining an article bymaking 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.


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PURCHASE: After forecasting demand and after

verifying budgetary allocation, purchase is

initiated. The basic steps are as follows:

1) Preparing detailed specifications

2) Inviting offers by (a) quotations (b) tenders (c)direct enquiry

3) Preparation of tabulated comparative statement

of the offers received.4) Testing of samples/taking demonstration

5) Placing purchase order.


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INVENTORY:refers to the physical stocks of items

which are kept idle in the store, but are essential for

smooth functioning of the hospital.

Importance & Need:

1. To facilitate uninterrupted supply2. To guard against the risk of unpredictable

changes in demands

3. To take advantage of price fluctuations

4. To exercise effective control over a) procurementb) holding c) distribution

5. Effective inventory management seeks todetermine optimal level of stores items.


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Techniques for Inventory control:

ABC analysis: (Always Better Control)

- About 10% of the items take away the budgetallocation to the extent of 70% of the totalallocation. 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 aregrouped as C category items.


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Cont.

ABC ANALYSIS

ITEMS QUANTITY % CONS. OF

BUDGET ALLOCATION

A 10% 70%

B 20% 20%

C 70% 10%


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Limitations of A-B-C Analysis:

a)The A-B-C Analysis, in order to befully effective, should be carried out

with standardisation and codification.b)It indicates nothing regardingprofitability or criticality.

c)The A-B-C analysis should bereviewed periodically so that changesin prices and consumption are takeninto account.


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VED Analysis: (Vital, Essential & Desirable)

- Vital:Items without which treatment comes tostandstilli.e. non availability cant be tolerated.

- Essentials:Items whose non availability can betolerated for 2-3 days, as similar or alternativeitems are available.

- Desirable:Items whose non availability can betolerated for a longer period.


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Cont

VED ANALYSIS

Item Percentage

Vital 10%

Essential 40%Desirable 50%


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Importance:

As V-E-D analysis is based on thecriticality of the item, at times it can beused in the case of some materials whichare difficult to obtain.

It gives some indication about the itemsthat should be disposed off so as to trim

the inventories.This analysis is very relevant for drugs,instruments and equipments needed inoperation theatre and critical care units.


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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 CostP = Price per unit

I = Inventory carrying cost


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Economic order quantity

CARRYING

COSTPURCHASING

COST

ECONOMIC ORDER OF

QUANTITY(EOQ)


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Cont.....

Ordering Cost: The cost to get theitems on inventory is ordering cost.

This includes cost of staff,communications, stationary andtravel.

Inventory carrying cost: This

includes cost of staff, space, storagefacilities, security, insurance andwastage.

B l i C i i t O d i


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Balancing Carrying against Ordering

CostsAnnual Cost ($)

Order Quantity

Minimum

Total Annual

Stocking Costs

AnnualCarrying Costs

AnnualOrdering Costs

Total AnnualStocking Costs

Smaller Larger

Lowe

r

Higher

EOQ


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Material Management:

Materials management for,

General medical supplies

Housekeeping and sanitary supplies

Stationary and printing forms

Operating room supplies

Plant engineering, mechanical equipment


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Materials management has 4 main

components:

1) Obtaining or

acquiring

2) Storage

3) Distribution

4) Exercising control


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Acquisition of materials can be done by

following methods:

At departmental or sectional leveli.e. decentralized

At Hospital levelcentralized purchase

By a group or chain of hospitals:

a. Having same management control e.g.. Municipal orgovernment hospital

b. Chain of corporate hospitals having common governingbody e.g. Apollo hospitals, Wockhardt hospital etc.

c. Three or four hospitals situated in the same citymaking joint, common purchase.


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Personnel:

Materials Manager or over all

in-charge

Store Keeper Store assistants

Helpers

Security personnel

store management in hospitals

Documents