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CHAPTER I

INTRODUCTION

Background of the Study


Inventory is basically the total amount of goods and materials held in
stock by a factory, store and other business. An inventory system is a process
whereby a business keeps track of the goods and material it has available. In its
simplest sense it can be done manually by a count at the end of each day. In this
way it is possible to keep a record of the goods coming in to the business and
goods being sold. (Chapter 1 Inventory System, 2011)

Since manual inventory consumes a lot of time and is prone to errors, it


would be helpful to build a system that will computerize the transactions from
acquisition of the product description to updating the inventory database. The
computerized inventory system will improve employees work efficiency by
computerizing routinely and time consuming tasks such as the time spent in
taking down product information. As a result, the time can be used in more
productive activities. The accuracy of the current system will also be improved,
since the computerized inventory system would eliminate the need of constantly
encoding lengthy details of products by having an inventory database.

Monitoring encompasses the tracking of individual processes, so that


information on their state can be easily seen, and statistics on the performance of
one or more process can be provided.
The Baguio City Hall Monitoring and Inventory System for Supplies and
Properties is a proposed system to the Baguio City Hall General Services Office
(GSO). It was proposed to enable the production of correct reports, fast retrieval
of correct data, reduce the amount of paper used, and to store large amount of data
and information occupying a small office. Some benefits of the system are to
provide a computer-based information system for the current inventory and
monitoring, to lessen the manual processes, and to make the system store and
generate efficient report. (Bendoza, Esoen, Legawen, Pili, & William, 2006)

The Proposed Automation of the Benguet District Hospitals Pharmacy


Dispensing, Inventory, Purchasing and Sales System is a proposed system to the
Benguet District Hospitals. It was proposed to computerize the dispensing,
inventory, purchasing and sales processes of the said institution. It was also
proposed to automate report generation and preparation. The proposed System
will provide a great help to the staff and personnel of the pharmacy.
Computerization will ease their report preparation and generation and will
eliminate their manual processes. (Celino, Embralino, Locano, Mendoza, Oplas,
& Pescador, 2005)

The Benguet State University Marketing Center Inventory and Purchasing


System is a proposed system to the BSU-Marketing Center. It was proposed to
allow authorized users to easily manipulate data and make necessary updates.
Specified users can also easily view and retrieve reports. It will also allow them to
monitor the products and monthly sales. Some of the benefits of the said system
are, first of all it will computerize the record keeping of products. Second, it will
provide an efficient and convenient report generation and maintenance. And
lastly, it will automate manual computation of sales.(Bayo, Gatayen, Oliva,
Paterno, & Pias, 2007)

The existing monitoring system of the district hospitals of Benguet is a


manual process of recording of all the data that they need for their report such as
the name of the medicine or drug, the name of the supplier, the expiration date,
the price, the description, and etc. its current inventory system is also a manual
process of recording all the data through the use of a record book or a yellow pad
paper.

With this, the project acts as a computerized inventory and monitoring


system for the five district hospitals of Benguet. It stores details of the drugs and
medicines, supplier and etc. The system will provide the needed and storing
information in a faster, more convenient way by storing file of the medicines and

drugs in a computer system that will lessen the effort of owner in storing files
every now and then. The system will also monitor the current state of the
medicine in order to determine its expiry and the transaction involved.

The database is designed for use by the Benguet district hospitals and
other authorized user to enable them to easily produce information required by the
different people.

Statement of the Problem

Based on the conducted interview and observations, the group had come
up with the following problems being encountered by the project.
The study seeks to answer the following problems:

1. What are the recent procedures made in the Inventory and Monitoring
of Drugs and Medicines in the different district hospitals of Benguet?
2. What are the problems encountered in the Inventory and Monitoring of
Drugs and Medicines in the different district hospitals of Benguet?

3. What are the procedures in the Inventory and Monitoring of Drugs and
Medicines in the different district hospitals of Benguet that needs to be
computerized?
4. What security measures are to be adopted?
5. What are the perceived benefits once the computerization is
implemented to the following group:

Benguet Capitol;

Provincial Health Office (PHO);

Provincial Accounting Office (PAO);

District Hospitals; and

Researchers

Objectives of the Study

The specific objective of the study is to provide an Online Inventory and


Monitoring System for Benguet District Hospitals. Specifically to:

1. Identifying the recent procedures made in the Inventory and


Monitoring of Drugs and Medicines in the different district hospitals
of Benguet.

2. Solving the problems encountered in the Inventory and Monitoring of


Drugs and Medicines in the different district hospitals of Benguet.

3. Analyzing the recent procedures in the Inventory and Monitoring of


Drugs and Medicines in the different district hospitals of Benguet that
needs to be computerized.

4. Developing the security measures to be adopted.

5. Conceptualizing the perceived benefits once the computerization is


implemented to the following group:
a. Benguet Capitol;

Provincial Health Office (PHO);

Provincial Accounting Office (PAO);

b. District Hospitals; and


c. Researchers

Significance of the Study

This IT project intends to provide an accurate and effective Online


Inventory and Monitoring System which will benefit the following:

Provincial Health Office.The Provincial Health Office (PHO) handles the


monitoring of records regarding the inventory of medicines of the different
District Hospitals in the whole province of Benguet.

Provincial Accounting Office.The proposed system will lessen the time,


enhance the level of work, help its processes more reliable and efficient, and
provide accuracy and security of data and information. It will contribute to the
development of the Benguet Capitol and add to its competence.

District Hospitals.The development of better data manipulation, retrieval,


and data storage through computer based systems can strengthen Benguet district
hospitals transactions and operations. It will enable users to retrieve and render
correct data on the records. Computerization of files and documents saves time
and space in office environment. It will contribute to the development of the
district hospitals.

Furthermore, the proposed system will lessen the work of employees or


officer-in-charge in the inventory and monitoring process and provides faster
access of inventorys information. It will also reduce or eliminate the percentage
of human error in tallying in the inventory process. Monitoring and updating of
inventory records can be easily accommodated.

Researchers.The project serves as a basis of their study. It engages their


knowledge in programming activities to create a computerized system. It will also
serve as a tool to sharpen their knowledge and ability in developing a
computerized system.

Scope and Delimitation

The proposal aims to establish a better way of communicating for the


Benguet District Hospitals, the Provincial Health Office and the Benguet Capitol.
It also aims to lessen the work of the authorized personnel in accordance with the
inventory and monitoring of drugs and medicines. And lastly, the project aims to
lessen data discrepancies and errors which are frequently arising from the current
operations.

The proposed system is mainly focused on the purchased drugs and


medicines, either by the district hospital or the Benguet Provincial Health Office.
It includes the documents that are involved and transactions regarding on donated
drugs and medicines by the Department of Health. It also includes the forms that
are involved for transferring of drugs and medicines from one Benguet District
Hospital to another. And lastly, it includes the monitoring of drugs and medicines.
The proposed system will automatically determine the stock availability, the
indicator andthe expiration of every drugs and medicines.

The project is delimited by the procurement system which is not included


in the proposed system but accepts theprocured drugs and medicines as an input
for the inventory system.

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Definition of Terms
These are some of the words and terms that were used in this
project. Their definitions are given within this to further understand their
meaning.

Annual Supply Procurement Plan (ASPP).The list of supply needed for the
incoming year. It is based on the preferences of the Physicians and
Pharmacists, unfilled prescriptions and the consumption of previous year.
Bidding.The offering of particular prices for something, esp. at an auction.
Drug.A substance used in the diagnosis, treatment, or prevention of a
disease or as a component of a medication.
End-user.The person for whom a hardware or software product is designed
from the developers, installers, and servicers of the product.
Epidemic.Affecting many persons at the same time, and spreading from
person to person in a locality where the disease is not permanently
prevalent.
Expiration Date. The calendar date on the packaging of a pharmaceutical
or food that indicates the last date the item should be used.
Fast Moving Drugs and Medicines.Refers to the drugs and medicines that
are easily disposed or consumed by patients.

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Indicator Drugs.Drugs or medicines that are used in the experimental


monitoring system of drugs and medicines by the Japan International
Cooperation Agency (JAICA).
Medicine. A drug or other preparation used for the treatment or prevention
of disease.
Online. Controlled by or connected to another computer or to a network.
Pharmacist.A person who is qualified to prepare and sell medicine.
Pharmacy.A place where drugs are compounded or dispensed.
Pooled Drugs and Medicines.Refers to drugs or medicines which must be
purchased immediately due to immediate need a patient.
Prescription.An order, especially by a physician, for the preparation and
administration of a medicine, therapeutic regimen, assistive or corrective
device, or other treatment.
Procurement.The process of obtaining goods and services from
preparation and processing of a requisition through to receipt and approval
of the invoice for payment.
Purchase Order.List of drugs and medicines given by the Provincial
Health Office (PHO) to the winning bidder to identify the drugs and
medicines to be delivered.
Regular Drugs and Medicines. Refers to drugs or medicines which
undergone the process of bidding.

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Request Form.A document written by the Pharmacist to other district


hospitals or to the Provincial Health Office (PHO) to request drugs or
medicines due to lack of supply.
Requisition Slip. An official order laying claim to the use of property or
materials.
Server.A computer or computer program that manages access to a
centralized resource or service in a network.
Slow Moving Drugs and Medicines.Refers to the drugs and medicines that
are not immediately disposed or consumed by patients.
Stock card. A stock card is a generic postcard with blank space left on it
for future printing.