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HEALTH INFORMATION SYSTEM FOR MEDICAL LABORATORY SCIENCE > Material Management System > Flashcards

Material Management System Flashcards

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1
Q

making sure that services go successfully from one source to an end user—includes several areas of the hospital and could drastically affect medical institution expenses.

A

MATERIALS MANAGEMENT SYSTEM

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2
Q

Executing this function in a manner that

A
  • lessens expenses and
  • ensures adequate cash flow
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3
Q
  • could be used as a first step in the process of purchasing. This is used internally to identify a need for an item.
  • generally is a document which is made by a user to notify the purchasing department regarding needed items and services.
A

purchase request

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4
Q

PURCHASE REQUEST
This document specifies

A

a. quantities, as well as a
b. timeframe for the items requested.
c. authorization information needed to proceed with the purchase.

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5
Q
  • plays an important part in refining the quality of healthcare services, since the lives of the people are on the line, as well as because medical costs are increasing.
  • is one of the biggest expenses for most medical institutions.
A

Inventory Control

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6
Q

can be wildly inaccurate. It is difficult to predict disease and accident patterns, and patients are notoriously reluctant to switch doctors, hospitals and health insurance. Tracking inventory in comparison to actual sales is essential. This prevents waste, frees up cash that would have gone to excess inventory and helps medical companies identify trends they might not have seen before.

A

Alignment With Sales Projections

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7
Q

A company that routinely fails to serve the best interests of patients can quickly find itself being investigated, sued or simply shunned by health-care consumers.
Tracking inventory can be extremely important in maintaining the responsiveness of a medical company.
This applies not only to front-line health providers but also to the suppliers of those providers. Knowing
what inventory is on hand and what items are needed can keep a medical company responsive and
prevent closer scrutiny by regulators.

A

Compliance With Regulations

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8
Q

Inventory control helps medical companies understand buying cycles. Instead of responding to needs for supplies and equipment, inventory personnel can anticipate needs based on previous cycles.
Smoothing ordering out to fit predictable cycles can eliminate shortages and overages. Buying cycles
can also be tracked to determine whether trends are shifting and need to be adjusted.

A

Establishing Buying Cycles

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9
Q

the “Inventory Item Maintenance” screen has many
sections. The upper portion contains master information. Additional options appear after the
selection of an existing item.

A

Material Management Systems

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10
Q

is used for maintenance of the attributes of an inventory item, such as product type, item class, item type, etc. If the balance and order activity is zero (0), items can be deleted using this option

A

“Item Tab”

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11
Q

form specifies inventory levels across all warehouses.

A

“Item Availability”

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12
Q

In some cases, there are instances where 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.

A

ITEM INDENTS AND ISSUES

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13
Q

is the minimum quantity of an item that a
company has in stock, so when the stock reached the minimum quantity stated, the item must then
be re-ordered

A

Re-order level

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14
Q
  • are the start point of a sale or purchase process.
  • lead to getting information from a vendor / supplier for the requirement at hand.
  • lead to establishing a connection with the right vendor / supplier in order to get a quotation, place the order and receive the requirements.
A

Enquiries

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15
Q
  • consist of various pieces of vital information of a requirement towards a sale /purchase.
  • state important information such as price, delivery times, delivery details, payment terms, taxation etc.
  • being accepted an order is placed for the requirements.
A

Quotations

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16
Q

is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services. From a buyer’s point of view it expresses the intention to buy and is called a purchase order. From a seller’s point of view it expresses the intention to sell and is referred to as a sales order. When the purchase order of the buyer and the sales order of the seller agree, the orders become a contract between the
buyer and seller.

A

Orders

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17
Q
  • 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.
A

Invoices

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18
Q

is a document for requesting prices and delivery information from a vendor before the purchase order.

A

Purchase Quotations

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19
Q
  • the information tracked enables one to choose the right vendor for the purchase.
  • helps in lessening expenses, improving the quality and increasing on-time delivery.
  • allows one to compare offers in order to pick the appropriate vendor for the purchase scenario. Afterwards, one can create the purchase order from the selected quotation.
A

Purchase Quotations

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20
Q

Companies typically maintain a list of ?, from which inventory items are usually purchased.

A

Preferred Vendors

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21
Q

Preferred Vendors

A

-On-time performance
-Reasonable costs
-High quality of products and services
-Fully licensed, bonded, and insured
-Good Business practices

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22
Q

on the other hand, is a document which records a business transaction between the buyer and the seller. A buyer issues his order, and upon seller acceptance of the order, a legally binding contract is created between the parties (SAP, 2012).

A

Purchase Orders

23
Q

A simple Purchase Order will identify the following basic elements:

A
  • Buyer: name, address, and contact info of party giving money for goods
  • Seller: name, address, and contact info of party receiving money for goods
  • Order Number: a unique ID number to track each business transaction
  • Item Description: details, quantity of goods, cost per unit, and total price of goods
  • Shipping Address: where the goods will be shipped
  • Shipping Date: when the goods will be delivered to the final location
  • Billing Address: location of where the invoice should be sent so the Buyer can pay
  • Signature: signature of Buyer offering to buy and signature of Seller accepting
  • Order Date: when the business transaction occurred
24
Q

The person who creates the document, either a purchase request or order, is the originator. Upon adding documents to the material management system, the system checks for any approval requirements. If the document fails to meet the requisites for an approval, the originator is notified that the document needs approval. The document is temporarily saved as a draft.

A

Approval Process

25
Q

is immediately sent to the first approval stage when the approval process is launched. This request is received in the Messages/Alerts Overview window, and the approver can access the document.

A

internal request

26
Q

goes back to the originator with a link to the rejected
document should the approver reject the document. The originator can amend the document, and the approval procedures will continue until the approval conditions are adequately satisfied (SAP, 2012).

A

internal notification

27
Q

Whenever possible, the person receiving the product should sign the receiving documents provided by the supplier or shipping company. The person receiving the delivery should inspect the items before signing the receipt and should also initial the packing list.

A

Signing for Deliveries

28
Q

Whenever possible, departments should refuse to accept shipments if they are unable to confirm
that the order was placed by their department, or if the packing appears sufficiently damaged to
warrant concern.

A

Refusing Delivery

29
Q

-During the receiving process, the Receiving Department takes physical possession and legal
ownership of the shipment. Therefore, it is important for the supplier to provide the department with a packing list for all shipments delivered to the department.
- If the supplier fails to provide the packing list, the department should contact the supplier to
request that copies be sent to the department for its files.
- Department must keep receiving documents on file in accordance with these guidelines. The need
for saving receiving documents is particularly important when accepting any partial or staggered
deliveries over a period of time.

A

Record Retention

30
Q

Persons receiving shipments should, upon acknowledging receipt of an order, conduct an inspection to verify the following minimum conditions:

A

Inspecting a Shipment

31
Q

conduct an inspection to verify
the following minimum conditions:

A

1.)The products conform to the purchase order requirements and other relevant documents (for example: correct model number, description, size, type, color, ratings, etc.)
2.)The quantity ordered against the quantity shipped or delivered.
3.)There is no damage or breakage.
4.)The unit of measurement count is correct (e.g. if the unit of measurement on the purchase order is one dozen, there should be 12 in the package).
5.) Delivery documentation (packing list, certifications, etc.) is acceptable.
6.) Perishable items are in good condition and expiration dates have not been exceeded.
7.) Products are operable or functional.

32
Q

Departments should contact the appropriate Purchasing Agent whenever a purchase is received without acknowledgement or notification from the supplier. This information is typically noted on the packing list.

A

Partial Deliveries

33
Q

Goods can be easily tracked /traced when they are managed by Serial or Batch. Aging of products can also be done if the items are slow moving/stay longer in the warehouse.

A

Tracking of Goods

34
Q
  • Defective or substandard quality goods, incorrect order delivery, and deterioration among inventory
    purchased and sold are usually common in business, and this gives rise to purchase or sales returns.
  • When purchased goods are returned, the material management system updates inventory levels to reflect
    the decrease in quantity.
  • Movement of inventory isn’t limited to purchases or purchase returns. Supplies and equipment are also
    sometimes required to be taken out of the department for repairs or consignment, among many reasons.
  • For temporary movement, a Returnable Gate Pass is issued. On the other hand, a Non-returnable Gate
    Pass is given for permanent movement.
  • The material management system can be configured to track returnable and non-returnable items of inventory or equipment. It can also monitor due dates for returnable items, and provide detailed reports about the status of different inventory items.
A

PURCHASE RETURNS ALONG WITH RETURNABLE/NON-RETURNABLE GATE
PASS

35
Q

In the process of consignment, the vendor or consignor issues materials to the receiver or consignee, and these materials are stored on the consignee’s premises.

A

CONSIGNMENT STOCK RECEIPT, CONSUMPTION AND REGULARIZATION

36
Q

maintains legal ownership until such materials are removed from consignment stores.

A

The vendor

37
Q

is due at predetermined intervals, such as monthly. In addition, customers can also arrange to take over ownership of the remaining consignment material after a certain period of time (SAP, 2011).

A

The invoice

38
Q

Upon reaching their expiration dates, some goods, such as food and medicine, can no longer be utilized. In rare instances, it may be sold to other parties at a lower cost. However, as soon as inventory expires and its value falls below its original cost, this must be reflected in the financial records so as not to misstate the financial statements.

A

Expired Stock/Inventory

39
Q

When undecided about how to handle defective goods, whether to be sold as scrap, reworked, returned, or used as it is, a quarantine location or warehouse can be used to temporarily house them until a final decision has been reached.

A

Quarantine Stock/Inventory

40
Q

Inventory is put into quarantine if initially rejected during:

A
  1. Production, upon completion of an operation, when specified as Move Rejected End Item to Quarantine.
  2. Inbound inspection upon receipt of:
41
Q

Inbound inspection upon receipt of:

A

*Manufactured end items
*Purchased items
*Sold items on sales return orders
*Enterprise Planning distribution orders
*Outbound inspection upon issue of:
*Materials to production (Infor LN Warehousing, 2018).

42
Q

it 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.

A

Material Management Systems

43
Q

Nagarajan (2017) affirms that 30 to 50% of hospital charges are actually attributable to diagnostics, drugs, and consumables, and doctors get only between 10 to 20%. For both hospitals and patients, drugs and consumables take up the bulk of expenditure. This is why material management is critical, at least on the part of the hospital, in order to optimize the investment in these kinds of consumable assets.

A

DRUGS AND CONSUMABLE ISSUES AND RETURNS TO PATIENTS

44
Q

is a crucial function for any product-oriented business.

A

Inventory management

45
Q

Common inventory handling methods includes:

A

a. First In, First Out (FIFO)
b. Last In, First Out (LIFO)
c. First Expired, First Out (FEFO)

46
Q

Inventory items are sold in the order they are
purchased. This is the most common technique.

A

First In, First Out (FIFO)

47
Q

Last to enter the system are sold first. This is
common among non-perishable items like petroleum, minerals, and metals.

A

Last In, First Out (LIFO)

48
Q

Materials are sold based on date they should be consumed, regardless of when it was purchased.

A

First Expired, First Out (FEFO)

49
Q

Material Management Systems usually allow tax rates to be defined internally via tax codes, or imported from an external source. Tax configurations are usually accounted for on a per country basis.

A

GENERIC TAX FORMULA CONFIGURATIONS

50
Q

The following taxes can usually be processed while posting documents:

A
  1. Tax on sales and purchases
    2.Additional taxes like VAT
  2. Sales and Use tax as in USA
  3. Withholding tax like income tax in India
  4. The automatic calculation of the tax dues during the purchasing process makes the process less susceptible to clerical errors.
51
Q

is a process where a business physically counts its entire inventory.

A

inventory count

52
Q

may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked.

A

physical inventory

53
Q

Businesses may use several different tactics to minimize the disruption caused by physical
inventory.

A
  1. Inventory services provide labor and automation to quickly count inventory and minimize shutdown time.
  2. Inventory control system software can speed the physical inventory process.
  3. A perpetual inventory system tracks the receipt and use of inventory, and calculates the quantity
    on hand.
  4. Cycle counting, an alternative to physical inventory, may be less disruptive (CTI Reviews, 2016).

HEALTH INFORMATION SYSTEM FOR MEDICAL LABORATORY SCIENCE (14 decks)

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