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ABHILASHA CHAUDHARY
INVENTORY CONTROL
CONTENT
 Introduction
 Inventory
 Types of inventory
 Inventory control
 Objectives of inventory control
 Techniques of inventory control
 ABC ,VED ,Matrix of ABC and VED
HML ,SDN analysis
 Requistion process in ward
 Requistion process in nursing college
 Nurses role in inventory control.
INTRODUCTION
 In health care system, material management is
concerned with providing the drugs, supplies and
equipment needed by health personnel to deliver
health services.
 “Inventory control is an important aspect of
material management.”
An inventory is a detailed list of all articles on
the ward their specification and standard
number or quantity.
INVENTORY CONTROL
 It means stocking
adequate number and
kind of stores, so that
the materials are
available whenever
required and wherever
required.
INVENTORY CONTROL CONTD….
 Inventory control is a scientific system which
indicates as to what to order, when to order, and how
much to order, and how much to stock so that
purchasing costs and storing costs are kept as low as
possible.
TYPES OF INVENTORY
Official inventory
 Materials lying in the main stores and being accounted
for but have not been issued to the user units.
 e.g medical and surgical items ,dressings, linens, X ray
supplies, laboratrary items etc.
 Unofficial inventory
 The materials have been issued to the user units like the
dispensary, CSSD , Laundry , wards, OPD etc .
 In case of forecasting or demand estimation these items
are not taken into consideration by the hospital
administration, so it is called as un official inventory for
hospitals
OBJECTIVES OF INVENTORY CONTROL
 To supply the materials in time
 To give maximum clients service
 To reduce or minimize investment in inventories
 To avoid shortage of stock
 To minimize the losses
 To meet unforeseen future demand.
 To minimize idle time by avoiding stock outs and
shortages.
 Inventory control
involves :
 Maintenance of stores
record.
 Physical control of
materials.
 Preservation of
materials.
 Minimization of
obsolescence .
 Reconciliation of stocks
with book figures
TECHNIQUES OF INVENTORY CONTROL
 ABC( Always ,Better, Control)
 VED(Vital, Essential, Desirable)
 HML(High, Medium , Low)
 FSN(Fast, Slow moving and Non moving)
 SDE(Scarce, Difficult, Easy)
 It is the analysis of stores items on cost criteria.
“It is the process of classifying items by using
values as measure.”
 Also called as Pareto analysis.
ABC( Always ,Better, Control)
Items % of items % of rupees value
A 10 70
B 20 20
C 70 10
Pareto’s theory
Table 1 :Average pattern of percentage of items and % of
their respective values
According to Pareto’s theory 10% items consume
about 70 % of budget (Group A). The next 20%
consume 20 % of financial resources (Group B) and
remaining 70 % items account for just 10% of
budget (Group C) .
THE ABC METHOD OF INVENTORY
CONTROL CONTD..
 A items:
1. Less in number
2. Consume major portion of
funds.
3. Managed by top management.
4.Tight control, rigid estimates
of requirements
5. Strict and closer watch
6.Require low safety stock
Eg. DEFIBRILLATOR,
VENTILLATOR
B items
1. Moderate controls
2.Purchase based on rigid requirement
3.Reasonably strict watch and control
4. Management done at middle level
Eg. GLUCOMETER, MEDICINES
C items
1. Larger in number
2. Consume lesser amount of fund
3. Ordinary control measure.
4. Require high safety stock
5. Management be done at lower levels.
EG. PAPER PINS, GAUZE PIECE
THE ABC METHOD OF INVENTORY
CONTROLCONTD..
ADVANTAGES
 Easy to control the wastage of costly items.
 Easy to maintain cost and turnover rate.
 Simple no confusing formulas are involved .
 Helps to exercise selective control.
DISADVANTAGES
 Inconvenient to compute and carry out this
analysis when the items are in number of several
thousands.
 More chances of deterioration of class C items as
they are purchased in bulk .
 Loose control on C items may result in shortages.
DISADVANTAGES CONTD…
 Focuses on money value and not on functional
importance of such items, resulting in shortages of
critical items.
 Does not take into account variation of prices of
items as time goes.
VED ANALYSIS
 Vital, Essential and Desirable
 Based on how critical the item is for providing health
services
 ‘V’ -vital items without which a hospital cannot function
 ‘E’ -essential items without which an institution can
function but may affect the quality of the services
 ‘D’ - desirable items, unavailability of which will not
interfere with functioning because they can be easily
purchased as and when required
VED ANALYSIS
CONTD..
 Vital:
 Items without which treatment comes to standstill:
i.e. non- availability cannot be tolerated.
 The vital items are stocked in abundance and very
strict control. E.g anti snake venom
VED ANALYSIS
CONTD…
Essential:
 Items whose non availability can be tolerated for 2-3 days.
 Essential items are stocked in medium amount.
 Reasonably strict watch. E.g corticosteroid drug
Desirable:
 Items whose non availability can be tolerated for a long
period.
 Stocked in small amounts and purchase is based on usage
estimate. e.g PCM
 Although the proportion of vital, essential and desirable items
varies from hospital to hospital depending on the type and
quantity of workload.
MATRIX OF ABC/ VED ANALYSIS
 Combination of these two categories like a matrix
combining ABC and VED categories.
 This matrix is more relevant in the hospitals.
V E D
A AV
Defibrillator
AE
X ray machine
AD
Air curtains
B BV
ventillator
BE
Electric cautery
BD
Bp
instrument
C CV
Spo2
machine
CE
Patient trolley
CD
Thermometer
Category I
Category
II
Category
III
MATRIX OF ABC/ VED ANALYSIS
CONTD..
a.Category I items:
 most important ones
 control by the administrator himself.
b. Category II items:
 intermediate importance
 under control of the officer in charge of the stores.
c. Category III items:
 least importance
 under the control of the store keeper.
MATRIX OF ABC/ VED ANALYSIS
CONTD..
 Items with high criticality (V), but required in
small quantity (A) should receive highest priority.
Items with low criticality (D) and which are
required in big quantity(C) should receive least
priority.
RESEARCH EVIDENCE
 Title- “ABC- VED analysis of expendable medical stores
at a tertiary care hospital”
 Journal- medical journal armed forces india
 Year of publication- 2015
 Author name- Sushil kumar, A chakrobarty
 Objectives- Use of ABC and VED analysis to identify the
categories of drugs needing focused managerial tool.
RESEARCH EVIDENCE CONTD…
 METHODS
 Annual consumption and expenditure data of expendable
medical store for 1 year was extracted from the drug
expenditure book, followed by classification on its annual
usage value.
 RESULTS
 Out of 1536 items, 6.77%(104), 19.27 % (296) and 73.95%
(1136) items were found to be A, B and C category items
respectively. VED analysis revealed that only 322 (21%
items out of an inventory of 1536 drugs belonging to
category I will require maximum attention
FSN ANALYSIS
 ‘Fast moving, Slow moving, and Non-moving’
 based on the consumption pattern of the items
Method
Date of receipt or last date of issue whichever is later, is
taken to determine the number of months which has
lapsed since the last transaction.
Analysis
 For analysis, the issuing of items in past two or three
years are considered
 No issuing of item during that period- labeled ‘N’
item
 10-15 issues in that period- ‘S’ Item
 Exceeding such limits of numbers of issues during that
period -‘F’ Item
FSN ANALYSIS CONTD…
ADVANTAGES
 Helps to avoid investment in non-moving or slow items
 Facilitates timely control
 Useful in controlling obsolescence.
SDE ANALYSIS
 Scarce, difficult, easy to obtain
S’- scarce items
 which are difficult to obtain
 generally imported
 which are in short supply
 managed by top level management.
SDE ANALYSIS
CONTD..
‘D’ ‘difficult’ items
 which are available indigenously but are difficult
items to procure.
E’ ‘Easy’ items
 easy to acquire
 readily available in the local markets
ADVANTAGES
 Useful in the context of scarcity of supply
HML ANALYSIS
 High, medium, low
 The basic criterion of HML classification is the unit value of
the item.
 Unit value is the basis of this analysis and not the annual
consumption value
 H - Unit value > 1000 (Sanctioned by higher officials)
 M - Unit value 100 to 1000
 L - Unit value < 100
Advantages
 Used to keep control over consumption at departmental
level.
RESPONSIBILITY OF INVENTORY
CONTROL IN WARD
 Responsible
 Ward incharge
 Sub incharge
 Ward sisters
REQUISTION PROCESS IN WARD
Indent book is filled for demanding supplies
Signed by ward incharge
signed by HOD
Central store drug store(medicines)
REQUISTION PROCESS IN NURSING
COLLEGE
Application for demand is written by lab incharge
Forwarded to HOD
Principal
Indent book is filled by store keeper of college
Principal
(Central store , Medical store )
NURSES ROLE IN INVENTORY
NURSES ROLE IN INVENTORY
a.Keeping an adequate amount of equipment and
supplies in the ward
b. Make sure that equipments and supplies are in good
conditions.
c. put in a requisition for necessary equipment for
repair and maintenance when needed.
d. Make sure that equipments and supplies are
conveniently located.
NURSES ROLE IN INVENTORY CONTD..
E. To be observant of waste and misuse.
F. To delegate someone the responsibility for handling
supplies and equipment
G. Set a standard for the quantity of each item to be
maintained in the ward all the time
NURSES ROLE IN INVENTORY CONTD..
H.Responsibilities of the ward sister
 sufficient supply of materials
Materials should be in good conditions.
 Checking for misuse and how to minimize it.
 Educating the ward staffs and other health care
workers in the economical use of materials.
SUMMARY
Introduction
Inventory
Inventory control
Techniques of inventory control
ABC analysis
VED analysis
Matrix of ABC and VED
HML analysis
SDN analysis
Requistion process in ward
Requistion process in nursing college
Nurses role in inventory.
CONCLUSION
•Careful classification of the inventory, and
continuing analysis of those classifications, can play a
vital role in maintaining cost and providing quality
care.
•Inventory control is a constant requirement of any
organization.
REFERENCE
 BOOKS
 Barrett Jean.ward management.konark publisher.2nd ed. New delhi.p.146-73
 Vati Jogindra.Principles and practice of nursing management and
administration .1st ed. Newdelhi ; Jaypee. P.554-60
 N Anoop, kumar Chetan, K Dipak. A textbook on nursing management.. 1st ed.
Newdelhi:p.166-68
 Huber Daniel l. Leadership nursing care and management.3rd ed. New
delhi:p68-72
 JOURNAL
 Kumar sushil, chakrobarty A. ABC- VED analysis of expendable medical stores
at a tertiary care hospital. medical journal armed forces India: 2015; 11(2)
 INTERNET
 http://www.accountingtools.com/questions-and-answers/what-is-inventory-
control.html
 https://en.wikipedia.org/wiki/Inventory_control
 https://www.handshake.com/blog/what-is-inventory-control/
Inventory control  in nursing
Inventory control  in nursing

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Inventory control in nursing

  • 2. CONTENT  Introduction  Inventory  Types of inventory  Inventory control  Objectives of inventory control  Techniques of inventory control  ABC ,VED ,Matrix of ABC and VED HML ,SDN analysis  Requistion process in ward  Requistion process in nursing college  Nurses role in inventory control.
  • 3. INTRODUCTION  In health care system, material management is concerned with providing the drugs, supplies and equipment needed by health personnel to deliver health services.  “Inventory control is an important aspect of material management.”
  • 4. An inventory is a detailed list of all articles on the ward their specification and standard number or quantity.
  • 5. INVENTORY CONTROL  It means stocking adequate number and kind of stores, so that the materials are available whenever required and wherever required.
  • 6. INVENTORY CONTROL CONTD….  Inventory control is a scientific system which indicates as to what to order, when to order, and how much to order, and how much to stock so that purchasing costs and storing costs are kept as low as possible.
  • 7. TYPES OF INVENTORY Official inventory  Materials lying in the main stores and being accounted for but have not been issued to the user units.  e.g medical and surgical items ,dressings, linens, X ray supplies, laboratrary items etc.  Unofficial inventory  The materials have been issued to the user units like the dispensary, CSSD , Laundry , wards, OPD etc .  In case of forecasting or demand estimation these items are not taken into consideration by the hospital administration, so it is called as un official inventory for hospitals
  • 8. OBJECTIVES OF INVENTORY CONTROL  To supply the materials in time  To give maximum clients service  To reduce or minimize investment in inventories  To avoid shortage of stock  To minimize the losses  To meet unforeseen future demand.  To minimize idle time by avoiding stock outs and shortages.
  • 9.  Inventory control involves :  Maintenance of stores record.  Physical control of materials.  Preservation of materials.  Minimization of obsolescence .  Reconciliation of stocks with book figures
  • 10. TECHNIQUES OF INVENTORY CONTROL  ABC( Always ,Better, Control)  VED(Vital, Essential, Desirable)  HML(High, Medium , Low)  FSN(Fast, Slow moving and Non moving)  SDE(Scarce, Difficult, Easy)
  • 11.  It is the analysis of stores items on cost criteria. “It is the process of classifying items by using values as measure.”  Also called as Pareto analysis. ABC( Always ,Better, Control)
  • 12. Items % of items % of rupees value A 10 70 B 20 20 C 70 10 Pareto’s theory Table 1 :Average pattern of percentage of items and % of their respective values According to Pareto’s theory 10% items consume about 70 % of budget (Group A). The next 20% consume 20 % of financial resources (Group B) and remaining 70 % items account for just 10% of budget (Group C) .
  • 13. THE ABC METHOD OF INVENTORY CONTROL CONTD..  A items: 1. Less in number 2. Consume major portion of funds. 3. Managed by top management. 4.Tight control, rigid estimates of requirements 5. Strict and closer watch 6.Require low safety stock Eg. DEFIBRILLATOR, VENTILLATOR
  • 14. B items 1. Moderate controls 2.Purchase based on rigid requirement 3.Reasonably strict watch and control 4. Management done at middle level Eg. GLUCOMETER, MEDICINES C items 1. Larger in number 2. Consume lesser amount of fund 3. Ordinary control measure. 4. Require high safety stock 5. Management be done at lower levels. EG. PAPER PINS, GAUZE PIECE THE ABC METHOD OF INVENTORY CONTROLCONTD..
  • 15. ADVANTAGES  Easy to control the wastage of costly items.  Easy to maintain cost and turnover rate.  Simple no confusing formulas are involved .  Helps to exercise selective control.
  • 16. DISADVANTAGES  Inconvenient to compute and carry out this analysis when the items are in number of several thousands.  More chances of deterioration of class C items as they are purchased in bulk .  Loose control on C items may result in shortages.
  • 17. DISADVANTAGES CONTD…  Focuses on money value and not on functional importance of such items, resulting in shortages of critical items.  Does not take into account variation of prices of items as time goes.
  • 18. VED ANALYSIS  Vital, Essential and Desirable  Based on how critical the item is for providing health services  ‘V’ -vital items without which a hospital cannot function  ‘E’ -essential items without which an institution can function but may affect the quality of the services  ‘D’ - desirable items, unavailability of which will not interfere with functioning because they can be easily purchased as and when required
  • 19. VED ANALYSIS CONTD..  Vital:  Items without which treatment comes to standstill: i.e. non- availability cannot be tolerated.  The vital items are stocked in abundance and very strict control. E.g anti snake venom
  • 20. VED ANALYSIS CONTD… Essential:  Items whose non availability can be tolerated for 2-3 days.  Essential items are stocked in medium amount.  Reasonably strict watch. E.g corticosteroid drug Desirable:  Items whose non availability can be tolerated for a long period.  Stocked in small amounts and purchase is based on usage estimate. e.g PCM  Although the proportion of vital, essential and desirable items varies from hospital to hospital depending on the type and quantity of workload.
  • 21. MATRIX OF ABC/ VED ANALYSIS  Combination of these two categories like a matrix combining ABC and VED categories.  This matrix is more relevant in the hospitals. V E D A AV Defibrillator AE X ray machine AD Air curtains B BV ventillator BE Electric cautery BD Bp instrument C CV Spo2 machine CE Patient trolley CD Thermometer Category I Category II Category III
  • 22. MATRIX OF ABC/ VED ANALYSIS CONTD.. a.Category I items:  most important ones  control by the administrator himself. b. Category II items:  intermediate importance  under control of the officer in charge of the stores. c. Category III items:  least importance  under the control of the store keeper.
  • 23. MATRIX OF ABC/ VED ANALYSIS CONTD..  Items with high criticality (V), but required in small quantity (A) should receive highest priority. Items with low criticality (D) and which are required in big quantity(C) should receive least priority.
  • 24. RESEARCH EVIDENCE  Title- “ABC- VED analysis of expendable medical stores at a tertiary care hospital”  Journal- medical journal armed forces india  Year of publication- 2015  Author name- Sushil kumar, A chakrobarty  Objectives- Use of ABC and VED analysis to identify the categories of drugs needing focused managerial tool.
  • 25. RESEARCH EVIDENCE CONTD…  METHODS  Annual consumption and expenditure data of expendable medical store for 1 year was extracted from the drug expenditure book, followed by classification on its annual usage value.  RESULTS  Out of 1536 items, 6.77%(104), 19.27 % (296) and 73.95% (1136) items were found to be A, B and C category items respectively. VED analysis revealed that only 322 (21% items out of an inventory of 1536 drugs belonging to category I will require maximum attention
  • 26. FSN ANALYSIS  ‘Fast moving, Slow moving, and Non-moving’  based on the consumption pattern of the items Method Date of receipt or last date of issue whichever is later, is taken to determine the number of months which has lapsed since the last transaction.
  • 27. Analysis  For analysis, the issuing of items in past two or three years are considered  No issuing of item during that period- labeled ‘N’ item  10-15 issues in that period- ‘S’ Item  Exceeding such limits of numbers of issues during that period -‘F’ Item FSN ANALYSIS CONTD…
  • 28. ADVANTAGES  Helps to avoid investment in non-moving or slow items  Facilitates timely control  Useful in controlling obsolescence.
  • 29. SDE ANALYSIS  Scarce, difficult, easy to obtain S’- scarce items  which are difficult to obtain  generally imported  which are in short supply  managed by top level management.
  • 30. SDE ANALYSIS CONTD.. ‘D’ ‘difficult’ items  which are available indigenously but are difficult items to procure. E’ ‘Easy’ items  easy to acquire  readily available in the local markets
  • 31. ADVANTAGES  Useful in the context of scarcity of supply
  • 32. HML ANALYSIS  High, medium, low  The basic criterion of HML classification is the unit value of the item.  Unit value is the basis of this analysis and not the annual consumption value  H - Unit value > 1000 (Sanctioned by higher officials)  M - Unit value 100 to 1000  L - Unit value < 100
  • 33. Advantages  Used to keep control over consumption at departmental level.
  • 34. RESPONSIBILITY OF INVENTORY CONTROL IN WARD  Responsible  Ward incharge  Sub incharge  Ward sisters
  • 35. REQUISTION PROCESS IN WARD Indent book is filled for demanding supplies Signed by ward incharge signed by HOD Central store drug store(medicines)
  • 36.
  • 37.
  • 38.
  • 39.
  • 40. REQUISTION PROCESS IN NURSING COLLEGE Application for demand is written by lab incharge Forwarded to HOD Principal Indent book is filled by store keeper of college Principal (Central store , Medical store )
  • 41.
  • 42.
  • 43. NURSES ROLE IN INVENTORY
  • 44. NURSES ROLE IN INVENTORY a.Keeping an adequate amount of equipment and supplies in the ward b. Make sure that equipments and supplies are in good conditions. c. put in a requisition for necessary equipment for repair and maintenance when needed. d. Make sure that equipments and supplies are conveniently located.
  • 45. NURSES ROLE IN INVENTORY CONTD.. E. To be observant of waste and misuse. F. To delegate someone the responsibility for handling supplies and equipment G. Set a standard for the quantity of each item to be maintained in the ward all the time
  • 46. NURSES ROLE IN INVENTORY CONTD.. H.Responsibilities of the ward sister  sufficient supply of materials Materials should be in good conditions.  Checking for misuse and how to minimize it.  Educating the ward staffs and other health care workers in the economical use of materials.
  • 47. SUMMARY Introduction Inventory Inventory control Techniques of inventory control ABC analysis VED analysis Matrix of ABC and VED HML analysis SDN analysis Requistion process in ward Requistion process in nursing college Nurses role in inventory.
  • 48. CONCLUSION •Careful classification of the inventory, and continuing analysis of those classifications, can play a vital role in maintaining cost and providing quality care. •Inventory control is a constant requirement of any organization.
  • 49.
  • 50. REFERENCE  BOOKS  Barrett Jean.ward management.konark publisher.2nd ed. New delhi.p.146-73  Vati Jogindra.Principles and practice of nursing management and administration .1st ed. Newdelhi ; Jaypee. P.554-60  N Anoop, kumar Chetan, K Dipak. A textbook on nursing management.. 1st ed. Newdelhi:p.166-68  Huber Daniel l. Leadership nursing care and management.3rd ed. New delhi:p68-72  JOURNAL  Kumar sushil, chakrobarty A. ABC- VED analysis of expendable medical stores at a tertiary care hospital. medical journal armed forces India: 2015; 11(2)  INTERNET  http://www.accountingtools.com/questions-and-answers/what-is-inventory- control.html  https://en.wikipedia.org/wiki/Inventory_control  https://www.handshake.com/blog/what-is-inventory-control/