MMRI’S KAMALNAYAN BAJAJ NURSING COLLEGE

NURSING MANAGEMENT
SEMINAR
ON
MATERIAL MANAGEMENT

SUBMITTED TO,
SUBMITTED TO,
Ms. Laveena Aswale
Mr. Vikrant Kulthe
M.sc Nursing 2nd year
Lecturer
Community Health Nursing
Mental Health Nursing
K.B.N.C
K.B.N.C

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Name of the student: M.s Laveena Aswale

Name of the evaluator: Mr. Vikrant Kulthe

Topic: Material Management

Venue: Kamalnayan Bajaj Nursing College

Date: 13/06/22

Time : 10 am

Group: 2nd year M.sc Nursing

Teaching Method: Lecture cum Discussion

A.V Aids: Power Point presentation, leaflet, blackboard, chart, Video.

Previous Knowledge: Group is having some knowledge about the topic.

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GENERAL OBJECTIVES:

At the end of the seminar the students will gain in dept knowledge regarding
Material Management and will utilize the knowledge in personal and
professional life.

SPECIFIC OBJECTIVES:

At the end of the seminar students will be able to:

1) Define the term Material & Material Management.

2) Discuss the aims of material management.

3) Enlist the objectives of Material Management.

4) Explain the principles of Material Management.

5) Discuss the need of Material Management.

6) Describe the purposes of Material Management.

7) E n u m e r a t e t h e importance of Material Management.

8) Enlist the management techniques used in material management.

9) Explain the procedural steps of material management.

10) Explain the nursing responsibility in material management.

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INTRODUCTION
Materials are the major cost factor in an organization. It is one of the very
important functions of the management. In health care institutions, about 40%
of budgetary allocation is on procurement & management of stores. Every
organization big or small, need proper feeding for good results. It requires
planned & progressive provisioning & procurement to keep machinery
running, this can be achieved only through effective “material management”.

MATERIALS

DEFINITION: Materials may be defined as equipment, apparatus & supplies

procured, stocked & utilized by an organization.

Webster defined the word material as ‘relating to the production & distribution
of economics, goods & social relationships of owners & laborers.

MATERIAL MANAGEMENT

Management means bringing together the available resources so as to achieve a

specific objective. It is the function for the coordination planning, sources,
purchasing, storing & controlling materials in an optimum manner so as to
provide a predefined service at minimum cost.

DEFINITION:
1. According to Judith A., Material management is the management & control
of medical, surgical, clerical, interdepartmental services & equipment from
acquisition on floor to disposition.
2. Material management is a scientific technique, concerned with planning,
organizing & control of flow of materials, from their initial purchase to
destination.

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 CLASSIFICATION OF MATERIALS:

The hospitals use a large of materials for patient care. The department
undertakes standardization of products, i.e. grouping items of similar
specification together and hence it facilitates the department to forecast and
plan its material requirements.

I. Materials in a hospital range from consumables, stationary to even

equipment’s besides pharmaceuticals and optical goods.
II. Depending upon the size of the hospital, it could be a separate
department or in a smaller set up it could be under the care of the
administrator.
III. The material used in the hospital is broadly classified into seven
categories:
1. Capital assets
2. Consumables
3. Hospital wear
4. Printing
5. Stationary
6. Linen
7. Instruments and consignment
o It can also be classified under four heads
are
1. Plan
2. Equipment
3. Material
4. Supplies
o In the government setup, the focus is almost wholly on the fourth class, i.e.

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 supplies. It can be categorized as drugs and medicines, supplies including
linen, equipment’s and instruments, monitors, etc. facilities related.
AIM OF MATERIAL MANAGEMENT:
To have the Right quality of material, Right quantity of supplies of materials, at
the Right time, at the Right place for the Right cost.
OBJECTIVES OF MATERIAL MANAGEMENT:
 To ensure the supply of availability of material right quality, quantity & at
right place, & right time.
 To avoid surplus of material.
 To have appropriate storage & easy to retrieve.
 To ensure distribution to the point of usage wherever required.
 To ensure effectiveness & efficient utilization of available resources.
 To optimizing the use of resources to meet the needs in an efficient manner.
 To obtain correct quality of materials at lowest possible price.

PURPOSES OF MATERIAL MANAGEMENT:

 To gain economy in purchasing.
 To satisfy the demand during period of replenishment.
 To carry reserve stock to avoid stock out.
 To stabilize fluctuations in consumption.
 To provide reasonable level of client services.

IMPORTANCE OF MATERIAL MANAGEMENT

 Control of inventories is made easier & simple.
 Losses caused by deterioration of surplus materials are eliminated.
 Clerical work is sharply reduced.
 Reduces cost & improve profitability & rate of return on investment.
 Assort problems of delivery scheduling, emergency orders & storage are
minimized.

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 Emergency or rush orders are less frequent.
 Better regulation of the flow of materials into the organization permits
better storage & coordinated movement of materials.

PRINICIPLES OF MATERIAL MANAGEMENT:

 It depends on managerial functions of Planning, Organizing, Staffing,
Directing, Controlling, Reporting & Budgeting.
 It should be based on sound purchasing methods.
 There should be skillful & hard poised negotiations.
 Effective purchase system.
 It should be simple.
 It must not increase other costs.
 There should be simple inventory control programme.

TECHNIQUES USED FOR MATERIAL MANAGEMENT:

The following management techniques are used in material management;

 Right Item
 Right Quantity
 Right Price
 Right Source
 Right Method
 Right Delivery
 Value analysis, Standardization
 Inventory control
 Cost/Benefit analysis, Value analysis
 Vendor research
 ABC, VED etc, analysis
 Operation research.

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PROCEDURE OF MATERIAL MANAGEMENT SYSTEM:
The following procedural steps are being taken in material management:

1. PLANNING & BUDGETING/DEMAND ESTIMATION:

--Materials are essential resources to achieve the objectives of health

care organization, the health administrator required to plan the material
management system in such a way to ensure adequate supply of
material to improve expected demand pattern with minimum amount of
money blocked in procuring nonproductive manner. It is great
importance that materials of right quality should be supplied to
consumers in right time & at right place of use.
--First step in handling the problem of supply is that of determining
requirement needs.
It involves three factors:
a. The kind of articles needed
b. The quantity of each article needed
c. The time & frequency of delivery
--One should make a special, careful & technical study of material
needs & on the basis of such study formulate procurement program.
Supporting data should be given for their requests for appropriations
and an accurate report rendered of how money is granted have been
expanded.

PRE-REQUISITES

Demand estimation depends on cost reduction; lay out proper

specification and value analysis.

COST BALANCE

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 --Cost of the material has actual cost, carrying cost that includes
storing to distributing cost.

-- Carrying cost has 20-30% of the cost.

-- It includes interest on capital (15%), storage cost (Racks, Almirah,

Building), manpower cost, deterioration cost, obsolescence,
insurance cost; stock out cost; ordering cost (staff, building,
furniture, stationery). If stock increases carrying cost automatically
will increases. Similarly, if ordering cost is increased, carrying cost
will increase.

--To balance these costs is the aim of material management.

MATERIAL SPECIFICATION

Character of the material required need to specify. The following are

the advantages of material specification:
i. Classification of material: It classifies the material in a precise &
definite way, the exact character of the articles required, their
quality or grade, the nature of their construction & all other needed
special attributes.
ii. Facilitation of work: The specifications is made with reference
thereafter can be made to them by general title or number, thus
avoiding the necessity of setting forth each time in detail the nature
of articles required.
iii. Lessen the purchase procedure:
According to AG Thomas:
 It enhances the trading reputation of the purchaser for exact knowledge of
his needs.

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  It informs the dealers that swiftness during the course of a purchase
agreement is not a part of the purchaser’s policy – a certainty that
encourages competition among the most desirable vendors (quotation)
and secures the lowest prices.
 It saves time of purchasing officer in answering questions of possible
bidders, and also saves the time of those who are to receive or use the
goods purchased.
 It avoids the danger of collusion between the dealers and those who are
to receive and use the articles purchased.
2. PROCUREMENT:

-- After determining supply requirement, the next step in the material

management is securing or procuring the needed articles.
--State governments have laid down detailed rules & regulations regarding
procurements of materials.
--Many states have medical stores which are centralized agencies for
procurement of drugs & supplies. State governments also use a system of
fixed rate contract or running rate contract.
--It has various operation like:
 Selecting the vendors
 Arranging upon the purchase price
 Time & place of delivery
 Verifying deliveries
 Settlement & payment of vendor’s remuneration claim.
The objective of procurement is to secure the articles specified when & where
needed & at the lowest obtainable prices.

3]VALUE ANALYSIS:

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--It is an organized approach to identify non-essential costs which are incurred.
--The process is essential for cost reduction and is also related to
standardization.
-- It examines the facts of function and cost of items used in order to determine
whether the cost can be reduced without compromising on quality.
4] RECEIPT AND INSPECTION:

--It is done when the stores orders are received in the store.

-- Material inspection is necessary to ensure quality of materials received.

--Whenever an item is delivered the same is verified in the presence of the Store In
charge, representative of the suppliers & representative from the purchase
committee of the hospital.

--Verification is done to ensure that the item is as per the order placed, etc.

4] STORAGE:

--Storage & preservation are an important part of the storekeeping function. --

When materials remain idle in the store these materials should be taken care of
and looked after properly.

--Otherwise these materials may get perished due to natural chemical reaction
like rusting by moisture, melting by heat etc. & also may get affected by
insects, rats, etc. the stores should be located where it is easily accessible to
both suppliers & consumers.

--It should be adequate to accommodate all drugs & supplies.

-- Layout of stores is dictated by the need to separate different types of

materials.

--Alphabetical arrangements help in identification & retrieval of supplies.

Medical supplies required controlled temperature & humidity & protection

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from lights.

-- Refrigeration should be provided for all sera & vaccines.

--The minimum & maximum level of each item to be stocked, level of reorder,
buffer stock policies, analysis of the movement pattern of each item and minimum
pilferage are considered.

---The Central Stores undertakes centralized storing of all items.

-- In some hospitals the central stores take this responsibility except

pharmaceutical products, food items & bulk equipment’s

--In order to project the material from various adverse effects the store manager
should take various actions.

5] ISSUE AND DISTRIBUTION:

--The main role of the stores of a hospital is to ensure an uninterrupted supply

of materials to the various departments so that smooth and efficient
functioning of the hospital is not affected.

--In order to ensure a smooth issue of materials, a systematic procedure should

be followed. Good stores systems can greatly help the store manager in smooth
issue, accurate stock status reports, timely detection of discrepancies, and
prompt clearance of goods inward notes to expedite bill payment, reduction in
losses, etc.
--Distribution usually involves transportation to various units or health care
delivery system. It is an intricate process focusing on distribution of the right
time and at right place. Usually two methods are adopted: Requisition system;
as and when required and Par level; periodic replenishing to a certain fixed
level.
--Medical equipment’s, computer systems, etc. are purchased and directly installed
at the site of operation.
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--In that case after successful installation of the item the transaction is recorded in
the Material Issued Register

5] MAINTENANCE AND REPAIR:

--Maintenance and repair will go side by side of various equipment’s.

--Proper maintenance helps to reduce the losses and breakdown of the

equipment.

--It is important to keep an inventory of necessary spares.

6] ACCOUNTING AND INFORMATION SYSTEM:

--It is required to control the material management system.

--Accounting needed for handling the financial matters associated with

procurement.

7] DISPOSAL AND CONDEMNATION:

--Surplus products and non-obsolete or nonfunctional and obsolete or beyond

economic repair, functional but hazardous, functional but no longer required
will require disposal. It is important to decrease in holding costs and in storage
capacity. All the hospitals have condemnation committee. Disposal is done by
sold to other hospitals, to scrape dealers.
--The hospital also undertakes periodic write off of the items which are not fit
to be used. The store maintains complete details which are not fit to be used.
The store maintains complete details about each item in the hospital including
their expiry dates. The store immediately disposes any expired items.
--The user department informs the store in writing about any equipment etc.
which are to be disposed. The store immediately makes arrangement for
removal of the same from the user department. Before removing the equipment

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Cannibalization of parts is done so that the usable parts of discarded machine
can be used in future for other machine of the same type.

NURSES RESPONSIBILITY IN MATERIAL MANAGEMENT:

1. Managing supplies and equipment involves much more than keeping the
storage area neat. Managing a hospitals nursing department includes
managing the supplies and equipment needed for patient care and
treatment.

2. Determining, which supplies are both cost-efficient and best for the
patients and ordering stock are one way the nurse manager helps keep
the department running smoothly.

3. The head nurse/ nurse manager is responsible for proper management

of equipment and supplies required for the patient care.
PROCUREMENT

4. The first priority in supply and equipment management knows how to

procure the things that are needed. The procurement process involves
several steps are:

 First requirement must be established. The practical nurse manager

must maintain ward, clinic or area readiness by knowing what
supplies and equipment are needed for daily operations (to
accomplish the mission).
 The next step is to send requisition of the supplies and equipment
through the proper channels. In order to do this the nurse manager
must have a working knowledge of the basics of the supply system.
 In various hospitals, nurse manager is assisted by a ward aide to put
up the indents of supplies and equipment.

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  A special code system is adopted in the hospitals for items to be
procured.

RECEIVING AND INSPECTION

5. When the requested items arrive in work place/ ward, they must be
properly received, inspected and counted.

STORING

6. Each ward has store with wardrobes. The supplies and equipment
received from the respective stores are kept. Additionally, supplies and
equipment must be properly safeguard against damage and loss. Store
must be off adequate space and in a correct way; groupwise and
alphabetical arrangement helps in identification and retrieval. Monitor
expiry date.

ISSUING, DISTRIBUTION AND MAINTAING INVENTORY

7. Nurse managers must make sure that their nurses have the supplies they
needed, such as bandaging materials, adaptive equipment and patient
hygiene supplies.
8. He/she distributes the supplies in the morning for the use to the
operational level nurses and also ensures supplies for evening and night
staff, maintain a current inventory of equipment for accountability of
supplies and equipment, whether used, disposed of or sent for repair.

MAINTENANCE OF THE ASSOCIATED PAPERWORK AND RECORDS

9. Hand receipts must be kept up to date, budgets controlled and supply

documents should be noted and filled.

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REPAIRING AND DISPOSAL

10.Equipment found to be unserviceable must be turned in or sent for

repair. Equipment must be checked for proper functioning, inspected for
damage or leaks, calibrated and tested on a regular basis.
11.Local policy dictates what is to be done, but it is the responsibility of the
nurse manager to make sure that it does get done at the proper time and
by the appropriate personnel, should ensure the quality of equipment as
a patient safety and should conduct routine checking of equipment,
label, isolate or remove faulty equipment to prevent injury and report
faulty equipment.

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