This document discusses inventory control and material management in healthcare systems. It states that inventory control is an important aspect of material management that aims to ensure the right supplies are available at the right place and time. It describes several techniques used for inventory control, including ABC analysis, VED analysis, and FSN analysis to categorize items by importance and usage. The document outlines steps for planning, procuring, storing, and tracking inventory. Effective inventory control is important to minimize costs and ensure adequate supplies and equipment are available for healthcare workers to provide services.

1. BY
A .Deeparani
DNS

2.  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 it is an important aspect of material management.
 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.
 It means stocking adequate number and kind of stores, so that the
materials are available whenever required and wherever required.

4.  The right drugs, supplies and
equipment must be at the right place,
at the right time, and in the right
quantity in order that health personnel
deliver health services.
 To keep the investment on inventories
to the minimum.
 To minimize idle time by avoiding
stock outs and shortages.
 To minimize the losses.
 To improve quality of care with lesser
inventory.
 To avoid obsolescence of inventor

5.  Planning the inventories,
 Procurement of inventories,
 Receiving and inspection of inventories,
 Storing and issuing the inventories,
 Recording the receipt and issues of inventories,
 Physical verification of inventories,
 Follow-up function,
 Material standardization and substitution.

6.  Deciding the maximum –
minimum limits of inventory,
 Determination of reorder
point,
 Determination of reorder
quantity,
 Perpetual inventory control,
 ABC analysis,

7.  ABC Analysis (Always Better Control)
 VED Analysis (Vital, Essential,
Desirable)
 HML Analysis (High, Medium, Low)
 FSN Analysis (Fast, Slow moving and
Non-moving)
 SDE Analysis (Scarce, Difficult, Easy)

8.  It is a simple approach, which avoids being money wise.
 A - Items represent the high cost centre,
 B - Items represent the immediate cost centres, and
 C- Items represent low cost centres.
 A very close control is exercised over A items while less
stringent control is adequate for those in the category B,
and less attention for category C.

9. A- Items
 Tight controls
 Rigid estimates of requirements
 Strict and close watch
 Safety stocks should be low
 Management of items should be done at top management level.
B- Items
 Moderate control
 Purchase based on rigid requirements
 Reasonably strict watch and control
 Safety stocks moderate
 Management be done at middle level
C- Items
 Ordinary control measure
 Purchase based on usage estimates
 Controls exercises by store keeper.
 Safety stocks high
 Management be done at lower levels..

10. Class Number of items Rupee value in items
A 10% of total items 70%
B 20% of total items 20%
C 70% of total items 10%

11.  It is based on rate of consumption.
 The items can be classified into:
◦ Fast moving
◦ Slow moving
◦ Non- moving
◦ Obsolete

12.  Vital: items without which treatment comes to standstill: i.e.
non- availability can not be tolerated.
 Essential: items whose non availability can be tolerated for 2-
3 days, because similar or alternative items are available.
 Desirable: items whose non availability can be tolerated for a
long period. Although the proportion of vital, essential and
desirable items varies from hospital to hospital depending on
the type and quantity of workload.
( On an average vital items are 10%, essential items are 40%
and desirable items make 50% of total items available.)

13.  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

14. In big institutions the indents are to be made on the
basis of the written indents, received from competent
personal.
In the teaching institutions following methods can be
used.
A) direct supply to the wards, OPD and dispensary from
the main stores of indents.
B) one more step in distribution is to include a Floor
pharmacy or a Sub store.

15.  “FIFO” Principal i.e. “First In First Out” principal
should be followed.
 This means that the store is to be arranged in such a
way that the items which are received earlier are to
issued out first.
 This method has to be used to prevent the non-use of
the earlier stock, which may get time-barred and may
have to be condemned.
 A simple method followed is to keep the newly arrived
stock on the shelf at the back so that the old stock can
be used first.

16.  Preventive maintenance of the health equipment
including the sophisticated expensive equipment is
must and should get the due care it deserves.
 Logbook to indicate the utilization of the equipment
should be maintained.
 Repairs of the medical equipment should be done in
time.
 Arrangement for storing the spare parts is to be made.

17. Role of head nurse or nurse-in-charge:
 Responsible for keeping an adequate amount of equipment and supplies in the
ward
 Make sure that equipments and supplies are in good conditions
 Put in a requisition for necessary equipment for repair and maintenance when
needed.
 Make sure that equipments and supplies are conveniently located
 Make sure that all the personnel in the ward should clearly know who may use
ward articles and equipments and who assumes responsibility for it .

18.  The head nurse must be vigilant and prevent waste or misuse by educating the staff
in the economical and appropriate use of all equipments and materials.
 She may sometimes arrange a ward class to enable the staff to know the cost of the
equipment and materials.
 She takes three steps to ensure an adequate stock of available supplies in the ward
or unit:
 Set a standard for the quantity of each item to be maintained in the ward all the
time.
 Have a satisfactory system for replacement of broken or worn out equipment.
 Make regular inventories of all the items.

19.  Keeping in mind the sufficient supply of materials
 Materials should be in good conditions
 Giving responsibilities to handle supply and equipments.
 Checking for misuse and how to minimize it.
 Educating the ward staffs and other health care workers in the economical
use of materials.

20.  A thorough understanding and use of the techniques of
materials management would help in ordering the supplies
when needed, controlling their use, keeping them safely and in
working order.
 This also prevents chances of non availability of equipments
and drugs as being out of stock of these reduces the usefulness
of the hospital system.

21. THANK YOU