material management

1. MATERIAL
MANAGEMENT

2. DEFINITION :
 Material Management is define as the Planning,
organizing and controlling aspects involved in ensuring
availability of necessary materials, supplies, drugs and
equipment as and when required.

3. KEY TERMS:
 LEAD-TIME:
This is the time lag between the placement of an order
and receipt of the same order.
 BUFFER STOCK:
This is the emergency stock for meeting demand
during unforeseen situations resulting from either
undue extension of Lead Time or sudden increase in
consumption of material.

4.  LOGISTICS:
In undertaking the management activities of planning,
organizing directing and controlling of supplies and
materials required in Health, Family Welfare and
Nursing, the terminology used, is known as logistics.
 VALUE ANALYSIS:
This includes questioning and analysis of each
specification to see if it could be substituted to
maximize the end use of material. This process of
analyzing intrinsic value of the material for achieving
the objectives of the organization is termed as 'Value-
Analysis'.

5. OBJECTIVES OF MATERIAL MANAGEMENT:
 Making the materials, supplies drugs and equipment available
as necessary for carrying out health and Nursing care activities.
 Making the required materials available in a safe and viable
condition to users as and when required both in elective and
emergency settings.
 Supplying the required materials at an optional cost.
 Ensuring recycling of materials wherever feasible.
 Ensuring appropriate and safe waste disposal arising out of the
use of materials and supplies.

6. Why material management is
important in Nursing
?

7. PURPOSE:
 Provide specified materials, drugs and supplies in
the required quantity and quality as and when
required.
 Cut down material costs through standardization.
 Develop knowledge and skills of health care.
 Increase efficiency of health care systems.

8. PRINCIPLES
Discipline
Unity of
command
Unity of
Direction
Orders

9. PROCESS OF MATERIAL MANAGEMENT:
Purchase transaction
Receipt and analysis of requisition
Selection of possible source of supply
Placing order
Maintenance of Records and files
Check invoice and receive order
Payment

10. Selection of
items and
Demand
Estimation
Placing of
Order
Receipts
of
Materials
Storage
Issue for
Consumption
Maintenance
and Repair
Disposal or
Condemnation

11. LOGISTICS IS CONCERNED
 Procurement
 Delivery (includes transportation)
 Regular flow of necessary supplies
 Adequate quantity
 Maintenance and monitoring of quality and
viability of supplies
 Monitoring of the quantity of supplies required.

12. ACTIVITIES
1. Identification of items for purchase and storage.
 In this context having a formulary is essential
 Determination on the quantity of the items to be
procured
 Demand estimation
 Last period Demand
 Arithmetic average
 Moving average

13. 2. Purchasing/Procurement
Fixed quantity contract:
Running Contract:
Rate Contract:
3. Inspection and receiving include
4. Inventory management
5. Maintenance of buffer stock

14. SOME FACTORS FOR
CONSIDERATION:
 Lead time
 Preventive Maintenance
 Economy of Materials
 Material Management contributes towards cost
effectiveness

15. Nurses' Role in Material Management
1. Ensuring regular and adequate flow of supply of necessary
equipment, supplies, drugs and solutions.
2. Monitoring and sustaining the quality and safety of the
materials used including drugs and solutions. Issuing of
items on the basis of “First in First out" and
regular checking of expiry dates of drugs contribute, towards
safety.
3. Indenting, receiving, storing, checking and
timely replenishing of all necessary equipment, supplies,
drugs and solutions.
4. Maintaining of emergency and buffer stocks.
5. Arranging for preventive maintenance wherever necessary.

16. 6. Arranging for condemnation of articles in accordance with the
laid down policies of the organization and maintaining of a
dead stock register.
7. Arranging and assisting in audit of materials.
8. Participation in policy making for material management.
9. Participation in tender/procurement sub-committees.
10. Orienting Nursing personnel on material management
policies from time to time.
11. Evaluating the efficacy of the material management system
followed in particular Nursing unit.
12. Ensuring regular and adequate flow of supply of necessary
equipment, supplies, drugs and solutions.

17. FINANCIAL MANAGEMENT
 Financial Management may be defined as a set of
administrative activities concerned with
arrangement of cash and credit for the
organization for enabling it to function as
effectively as possible.
 In other words it is concerned with management
of money and expenditure, through raising funds,
using funds profitably and ensuring its control.

18. COMPONENTS OF FINANCIAL
MANAGEMENT
 Planning and budgeting
 Accounting
 Reporting and Monitoring
 Financial control system
 Compliance of laws and regulations
 Audits and reviews

19. STEPS OF FINANCIAL PLANNING
Planning
Implementation
Evaluation

20. PRE-REQUISITE FOR BUDGET
PREPARATION
 Estimate the income / receipts.
 Estimate the expenditure / payments.
 Review the past two / three year's income and
expenditure pattern.
 Arrive at the surplus or the deficit.
 Plan how to use the surplus or manage the
deficit.