Download - 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