The document discusses materials management in hospitals. It involves acquiring, storing, and distributing goods and equipment in a cost-effective manner to ensure an uninterrupted supply. Key functions include demand estimation, purchasing, receiving and inspection, storage, inventory control, distribution, and disposal. The aim is to provide the right materials in the right quantity, quality, and at the right time and place while optimizing available resources.

2.  The management and control of goods,The management and control of goods,
services and equipment from acquisition toservices and equipment from acquisition to
disposition.disposition.
 Since the materials are procured and kept in
the store, the term
Stores Management may also be used
inter-changeably

3.  Hospital - Hospital stores to the departments
 Health Care - State central stores to the
health facilities
 Pharma Industry - Supplies from the stores to
the production unit

4. Materials are a major cost factor
in any enterprise.
In health care system materials
costs is 40%
Salaries 60%

5. The aim of materials management in a
hospital is to ensure that
◦ there is adequate stock of required items
◦ there is a continuous supply,
◦ there are no surplus,
◦ there is appropriate storage,
◦ items are easily retrievable,
◦ distribution to the point of usage
◦ effective and efficient utilization of available
resources.

6. Management is the function responsible for
the co-ordination of
 planning,
 sourcing,
 purchasing,
 storing and
 controlling materials in an optimum manner
so as to provide a predetermined services
at the minimum cost

7.  Non Consumable stores:Non Consumable stores: Those stores whichThose stores which
can be used again and again.can be used again and again.
 Consumable Stores:Consumable Stores: Those stores which canThose stores which can
be used only oncebe used only once

8.  Surgical StoresSurgical Stores
 Medical & Drug StoresMedical & Drug Stores
 General StoresGeneral Stores
 Linen StoresLinen Stores
 Dietary StoresDietary Stores
 Stationery StoresStationery Stores
 Engineering and Maintenance StoresEngineering and Maintenance Stores

9. • Fast changing technology.
• Increased number of diversified services
• Increased in-patient & out-patient load
• Customer expectations are high
• Scarce resources
• Demand & supply gap.
Increased expenditure on
medical stores

10. “EFFECTIVE & EFFICIENT UTILISATION OF
AVAILABLE RESOURCES”

11. • Identify items and obtain specifications of
items
• Quantify the needs
• Procure quality items at lowest cost
• Ensure timely ordering of the items.
• Ensure timely receipt consistent with quality
& quantity.
• Efficient system of distribution
• Proper storage without deterioration.
How to Address…..??

12. • Improving the knowledge on cost
awareness
• Optimizing resources
• Balancing cost with quality.
• What, when, how much to stock, how
much to order & how often?
•

13. • Utilization of modern management tools &
techniques
• Inventory control.
• Information system,
• Performance improvement
• Equipment maintenance,
• Condemnation and disposal of unserviceable
items

14.  The basic objective to be achieved is un-The basic objective to be achieved is un-
interrupted supply of items in wards andinterrupted supply of items in wards and
departments at reasonable cost.departments at reasonable cost.

15. It seeks to provide from a right
source
Right materials
Right quality
Right quantity
Right time

16.  Primary Objectives:
Low Purchase Price
High inventory turnover
Low storage cost
Maintaining continuous supply
Development of Vendors
Good Records

17.  Secondary Objectives
Favourable reciprocal relations
Economic make or buy
Standardisation
Product improvement
Economic forecast

18.  Estimation of demand and purchasingEstimation of demand and purchasing
 Receiving and inspectionReceiving and inspection
 StorageStorage
 Inventory controlInventory control
 DistributionDistribution
 DisposalDisposal

19. DEMANDDEMAND
ESTIMATINGESTIMATING
ANDAND
PURCHASINGPURCHASING
DISTRIBUTIONDISTRIBUTION
STORAGESTORAGE
RECEIVING ANDRECEIVING AND
INSPECTIONINSPECTION

20. 1. Materials planning and budgeting
• Selection
• Quantification
1. Purchasing
◦ Codification
◦ Standarization
◦ Tendering system

21. 3. Receiving and inspection
4. Stocking and Distribution
 Preservation of stores
 Pilferages
 MIS
3. Inventory Control

22. 6. Cost Reduction
◦ Utilization
◦ Repair and maintenance
6. Value Analysis
7. Disposal

23. FUNCTIONS OF STORESFUNCTIONS OF STORES
MANAGEMENTMANAGEMENT

24.  This requires:
◦ need assessment
◦ specifications
◦ quantification
◦ preparing materials budget

25. Purchasing is a basic function inPurchasing is a basic function in
materials management department ofmaterials management department of
hospital.hospital.

26.  Right qualityRight quality
 Right priceRight price
 Right quantityRight quantity
 Right timeRight time

27.  Demand from the end user
◦ Specifications
◦ Quantity

28. Estimation of demand
Estimation or forecasting (Estimation or forecasting (quantification)
of demand can be done byof demand can be done by
 The past consumption methodThe past consumption method
◦ Expansion of hospital facilitiesExpansion of hospital facilities
◦ Epidemics, disasterEpidemics, disaster
 Morbidity patternMorbidity pattern
 Adjusted consumption method

29.  Methods of PurchasingMethods of Purchasing
 DecentralisedDecentralised
 CentralisedCentralised

30.  Codification
 Reduction in number of items and avoiding
duplication.
 Systematic grouping of similar items avoids
confusion
 Serves as starting point of simplification and
standardization
 Easy recognition of an item in stores

31.  Codification
 Kodak System
◦ 10 digit numrical code
 Brisch System
◦ 7 digit code
 Bar code
◦ Black and white line of various thickness

32. Standardization
 A standard is defined as model or general
agreement of a rule established by
authority, consensus or custom with which to
measure quantities, value, dimension or
quality etc.

33. Purchase Programme
 Right VendorRight Vendor
 NegotiationsNegotiations
 Competitive BiddingCompetitive Bidding
 DiscountDiscount
 Right quantityRight quantity

34. Tender Enquiry
 Limited Tender enquiry – selected firms
 Open tender - advertisement in news papers
 Global Tender

35. Quality Control
 The materials supplied conform to the laidThe materials supplied conform to the laid
down specifications or notdown specifications or not

36.  This involves receipt of stores from suppliers as
per predetermined specifications

37.  Stores received must be stocked and
preserved.
 A product has little value until it is with those
who utilize it.

38.  This involves physical control of materials,
 It helps in
◦ proper preservation,
◦ minimisation of obsolescence and
◦ efficient handling of stores.

39.  Cost containment measures must be undertaken
to optimize the resources.

40.  It is an organized approach to identify non-
essential costs which are incurred.
 This process is essential for cost reduction.

41.  Surplus pharmaceutical products and non-
functional equipment which are either obsolete
or beyond economic repair will require disposal.
 Non-disposal of these causes increase in the
holding costs and decrease in the storage
capacity.