Materials Management

Materials Management
• Introduction: Why should we discuss?
• Purchase policy

• Receiving goods
• Inventory process

• Distribution
• Equipment- General tips
Satish 2

Why should we discuss? Problems galore ! • Shortage • Expiry • Wastage • Pilferage • Malfunctioning of equipments Satish 3 .

shipping. supplies and equipment Each step is vital Satish 4 .Materials managementdefinition Definition: A process encompassing acquisition. evaluation. receiving. warehousing and distribution of goods.

Codification Satish 5 . Inventory control 4. Material planning and programming 2. Storekeeping and warehousing 5. Purchasing and outsourcing 3.Materials management functions 1.

Inspection and quality control 9.Materials management functions . Standardization and evaluation of all products 7. 6. Cost reduction through value analysis 10.contd. Disposal of surplus / obsolete material 11. Transportation and material handling 8. Distribution Satish 6 ..

Ultimate aim: Right quality. right . Centralize the purchase system 4. Based on need assessment quantity.Purchase Basic Principles 1. Back up of good systems management Satish 7 2. right prices. right source and at right time to the right place 3.

Supplies catalogue 2. Colleagues in similar field 6.Finding the Right Source 1. Trade exhibition . conferences 5. Salespersons: many advantages 4. trade journals . news papers. fairs . yellow pages 3. Print media :Trade directories. Internet Satish 8 .

Negotiations • Possible because of huge margins • Pass on to patients • Not at the cost of quality • Win-win situation for all • Maintain relationship Satish 9 .

NEGOTIATION ETHICS BUYER RELATIONSHIP DEAL OR NO DEAL SELLER OBJECTIVES Satish 10 .

Principles 1. Negotiate bulk price 3. Price protection 5. Credit Satish 11 . Always ask for discount 4.Negotiations . Not to purchase on listed price 2.

Cross check with purchase order & invoice / delivery chalan 4. Establish written protocols. Proper record in designed registers 5. Checking of goods for quality. expiry etc 3.Receiving 1. Signature of receiver & delivery person 6. Periodic checksSatish 12 . assign responsibility 2.

Date Challan No. No s Name Ref. Dt.Material receipt register Date Sr. & . ed Satish 13 . Qty Receiv ed Qty Reject ed Qty MRN Accept No. Supplier’ P. O.

Inventory • Stocks to ensure un interrupted supplies • The idle resources which have future economic value • Cushion between estimated and actual demand of materials Satish 14 .

When to order 3. What to order 2. How much to stock Satish 15 .Inventory control A scientific system which indicates: 1. How much to order 4.

Inventory control 1. First in. first out 3. availability. Optimum level of inventory .not large. ABC Analysis: Quantity vs Cost categorization of items A. cost 4. demand. Factors: utility.10 % --70 % B-20 % .20 % C-70 % -10 % More attention to A Satish 16 . not small 2.

Max.Stock control card Name Of Material Code No. Level Min Level ReOrder Level EOQ/ Lot size Units Location Date Doc Ref IN OUT Bal Remark Consumption – month wise Satish 17 .

very helpful in long run • Makes stock taking easier • Helps keeping track of movements of goods • Design registers according to requirements & volume of turn over Satish 18 .Categorization & codification • Time consuming.

Distribution • From store to user • An intricate process • Right item at right time at right place • 2 methods: *Requisition: as and when required *Par level: periodic replenishing to a certain fixed level Satish 19 .

Computerization • Makes life easy • Have security against data tempering Satish 20 .

Shop around 3. conferences. Sources of information: web. Assess need: cost benefit analysis 2.Equipments: general tips 1. journals 5. Bargain hard 6. Learn from sales persons 4. After sale service – most important parameter Satish 21 .

Client list 8. replacement. Obsolescence . AMC and After sale service: down time. Log book 12. preventive maintenance 11.General tips … 7. Warranty details 10. Training of staff Satish 22 . Insurance 13. buy back 14. Trial period 9.

Hospital Admin – G M Francis Jaypee Satish 23 .References 1. Selected Readings in Hosp Admin –IHA 2000 5. Hospital-planning. design and managementD Kunders S Gopinath A Katakam 4.

Thanks Satish 24 .