Dr. Kulkarni (Prof. of PSM, B.Y.L.Nair Medical College)

Dr. Sai prasad Bhavsar

Dr. Shilpa

MATERIAL MANAGEMENT

Definition

Material may be defined as equipment, apparatus and supplies procured, stocked and utilized by an organization

Management is a process which is applied to convert inputs into outputs (goods or services) or a process of planning, organizing, staffing, directing and controlling, usually by a manager

Material Management

A scientific technique concerned with planning, organizing & control of flow of materials from their initial purchase to destination

An organizational concept in which a single manager has the authority and responsibility for all activities, principally concerned with the flow of materials into an organization-purchasing, production, planning, scheduling, incoming traffic, inventory control, receiving and stores normally included (National Assn. Of Purchasing Mgmt-USA)

MM is a new concept in health care field. Modern tech. of efficient MM were developed in USA during second world war which helped them to make a spectacular progress in improving their productivity.

MM is a new concept in India introduced in sixties. In last few years increasing awareness in different areas of management is found. Hospital organizations are an ideal situation for application of this concept as 25-40 % of budgetary expenditure is done on accomplishing the store function.

Many hospitals have adopted this management to provide efficient patient care

MM in health care Institutions

Why material management is of importance

Financially: Large proportion (25-40%) of health expenditure is on materials

For better availability: Material supplies are not satisfactory at present

Complex requirement: Medical and non-medical items are more in number

To maintain cold chain for vaccines Contraceptives are to be supplied to all over country Social marketing is to be supported There is need and potential for increased efficiency

and effectiveness

AIM

To ensure 1. The Right quality

2. Right quantity of supplies3. At the Right time4. At the Right place5. At the Right cost

cost goods

Primary Objectives

Most important aspect of MM is to obtain correct quality of materials at lowest possible cost (economic order quantity)

High inventory turn over Low storage cost (reduce capital and recurring expenditure) Maintain continuous supply Maintain quality of purchase Cordial relationship with suppliers Low pay roll costs Development of vendors Good records Avoid wastage

Secondary objectives

These contribute to achieve primary objectives

Favorable reciprocal relation New materials and product Economic make and buy Standardization Product improvement Interdepartmental harmony Economic forecast

Elements of MM Identification of items Estimating demand Purchase and procurement Inspection and quality control Storage Inventory control Issue procedure Maintenance, repairs, condemnation Information system

Material planning

A ) Identification of items for eg: drugs. WHO has published a guideline list of basic or essential drugs, which are indispensable and necessary for health needs and updated time to time.

Finalization of drugs to be purchased for hospitals or health centers , a committee may be formed of clinicians, pharmacologists, administrators, medical stores etc. to make short lists..the lists should contain the non-proprietary generic names, which helps in lowering the cost .

B. Estimate future demands: Time trend over a period of 2-3 yrs, requirements may be estimated for different items, fluctuations, unusual occurrences in past, stock out positions, excess stock . Any anticipatory changes should also be considered.

Material planning

Planning for routine imm. In a sub center1.Estimation of beneficiaries2. Estimation of vaccines and logisticsEg: for pregnant women TT vac. CoverageTotal population in a villageAnnual target of pregnant women by multiplying the actual

headcount of pregnant women(by 2,for an estimate of 1 yr) =A

Monthly target of pregnant women (A÷12)= BBeneficiaries per month= B×2 doses=CRequirements of vaccine vial (wastage of 25%, WMF of 1.33; C ×1.33÷10Syringes per month=C ×1.1

Purchase procurement Purchase is a strategic activity, directed

towards acquiring materials, supplies, equipments and services for the purpose of consumption and rendering services by organization in an efficient manner.

Each organization has a purchase policy. This saves time in making fresh decisions every time and maintains uniformity.

Centralised purchasing

enables quality control, improved negotiating capacity, hence minimizes the cost.

may be delay in supply and in distribution of the stores, possibility of consumer dissatisfaction

Advantage: Disadvantages :

Decentralized purchasing

The peripheral units are responsible for purchase and distribution hence top authority can get more time for other organization activity. Will be faster to needs in emergencies, better liaison and tight control as purchase officer will have more depth knowledge of requirements.

Can be expensive as replication by each dept, increases manpower consumption since they have to spare time for other than their regular work. If purchase is not managed well, inspection and quality control can suffer, inferior goods may be supplied and out of stock situations is common

Advantages Disadvantage:

Specification spelt out

Indents prepared

Check specifications/price

Purchase plan

Select suppliers

Purchase record

Specification file

Need recognized, demand estimated

Tender/enquiry/imports

Suppliers records

Finalize rates, terms

Purchase order

Suppliers acceptance

Delivery, receipt and inspection

Payment made

Follow up

Invoice check

Inspection and quality control ISO and ISI stipulates standard of quality. It is

preferable to purchase items that bear such certification , in other cases inspection is done before purchasing/acceptance.

Organizations/officers should be aware of unscrupulous supplies (quality)/un ethical practice (payments) of supplies

Qualified Quality control inspectors are usually appointed for this purpose.

After receiving goods are sent to testing lab for evaluation, the receiving personnel prepares a detailed Material receipt note(MRN), in case of rejected goods, a Goods rejected memo is prepared.

Storage of materials Medical and non-medical items to be kept separate Convenient place for receipt of supplies and delivery

with adequate space and facilities, preferably located in basement

Combustible and non-combustible substances to be kept separate

Place to be free from rodents Poisonous and narcotic substances to kept separately Most recently received drugs are placed behind old

stock on the shelf, should be well arranged, placing drugs in shelves in alphabetically order corresponding to essential drug list

Rule of first in first out (FIFO) should apply Rule of first to expire first out (FEFO)

After receiving materials, check consignment belongs to you, later check the materials in detail, quarantine and separate if materials are not in conformity with order and intimate the supplier immediately, MRN to be prepared if they are correct and enter in stock ledger with out any mistakes and submitted to stores manager. Materials are arranged and stored as necessary.

Indenting of stores:Annual Supplementary EmergentLocal purchasePurchase committee

Tender system is a form purchasing materials at competitive price, without compromising the quality to be transparent and accountable to people .

Single tender Limited tender- by registered firm /short

listing Open tender (NIT) Global tender

Forecasting

Forecasting: A process of estimating the relevant events of future, on the basis of their past and present analysis.

Sales forecasting is to be done first and then should be converted into material requirement

Various methods are business barometers (state of economy), time series analysis (chronological order), extrapolation, visionary forecast, market research, Delphi method, panel consensus, moving average method, exponential smoothing, input-output / diffusion index, correlation analysis, regression model, econometric model, opinion poll, casual model.

summary

material managemen

t

material planning

purchase & procurement

inspection

&quality control

storageinventory control

issue procedur

e

maintenance & repairs

information system