Lesson 12: Materials Management System Flashcards
It ensures that services are rendered successfully from one source to an end user.
Covers several areas of the hospital and could drastically affect the expenses of the medical institution.
Materials Management System
Three components of purchasing
- Purchase request
- Purchase order
- Receiving delivery
Four components of inventory control
- Ensuring shipment accuracy
- Aligning with sales projections
- Complying with regulations
- Establishing buying cycles
Ensuring that the received items are the ones ordered and the supplies are free from damages during transit
Ensuring shipment accuracy
Prevents wastage, identify trends and ensure no excess inventory
Aligning with sales projections
Health institution should be responsive to current trends and needs of the highly regulated health care industry. Serve the best interest of the patients.
Complying with regulations
Ordering becomes manageable through the elimination of shortages and overages. Determine the trends and adjustments that can be made accordingly.
Establishing buying cycles
Upper portion contains master information
“Item Tab” is used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc.
“Item Availability” form specifies inventory levels across all warehouses
Item Master Maintenance
Items are damaged either upon receiving from the supplier or during the move from the source to another location.
Some suppliers allow returns of the said goods that have indents or the like, with a guarantee of replacement without any additional payments.
Damaged items are moved to another warehouse for them to be monitored.
Items indents and Issues
Re-order level is the minimum quantity of an item that a company has in stock.
“Min” value is representative of a stock level that prompts a re-order, and the “Max” value is representative of a new targeted stock level that follows the re-order
Reorder Level and Minimum and maximum inventory Ordering
EOQ?
Economic Order Quantity
Start point of a sale or purchase process
Getting information from a vendor / supplier for the requirement at hand
Establishing a connection with the right vendor supplier in order to get a quotation, place the order and receive the requirements
Enquiries
State important information such as price, delivery times, delivery details, payment terms, taxation etc.
Quotations
Stated intention, either spoken or written, to engage in a commercial transaction for specific products or services
Buyer’s point of view expresses the intention to buy and is called a purchase order
Seller’s point of view intention to sell and is referred to as a sales order
Orders become a contract between the buyer and seller
Order
is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer
Indicates the sale transaction only
Invoice
need to be created in order to enable a quotation, order, invoice, tax forms etc. to be used
are statutory requirements to enable smooth transition of the processes involved in successfully completing a sale / purchase
Documents
Document for requesting prices and delivery information from a vendor before the purchase order.
Purchase quotations
Companies maintain a list of _______ from whom inventory items are purchased.
Preferred vendors
Document that notifies the purchasing department that certain items or services need to be replenished
Purchase request
Legally binding contract which shows that the seller has already accepted the order issued by the buyer
Purchase orders
The person who creates the document, either a purchase request or order, is the originato
Approval process
Policies that should be followed for the proper receipt and inspection of goods
Receiving and Tracking Items
Inspect the delivered items before signing the receiving document and packaging list
Signing for deliveries
Refuse to accept any shipment if the packaging appears to be damages or does not have a corresponding purchase order
Refusing delivery
Ensure that there is proper documentation
Record retention
Inspect the goods to ensure
Inspecting a shipment
When items are delivered partially without proper notification, the receiving personal should advice for approval or further instructions
Partial deliveries
Easily tracked when they are managed by serial number or by batch
Tracking of goods
Defective or substandard quality good, incorrect order delivery, and deteriorated purchased and sold items
These lead to purchase returns
When purchased goods are returned, the materials management system updates inventory levels to reflect the decrease in quantity
Purchase returns along with returnable/non returnable gate pass
Consignment the vendor or consignor issues materials to the receiver or consignee, and these materials are stored on the consignee’s premises.
The vendor maintains legal ownership until such materials are removed from consignment stores.
The invoice is due at predetermined intervals, such as monthly.
Customers can also arrange to take over ownership of the remaining consignment material after a certain period of time
Consignment stock receipt, consumption, and regularization
Upon reaching expiration dates, some goods can no longer be utilized.
Can be sold to others at lower costs
The amount that reduces inventory in your records is recognized as a loss that is a reduction in profit
Expired stock and quarantine
Inventory is put into quarantine if initially rejected during > Production, upon completion of an operation, when specified as Move Rejected End Item to Quarantine.
Inbound inspection upon receipt of:
Manufactured end items Purchased items. Sold items on sales return orders Enterprise Planning distribution orders Outbound inspection upon issue of: Materials to production
Quarantine stock or inventory
30 to 50% of hospital charges are actually attributable to diagnostics, drugs, and consumables, and doctors get only between 10 to 20%
drugs and consumables take up the bulk of expenditure
Material Management Systems become advantageous > provides an overview of the entire institution’s purchasing and inventory control processes, decision-makers can have more reliable information, and can monitor the bigger picture
Drugs and consumable issues and returns to patients
Sold based on the order they are purchased. This is the most common technique
First In, First Out (FIFO)
Last item to enter the system are sold first
Common among non-perishable items
Last In, First Out (LIFO)
Sold based on the dates they should be consumed, regardless of when they were purchased
First Expired, First Out (FEFO)
Material Management Systems usually allow tax rates to be defined internally via tax codes, or imported from an external source
Generic Tax Formula Configurations
An inventory count is a process where a business physically counts its entire inventory
Inventory services provide labor and automation to quickly count inventory and minimize shutdown time
Inventory control system software can speed the physical inventory process
A perpetual inventory system tracks the receipt and use of inventory, and calculates the quantity on hand
Cycle counting, an alternative to physical inventory, may be less disruptive
Barcode and RFID are supplementary technologies that can be used in combination with the Material Management System in order to have more accurate and less burdensome inventory counts
Periodic Physical Stock Taking and Adjustments with Tracking
in electronic or written format
to represent an aggregated database of clinical information
It usually houses a multitude of laboratory results, diagnostic reports, and various clinical documentations
Clinical Data Repositories
