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HOSPITAL PHARMACY MANAGEMENT



   BY: HASSAN ABDELWAHAB
   1st year – pharmacy practice
Definition
  It 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.
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
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
Objective of material management
Primary
•Right price              Secondary
•High turnover            •Forecasting
•Low procurement          •Inter-departmental
• storage cost            harmony
•Continuity of supply     •Product improvement
•Consistency in quality   •Standardization
•Good supplier            •Make or buy decision
relations                 •New materials & products
•Development of           •Favorable reciprocal
personnel                 relationships
•Good information
system
Economy in material management

•Containing the costs

•Instilling efficiency in all activities
Four basic needs of Material
                management
1. 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
Basic principles of material management
1. 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
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 of limitations.
Functional areas of material management
1. Purchasing
2. Central service supply
3. Central stores
4. The print shops
5. The pharmacy
6. Dietary
& Linen services( manufacturing services)
PROCUREMENT
1. Directorate general of supply & disposal
(DGS & D, Govt. Of India]
2. Medical stores depot (M. S.D. Government
of India, Ministry of H & FW]
3. Private or public sector undertakings.
4. Receiving donations.
Procurement cycle
• Review selection
• Determine needed quantities
• Reconcile needs & funds
• Choose procurement method
• Select suppliers
• Specify contract terms
• Monitor order status
• Receipt & inspection
Objectives of procurement system
•Acquire 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
FLOW OF PROCUREMENT DECISIONS
DRUG REQUIREMENTS
DRUG REQUIREMENTS

                               YES
                                                     DETERMINE DRUGS & DRUG
                                                     DETERMINE DRUGS & DRUG
      DONATION
      DONATION                                           REQUIREMENTS
                                                          REQUIREMENTS
       SOURCE
       SOURCE                        ADJUST
                                     ADJUST
                                   QUANTITIES
                                   QUANTITIES
  NO
                             YES                     DETERMINE DRUGS & DRUG
                                                     DETERMINE DRUGS & DRUG
      GOVERNMENT
      GOVERNMENT                                         REQUIREMENTS
                                                          REQUIREMENTS
      PRODUCTION
       PRODUCTION
                                     ADJUST
                                     ADJUST
 NO                                QUANTITIES
                                   QUANTITIES
        PURCHASE
        PURCHASE
      REQUIREMENTS
      REQUIREMENTS
                    NO                          NO                   NO

 OPEN TENDER
 OPEN TENDER                RESTRICTED
                            RESTRICTED                NEGOTIATED
                                                      NEGOTIATED               DIRECT
                                                                               DIRECT
                              TENDER
                              TENDER                    TENDER
                                                        TENDER                PURCHASE
                                                                              PURCHASE
              YES
                                       YES                   YES                           YES

                         REQUEST OFFERS FROM
                         REQUEST OFFERS FROM            LOCATE
                                                         LOCATE               CONTACT
                                                                              CONTACT
   CALL FOR
   CALL FOR                                                                    RELIABLE
                          ELIGIBLE SUPPLIERS
                          ELIGIBLE SUPPLIERS           RELIABLE
                                                        RELIABLE               RELIABLE
    OFFERS
    OFFERS                                                                    SUPPLIER
                                                       SUPPLIERS
                                                       SUPPLIERS              SUPPLIER


  EVALUATE &
  EVALUATE &                 EVALUATE OFFERS
                             EVALUATE OFFERS         NEGOTIATE PRICE &
                                                     NEGOTIATE PRICE &         ESTABLISH
                                                                               ESTABLISH
SELECT SUPPLIER
SELECT SUPPLIER                 & SELECT
                                 & SELECT            SUPPLY CONDITIONS
                                                     SUPPLY CONDITIONS           PRICE
                                                                                 PRICE
                                SUPPLIERS
                                SUPPLIERS


PURCHASE ORDER
PURCHASE ORDER              PURCHASE ORDER //
                            PURCHASE ORDER              PURCHASE
                                                        PURCHASE               PURCHASE
                                                                               PURCHASE
  // CONTRACT
     CONTRACT                  CONTRACT
                               CONTRACT                  ORDER //
                                                         ORDER                  ORDER //
                                                                                ORDER
                                                        CONTRACT
                                                        CONTRACT               CONTRACT
                                                                               CONTRACT

 DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER //CONTRACT SPECIFICATIONS & CLEARED
 DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER CONTRACT SPECIFICATIONS & CLEARED
                                  FOR DISTRIBUTION
                                  FOR DISTRIBUTION
Open tender
•Public 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 in
the tender form
•In technical items, ‘two packets or two bins’
system is followed. Offers are given in two
separate packets.
•Technical bid
•Financial bid
                                        Cont……
•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 tenders – generally 90 days
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 procurement
Buyer approaches selected potential Suppliers & bargain
directly
Used in long time supply contracts
Direct procurement
Purchased from single supplier, at his quoted price
Prices may be high
Reserved for proprietary materials, or low priced, small
quantity & emergency purchases
Rate contract
Firms are asked to supply stores at specified Rates
during the period covered by the Contract

Spot purchase
It is done by a committee, which includes an officer
from stores, accounts & purchasing departments

Risk purchase
If supplier fails, the item is purchased from other
agencies & the difference in cost is recovered from
the first supplier
Points to remember while purchasing
•Proper 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
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
•Follow two bin or double shelf system, to avoid
•Stock outs
•Reserve bin should contain stock that will cover
•lead time and a small safety stock
Issue & use
Can be centralized or decentralized
Inventory control

It means stocking adequate number and
kind of stores, so that the materials are
available whenever required and wherever
required. Scientific inventory control results
in optimal balance
Functions of inventory control

•To provide maximum supply service,
consistent with maximum efficiency &
optimum investment.

•To provide cushion between forecasted &
actual demand for a material
Economic order of quantity
EOQ = Average Monthly Consumption X Lead Time [in
      months] + Buffer Stock – Stock on hand


                  ECONOMIC ORDER OF
                    QUANTITY(EOQ)




     PURCHASING                       CARRYING
        COST                            COST
•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
•Ideal – 2 to 6 weeks.
ABC ANALYSIS
              (ABC = Always Better Control)
This is based on cost criteria.
It helps to exercise selective control when confronted
with large number of items it rationalizes the number of
orders, number of items & reduce the inventory.
About 10 % of materials consume 70 % of resources
About 20 % of materials consume 20 % of resources
About 70 % of materials consume 10 % of resources
‘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
‘C’ ITEMS
Larger 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
ANNUAL COST   CUMMULATI VE
         I TEM %   I TEM                                 COST %
AB C                          [ Rs.]       COST [ Rs.]
                    1         90000         90000
          10 %                                             70 %
  A                 2         50000         140000
                    3         20000         160000
  N                 4         7500          167500
          20 %                                             20 %
  A                 5         7500          175000
                    6         5000          180000
  L
                    7         4500          184500
  Y                 8         4000          188500
                    9         2750          191250
  S
                    10        1750          193000
  I                 11        1500          194500

  S                 12        1500          196000
                    13         500          196500         10 %
          70 %
                    14         500          197000
                    15         500          197500
W O RK              16         500          198000
SHEET               17         500          198500
                    18         500          199000
                    19         500          199500
                    20         500          200000
‘B’ ITEM
Intermediate
Must have:
      •Moderate control
      •Purchase based on rigid requirements
      •Reasonably strict watch & control
      •Moderate safety stocks
      •Managed by middle level management
VED ANALYSIS
 •Based on critical value & shortage cost of an item
–It is a subjective analysis.
     •Items are classified into:
 Vital:
     •Shortage cannot be 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 Scrutinized


       V     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 ANALYIS
Based on availability
    Scarce(rare)
         Managed by top level management
         Maintain big safety stocks
    Difficult
         Maintain sufficient safety stocks
    Easily available
         Minimum safety stocks
FSN ANALYSIS
              Based on utilization.
              Fast moving.
              Slow moving.
              Non-moving.
              Non-moving items must be periodically reviewed to prevent
              expiry
               & obsolescence
HML ANALYSIS
Based on cost per unit
Highest
Medium
Low
This is used to keep control over consumption
at departmental level for deciding the frequency of physical verification.
PROCURMENT OF EQUIPMENT
Points to be noted before purchase of an
equipment:
   •Latest technology
   •Availability of maintenance & repair facility,
   with minimum down time
   •Post warranty repair at reasonable cost
   •Upgradeability
   •Reputed manufacturer
   •Availability of consumables
   •Low operating costs
•Installation
•Proper installation as per guidelines
HISTORY SHEET OF
 EQUIPMENT           :

 History sheet

•Name of equipment         •After sales arrangement
•Code number               •Guarantee period
•Date of purchase          •Warranty period
•Name of supplier          •Life of equipment
•Name of manufacturer      •Down time / up time
•Date of installation      •Cost of maintenance
•Place of installation     •Unserviceable date
•Date of commissioning     •Date of condemnation
•Environmental control     •Date of replacement
•Spare parts inventory
•Techn. Manual / circuit
diagrams / literatures
Maintenance sheet:
Annual maintenance contract [AMC]
  Starting date
  Expiry date
  Service / repair description
  Materials / spares used
  Cost of repairs
         In-house
         Outside agency
EQUIPMENT MAINTENANCE & CONDEMNATION

         Maintenance & repairs:
         Preventive maintenance
         Master maintenance plan
         Repair of equipment
PREVENTIVE MAINTENANCE
    •Purchase with warranty & spares.
    •Safeguard the electronic equipments with: (as per
    guidelines)
            •Voltage stabilizer, UPS
            •Automatic switch over generator
    •Requirement of electricity, water, space, atmospheric
    conditions, etc. Must be taken into consideration
    •Well equipped maintenance cell must be available
    •All equipment must be operated as per instructions with
    trained staff
    •Monitoring annual maintenance contracts. (AMC)
    •Maintenance cell
    •Communications between maintenance cell & suppliers of
    the equipment.
    •Follow-up of maintenance & repair services
•Repair of equipment
•Outside agencies
•In-house facility
CONDEMNATION & DISPOSAL
 Criteria for condemnation:
The equipment has become:
1. Non-functional & beyond economical repair
2. Non-functional & obsolete
3. Functional, but obsolete
4. Functional, but hazardous
5. Functional, but no longer required
PROCEDURE FOR CONDEMNATION
1. Verify records.
2. History sheet of equipment
3. Log book of maintenance & repairs
4. Performance record of equipment
5. Put up in proper form & to the proper authority
DISPOSAL
1. Circulate to other units, where it is needed
2. Return to the vendor, if willing to accept
3. Sell to agencies, scrap dealers, etc
4. Auction
5. Local destruction
CONCLUSION

 Material management is an important management tool which will be
 very useful in getting the right quality & right quantity of supplies at
right time, having good inventory control & adopting sound methods
of condemnation & disposal will improve the efficiency of the
organization & also make the working atmosphere healthy any type
of organization, whether it is Private, Government ,Small
organization, Big organization and Household.

 Even a common man must know the basics of material management
so that he can get the best of the available resources and make it a
habit to adopt the principles of material management in all our daily
activities
References:
1. Hospital and clinical pharmacy by S.BALASUBRAMANIAN
2. Text of hospital pharmacy by ALWOOD MC and Blackwell
3. wikipedia
Hospital pharmacy management

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Hospital pharmacy management

  • 1. HOSPITAL PHARMACY MANAGEMENT BY: HASSAN ABDELWAHAB 1st year – pharmacy practice
  • 2. Definition It 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.
  • 3. 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
  • 4. 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
  • 5. Objective of material management Primary •Right price Secondary •High turnover •Forecasting •Low procurement •Inter-departmental • storage cost harmony •Continuity of supply •Product improvement •Consistency in quality •Standardization •Good supplier •Make or buy decision relations •New materials & products •Development of •Favorable reciprocal personnel relationships •Good information system
  • 6. Economy in material management •Containing the costs •Instilling efficiency in all activities
  • 7. Four basic needs of Material management 1. 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
  • 8. Basic principles of material management 1. 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
  • 9. 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 of limitations.
  • 10. Functional areas of material management 1. Purchasing 2. Central service supply 3. Central stores 4. The print shops 5. The pharmacy 6. Dietary & Linen services( manufacturing services)
  • 11. PROCUREMENT 1. Directorate general of supply & disposal (DGS & D, Govt. Of India] 2. Medical stores depot (M. S.D. Government of India, Ministry of H & FW] 3. Private or public sector undertakings. 4. Receiving donations.
  • 12. Procurement cycle • Review selection • Determine needed quantities • Reconcile needs & funds • Choose procurement method • Select suppliers • Specify contract terms • Monitor order status • Receipt & inspection
  • 13. Objectives of procurement system •Acquire 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
  • 14. FLOW OF PROCUREMENT DECISIONS DRUG REQUIREMENTS DRUG REQUIREMENTS YES DETERMINE DRUGS & DRUG DETERMINE DRUGS & DRUG DONATION DONATION REQUIREMENTS REQUIREMENTS SOURCE SOURCE ADJUST ADJUST QUANTITIES QUANTITIES NO YES DETERMINE DRUGS & DRUG DETERMINE DRUGS & DRUG GOVERNMENT GOVERNMENT REQUIREMENTS REQUIREMENTS PRODUCTION PRODUCTION ADJUST ADJUST NO QUANTITIES QUANTITIES PURCHASE PURCHASE REQUIREMENTS REQUIREMENTS NO NO NO OPEN TENDER OPEN TENDER RESTRICTED RESTRICTED NEGOTIATED NEGOTIATED DIRECT DIRECT TENDER TENDER TENDER TENDER PURCHASE PURCHASE YES YES YES YES REQUEST OFFERS FROM REQUEST OFFERS FROM LOCATE LOCATE CONTACT CONTACT CALL FOR CALL FOR RELIABLE ELIGIBLE SUPPLIERS ELIGIBLE SUPPLIERS RELIABLE RELIABLE RELIABLE OFFERS OFFERS SUPPLIER SUPPLIERS SUPPLIERS SUPPLIER EVALUATE & EVALUATE & EVALUATE OFFERS EVALUATE OFFERS NEGOTIATE PRICE & NEGOTIATE PRICE & ESTABLISH ESTABLISH SELECT SUPPLIER SELECT SUPPLIER & SELECT & SELECT SUPPLY CONDITIONS SUPPLY CONDITIONS PRICE PRICE SUPPLIERS SUPPLIERS PURCHASE ORDER PURCHASE ORDER PURCHASE ORDER // PURCHASE ORDER PURCHASE PURCHASE PURCHASE PURCHASE // CONTRACT CONTRACT CONTRACT CONTRACT ORDER // ORDER ORDER // ORDER CONTRACT CONTRACT CONTRACT CONTRACT DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER //CONTRACT SPECIFICATIONS & CLEARED DRUGS RECEIVED, CHECKED AGAINST PURCHASE ORDER CONTRACT SPECIFICATIONS & CLEARED FOR DISTRIBUTION FOR DISTRIBUTION
  • 15. Open tender •Public 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 in the tender form •In technical items, ‘two packets or two bins’ system is followed. Offers are given in two separate packets. •Technical bid •Financial bid Cont……
  • 16. •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 tenders – generally 90 days
  • 17. 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 procurement Buyer approaches selected potential Suppliers & bargain directly Used in long time supply contracts Direct procurement Purchased from single supplier, at his quoted price Prices may be high Reserved for proprietary materials, or low priced, small quantity & emergency purchases
  • 18. Rate contract Firms are asked to supply stores at specified Rates during the period covered by the Contract Spot purchase It is done by a committee, which includes an officer from stores, accounts & purchasing departments Risk purchase If supplier fails, the item is purchased from other agencies & the difference in cost is recovered from the first supplier
  • 19. Points to remember while purchasing •Proper 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
  • 20. 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 •Follow two bin or double shelf system, to avoid •Stock outs •Reserve bin should contain stock that will cover •lead time and a small safety stock Issue & use Can be centralized or decentralized
  • 21. Inventory control It means stocking adequate number and kind of stores, so that the materials are available whenever required and wherever required. Scientific inventory control results in optimal balance
  • 22. Functions of inventory control •To provide maximum supply service, consistent with maximum efficiency & optimum investment. •To provide cushion between forecasted & actual demand for a material
  • 23. Economic order of quantity EOQ = Average Monthly Consumption X Lead Time [in months] + Buffer Stock – Stock on hand ECONOMIC ORDER OF QUANTITY(EOQ) PURCHASING CARRYING COST COST
  • 24. •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 •Ideal – 2 to 6 weeks.
  • 25. ABC ANALYSIS (ABC = Always Better Control) This is based on cost criteria. It helps to exercise selective control when confronted with large number of items it rationalizes the number of orders, number of items & reduce the inventory. About 10 % of materials consume 70 % of resources About 20 % of materials consume 20 % of resources About 70 % of materials consume 10 % of resources
  • 26. ‘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
  • 27. ‘C’ ITEMS Larger 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
  • 28. ANNUAL COST CUMMULATI VE I TEM % I TEM COST % AB C [ Rs.] COST [ Rs.] 1 90000 90000 10 % 70 % A 2 50000 140000 3 20000 160000 N 4 7500 167500 20 % 20 % A 5 7500 175000 6 5000 180000 L 7 4500 184500 Y 8 4000 188500 9 2750 191250 S 10 1750 193000 I 11 1500 194500 S 12 1500 196000 13 500 196500 10 % 70 % 14 500 197000 15 500 197500 W O RK 16 500 198000 SHEET 17 500 198500 18 500 199000 19 500 199500 20 500 200000
  • 29. ‘B’ ITEM Intermediate Must have: •Moderate control •Purchase based on rigid requirements •Reasonably strict watch & control •Moderate safety stocks •Managed by middle level management
  • 30. VED ANALYSIS •Based on critical value & shortage cost of an item –It is a subjective analysis. •Items are classified into: Vital: •Shortage cannot be 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 Scrutinized V 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
  • 31. SDE ANALYIS Based on availability Scarce(rare) Managed by top level management Maintain big safety stocks Difficult Maintain sufficient safety stocks Easily available Minimum safety stocks FSN ANALYSIS Based on utilization. Fast moving. Slow moving. Non-moving. Non-moving items must be periodically reviewed to prevent expiry & obsolescence HML ANALYSIS Based on cost per unit Highest Medium Low This is used to keep control over consumption at departmental level for deciding the frequency of physical verification.
  • 32. PROCURMENT OF EQUIPMENT Points to be noted before purchase of an equipment: •Latest technology •Availability of maintenance & repair facility, with minimum down time •Post warranty repair at reasonable cost •Upgradeability •Reputed manufacturer •Availability of consumables •Low operating costs •Installation •Proper installation as per guidelines
  • 33. HISTORY SHEET OF EQUIPMENT : History sheet •Name of equipment •After sales arrangement •Code number •Guarantee period •Date of purchase •Warranty period •Name of supplier •Life of equipment •Name of manufacturer •Down time / up time •Date of installation •Cost of maintenance •Place of installation •Unserviceable date •Date of commissioning •Date of condemnation •Environmental control •Date of replacement •Spare parts inventory •Techn. Manual / circuit diagrams / literatures
  • 34. Maintenance sheet: Annual maintenance contract [AMC] Starting date Expiry date Service / repair description Materials / spares used Cost of repairs In-house Outside agency
  • 35. EQUIPMENT MAINTENANCE & CONDEMNATION Maintenance & repairs: Preventive maintenance Master maintenance plan Repair of equipment
  • 36. PREVENTIVE MAINTENANCE •Purchase with warranty & spares. •Safeguard the electronic equipments with: (as per guidelines) •Voltage stabilizer, UPS •Automatic switch over generator •Requirement of electricity, water, space, atmospheric conditions, etc. Must be taken into consideration •Well equipped maintenance cell must be available •All equipment must be operated as per instructions with trained staff •Monitoring annual maintenance contracts. (AMC) •Maintenance cell •Communications between maintenance cell & suppliers of the equipment. •Follow-up of maintenance & repair services •Repair of equipment •Outside agencies •In-house facility
  • 37. CONDEMNATION & DISPOSAL Criteria for condemnation: The equipment has become: 1. Non-functional & beyond economical repair 2. Non-functional & obsolete 3. Functional, but obsolete 4. Functional, but hazardous 5. Functional, but no longer required
  • 38. PROCEDURE FOR CONDEMNATION 1. Verify records. 2. History sheet of equipment 3. Log book of maintenance & repairs 4. Performance record of equipment 5. Put up in proper form & to the proper authority
  • 39. DISPOSAL 1. Circulate to other units, where it is needed 2. Return to the vendor, if willing to accept 3. Sell to agencies, scrap dealers, etc 4. Auction 5. Local destruction
  • 40. CONCLUSION Material management is an important management tool which will be very useful in getting the right quality & right quantity of supplies at right time, having good inventory control & adopting sound methods of condemnation & disposal will improve the efficiency of the organization & also make the working atmosphere healthy any type of organization, whether it is Private, Government ,Small organization, Big organization and Household. Even a common man must know the basics of material management so that he can get the best of the available resources and make it a habit to adopt the principles of material management in all our daily activities
  • 41. References: 1. Hospital and clinical pharmacy by S.BALASUBRAMANIAN 2. Text of hospital pharmacy by ALWOOD MC and Blackwell 3. wikipedia