Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

VHMA CVPM Additional > Session 11 Organization > Flashcards

Session 11 Organization Flashcards

1
Q

What is shrinkage?

A

A decrease in on-hand inventory that is caused by use that is not recorded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the second largest expense category?

A

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the largest expense category?

A

Staff costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is inventory control?

A

The process of weighing the need to maintain sufficient inventory against the monetary cost of carrying the inventory.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is merchandise inventory?

A

Products purchased for resale to client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is medical supply inventory?

A

Items used in the course of providing veterinary medical and SX services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does ‘Just in time’ refer to?

A

Receiving a product just as needed vs storing the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a benefit of just in time inventory?

A

Low holding costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is another benefit of just in time inventory?

A

No expired product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a disadvantage of just in time inventory?

A

High ordering costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What issue can arise with just in time inventory?

A

Stock outs and back orders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Ordering costs

A

Labor related expenses such as employee compensation including benefits and taxes paid to employees to preform the various duties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Holding costs

A

Costs invested in keeping the inventory on premise while waiting to use or sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Examples of holding costs

A

Personal property tax
Insurance
Pharmacy licensing/DEA fees
Utilities
Loss due to exp/waste
OSHA regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Examples of ordering costs

A

Benefits and taxes paid to employees
Ordering
Receiving
Unpacking
Maging payment and records

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Holding costs range

A

8% - 15% of true costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Combined ordering and holding costs account for approx how much of total true costs?

A

25% - 35%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

DVM costs

A

If DVMs in the practice are paid on production with inventory included, allocation of a portion of their pay is considered an actual cost of inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does the markup on an item have to be to break even?

A

35%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Getting inventory under control

A
  1. Print code or products list
  2. Reprint the list
  3. Create a list of unconsolidated products
  4. Count inventory
  5. Begin to enter/receive inventory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Print your code/product list

A

Delete or inactivate items no longer in use

Review classifications and make necessary updates

Review for duplicate products

Review medical consumables

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Reprint the lists

A

He’s making his list and checking it twice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Consolidating inventory

A

Produce a report of a particular category
Compare qty of each brand purchased, sold, exp
ID top 2 items and produce a report showing profit of each
Produce a second report showing loss associated with other items
Discuss with the team what products will remain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Control functions

A

Preparing and distributing written policies and procedures, creating and maintaining security and safety protocol, and regular monitoring of the system via accounts and accountability. Needs to be flexible to change.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

A perpetual inventory system

A

A control system that can provide an accurate idea of inventory quantities at any time period when items are received, they are immediately added to the inventory records and when items are used or sold, they are removed from the inventory records.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Periodic inventory system

A

Uses data from manual product counts at the end of every financial period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Internal controls

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

inventory variance evaluation equation

A

((Beginning + ordered) ÷ received qty) - qty sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Process for inventory variance evaluation

A

Equation answer should match physical count. If it does not, the difference is the variance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Variance

A

Any variance is an indication of weakness or problem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Acceptable variance

A

1-4% variance in high turn items can be acceptable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Inventory count and evaluation example

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Forecasting function

A

The inventory system should include the ability to signal when an item needs to be reordered to avoid an outage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Forecasting functions considerations

A

Re-order timing should account for the estimated delay between ordering and receiving.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Lead time

A

Delay between ordering and receiving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Formula for calculating re&order points

A

Avg daily use × lead time = re-order point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Higher lead times mean

A

Higher re-order level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Re-order qty

A

Amount of product to order once the re-order point has been reached

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Re-order qty equation

A

Avg daily use × turnover goals in days = re-order qty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Considerations for calculating re-order qty

A

Round up to take into consideration potential growth expectations or supply and demand challenges

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Turn over goals

A

Try to match the vendor’s billing cycle to attempt to sell the product before the practice has to actually pay for the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Selling functions

A

Elements of an inventory system that deal with profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Selling function examples

A

Price setting
Tracking profit margin
Compare inventory and supply to revenue
Gross profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Gross profit

A

The difference between the price of a product to the client and the total cost of that product to the practice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Red tag system

A

Back up system example
- tag is placed in the bottle that signifies when that product needs reorder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

2 important organization techniques

A

Zoning
Central supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Zoning system

A

Zoning your inventory throughout your hospital (and mobile truck) is like creating a map.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

How to create a zoning system

A
  1. Create list of supplies and location
  2. Create stocking list with minimum reorder points
  3. Assign staff to certain items or location
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Central supply system aka

A

Ration based inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Central supply system

A

Supplies and inventories are stored in a main highly secured area and systematically rationed out to other areas of the practice and smaller quantities.

Use mainly in large practices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Central supply system rules

A

Create locations for primary and secondary storage

Limit access to 1 or 2 people

Safeguard primary storage with lock

Moving a product from one place to another requires sigh out log

No one person should have control over assets and movement of asset

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Selective inventory control

A

Profit-based management system that prioritizes inventory based on value and importance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Pareto’s 80/20 rule

A

20% of the items account for 80% of the sales revenue.

80% of the costs exist in 20% of the items

80% of the profit can be predicted to come from 20% of the product sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Selective inventory control theory suggests

A

Investing the most time managing those products in the top 20%

Minimize the number of times orders are placed per week. Ideal goal = order your top 20% of items once a month.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

BI

A

Value of drugs and medical supplies on hand at the beginning of the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

EI

A

Value of drugs and medical supplies on hand at the end of the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

DMSP

A

Some total of drugs and medical supplies purchased (in dollars) made over the course of the year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Average inventory on hand

A

(BI + EI) ÷ 2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Inventory turnover ratio

A

DSMP ÷ AI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

AI

A

Average inventory on hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Higher turn over ratio means

A

Tighter inventory control

62
Q

Average turn over should be

A

Around 6 times per year

63
Q

ALSD

A

Average shelf life of inventory in days

64
Q

ALSD def

A

A useful calculation in determining the efficiency of inventory management

65
Q

ASLD equation

A

365 ÷ annual ITR = ASLD

66
Q

ITR

A

Inventory turnover ratio

67
Q

Example of ASLD

A
68
Q

Inventory turns per year goal

A

8 - 12

69
Q

Mark up

A

Multiplying acquisition cost by specific factor. Common in veterinary medicine historically.

70
Q

100% mark up

A

Doubles the acquisition cost

71
Q

200% markup

A

Triples the acquisition cost

72
Q

Break even mark up

A

40%

73
Q

Margin def

A

Predetermines the amount of profit desired and adds that to the acquisition cost

74
Q

Margin considerations

A

Can be a useful strategy where there are large differences and resulting price based on the size of the patient.

Margin pricing decreases the rate at which the price increases for the client when compared to markup pricing.

75
Q

Margin v markup

A

Margin is sales minus the cost of goods sold

The amount by which the cost of a product is increased in order to derive the selling price

76
Q

Break Even analysis

A

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

77
Q

Break Even point

A

The amount of Revenue that covers all fixed and variable costs, without generating either profit or loss

78
Q

Break Even sales price equation + profit formula

A

SP = FC + VC + P

79
Q

SP

A

Sales price

80
Q

FC

A

Fixed costs

Unit cost, estimated ordering and holding costs

81
Q

VC

A

Variable costs

DVM production percent and associated payroll costs and taxes

82
Q

P

A

Profit

Practices aim for 12%

83
Q

Ideally the top 10% of inventory items should be ordered

A

Monthly

84
Q

To maintain tight internal controls, the role of inventory purchaser should always be separate from the role of

A

Inventory receiver and inventory documentary and tracker

85
Q

Equipment budget

A

Includes maintenance of existing equipment and purchase cost of new equipment.

86
Q

5 Considerations for purchasing new equipment

A
  1. Is the equipment new to the practice or replacing existing equipment?
  2. How will the equipment be paid for?
  3. What will the client be charged, and where is the break-even?
  4. Cash is typically the smartest, most economical way to purchase
  5. Perform a break even analysis prior to purchase
87
Q

Break Even analysis

A

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

88
Q

Break even analysis for equipment equation

A

(price of equipment and any support or maintenance) ÷ ( client invoice cost - cost to actually produce the service) = # of times the service must be performed to break even

89
Q

Tax Act of 2003

A

Has improved benefits for small business owners

90
Q

Tax Act of 2003 section 179

A

Significantly increased the amount of eligible property that can be written off in the first year ($139,000 in 2012)

91
Q

Tax Act of 2003 section 168 k

A

Gives an additional deduction of 50% of the remaining balance of the equipment purchased that is above the $139,000

92
Q

Example of potential equipment write-offs in the first year

A

Cost = $150,000
Section 179 subtract $139,000 = $11,000
Section 168K subtract 50% = $5500
MARCS depreciation subtract $1,100
Remaining balance = $4,400

93
Q

MARCS

A

Modified accelerated cost recovery system

94
Q

The tax act of 2003 provided what increased benefits to small business owners

A

Significantly increase the amount of eligible property that can be written off in the first year

Gave an additional deduction of 50% of the remaining balance of the equipment purchase that is above $139,000

The remainder of the purchases can also be depreciated on a straight line depreciation schedule

95
Q

Practices should plan to reinvest around what percent of gross revenue for replacing or acquiring equipment annually?

A

1%

96
Q

When is equipment considered Capital inventory

A

If it is in usable condition

97
Q

POMR

A

Problem oriented medical records

98
Q

Most common medical records format

A

POMR

99
Q

POMR format

A

Defined database > the problem/master list > the plan > the progress section

100
Q

SOAP format is used in which section of POMR

A

Progress section

101
Q

SOAP

A

Subjective
Objective
Assessment
Plan

102
Q

Subjective

A

Most critical information for support staff. These details include the reason for the visit, history, and client observations

103
Q

Objective

A

Information collected via physical exam, Diagnostics, and interpretation. This section is factual

104
Q

Assessment

A

The conclusion reached from the data collected from the subjective and objective sections. Multiple or tentative diagnoses can be documented here with the use of rule-ins or rule outs.

105
Q

Plan

A

Developed according to the assessment and includes any treatment, surgery, medication, intended diagnostics, or intended Communications with the owner.

106
Q

Problem list sections

A

Major
Minor
Medication table

107
Q

SOMR

A

Source oriented medical records

108
Q

SOMR def

A

Data is entered in the medical record and then proved by the information source and then organized chronologically by date of patient encounter

109
Q

SOMR information source examples

A

Client oral hx
Physical exam findings
Imaging studies
Lab results

110
Q

SOMRs can be effective if well organized

A

Depending on the organizational skills of the doctor, the date to date hx may be very disjointed,

111
Q

What can increase the probability of the doctor capturing the necessary data?

A

Checklists

112
Q

Combinations of SOMR and POMR

A

Probably the most effective way to organize the medical record from the Private Practice perspective

113
Q

SOMR + POMR combo includes

A

Major problem list
VXNS hx
Exam uses the SOAP format with major problems using POMR

114
Q

The State Veterinary Practice Act defines minimum medical record documentation for each state. What other entities Define minimal requirements of Veterinary Medical records?

A

The abma principles of Veterinary Medical ethics and AAHA

115
Q

Practice technology goals for managers

A

Develop effective, automated information and processing systems that can evolve with the practice growth and that will be able to take advantage of new technology as it is developed

116
Q

If bringing on new technology, what is the minimum on site training recommended?

A

1/2 day

117
Q

Steps to go paperless

A

Purchase and implement the new hardware throughout the practice

Implement the new software for 6-12 months

Begin Final Phase of going paperless

118
Q

Software and Hardware purchases will show greater return on investment than any other Capital expense in veterinary medicine to do an increased efficiency in every Department. true or false?

A

True

119
Q

Are Hardware and software are both examples of information systems?

A

True

120
Q

Strategic planning

A

Long term written action plan to define and achieve future business goals

121
Q

Business life cycle phases

A

Intro
Growth
Maturity
Decline

122
Q

Business life cycle intro

A

Vision, innovation, and energy. Typically before doors are open for business

123
Q

Business life cycle growth

A

Efficiency, discipline, and talent development are critical

124
Q

Business life cycle maturity

A

Manage risks, problem solve, search for continuous opportunity for growth

125
Q

Business life cycle decline

A

Decreased demand for services. Revisiting the Strategic plan for revitalizing the practice is vital

126
Q

4 phases of strategic planning

A
  1. Formulation
  2. Development
  3. Implementation
  4. Evaluation
127
Q

Strategic planning formulation

A
  1. Develop mission, vision, values
  2. SWOT analysis
  3. Gap analysis
128
Q

SWOT analysis

A

Strengths, weaknesses, opportunities, and threats.

129
Q

Gap analysis

A

Compare current performance with potential or desired performance and leads to the development phase of the Strategic plan

130
Q

Gap analysis questions

A
  1. What services are offered now and what will be desired in the future
  2. What skills, knowledge, ability does the team need?
  3. What is the employee retention rate and are there true career opportunities
131
Q

Development of strategic planning

A

Use the results of the mission, vision, and values, the swot, and the Gap to create a plan to achieve the desired goals.

132
Q

When developing strategic plan consider

A

Team members
Clients
Patients
Budget

133
Q

Strategic planning development phase outcome

A

To create a strategy that has a strategic fit where the practices activities interact with and support the strategy and each one optimizes the other to reach the goal

134
Q

Implementation phase of strategic planning

A

Allocate resources to right initiatives, communicate to team and train

135
Q

System thinking

A

Where consideration is given to how each department affects another

136
Q

Implementation of strategic plans include

A

Systems thinking
Plan of action
Progress check points

137
Q

Creating a plan of action

A

How specific objectives success will be measured

How will the objectives be obtained?

Time frame?

138
Q

Strategic planning evaluation

A

Consider a balance scorecard

139
Q

Balance scorecard

A

Illustrates state of the practice

140
Q

Balance scorecard parts

A

Client satisfaction
Financial status
Learning and development progress

141
Q

Benefits of a balance scorecard

A

Scorecard metrics can show the side effects of your strategy and it’s successful implementation, as well as whether the changes have affected other areas of the business

142
Q

Organizational design

A

The methodology that identifies aspects of workflow, procedures, roles, and systems and aligns them to fit current business realities and goals

143
Q

What does organizational design do?

A

Clearly defines roles within the practice and should Empower a team members do to clear responsibilities, clear goals, and effective communication

144
Q

Considerations when exploring organizational development

A

How team helps
Managing training
Leveraging staff
Hierarchy interference with relationship centered care
Clearly defined job responsibilities

145
Q

Learning organization

A

Characterized by the ability to adapt to change and respond quickly to environmental/consumer changes

146
Q

Areas to evaluate consider where change might be indicated or training

A

Client Services
patient care
team development
Revenue centers

147
Q

Common reasons for failure of organizational development

A

Change not supported by leaders
Message didn’t resonate with team
Changes forcefully not collaborative
Lack of clear communication
Change doesn’t alighn with mission/vision

148
Q

Which of the four phases of strategic planning is focused on how the practice will get from point A to point B?

A

Development

149
Q

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

A

Organizational design

150
Q

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

A

12-36 months

VHMA CVPM Additional (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions