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CVPM 2021 > Organization > Flashcards

Organization Flashcards

1
Q

Implementation

A

To put into effect

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2
Q

Inventory Variance Evaluation

A

Beginning qty Jan. 1 + # ordered - #sold = calculated qty on hand - physical count = variance

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3
Q

Internal Controls

A

measures, systems and protocols to prevent errors, waste and fraud

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4
Q

Periodic Inventory

A

uses data from manual count at the end of a financial period

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5
Q

Perpetual Inventory

A
  • accurate idea of qty’s at any time
  • received - added to inventory
  • sold/used - removed from inventory
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6
Q

Control Functions

A

written policies/procedures maintaining security and safety
regular monitoring
needs to be flexible

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7
Q

SOMR

A

Source oriented Medical Records
- grouped by information, then chronological
(diet tab, medical view tabs)

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8
Q

POMR

A

Problem Oriented Medical Record

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9
Q

How long to retain medical records?

A

3-5 years or 3-7 years (in the reading)

5 years from the last entry- CVO

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10
Q

Acceptable variance

A

1-4%

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11
Q

3 Value Disciplines

A
  1. Customer intimacy
  2. Product leadership
  3. Operational Acceptance
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12
Q

Traditionals

A

Generation 1925 - 1945

frugal, work long hours, adhere to the rules

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13
Q

Basic Accounting Equation

A

Assets = liabilities - Equity

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14
Q

Merchandise Inventory

A

products for resale to clients

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15
Q

Inventory Control

A

meet operating demands

frequently used items are always available

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16
Q

Replacement Cost

A

price to pay to repay an existing inventory asset with same product

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17
Q

Shrinkage

A

decreased on hand inventory caused by use not recorded/invoiced
ie. broken bottle

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18
Q

Supply and Demand

A

product availability and the need

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19
Q

Procurement

A

obtaining/buying goods

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20
Q

Just in Time

A

receive items just as needed vs. storing the item
- low holding costs, no expired product
high ordering costs, stock outs and back orders

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21
Q

Medical Supply Inventory

Professional Inventory

A

items used to provide medical/surgical services

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22
Q

Department Lead

A

identify products needs within their specific department

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23
Q

Inventory Purchaser

A

places order and identifies needs

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24
Q

Inventory Researcher

A

evaluates/selects suppliers and products

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25
Q

Inventory manager

A

responsible for all the tasks associated with the other roles

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26
Q

Inventory Counter

A

Unpack, account for and stock the shipments

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27
Q

DVM Costs

A

if paid on production, then a portion of their pay is considered an actual cost of inventory

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28
Q

holding Costs of total true cost

A

8-15% holding cost of true total cost

25-30% holding and ordering costs of true total cost

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29
Q

Holding Costs

A

costs invested in keeping inventory ‘on hand’ while waiting to use/sell
(tax, ins., utilities, loss (exp/waste/spoiage), OHSA regs

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30
Q

Ordering Costs

A

labour related expenses such as employee compensation, including benefits and taxes to perform duties associated with ordering, receiving, unpacking, payment & records

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31
Q

Unit/Product Cost

A

Total amount paid vendor / # of units ordered

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32
Q

Bookkeeper

A

chart of accounts
cost of goods data
purchasing budgets
reports

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33
Q

5 Steps - Inventory Control

A
  1. Print your lists - delete inactive, duplicates…
  2. Reprint
  3. Create list of unconsolidated products - 2 options
  4. Count Inventory
  5. Enter/Receive accurately going forward
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34
Q

Mark up

A

acquisition cost x specific factor

100% mu doubles acuisition

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35
Q

calculating Inventory Turns

A

(BI + EI) /2 = Avg. inventory on hand (AI)
DMSP / AI = inventory turnover ratio

DMSP - Drug and medical supply purchases

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36
Q

Reorder Quantity

A

Average daily use x turnover goal (days) = reorder qty

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37
Q

Bluetooth

A

short range wireless connection to phones, computers…

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38
Q

Ancillary Service Provider

A

service provider that support the work of a primary physician

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39
Q

Business Liability Insurance

A

protects the company in the event of a lawsuit or claim

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40
Q

Business Assessment Report Kard (BARK)

A

Strategic planning process to evaluate veterinary practices

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41
Q

Client Risk Management

A

identify, analyze and either accept or mitigate of uncertainty in client decision making

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42
Q

Capital Asset

A

property of any kind.

movable or immovable, tangible or intangible, fixed or circulating

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43
Q

Controlled Drugs

A

Any drug to include narcotics with a potential for abuse. Strict government control

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44
Q

Consent Form

A

A form signed by a client to agree to a procedure and is aware of any risks.

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45
Q

Complementary Practitioner

A

A vet that used healing practices and products that work in conjunction with traditional medicine

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46
Q

Data breach Risk Management

A

Strategies and procedures in plact to protect confidential data from unauthorized access

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47
Q

Cost of Goods Sold (COGS)

A

cost of products sold to consumers in the business activity of the practice

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48
Q

Disclaimer

A

A clause or statement that tries to prevent the creation of a warranty or contract

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49
Q

Depreciation

A

Systematic allocation of the cost of a tangible asset over time

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50
Q

Efficiency Ratio for Accounts Payable to Sales

A

Ratios use to analyze how well a company uses its assets and liabilities internally

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51
Q

Economic Risk Management

A

identification, assessment and prioritization of financial risks followed by coordinated and economical application of resources to minimize, monitor and control the probability of said risk

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52
Q

Economic Order Quantity (EOQ)

A

most economical quantity of a product to order, factoring in both holding and operating costs

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53
Q

Firewall

A

designed to prevent unauthorized access to or from the network

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54
Q

Expired inventory

A

reached the end of its useful life and cannot be sold

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55
Q

Five Force Analysis

A

Strategic planning that organizes the practice’s evaluation of the external environment and its opportunities and threats

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56
Q

First In - First out (FIFO)

A

oldest inventory items are recorded and sold first,

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57
Q

Human Resource Risk Management

A

identifies and understands the risks you are exposed to when it comes to HR.
Evaluate risk
Have a strategy to remove risk
Prevent it from happening again

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58
Q

EOQ - Economic Order Qyt Formula

A 
EOQ (sq. root) 2 x A x F / H x UC
A - Annual demand in units
F - Fixed Ordering Costs
H - Holding Cost
UC - Unit Cost
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59
Q

FOB

A

Freight on Board (ownership of product)
FOB Shipping Point - merchandise is loaded on the carrier
FOB Destination - merchandise is delivered

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60
Q

3 Costs in acquiring Inventory

A
  1. Unit Cost
  2. Ordering Cost
  3. Holding Cost
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61
Q

ASLD (Average Shelf Life in Days)

A

365 / annual ITR = ASLD

ITR - inventory turnover ratio

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62
Q

Average Turnover

A

Typically ~ 6 x/ year

Robert F. Roehlich (1987) says 8-10 x/yr
every 35 - 45 days is a good target

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63
Q

Cumulative % of AUV (annual usage volume)

A

AUV / total cumulative AUV = cumulative % of AUV

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64
Q

AUV (Annual Usage Volume)

A

volume ($) /yr x average cost = AUV

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65
Q

Cumulative AUV (annual usage volume)

A

Once AUV is sorted (increasing)
calculate the cumulative AUV
Add AUV line 1, line 2….

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66
Q

4 Inventory Objectives

A
  1. Controlling - counting & accountability
  2. Forecasting - determine reorder pts & qtys
  3. Purchasing - ordering/receiving strategies
  4. Selling - training, marketing, pricing
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67
Q

Calculating inventory Turns

A

(BI + EI) / 2 = avg. inventory on hand (AI)

DMSP / AI = Inventory Turnover ratio

68
Q

Inventory Turnover

A

volume of merchandise sold : inventory amount

-short time before sold/used

69
Q

BEP (Break Even Point)

A

Amount of revenue that covers all fixed and variable costs

- no profit or loss

70
Q

Holding Costs (%)

A

8-15% of the total cost

71
Q

Combined ordering and holding cost %

A

~ 25-35% of the total cost

72
Q

Perpetual Inventory System

A

Accurate inventory qty’s at any given time. When received, it is added immediately. When it is sold, it is removed immediately

73
Q

Periodic Inventory System

A

Manual counts at the end of every financial period.

74
Q

ABC Analysis Class AA

A

Controlled Substances

75
Q

Acceptable Variance on high turn items

A

1 - 4%

76
Q

Turnover Goal

A 
one turn every billing cycle. 
ie.  if billing cycle is 30 days, then every 30 days or 12 times per year.
Diets -  2 times a month
Pareto's products - 1 time per month
Others - 1 time per 2 months
77
Q

Labour Costs

A

15 - 20% of total product cost

78
Q

Central Supply Inventory

A

A working supply of inventory is kept on the shelf where the stsaff has access to it. All additional stock is kept under lock and key where few people have access.

79
Q

Ration Based Inventory

A

Central Supply system is already in place. The working supply is rationed to one day based on immediate need.
Usually when shrinkage is high.

80
Q

Selective Inventory Control

A

prioritizes inventory based on value and importance

81
Q

ABC ANalysis

A

method of sorting inventory into manageable components based on cost and relative value.

  • determine volume used in the last year
  • calculate annual usage value (AUV)
82
Q

AUV (annual usage value)

A

AUV = volume used x average cost
* place results in a table in descending order
ie.
Product Annual Volume Avg. Cost AUV
Clavamox 271 $25.34 $6,867.84

83
Q

Cumulative AUV

A 
AUV + AUV of all items preceding it
Like a running total.
ie.  
1.  3500
2.  3000 + 3500  + 6500
3.  2500 + 6500 = 9000
4.  2000 + 9000 = 11000
....etc
84
Q

Cumulative % of AUV

A

Determine the total cumulative total
Divide each cumulative AUV by the TOTAL value
This will give you a percentage .

85
Q

Calculate Annual Usage Distribution

A

cumulative % of items for each line.
ie.
the 9th line on the chart
9 divided by the total # of lines
gives a % of distribution
Group them based on annual usage distribution
Place them into ABC categories based on % of AUV distribution

86
Q

CLASS A

ABC Analysis

A

Top 20% that accounts for 80% of the annual usage value

TOP PRIORITY

87
Q

Class B

ABC Analysis

A

Next 30%
21-50% AUV
Account for the next 15%
MEDIUM PRIORITY

88
Q

Class C

ABC Analysis

A

remaining 50%
account for remaining 5% of AUV
LOW PRIORITY

89
Q

Forecasting

A 
measurement of inventory as it is motion
Tools include:
usage reports
purchase history 
Invoices
90
Q

Operating Level

A

expected to be used up between the time the item is received and when it must be ordered next.

91
Q

Safety Stock

A

inventory cushion in excess of lead time qty to help avoid stock outs if shipment is delayed or back ordered

92
Q

ASLD

Average Shelf Life of Inventory in Days

A

useful calculation in determining the efficiency of inventory management

365 divided annual ITR (inventory turnover ratio) = ASLD

93
Q

Economic Order Quantity (EOQ)

A 
calculation of optimal order quantities
Recognizes 3 specific costs incurred in ordering and holding
1.  Unit Cost
2.  Fixed Cost
3.  Holding Cost
94
Q

`Mark up

A

cost x a specific factor
100% doubles cost
200% triples cost…..

95
Q

Margin

A

amount of profit desired that is added to the cost

96
Q

Mark up considerations

A
  • products with high turnover rate have less mark up (140-175%)
  • products with lower turnover rate (4-6x) have higher mark up (200 - 275%) helps cover potential expiration
  • Competitive categories - lower mark up
97
Q

Pricing Strategies

A

Aging Inventory Pricing Model
cost + mark up + disp fee
Modern
cost+ hidden costs + profit + DVM pay
Regular
Total cost + 50% profit + 15% DVM pay
Competitive
Total cost + 20% profit + 10% DVM pay
Online
cost + labour cost + 30% profit

98
Q

Break Even analysis

A

determine when your business will be able to cover all of its expenses and begin to make a profit.

99
Q

Break Even Point

A

amount of revenue that covers all fixed and variable costs, without profit or loss

100
Q

Break Even Point formula

A 
SP = FC + VC + Profit
SP = sales price
FC = fixed costs
VC = variable costs
P = Profit
101
Q

According to Pareto’s 80/20 rule to inventory, helps in

A

prioritizing inventory time investment. Since 20% of our products bring in 80% of our product revenue, we should concentrate most of our efforts on that 20%

102
Q

Ideally the top 20% of inventory items should be ordered…

A

monthly

103
Q

To maintain tigh internal controls, the inventory purchaser should always be a separate individual from

A

Receiver

Documenter and tracker

104
Q

Capital Inventory

A

Any equipment throughout the life of the practice

105
Q

Equipment Break Even Analysis

A

price of equipment / client price - cost to produce the service = # of times the service must be performed to break even.

106
Q

Lenders 3 C’s

A
  1. Cash Flow
  2. Credit History
  3. Collateral
107
Q

Budget to reinvest for equipment

A

1% of gross

108
Q

Monthly Equipment Expense

A

cost,tax and all fees / equipment estimated useful life /12
ie. $50000 / 5 years = $10,000
$10,000 / 12 months = $833.33 /month

109
Q

Depreciation

A

Also called Capital Cost Allowance (CCA)
explains the loss of value of products/goods
reflected as an expense
Declining balance method used for most assets

110
Q

Practices should plan to reinvest around ____% of gross for replacing or acquiring equipment annually.

A

1%

111
Q

Is the digital radiography unit in your practice considered Capital Inventory?

A

Yes, if it is in usable condition.

112
Q

Forecasting Functions

A

ability to signal when an item needs to be reordered

113
Q

Operating Level

A

amount expected to be used up between when it’s received and when it needs to be ordered next

114
Q

Safety Stock

A

Desired inventory cushion in excess of lead time to avoid stock outs if delayed or back ordered

115
Q

Which details are considered a benefit of using logs in vet med?

A
  1. comply to legal requirements
  2. Provide evidence in the event of malpractice
  3. Convenient for quick data analysis and auditing
116
Q

The most common medical format is?

A

POMR

Problem Oriented Medical Record

117
Q

Ideally, no less than ____ of on site training for software conversion.

A

1/2 day

118
Q

3 Value disciplines are 3 ways businesses deliver superior value to their customers:

A

customer intimacy, product leadership, operational excellence

119
Q

What are 2 common reasons for complaints from pet owners regarding referrals?

A
  1. failure to mention the availability of specialty care

2. procrastinating so long in the treatment process that a specialist can no longer help

120
Q

When it comes to negligence or malpractice cases, plaintiffs must prove that a reasonably close causal connection exists between the conduct of the Dr. or practice and the occurrence of the injury. What is the term for this element of the case?

A

proximate cause

121
Q

The method of recognizing revenue when goods are delivered or services are provided, regardless of when cash is received:

A

Accrual accounting

122
Q

Common Sizing

A

expenses are stated as a % of gross.

- consistent, easily identifiable measurement of performance

123
Q

Regarding financial statements, which is more detailed and provides the greatest level of assurance?

A

Audited financial statements

124
Q

Reservoir

A

a place where an infectious organism survives and replicates

125
Q

Host

A

the organism that provides the environment for the maintenance of the organism but may not be necessary for its survival

126
Q

Direct Transmission

A

requires close contact between the reservoir of the disease and the susceptible host

127
Q

Indirect Transmission

A

more complex and involves intermediaries that carry the agent of disease from one source to another

128
Q

Vector

A

a living organism that transports infectious agents (fleas, ticks, mosquitoes…)

129
Q

Vehicle

A

A mode of transmission of infection from a reservoir to a host (food, water…)

130
Q

Where are Fire Extinguishers placed in a practice?

A

No more than 75 feet from any location. 32 - 48 inches from the ground.

131
Q

What is the process for using a fire extinguisher?

A 
P.A.S.S.
P pull the pin
A Aim low
S Squeeze
S Sweep side to side
132
Q

Chemo Agents

A

used supplies disposed of in yellow biohazard container

  • bedding must be washed separately
  • contacts should never be worn
  • client education is critical (eliminated in urine & feces)
133
Q

Anesthetic Gases two classes

A
  1. nitrous oxide

2. halogenated

134
Q

How often must staff have anesthetic safety training?

A

Annually

135
Q

Active Scavenger

A

energetic collection - fan that creates an active vacuum **BEST

136
Q

Passive Exhaust

A

Channels waste through a tube to an acceptable location for evacuation

  • short distances
  • lung pressure expels gas
137
Q

Absorption Scavenger System

A

uses charcoal to remove halogenated gases, but not nitrous oxide
- replace after 20g or it will overflow

138
Q

How often does the anesthetic machine need to be inspected?

A

Annually

139
Q

Exposure Limits for Halogenated gases

A

2ppm/yr

140
Q

Exposure limits for Nitrous

A

25ppm/yr

141
Q

Anesthetic Spills

A
  • all other team evacuated
  • windows open, exhaust fan on
  • cat litter on spill, once absorbed, swept up
142
Q

Liability Coverage

A

damages the vet causes to other persons, pets or property

143
Q

Property insurance

A

damage to the insureds property

144
Q

Malpractice

A

Tort ( a civil wrong or wrongful act)
injury occurs
requires proof of 4 essential elements:
1. Duty - practice within the standard of care (VCPR)
2. Breach of Duty - failure to act in the standard of care
3. Proximate Cause - connection between the negligent act of the Dr. and the harm to patient or client
4. Damages - harm incurred as a direct result of the negligent act

145
Q

Standard of Care

A

in regards to malpractice, established by an expert witness
higher for specialists
local standard - same level of competency as geographocal peers

146
Q

Duty to treat

A

NO legal duty to treat until a valid VCPR is established - not even emergencies
No legal duty, but an ethical duty does exist

147
Q

If you have an Established VCPR, treatment must continue until:

A

the animal recovers
the Dr. completes all treatment as agreed
the animal dies
the client terminates the VCPR
the responsibility is transferred to another Dr. with the consent of the client

148
Q

Contributory Negligence

A

Can show the client was also negligent

Proof of any degree may eliminate awarded $$ to the client

149
Q

Comparative Negligence

A

similar to contributory, except recovery is determined by the % of negligence on the part of the client. If client is 25% negligent, they will recover 75% of total damages. If client is over 50% there will be no recovery of $$ damages.

150
Q

Assumption of Risk

A

Animal bites include an assumption of risk, therefore no damages will be recovered

151
Q

Statute of Limitations

A

Filed within a certain period of time

152
Q

Risk Assessment Equation

A

hazards + vulnerabilities = risk

153
Q

4 Priorities of general emergency management

A
  1. Mitigation - strategies that decrease the likelihood of a threat
  2. Preparation - planning and training
  3. Response - action taken
  4. Recovery - process or returning to normal
154
Q

Mitigation

A

Insurance is key component
selection of types of coverage
maintain building safety and structure soundness

155
Q

Preparation

A

Evacuation considerations
communication considerations
patient care considerations
operational infrastructure considerations

156
Q

How many disease are curently known to be zoonotic?

A

1400

157
Q

What is the first step in creating a business contingency plan?

A

risk assessment

158
Q

If a client fails to confine a dog after surgery, it may eliminate financial recovery for the client in a lawsuit. What term supports this theory?

A

Contributory Negligence

159
Q

Business Life Cycle Phases

A
  1. Introductory - vision, innovation, energy
  2. Growth - efficiency, discipline & talent
  3. Maturity - manage risks, problem solve
  4. Decline - decrease demand for services. Revisit strategic plan to revitalize
160
Q

Phases of strategic planning:

A
  1. Formulation - a) mission, vision, values
    b) SWOT
    c) Gap analysis - compare current
    performance w/ desired performance
  2. Development Phase - use the formulation phase to create a plan to achieve goals
  3. Implementation - specific plans of action
  4. Evaluation - measure the success
161
Q

Adult Learning Theory

A

information must be used immediately to be retained.

Adults have 3 learning styles for best retention, sight, hearing and touch

162
Q

Push Learning

A

lecture delivery

163
Q

Pull Learning

A

students research data and ‘pull’ info to themselves.

Pull learning increases retention

164
Q

Budgeting positions - Formula to determine how many team members needed for the following year

A

current # staff x avg. annual practice growth = estimated # staff needed for next year

165
Q

Which of the 4 phases of strategic planning is focused on how the practice will get from point A (now) to point B (future)?

A
  • Development
166
Q

Leadership fatigue can be experienced by both owners and manager and usually results from lack of communication, lack of delineation of job duties and feeling they are constantly haggling withthe team to carry out policies and procedures. Which element of the strategic plan addresses this dynamic?

A

Organizational design

167
Q

How long can it take to prepare a team member for a leadership position?

A

12 - 36 months

CVPM 2021 (7 decks)

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