MATERIAL MANAGEMENT

“To spend money is easy

To spend it well is hard” -Wesley C Michel

INTRODUCTION:

Material management is an important and integral component of resource

management; and resource management covering both human and materials

management, is an essential aspect of the organizing function of management. It may be

recalled that the organizing function is concerned with co-coordinating and

synchronizing the 5 ―M‖s-viz men, money, materials, machine and moral.

CONCEPT

Material management is a scientific technique, concerned with Planning, Organizing

and Control of flow of materials, from their initial purchase to destination. It is concerned

with planning, organizing and controlling the flow of materials from their initial purchase

through internal operations to the service point through distribution. 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.. About 40 percent of the

funds in the health care system are used up for providing materials. It is of great importance

that materials of right quality are supplied to the consumers.

Material Management is concerned with providing the drugs, supplies and equipment

needed by health personnel to deliver health services. The right drugs, supplies and

equipment must be at the right place, at the right time, and in the right quantity in order that

health personnel deliver health services. Without proper material health personnel cannot

work effectively, they feel frustrated and the community lacks confidence in the health

services and unless appropriate materials are provided in proper time and are required

quantity, productivity of personnel will not be up to expectation.

Material management integrates all materials functions

Planning for materials

Demand estimation

Purchasing

Inventory management

Inbound traffic

Warehousing and stores

Incoming quality control

Definition:

Materials Management is defined as an organizational concept in which a single

manager has authority and responsibility; principally concerned with the flow of

materials into an organization (purchasing, production, planning and scheduling,

incoming traffic, inventory control, receiving and stores normally are included).

National Association of Purchasing Management (USA)

Material Management is defined as planning, organizing and controlling aspects

involved in ensuring availability of necessary materials, supplies, drugs and equipment

as and when required. (S.L Goel)

Material management is defined as the planning, directing, controlling and co-

ordination of all activities with material and inventory requirement from the point of

their inspection to their introduction into the manufacturing process. (L. J. DeRose).

Material management is the functional responsibility for the coordination of planning,

sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as

to provide a pre-decided services to the customer at a minimumMaterials can essentially be

categorized under three heads, viz., vital essential and desirable. These three categories

must determine how much quantity of each item should be in stock for a' storekeeper.

Goals of materials management

Materials management function must achieve a number of basic objectives. The aim is to

develop a system that will ensure right quality of stocks at all times, properly stored, easily

retrievable, and available whenever required to meet the ultimate goal of good patient care in an

effective, efficient and economical manner. The goals include the following:

Optimum materials acquisition: the purchase of materials must be governed by the most

effective purchase, storage, handling and usage practices,

Optimum inventory turnover; inventories of all items must be maintained at the optimum level.

Good vendor relationship: the organization‘s relationship with its suppliers has a direct bearing on its

ability to procure materials on the best possible terms.

Materials cost control: materials purchase process must be economical. There must be a

continuous cost reduction programme.

Effective issue and distribution: the system of issues and distribution must cater to economical

holdings at the point of usage with no possibility of accumulation of large quantities of stock.

Elimination of losses and pilferage: wastage and pilferage should be controlled by a system of

internal audit. To summarize, the materials management function caters to planning for materials, its

demand, estimates, procurement, stocking, and issue to ensure availability of right material, in

Right quantities, at right time, at right price, from right sources, at least cost.

PURPOSE

The purposes of material management are to:

♦ Provide specified materials, drugs and supplies in required quantity and

quality as and when required.

♦ Cut down material costs through standardization

♦ Develop knowledge and skills of health care

♦ Increase efficiency of health care systems.

OBJECTIVES

There are eight primary and seven secondary objectives which can ensure the

performance and use of materials in an organization. Many of these objects conflict with

each other. Balancing of these various conflicting objectives is one of the main before the

materials manager. Materials' management should ensure the fulfillment of the following

objectives:

To develop a system of supplies whereby there will be right quantity of stock of

items properly stored, easily retrievable and distributed close to the points of usage,

whenever required, at a given time. In case, there is not enough stock, the work in

the organization may have to be stopped and the men and mechanized will remain

idle. On the other hand, if there is over-stocking of raw materials, it will

unnecessarily block capital in inventories.

The reduction in inventory costs—both carrying costs and ordering costs.

To ensure that the resources available are used most effectively and the stores are

purchased at most economical price consistent with the quality.

To bring about co-ordination among the various sections in the organization, i.e., in

a company to bring co-ordination among the financial manager, production manager

and marketing manager.

To ensure that the sale of finished goods is not affected.

To avoid wide fluctuations in production.

To be alive to the charges in the market in respect of new products.

OBJECTIVE OF MATERIAL MANAGEMENT

Primary Secondary

Right price

High turnover

Low procurement and storage

cost

Continuity of supply

Consistency in quality

Good supplier relations

Development of personnel

Good information system

Forecasting

Inter-departmental

harmony

Product improvement

Standardization

Make or buy decision

New materials and

products

Favourable reciprocal

relationships

Procedures and Rules for Materials Management

Procurement of materials is governed by certain procedures and rules prescribed by the government for materials management. These rules cover such activities:

• Estimation and budgeting for materials,

• Indent for materials,

• Placing indent with government stores as or local firms (RC),

• Receiving and verification of materials (quantity, quality, breakage, damage, expiry date,

spoiled etc.),

• Transportation of materials,

• Taking into stock and storage of materials,

• Issuing materials.

The methods of storage of materials

• All the poisonous drugs should be kept separately in compartments under the custody of

Medical officer or supervisor concerned,

• All the general drugs, instrumental equipments, kept separately in the compartment under

the custody of store keeper/pharmacist,

• All the insecticide and disinfectants kept separately under the custody of pharmacist,

• All vaccines should be kept stored in refrigerator with proper temperatures,

• All linen should be stored in compartment under the custody of store keeper.

And insist a physical verification to be done at the end of every calendar year/financial

year. If any articles are found unserviceable, a list has to be prepared, and the articles

condemned by the competent authority.

TEN GOLDEN RULES OF MATERIALS MANAGEMENT

There are certain rules that every materials manager should know and practice:

Rule One: Successful materials management is built upon an effective management system

and good supervision. It follows then that if there isn't an effective management system,

there isn't good materials management either.

Rule Two: Purchase order is often called the umbilical cord of the purchasing process. For

internal control and a smooth flow of goods, the receiving store, the accounts and the

requesting department should receive copies of the purchase order. The original goes to

the vendor and a copy of it to the purchasing file. The procedure and documents should

be simple. Initiation of every purchase order costs money. It should, therefore, be cost

effective. Consider this: If the cost of initiating a purchase order is Rs 50 or 75, and the

cost of the ordered commodities is Rs 100, it doesn't make business sense to continue this

way.

Rule Three: Centralize the purchasing system. Decentralized purchasing is contrary to all

the underlying principles of good materials management. Centralized purchasing

eliminates uncontrolled purchases by departments, secures a reduction in prices through

improved purchasing methods and quantity buying and shipping, results in improved

allocation of space, and reduces inventory costs and staff. It saves staff time.

Rule Four: Negotiation is the key to sound purchasing. Every purchase officer should

learn the art of hard-nosed but ethical negotiation. Here are some tips for good and

successful negotiation:

Never purchase at list price.

Negotiate for a bulk price for the quantity the hospital would need for the whole year, and

then get the price for any quantity you want to purchase.

Regardless of how much you buy always asks for a discount.

Always get a price protection on the agreed price. Start negotiating price protection for

two years. Even if you end up with a short period, it is worthwhile.

Try to get at least a month's time to pay the invoice.

Always keep in mind that there are tougher negotiators than you. They may be getting a

better price than you do.

Remember, it is the quality and determination of the negotiator which always get a good

price in buying and not the reputation and size of the hospital.

Rule Five: There should be an effective receiving system with responsibility, accountability

and internal control built into the system. The fundamental rule is that the three functions of

purchasing, receiving and paying of invoices should be handled by three different persons. So

also the receiving person should be different from the issuing person. Receiving is one of the

most important functions of materials management which should be carried out professionally

and ethically.

Rule Six: Establish an optimum level of inventory and a simple but effective inventory control

programme. The inventory should not be so large that you can replenish it only with the aid

of a computer. Remember the dictum: The secret to managing an inventory is to control it,

not count it.

Rule Seven: Establish effective and result-oriented requisition and distribution systems. The

goal of the distribution system is the right item to the right place at the right time in the right

quantity and at the least total cost.

Rule Eight: Establish written policies and procedures. Internal control in materials

management starts with them.

Rule Nine: If you want to buy the right supply in the right quantity at the right place and time,

and simultaneously effect cost containment, standardization and evaluation of all products and

services is a good place to start with.

Rule Ten: Wherever possible, go for contract purchasing through prime vendors. That is, buy

the entire categories of supplies from a single source on negotiated terms of quantity, quality,

price and time. By being innovative in their purchasing approaches, hospitals can create a

buyer's market instead of competing with one another in a seller's market. Since contract

purchase encompasses all supplies of a certain category, hospitals can get the best deal in a

fraction of the time and effort they spend on traditional purchase. A host of items, from

medical-surgical to dietary items, can be purchased through prime vendors.

Good material nurse managers adopt the following procedures:

• taking inventory regularly and systematically,

• requisitioning at indenting according to actual needs

• receiving and inspecting incoming items,

• storing and protecting items,

• issuing items for use,

• Proper use of items.

Material Planning

"Material planning is the scientific way of determining the requirements that goes into

meeting production needs within the economic investment policies‖. – (Gopalakrishnan &

Sunderasan)

It is done at all stages and all levels of management. Material planning is based on certain

feedback information and reviews.

Aim of material management planning To get:

The Right quality

Right quantity of supplies

At the Right time

At the Right place

For the Right cost

Purpose of material management planning

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

Basic principles of material management Planning

Effective management and supervision

It depends on managerial functions of:

Planning

Organizing

Staffing

Directing

Controlling

Reporting

Budgeting

Sound purchasing methods

Skilful and hard poised negotiations

Effective purchase system

Should be simple

Must not increase other costs

Simple inventory control programme

Procurement

Most organizations have a detailed set of rules and regulations regarding the procedure for

ordering for materials. In the Government systems DGHS play a crucial role in purchasing

materials of heavy cost.

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

Procurement cycle

Review selection

Determine needed quantities

Reconcile needs and funds

Choose procurement method

Select suppliers

Specify contract terms

Monitor order status

Receipt and inspection

Methods in Procurement Process and Negotiation Strategies Open tender

Public bidding, resulting in low prices

Published in newspapers

Quotations must be sent in the specific forms that are sold, before the time and date

mentioned in the tender form

Technical bid

Financial bid Restricted or limited tender From limited suppliers (about 10) Lead-time is reduced Better quality Negotiated procurement Buyer approaches selected potential Suppliers and bargain directly Used in long time supply contracts

Direct procurement Purchased from single supplier, at his quoted price Prices may be high Reserved for proprietary materials, or low priced, small quantity and emergency purchases Rate contract Firms are asked to supply stores at specified Rates during the period covered by the Contract. Spot purchase It is done by a committee, which includes an officer from stores, accounts and purchasing departments Risk purchase If supplier fails, the item is purchased from other agencies and the difference in cost is recovered from the first supplier

Many Suppliers Strategy

Many sources per item

Adversarial relationship

Short-term

Little openness

Negotiated, sporadic PO‘s

High prices

Infrequent, large lots

Delivery to receiving dock Few Suppliers Strategy

1 or few sources per item

Partnership

Long-term, stable

On-site audits and visits

Exclusive contracts

Low prices (large orders)

Frequent, small lots

Delivery to point of use Points to remember while purchasing

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

Vendor reputation (reliability, technical capabilities, Convenience, Availability, after

sales service, sales assistance)

Short listing for better negotiation terms

Seek order acknowledgement

Procurement of equipments Points to be noted before purchase of an equipment:

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 Storage

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 Issue and use Can be centralized or decentralized Inventory control

It means stocking adequate number and kind of stores, so that the materials are available

whenever required and wherever required. Scientific inventory control results in optimal

balance. Functions of inventory control To provide maximum supply service, consistent with maximum efficiency and optimum investment. To provide cushion between forecasted and actual demand for a material Elements of a Materials Management System

Material planning and management (MP and M) is a system having numerous

elements. Proper functioning of each of the elements (sub-systems) coupled with inter-

dependence of all the sub-systems to achieve the primary objectives are the classical

characteristics of the MP and M system. The major sub-systems of MP and M system are:

a. Demand estimation

b. Procurement

c. Receipt and inspection

d. Storage

e. Issue and use

f. Maintenance and repair

g. Disposal

h. Accounting and information system.

Demand Estimation

A large variety and number of materials are used in hospitals and other health care

institutions. The Advisory Committee for development of surgical instruments, equipment and

appliances (1963) identified 3200 items of instruments and equipment being used in a hospital.

This is just to illustrate the variety and diversity of stores used for patient care in a hospital

situation. There is, therefore, need for variety reduction of the materials; as less the number of

materials, less will be the problems of planning and management of the same. Along with

variety reduction there is need for laying down proper specification of the materials. In this area,

the Indian Standard Institute has been and is playing a very important role by standardizing a

large number and variety of instruments and equipments.

The ISI has set up a number of technical committees to work out the details of

standards of surgical instruments, glassware, anaesthesia equipments, dental machine,

artificial limbs, surgical dressing, utensils, and electromedical Instruments, rubber goods, etc.

Along with standardization, variety reduction, and proper classification of materials a major

area of activity of MP and MS is demand estimation of each category of material. This

should always be done keeping in view the trends in consumption pattern over the last 2-3

years, objectives of the organization, changing clientele and changing emphasis on various

programmes and activities in the health field. In this field a "sound data base" and use of

advance projection techniques are of great use. These techniques are relatively simple and

medical administrator should use them frequently to streamline the MP and MS system.

Procurement

Having drawn up the list of requirements, the next step in MP and MS is the process

of procurement of these materials. Most of the states and other organizations have laid down

detailed set of rules and regulations regarding the procedure of ordering for materials. The

financial authority is also vested in various levels of the administrative hierarchy. The basic

spirit behind all these rules, regulations, procedures etc. is to maximize the value of money

invested in the purchase of stores. Organizations like Directorate General of Supplies and

Disposals (DGSD) play a crucial role in purchase which involve heavy costs.

Many states have medical stores depots which are centralized agencies of procurement

and stocking of medical stores. There is also a system of fixed contract or running rate

contract which is followed in large organization and some State Governments Limited tenders,

rate enquiries local spot and emergent purchase form a part of the complex sub-system of

procurement. It would neither be appropriate nor feasible to go into the details of these

procedures as they are specific to different states/organization. However, the role of DGSD

needs special mentioning in the sub-system of procurement of bulk materials.

Normally three types of contractual services are offered by DGSD. These are:

a. Fixed quantity contract This type of contract is generally entered into where firms are called upon to offer to supply a definite number of quantity of stores by a specified date. Such contracts, are binding on both the purchasing as well as supplying agency.

b. Running contract These are contracts for the supply of an approximate quantity of stores at a specified price during a certain period of time.

c. Rate contract these are the most important contracts as far as health institutions are

concerned. Under these contracts the firms are asked to supply stores at specific rates

during the period covered by the contract. No fixed quantities are mentioned. The

purchaser is bound to order from the contractor all stores under the contract, which are

required to be purchased. The list of direct demanding officers (DDO) forms integral part of

the contract and the supplies are delivered to DDO's in response to orders received from

DDO's direct. DGS and D keeps a close watch over the progress of rate contract

performance with the help of a high powered committee on drugs which includes amongst

others Drug Controller of India, CGHs, ESIS, DG, AFMS, DGHS, Director General of

Technical Development, CMO Railway and Medical Supdts. Of large hospitals.

The system of purchase through rate Contracts has been commended by medical

authorities as this system offers maximum flexibility in ordering specified quantities of

materials at periodic intervals. This helps to maintain optimum inventories and minimize the

chances of deterioration or obsolescence of the medical stores. The quality of the products is

also assured to a large extent as only reported concerns are entered into contract with.

Value Analysis

The obvious and elementary principle of material use is the right quality of material.

This includes questioning and analysis of each specification to see if it could be amended or

substituted to maximize the end use of material. This process of analysis of the intrinsic

value of the material for achieving the objectives of the organization is termed as value

analysis. This is a vital function of a materials manager. The following considerations help to

carry out the value analysis.

a. Can the material be dispensed with?

b. Can it be simplified?

c. Will a standard material do?

d. Is its value proportionate to its cost?

e. Is anything cheaper but equally good available in the market?

f. Would not it be better to manufacture it?

Receipt and Inspection

The stores ordered are received in the store. A reasonable sound policy and

methodology of inspection of incoming stores is an essential element of MP and MS. The

inspection policy should enunciate the sampling procedure for inspection and this procedure

must be followed. The lot thus picked up by a random sampling method be subjected to physical

and chemical inspection. Basic facilities for such examination be created in the organization

itself depending upon the size of stores turnover, governmental and commercial chemical

laboratories should also be made use of for analysis of chemical composition of drugs etc.

Investments made in sound sampling policy and procedure will go a long way in assuring the

right quality of materials supplied to the organization.

Storage

The medical stores should be situated near the other stores of the hospital. It should be easily accessable to suppliers as well as indentors. Location of the store will, therefore, be guided by the flow activity of the stores. The store should be of adequate size to accommodate all the drugs, instruments, appliances etc. required for use in form of steel racks with shelves. Refrigeration should be provided for storage of thermolabile items. A graded temperature zone concept is essential in medical stores.

Separation of stores of various types, i.e. injections, tablets, local use agents from others, poisons from non-poisonous, inflammable from non-inflammable etc. dictates the layout of the stores. Drugs and medicines should be grouped according to the pharmacological actions and in accordance with the classification adopted in the formulary. Alphabetical arrangement group-wise enables easy identification and retrieval. Items received later from the suppliers should be stored behind similar items and the principle of First in First out (FIFO) should be adopted.

Inventory Control

Inventory control mean stocking adequate number and kind of stores so that the materials

are available whenever required and wherever required. This has to be done at an optimum

outlay of financial and human resources. High inventory level leads to high cost of inventories

by:

a. Locking the finance

b. Large storage space

c. Large handling and administration charges

d. Obsolescence

e. Spoilage etc.

On the contrary, low inventories may lead to frequent stock outs and high shortage cost. Balancing the cost of carrying high inventories and the cost of shortages is done through a system of scientific inventory control.

ABC ANALYSIS IN MATERIAL MANAGEMENT

ABC analysis is the analysis of the store items cost criteria. It is a simple approach,

which avoids being penny wise and pound foolish. Of the various techniques, ABC

classification is the most important technique. The cost of each item is multiplied by the

number used in a given period and then these items are tabulated in descending numerical

value order. It will be seen that first 10% of items approximately account for 70%, the next

20% for 20% of value and the last 70% account for 10% of value.

It has been seen that a large number of items consume only a small percentage of

resources and vice- versa. A – Items represent the high cost centre, B items represent the

immediate cost centres, and C- items represent low cost centres. A very close control is

exercised over A items while less stringent control is adequate for those in the category B,

and less attention for category C.

By concentrating on controlling A- items, and to a lesser degree on B items, it will be

possible to control the inventory quiet effectively both in the way of cost control and

lessening the risk of ‗stock out‘. Since A items are of the highest value and are required in

large numbers they could be purchased more frequently and the others, B & C items less

frequently. In so far as inventory control is concerned the following guidelines will help in

keeping the system optimum (i.e. Healthy balance between financial constraints and purchase

of required quantity of materials)

A- Items:

1. Tight controls

2. Rigid estimates of requirements

3. Strict and close watch ( monitoring)

4. Safety stocks should be low

5. Management of items should be done at top management level.

B- Items

1. Moderate control

2. Purchase based on rigid requirements

3. Reasonably strict watch and control

4. Safety stocks moderate

5. Management be done at middle level

C- Items

1. Ordinary control measure

2. Purchase based on usage estimates

3. Controls exercises by store keeper.

4. Safety stocks high

5. Management is done at lower levels.

Rate of consumption:

Close study of each item from the point of view of movement of store or consumption rate is

a strong tool for proper inventory control. The items can be classified into:

1. Fast moving

2. Slow moving

3. Non- moving

4. Obsolete

An understanding of the movement of items helps to keep proper levels of inventories by

deciding a rational policy or reordering. This method is based on the fact that some stock

items have a much higher annual usage value than others. This after doing a cost analysis,

stock items are separated into three classes with the following characteristics.

Class Number of items Rupee value in items

A 10% of total items 70%

B 20% of total items 20%

C 70% of total items 10%

Steps in computing A-B-C analysis: procedure of A-B-C analysis

First we are trying to prepare a list of items and calculate their annual usage in rupees.

This can be obtained by multiplying the quantity (number of units) of the item

consumed in one year by its unit price.

Arranging all these items in the descending order of their individual dosage in rupees.

That means the first item in the list will now show the maximum annual usage in

rupees, the second item the second maximum, the third item the third maximum and

so on. After having done this the total of annual usage in rupees is put at the bottom

of the list.

Those items which together form about 70% of the total annual usage may be total

annual usage may be categorized as A items. Similarly. Items which contribute the

next 20 to 25 % of the aggregate are listed as B items. The rest which contributes 5 to

10% of the total percentage of annual usage are called C items.

Placing of the orders on the basis of this classification.

Example: The Company has 10 items mentioned in the table.

Table: 1 A-B-C analysis usage in rupees

Items Annual

usage units

Unit cost in

rupees

Annual

usage

Rs: (2)×(3)

Ranking

1 2 3 4 5

101

102

103

104

105

106

107

108

20,000

30,000

10,000

500

50,000

8000

60,000

700

0.25

0.20

0.10

0.30

0.20

.05

0.40

1.00

5000

6000

1000

150

10000

400

24000

700

4

3

6

9

2

8

1

7

109

110

9000

50

0.50

2.00

4500

100

5

10

Total Rs: 51,850

Table: 1 shows a representative ABC analysis where 10 items have been studied and annual

usage extended by unit cost to get annual usage in rupees.

Table: 2 A-B-C ranking

Ranking Item Annual

usage

Rs.

Cumulative

annual

usage Rs.

Cumulative

percentage

Category

1

2

3

4

5

6

7

8

9

10

107

105

102

101

109

103

108

106

104

110

24000

10000

6000

5000

4500

1000

700

400

150

100

24000

34000

40000

45000

49500

50500

51200

51600

51750

51850

46.28

65.57

77.14

86.78

95.47

97.39

98.14

99.51

99.81

100.00

A

A

B

B

C

C

C

C

C

C

Table 2 shows the ranking and assignment of A, B and C categories of items.

Table 3: Summary of A-B-C analysis:

Class Item % of

items

Rs: (per

group)

Cumulative

percentage of Rs.

A

B

C

107,105

102,101

109,103,104

106,108,110

20

20

60

34000

11000

6850

65.57

21.21

13.22

Table 3 shows a summary ABC analysis showing that 20% of the items represent 65.57 % of

annual usage 20 percent of the item represent 21.21% of annual usage and 60% of the items

represent only 13.22 % of annual usage.

A items are ordered more frequently and I small quantities (i.e. few weeks requirements)

while C items are ordered just once or twice a year to obtain the entire year‘s requirement.

Nurses' Role in Material Management

A ward is often referred to as a Nursing unit. This implies that a ward is actually under

the control of the Nurse Incharge for its maintenance and for running its day- to- day

patient care activities. Material management consequently is an onus that lies on the

Nurse in charge as well on all members of the Nursing team. The Nursing

responsibilities in relation to material management are listed below:

Ensure regular and adequate flow of supply of necessary equipment, supplies,

drugs and solutions.

Monitor and sustaining the quality and safety of the materials used including

drugs and solutions.

Issue of items on the basis of "First in First out‖ and regular checking of

expiry dates of drugs contribute, towards safety,

Indenting, receiving, storing, checking and timely replenishing of all necessary

equipment, supplies, drugs and solutions.

Maintain emergency and buffer stocks

Arrange for preventive maintenance wherever necessary

Maintain inventory and stock of all items and supplies

Arrange for condemnation of articles in accordance with the laid down policies of

the organisation and maintaining of a dead stock register.

Arrange and assisting in audit of materials

Participate in policy making for material management.

Participate in tender/procurement sub-committees.

Orient Nursing personnel on material management policies from time to time.

Evaluate the efficacy of the material management system followed in particular

Nursing unit.

Principles of administration applicable in material management are:

Discipline - Involves observance of norms, rules regulations and established

procedures.

Unity of command - Refers to having one superior to give commands.

Unity of Direction - Refers to having single superior requirements of specific

departments.

Nurses involved in material management are required to abide by these principles.

Importance In Nursing

The importance of material management in nursing cannot be over emphasized. for any nursing technique or procedure from very simple to complex and invasive

nursing procedures, materials are required; be it administration of an oral medication an intra-muscular injection or performance of a dressing, materials are essential. it can be seen that no nursing procedure can be undertaken without appropriate and adequate materials-whether these are performed in institutional or community settings.

Conclusion

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 and also make the working atmosphere healthy any type of

organization, whether it is Private, Government, Small organization, Big organization and

Household. Even a common man must know the basics of material management so that he

can get the best of the available resources and make it a habit to adopt the principles of

material management in all our daily activities

References: 1. Basavanthappa B T. Nursing administration. ( Ist edn). New Delhi: Jaypee brothers

medical publishers (p) ltd; 2000.

2. Gopalakrishnan & Sunderasan: Material Management, Prentice Hall of India Pvt Ltd.

New Delhi, 1979.

3. Kulkarni G R. Managerial accounting for hospitals. Mumbai: Ridhiraj enterprise;

2003.

4. Kumar R& Goel SL. Hospital administration and management. Vol 1 (first edn).New

Delhi: Deep & deep publications;

5. Gupta S& Kanth S. Hospital stores management, an integrated approach. (First edn).

New Delhi: Jaypee brothers; 2004.