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Material management is a scientific
technique, concerned with planning, organizing and controlling the flow
of materials from their initial purchase through internal operations
to the service point through distribution.
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The material management in the health care system is
concerned with providing the drugs, supplies and equipment needed by
health personnel to deliver health services..
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About 40 percent of the funds in the health care system are used up for providing materials.
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It is of great importance that materials of right quality are supplied to the consumers
- Planning for materials
- Demand estimation
- Purchasing
- Inventory management
- Inbound traffic
- Warehousing and stores
- Incoming quality control
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"Material planning is the scientific way of
determining the requirements that goes into meeting production needs
within the economic investment policies”. - Gopalakrishnan &
Sunderasan
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It is done at all stages and all
levels of management. Material planning is based on certain feedback
information and reviews.
To get:
- The Right quality
- Right quantity of supplies
- At the Right time
- At the Right place
- For the Right cost
- 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
- Planning
- Organizing
- Staffing
- Directing
- Controlling
- Reporting
- Budgeting
- Sound purchasing methods
- Skillful and hard poised negotiations
- Effective purchase system
- Should be simple
- Must not increase other costs
- Simple inventory control programme
- Demand estimation
- Identify the needed items
- Calculate from the trends in Consumption
- Review with resource constraints
Objectives of procurement system
- Acquire needed supplies as inexpensively as possible
- Obtain high quality supplies
- Assure prompt and dependable delivery
- Distribute the procurement workload to avoid period of idleness and overwork
- Optimize inventory management through scientific procurement procedures
- Review selection
- Determine needed quantities
- Reconcile needs and funds
- Choose procurement method
- Select suppliers
- Specify contract terms
- Monitor order status
- Receipt and inspection
- Open tender
- Restricted or limited tender
- Negotiated procurement
- Direct procurement
- Rate contract
- Spot purchase
- Risk purchase
- Many Suppliers Strategy
- Few Suppliers Strategy
- Proper specification
- Invite quotations from reputed firms
- Comparison of offers based on basic price, freight and insurance, taxes and levies
- Quantity and payment discounts
- Payment terms
- Delivery period, guarantee
- Latest technology
- Availability of maintenance and repair facility, with minimum down time
- Post warranty repair at reasonable cost
- Upgradeability
- Reputed manufacturer
- Availability of consumables
- Low operating costs
- Installation
- Proper installation as per guidelines
- Store must be of adequate space
- Materials must be stored in an appropriate place in a correct way
- Group wise and alphabetical arrangement helps in identification and retrieval
- First-in, first-out principle to be followed
- Monitor expiry date
- Follow two bin or double shelf system, to avoid stock outs
- Reserve bin should contain stock that will cover lead time and a small safety stock
- Material management is an important management tool which will be very useful in getting the right quality and right quantity of supplies at right time.
- Having good inventory control and adopting sound methods of condemnation and disposal will improve the efficiency of the organization.
- Principles of material management and procurement are applicable to every organization as well as individuals.
- Basavanthappa B T. Nursing administration. ( Ist edn). New Delhi: Jaypee brothers medical publishers (p) ltd; 2000.
- Gopalakrishnan & Sunderasan: Material Management, Prentice Hall of India Pvt Ltd. New Delhi, 1979.
- Kulkarni G R. Managerial accounting for hospitals. Mumbai: Ridhiraj enterprise; 2003.
- Kumar R& Goel SL. Hospital administration and management. Vol 1 ( first edn).New Delhi: Deep & deep publications;
- Gupta S& Kanth S. Hospital stores management, an integrated approach.( First edn). New Delhi: Jaypee brothers; 2004.
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