HOSPITAL INVENTORY & ITS HOSPITAL INVENTORY & ITS IMPORTANCEIMPORTANCE

Those in the field of hospital Those in the field of hospital administration in India are very administration in India are very

concerned about the rising cost of concerned about the rising cost of patient care. patient care.

The goal of financial and cost The goal of financial and cost management in a hospital is to management in a hospital is to ensure that the community is ensure that the community is provided with the service it needs at provided with the service it needs at an acceptable level of quality and at an acceptable level of quality and at an optimum cost.an optimum cost.

Materials constitute about 50 per Materials constitute about 50 per cent of the total expenditure of cent of the total expenditure of hospital administration.hospital administration.

The optimum utilization of these The optimum utilization of these resources must be ensured in order resources must be ensured in order to achieve a high level of to achieve a high level of productivity. The hospital pharmacy productivity. The hospital pharmacy is indispensable for the treatment of is indispensable for the treatment of patients and efficiency in this field patients and efficiency in this field would provide service to them at an would provide service to them at an acceptable level of quality and at an acceptable level of quality and at an optimum cost. optimum cost.

A thorough understanding and use of A thorough understanding and use of techniques of materials management techniques of materials management would help in achieving this by would help in achieving this by determining the categories of stock determining the categories of stock required in terms of quantity from required in terms of quantity from various sources, at low prices.various sources, at low prices.

Drug companies in India have a Drug companies in India have a turnover exceeding Rs 30,000 crores. turnover exceeding Rs 30,000 crores. New drugs have been entering the New drugs have been entering the market, and hospitals procure market, and hospitals procure thousands of different types of drugs thousands of different types of drugs to cater to their needs. to cater to their needs.

They should develop an effective They should develop an effective mechanism in order to enforce mechanism in order to enforce control on the build up of inventory control on the build up of inventory and its use so as to ensure the best and its use so as to ensure the best use of the resources.use of the resources.

Classification of Drugs Classification of Drugs

ON THE BASIS OF THE VALUE OF ON THE BASIS OF THE VALUE OF MONTHLY CONSUMPTION (A-B-C) MONTHLY CONSUMPTION (A-B-C)

This technique, called the A-B-C This technique, called the A-B-C analysis, is associated with Pareto’s analysis, is associated with Pareto’s law. Each individual drug and its law. Each individual drug and its monthly consumption value is listed monthly consumption value is listed out separately, and this list is out separately, and this list is rearranged in descending order of rearranged in descending order of value—beginning with the drugs of value—beginning with the drugs of the highest value, and ending with the highest value, and ending with the drugs of the lowest value. the drugs of the lowest value.

Generally, it will be observed that the Generally, it will be observed that the first 10 per cent of the drugs (‘A’ first 10 per cent of the drugs (‘A’ class) approximately account for 70 class) approximately account for 70 per cent of the value. The next 20 per cent of the value. The next 20 per cent of the drugs (‘B’ class) per cent of the drugs (‘B’ class) account for 20 per cent of the value, account for 20 per cent of the value, and the last 70 per cent of the drugs and the last 70 per cent of the drugs (‘C’ class) account for only 10 per (‘C’ class) account for only 10 per cent of the consumption value.cent of the consumption value.

However, the exact cut-off points for However, the exact cut-off points for A-B-C classification will vary, A-B-C classification will vary, depending on the situation. Through depending on the situation. Through this analysis, high (A), moderate (B) this analysis, high (A), moderate (B) and low (C) consumption value drugs and low (C) consumption value drugs are identified. If this analysis alone is are identified. If this analysis alone is considered for control purposes. considered for control purposes.

‘‘A’ class drugs should be A’ class drugs should be controlled carefully, dealt with controlled carefully, dealt with

by top management and by top management and ordered frequently, so as to ordered frequently, so as to keep a low quantity of, or keep a low quantity of, or

almost zero stocks/JIT almost zero stocks/JIT method. method.

Follow-up measures should be Follow-up measures should be carried out on a daily or weekly carried out on a daily or weekly basis. Regarding these drugs, plans basis. Regarding these drugs, plans should be made for the quantity, should be made for the quantity, quality and timing of purchase. quality and timing of purchase. Efforts to increase the number of Efforts to increase the number of sources and reduce the lead time for sources and reduce the lead time for supply should be taken up.supply should be taken up.

‘‘ B’ class drugs are less important B’ class drugs are less important than ‘A’ class drugs, and they should than ‘A’ class drugs, and they should

have low safety stocks with moderate have low safety stocks with moderate control. The follow-up can be carried control. The follow-up can be carried out on a fortnightly or monthly basis. out on a fortnightly or monthly basis. Past data can be utilised for planning Past data can be utilised for planning the required quantities. A moderate the required quantities. A moderate number of suppliers should be number of suppliers should be identified for these drugs. identified for these drugs.

‘‘ C’ class drugs can be stocked in large C’ class drugs can be stocked in large quantities and bulk ordering can be quantities and bulk ordering can be

resorted to in order to take advantage resorted to in order to take advantage of quantity discounts. These drugs canof quantity discounts. These drugs can be controlled by the lower management, be controlled by the lower management,

and the follow-up can be carried out and the follow-up can be carried out once in three months. once in three months.

ON THE BASIS OF THE UNIT PRICE OF ON THE BASIS OF THE UNIT PRICE OF DRUGS (H-M-L) DRUGS (H-M-L)

Each individual drug consumed during the Each individual drug consumed during the month and its latest price is listed. The month and its latest price is listed. The distribution of prices is studied in order todistribution of prices is studied in order to

arrive at the cut-off points for classifying arrive at the cut-off points for classifying drugs as high (H), medium (M) and low (L) drugs as high (H), medium (M) and low (L) cost drugs. This analysis will enable the cost drugs. This analysis will enable the

management to design appropriate management to design appropriate purchase procedures and decide on purchase procedures and decide on delegation of authority to purchase the delegation of authority to purchase the drugs. drugs.

ON THE CRITICALITY OF THE DRUG ON THE CRITICALITY OF THE DRUG (V-E-D) (V-E-D) Drugs consumed and stored during aDrugs consumed and stored during a month are classified as vital (V),month are classified as vital (V),essential (E) and desirable (D).essential (E) and desirable (D).The criticality of the drug is identifiedThe criticality of the drug is identified on the basis of recommendations by a on the basis of recommendations by a

panel of doctors with different panel of doctors with different specializations. specializations.

The doctors are interviewed and the The doctors are interviewed and the collected information is processed. collected information is processed. Drugs which simultaneously appear Drugs which simultaneously appear in all categories are classified as in all categories are classified as vital. The drugs which appear in both vital. The drugs which appear in both vital and essential categories are vital and essential categories are classified as vital. classified as vital.

Stocking of drugs is based on Stocking of drugs is based on strategies different from those of other strategies different from those of other classifications. Vital drugs should be classifications. Vital drugs should be stocked adequatelystocked adequately

to meet emergencies. Some risks can to meet emergencies. Some risks can be taken in the case of essential be taken in the case of essential drugs. Desirable drugs have drugs. Desirable drugs have substitutes and are easily available in substitutes and are easily available in the market. the market.

ON THE BASIS OF THE MONTHLY CONSUMPTION ON THE BASIS OF THE MONTHLY CONSUMPTION PATTERN OF DRUGS (F-M-S) PATTERN OF DRUGS (F-M-S)

The number of units of each individual drug The number of units of each individual drug that has been consumed in a month is listedthat has been consumed in a month is listed and its distribution studied, in order to arriveand its distribution studied, in order to arrive at the cut-off points for classifying drugs as fast at the cut-off points for classifying drugs as fast

(F), medium (M) and slow (S) moving drugs. With (F), medium (M) and slow (S) moving drugs. With rapid changes in process and technologies, the rapid changes in process and technologies, the movement analysis of drugs assumes movement analysis of drugs assumes importance, in order to combat obsolescence and importance, in order to combat obsolescence and surplus. surplus.

Difference in HOSPITAL MM&Difference in HOSPITAL MM&ENGG. INDUSTRY MMENGG. INDUSTRY MM

HMM(Hospital Materials Management)HMM(Hospital Materials Management) Materials requirement is continuous, since Materials requirement is continuous, since work in a hospital goes on throughout work in a hospital goes on throughout the day, all 365 days in a year. the day, all 365 days in a year. EIM (Engg.Industry Materials Management)EIM (Engg.Industry Materials Management) There may be no material consumption There may be no material consumption

during weekly and declared holidays; or during weekly and declared holidays; or when it is when it is

not scheduled for production. Typically, the not scheduled for production. Typically, the material requirement is limited to five or six material requirement is limited to five or six

days a week. days a week.

HMMHMM Medical items: Medical items: 1.Pharmaceutical, surgical, 1.Pharmaceutical, surgical,

consumable and protective.consumable and protective.2. Capital equipment and 2. Capital equipment and accessories.accessories.3. Electrical/mechanical/civil 3. Electrical/mechanical/civil material for maintenance material for maintenance work.work.

4. Catering items.4. Catering items.5. Housekeeping material.5. Housekeeping material.6. Linen/Uniforms/clothes.6. Linen/Uniforms/clothes.7. Office equipment.7. Office equipment.

8. Printing and stationery8. Printing and stationery

EIMEIM 1. Raw materials. 1. Raw materials. 2. Sub-assemblies. 2. Sub-assemblies. 3. Electrical and 3. Electrical and

mechanical spares for mechanical spares for maintenance. maintenance.

4. Office equipment and 4. Office equipment and accessories. accessories.

5. Printing and stationery5. Printing and stationery

CHARACTERISTICS OF MATERIAL CHARACTERISTICS OF MATERIAL REQUIREMENT REQUIREMENT

HMMHMM Material requirement is Material requirement is

very critical. Non-very critical. Non-availability of a availability of a particular material can particular material can cost a human life, for cost a human life, for example, the non-example, the non-availability of oxygen or availability of oxygen or of life-saving drugs. of life-saving drugs. When the patient When the patient suffers for want of suffers for want of materials, the buyer’s materials, the buyer’s feeling of guilt will be feeling of guilt will be acute. acute.

EIMEIM Material requirement Material requirement

is critical to the extent is critical to the extent that the entire that the entire production may come production may come to a grinding halt for to a grinding halt for want of material. It want of material. It may cause heavy may cause heavy financial loss to the financial loss to the company, which can company, which can be compensated by be compensated by other means. other means.

QUALITY OF MATERIALS QUALITY OF MATERIALS HMMHMM The quality of materials The quality of materials

purchased is critically purchased is critically important. Sub-standard important. Sub-standard quality materials cannot be quality materials cannot be tolerated. For example, tolerated. For example, use of contaminated use of contaminated disposable plastic syringes disposable plastic syringes will cause a dangerous will cause a dangerous reaction in the patients; reaction in the patients; infected blood can cause infected blood can cause hepatitis and AIDS. hepatitis and AIDS.

EIMEIM The poor quality of a The poor quality of a

material can affect it to the material can affect it to the extent that the product may extent that the product may fail in its ultimate quality fail in its ultimate quality specifications, leading to specifications, leading to rejection, or re-working on rejection, or re-working on the production floor, or the production floor, or rejection by the customer, rejection by the customer, thereby increasing the cost. thereby increasing the cost. Occasionally, the product Occasionally, the product may fail in the market if it may fail in the market if it happens to pass the quality happens to pass the quality control check. control check.

MATERIAL INSPECTION MATERIAL INSPECTION HMMHMM The hospital has no The hospital has no

separate quality control separate quality control department to certify the department to certify the quality of material quality of material purchased. Medical items purchased. Medical items purchased for each purchased for each department have to be department have to be checked by specialists in checked by specialists in that particular department. that particular department. It is impossible to run a It is impossible to run a quality control department quality control department employing specialists in employing specialists in various specialities, such various specialities, such as cardiology, nephrology, as cardiology, nephrology, dentistry, and so on. dentistry, and so on.

EIMMEIMM A central quality control A central quality control

section is usually available section is usually available to check and approve the to check and approve the

quality of material quality of material purchased. purchased.

PURCHASE DECISIONSPURCHASE DECISIONS

HMMHMM Doctors play a Doctors play a

dominant role in dominant role in purchase decisions.purchase decisions.

EIMEIM Production, quality Production, quality

control, control, engineering and engineering and design design departments play departments play an important role an important role in purchase in purchase decisionsdecisions

IMPORT PROCEDURESIMPORT PROCEDURES HMMHMM Import procedures with Import procedures with

respect to hospital respect to hospital materials is simpler materials is simpler when compared to when compared to import of regular import of regular industrial materials, industrial materials, since most hospital since most hospital materials fall under materials fall under Open General License Open General License (OGL). It is also possible (OGL). It is also possible to get customs duty to get customs duty exemption for actual exemption for actual users. users.

EIMEIM Import of materials Import of materials

call for elaborate call for elaborate procedures. Customs procedures. Customs duty exemption is duty exemption is seldom grantedseldom granted

SOURCE FOR IMPORTSOURCE FOR IMPORT HMMHMM Over 50 per cent of the Over 50 per cent of the

materials purchased for materials purchased for most of the medical most of the medical departments, such as departments, such as cardiology, nephrology, cardiology, nephrology, dental and radiology, dental and radiology, are imported. These are imported. These imported materials are imported materials are available through Indian available through Indian agents or directly from agents or directly from foreign manufacturers. foreign manufacturers.

EIMEIM Generally, the import Generally, the import

content is hardly 5 per content is hardly 5 per cent to 10 per cent, cent to 10 per cent, except in the except in the electronics industry. electronics industry. Indigenous materials Indigenous materials are available for are available for purchase and they are purchase and they are also of an acceptable also of an acceptable quality. quality.

BASIS FOR MATERIAL BASIS FOR MATERIAL REQUIREMENT REQUIREMENT

HMMHMM Requirement of Requirement of

materials is based on materials is based on the inflow of patients, the inflow of patients, which in turn depends which in turn depends on several factors, such on several factors, such as the reputation of the as the reputation of the hospital, the climate, hospital, the climate, holidays, the financial holidays, the financial capacity of the potential capacity of the potential patient, etc. Therefore, patient, etc. Therefore, materials requirement materials requirement planning is difficult to planning is difficult to carry outcarry out

EIMEIM Materials planning is Materials planning is

easy since it can be easy since it can be based on the sales based on the sales forecast and forecast and

production plansproduction plans

SPARES PLANNINGSPARES PLANNING HMMHMM Spares planning for Spares planning for

sophisticated sophisticated equipment is equipment is difficult because of difficult because of the high rate of the high rate of obsolescence in obsolescence in the biomedical the biomedical field. field.

EIMEIM Spares planning is Spares planning is

relatively easy relatively easy because of long because of long experience in experience in operating factory operating factory

equipment, and the equipment, and the availability of availability of experienced experienced maintenance maintenance personnel. personnel.

CENTRALISED STORES CENTRALISED STORES HMMHMM Centralised stores Centralised stores

are difficult to are difficult to operate. operate.

EIMEIM Centralised stores Centralised stores

are possible.are possible.

LOSS OF EFFICACYLOSS OF EFFICACY HMMHMM Expiry dates play an Expiry dates play an

important role in the important role in the case of hospital case of hospital materials. materials. Oxygenerators, Oxygenerators, cardiotomy reserviors cardiotomy reserviors used in open heart used in open heart surgeries cannot be surgeries cannot be used after the expiry used after the expiry date. Most of the drugs date. Most of the drugs purchased have a purchased have a finite shelf life beyond finite shelf life beyond which they cannot and which they cannot and should not be used. should not be used.

EIMEIM Engineering items, Engineering items,

such as castings, such as castings, forging and metallic forging and metallic components have a components have a fairly long shelf life, fairly long shelf life, with exceptions such with exceptions such as paints, chemicals as paints, chemicals and rubber and rubber components. components.

DOCUMENTATION DOCUMENTATION PROCEDURESPROCEDURES

HMMHMM Implementation of controls Implementation of controls

and documentation and documentation procedures is difficult, procedures is difficult, because doctors, because doctors, paramedical staff, such as, paramedical staff, such as, nurses, dieticians and nurses, dieticians and hospital administration hospital administration staff, have to be convinced staff, have to be convinced and won over, which takes and won over, which takes a considerable amount of a considerable amount of time and effort. time and effort.

EIMEIM Documents and controls Documents and controls

are usually accepted as are usually accepted as part of the normal system part of the normal system and procedures in an and procedures in an industrial organisation. industrial organisation.

SKILL TRANSFER SKILL TRANSFER HMMHMM Transfer of materials Transfer of materials

management skill management skill from a non-hospital from a non-hospital organization to a organization to a hospital is almost hospital is almost impossible. Hence, impossible. Hence, this skill has to be this skill has to be developed, nurtured developed, nurtured and retained in and retained in situation situation

EIMEIM The skill can be The skill can be

transferred to transferred to different types of different types of industrial industrial organizations, organizations, including including

service service organizations other organizations other than hospitalsthan hospitals

Computerization of inventory Computerization of inventory management brings a great deal of management brings a great deal of efficiency to an organization, more so efficiency to an organization, more so to a hospital. A variety of computer to a hospital. A variety of computer programmes for inventory programmes for inventory management, for different sizes and management, for different sizes and needs, are available in the market, needs, are available in the market, which can be adapted to the which can be adapted to the requirements of a hospital. requirements of a hospital.

In an urban area, just- in-time In an urban area, just- in-time inventory policies can be easily inventory policies can be easily applied because of the availability of applied because of the availability of several distributors and the keen several distributors and the keen competition among suppliers. In this competition among suppliers. In this context, networking among the context, networking among the materials management departments materials management departments of hospitals in urban areas will of hospitals in urban areas will increase their efficiency and bring increase their efficiency and bring down their cost of operations. down their cost of operations.

Objectives Objectives

The objectives of the materials department are to: The objectives of the materials department are to: 1. Purchase materials in time and as required by the 1. Purchase materials in time and as required by the

user departments for the user departments for the 2.smooth functioning of the hospital. 2.smooth functioning of the hospital. 3. Maintain optimum levels of stock in order to avoid 3. Maintain optimum levels of stock in order to avoid

wastage, scrap and obsolescence. wastage, scrap and obsolescence. 4.Keep in contact with user departments to ensure 4.Keep in contact with user departments to ensure

that the quality supplied to them is of specified that the quality supplied to them is of specified standards. standards.

5. Procure the specified material for the best or 5. Procure the specified material for the best or acceptable price to make it available in time and to acceptable price to make it available in time and to the right user. the right user.

6. Maintain good vendor relationship. 6. Maintain good vendor relationship.

Typically, the type of materials Typically, the type of materials used in a hospital can be used in a hospital can be classified into classified into MEDICALMEDICAL

AndAndNON-MEDICAL ITEMSNON-MEDICAL ITEMS

MEDICAL ITEMSMEDICAL ITEMS 1• Capital Equipment, such as X-Ray, CAT 1• Capital Equipment, such as X-Ray, CAT

Scan and MRI. Scan and MRI. 2• Expensive materials that are actually 2• Expensive materials that are actually

consumables, such as Stent, which is used in consumables, such as Stent, which is used in cardiac surgeries. cardiac surgeries.

3• Consumables, such as IV fluids, catheters, 3• Consumables, such as IV fluids, catheters, syringes, gloves, drugs and medicines , syringes, gloves, drugs and medicines , which are under the purview of the which are under the purview of the pharmacy department. pharmacy department.

4• Consumables used in the operation 4• Consumables used in the operation theatre, such as surgical items, dressings, theatre, such as surgical items, dressings, gauze, cotton wool, pads, masks and gowns. gauze, cotton wool, pads, masks and gowns.

NON-MEDICAL ITEMSNON-MEDICAL ITEMS 1. Housekeeping—linen, toiletries, washing 1. Housekeeping—linen, toiletries, washing

materials and blankets. materials and blankets. 2. Printing and stationery—note pads, doctor’s 2. Printing and stationery—note pads, doctor’s

pads, OHP sheets and record books. pads, OHP sheets and record books. 3. Food and beverage—vegetables, grocery 3. Food and beverage—vegetables, grocery

and kitchen items. and kitchen items. 4. Engineering and maintenance—spares and 4. Engineering and maintenance—spares and

repair parts for the upkeep of repair parts for the upkeep of 5.capital items, tools and testing instruments. 5.capital items, tools and testing instruments.

The materials department may be The materials department may be divided functionally into the divided functionally into the purchase department and the stores purchase department and the stores department, for effective department, for effective coordination. The organisation chart coordination. The organisation chart is shown in Figure shown in the next is shown in Figure shown in the next slide.slide.

MAIN STOREMAIN STORE The main store supplies materials to The main store supplies materials to

all other stores in the hospital. all other stores in the hospital. Materials are accepted by the store Materials are accepted by the store through a delivery challan, which is through a delivery challan, which is stamped as received. Before stamped as received. Before accepting them, items are inspected, accepting them, items are inspected, and those which are damaged and and those which are damaged and rejected are returned to the supplier. rejected are returned to the supplier.

After the inspection, a After the inspection, a STORES STORES RECEIPT VOUCHER(SRV)RECEIPT VOUCHER(SRV) is prepared, is prepared, based on the delivery challan. based on the delivery challan. Materials are issued against Materials are issued against materials requisition slip to the user materials requisition slip to the user department. In the stores, items are department. In the stores, items are arranged department wise, with arranged department wise, with numeric codes for item groups.numeric codes for item groups.

Twice a week, the stock levels of Twice a week, the stock levels of items in the radiology, nephrology, items in the radiology, nephrology, cardiology, laboratory services and cardiology, laboratory services and housekeeping departments are sent housekeeping departments are sent to the purchase department. to the purchase department.

The main store holds over The main store holds over approximately 1,500 items, which cost approximately 1,500 items, which cost over Rs 45 lakh a month. The most over Rs 45 lakh a month. The most expensive item is the pacemaker and expensive item is the pacemaker and arterial stent, which are valued at Rs arterial stent, which are valued at Rs 60,000 a piece. The fastest moving 60,000 a piece. The fastest moving items are soaps and tissue paper. About items are soaps and tissue paper. About 100 suppliers may provide service to a 100 suppliers may provide service to a well-developed sub-metro city hospital. well-developed sub-metro city hospital.

OT, LABORATORY AND CATH OT, LABORATORY AND CATH LAB STORESLAB STORES

These stores receive materials from These stores receive materials from the main store. They are open for the main store. They are open for two shifts in a day—8 am to 8 pm. two shifts in a day—8 am to 8 pm. The stock of materials is taken on a The stock of materials is taken on a daily basis. Cath Lab and OT stores daily basis. Cath Lab and OT stores prepare trays for each case prepare trays for each case requisitioned. Each tray has a requisitioned. Each tray has a collection of items as per the orders collection of items as per the orders of the concerned doctor. of the concerned doctor.

In the OT stores, about 300 items are In the OT stores, about 300 items are held in store, carrying a value of over held in store, carrying a value of over Rs 20 lakh. The most expensive item Rs 20 lakh. The most expensive item is injection Supacef, and the fastest is injection Supacef, and the fastest items are IV fluids, syringes and items are IV fluids, syringes and gloves. gloves.

On an average, a stock of one On an average, a stock of one month’s consumption is held in the month’s consumption is held in the laboratory store and the cath lab laboratory store and the cath lab store. The OT store holds items store. The OT store holds items needed for one month of needed for one month of consumptionconsumption

FOOD AND BEVERAGE FOOD AND BEVERAGE STORESTORE

Items for both daily and monthly Items for both daily and monthly consumption are stored in the food consumption are stored in the food and beverage department. and beverage department. Vegetables and perishables are Vegetables and perishables are received directly by the store. received directly by the store. Vegetables bought by the daily Vegetables bought by the daily consumption store are purchased consumption store are purchased according to an estimate. according to an estimate.

Perishable items are stored in the Perishable items are stored in the refrigerator. Emergency purchases refrigerator. Emergency purchases are made by sending an internal are made by sending an internal office memo to the purchase office memo to the purchase department, and later collecting cash department, and later collecting cash for the expenses incurred. for the expenses incurred.

The food and beverage store stocks The food and beverage store stocks over 250 items for about 10 days of over 250 items for about 10 days of consumption. Vegetables are cleaned consumption. Vegetables are cleaned with cold water. Utensils, serving with cold water. Utensils, serving plates, spoons, tumblers, and so on, plates, spoons, tumblers, and so on, are sterilised. Leftover food is given are sterilised. Leftover food is given away in sealed polythene bags. away in sealed polythene bags.

PRINTING AND STATIONERY PRINTING AND STATIONERY STORE STORE

This store caters to almost all This store caters to almost all departments in the hospital. It deals with departments in the hospital. It deals with 5/6 printers from whom price quotations 5/6 printers from whom price quotations are received once a year, or once in six are received once a year, or once in six months, as a contract price for the months, as a contract price for the subsequent period. A monthly statement subsequent period. A monthly statement of consumption by each department, of consumption by each department, according to the amount of money and according to the amount of money and quantity of items required, is prepared. quantity of items required, is prepared. Weekly reports are prepared, audited Weekly reports are prepared, audited and reviewed. and reviewed.

The printing and stationery store may The printing and stationery store may handle as many as 400 items of the value handle as many as 400 items of the value of about four lakhs in a month. The most of about four lakhs in a month. The most expensive item is computer stationery expensive item is computer stationery and the fastest-moving items are and the fastest-moving items are requisition books. As many as 4/5 requisition books. As many as 4/5 suppliers may provide their services in an suppliers may provide their services in an urban city. The printing and stationery urban city. The printing and stationery store holds between 30 TO 45 days of store holds between 30 TO 45 days of consumption. consumption.

DocumentationDocumentation This section lists the major files that This section lists the major files that

are maintained in the materials are maintained in the materials department, department,

and the items of information and the items of information collected in each of them. collected in each of them.

Materials stock fileMaterials stock file • • Name of item Name of item • • Code number Code number • • Class (A, B, C) Class (A, B, C) • • Lead time to procure Lead time to procure • • Stock as on previous orderStock as on previous order

• Value of item as on previous order• Value of item as on previous order• Unit price for previous order• Unit price for previous order

Approved list of vendors fileApproved list of vendors file• • Name of item Name of item • • Name of the supplier Name of the supplier Supplier code Supplier code • • Lead time for the itemLead time for the item

• Price at which previously • Price at which previously purchasedpurchased

Purchase Order Master filePurchase Order Master file Copy of all purchase Order released Copy of all purchase Order released

will be filed chronologically for will be filed chronologically for reference.reference.

Requisition slipRequisition slip • • Department making requisition Department making requisition • • Date Date • • Name of item Name of item • • Quantity requiredQuantity required

• When required• When required

Inspection reportInspection report • • Date Date • • Item inspected Item inspected • • Method of inspection Method of inspection • • Name of supplier Name of supplier • • Passed Passed • • Rejected/sent back Rejected/sent back

Issue registerIssue register • • DateDate

• Item name• Item name• Opening stock• Opening stock• Quantity issued• Quantity issued

• • To whom issued To whom issued • • Closing stock Closing stock

SkillsSkills The specific skills needed to manage The specific skills needed to manage

a store are—the person should be a store are—the person should be honest, meticulous, efficient and honest, meticulous, efficient and intelligent; the person should have intelligent; the person should have the necessary patience and readiness the necessary patience and readiness required to handle queries from user required to handle queries from user departments about the availability of departments about the availability of material, reason for the denial of a material, reason for the denial of a request and reasons for any delay. request and reasons for any delay.

A postgraduate diploma in materials A postgraduate diploma in materials management will help in executing the management will help in executing the task objectively and rationally. This task objectively and rationally. This diploma will provide knowledge about diploma will provide knowledge about store practices, ordering procedures, store practices, ordering procedures, inventory policies, inventory analysis inventory policies, inventory analysis and computerisation. A knowledge of and computerisation. A knowledge of computer software for inventory computer software for inventory management, spreadsheet, database management, spreadsheet, database management will increase the person’s management will increase the person’s speed and efficiency. speed and efficiency.

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