INVENTORY CONTROL
GUIDE: LT COL CHANCHAL
ARORA
PRESENTED BY:- MAJ MEGHA K
INVENTORY
All materials, parts, supplies, expenses and in process or finished products
recorded on registers/book by an Organization and kept in its stocks for some
period of time.
Jogindra Vati
PURPOSES OF INVENTORY
• To make an account of materials held in the ward
• To dispose excess and obsolete materials
• To determine the serviceability of materials/equipments
• To request for repair and replacement
• To maintain and trace materials for their adequacy
• To identify discrepancies such as loss or damage
• To put the defective item for condemnation as per hospital policy
TYPES OF INVENTORY
INVENTORY CONTROL
It is the stocking of adequate number and kind of stores , so that
materials are available whenever and wherever required.
OBJECTIVES OF INVENTORY CONTROL
• To enable smooth flow of materials
• To provide protection against uncertainity of demand and supply
• To ensure reasonable utilization of equipments
• To avoid shortage of stock
• To meet unforeseen future demand
• To average out demand fluctuations
ACTIVITIES OF INVENTORY CONTROL
INVENTORY CLASSIFICATION
INVENTORY CONTROL CLASSIFICATION
Always Better Control analysis(ABC analysis):-
Vilfredo Pareto Analysis ” vital few and trivial many”
Use mainly for raw materials, and work in progress inventories.
According to Pareto’s theory :
• 10% items consume about 70% of budget- Group A eg: defibrillator, ventilator
• 20% of items consume 20% of financial resources- Group B eg: glucometer,
medicines
• Remaining 70% items account for 10% of budget- Group C eg: stationary
items, gauze
ADVANTAGES
• Easy to control wastage of costly items
• Easy to maintain stock and turnover rate
• Shows visible results in a shorter span of time
• Helps to pinpoint obsolete stocks
• Rationalize the number of orders, number of items, and reduce the
inventory.
DISADVANTAGES
• Proper standardization and codification of inventory items are
required
• Consider only the money value not the importance of items for
functioning
• Periodic review becomes difficulty
VED ANALYSIS
Vital, Essential, Desirable analysis
• Based on how critical the item is for providing health services.
• V- Vital items without which a hospital cannot function eg: oxygen supply
• E- essential items without which an Institution can function but may
affect the quality of the service eg; antibiotics, IV fluids
• D- desirable items ,unavailability of which will not interfere with
functioning because they can be purchased as an when required eg;
cough syrups, B Complex tablets
ADVANTAGES
• Useful for monitoring and control of stores and spares
• Determine the criticality of an item and its effect on production and
other services
• Used for classification of spare parts/items.
• Useful in controlling and maintaining the stock of various types.
COMBINATION OF ABC AND VED ANALYSIS
V E D
A AV AE AD CATEGORY 1
B BV BE CE CATEGORY 2
C CV CE CD CATEGORY 3
FSN ANALYSIS
• Fast moving, slow moving, non-moving
• Based on consumption pattern of items from stores
• Date of receipt or last date of issue whichever is later, is taken to
determine the number of months which has lapsed since last
transaction.
• No issuing of items during that period is labelled ‘N’ items
• 10-15 issues in the period is labelled ‘S’ items.
• Items exceeding such limits of numbers of issues during that period is ’F’
moving items.
FSN ANALYSIS
ADVANTAGES:
• Helps to avoid investment in non- moving or slow items
• Facilitates timely control
• Helps to avoid over demand of ‘N’, ‘S’ items
SDE ANALYSIS
• SCARCE, DIFFICULT, EASY TO OBTAIN ITEMS ANALYSIS
• SCARCE ITEMS-
Difficult to obtain, needs a lead time of more than 6 months.
Require source development , generally imported
Managed by top level management
DIFFICULT TIMES- requires less than 6 months but more than a
fortnight
EASILY AVAILABLE ITEMS- items which are available in less than
fortnight time.
HML ANALYSIS
HIGH, MEDIUM, LOW COST ITEMS
• Items are arranged in descending orders of the unit price.
• Basic criteria is the unit value of the item
• Helps in exercising control at the use point
• Most valuable items require frequent stock checking.
• Proper authorization should be there for replacing a high value item.
XYZ ANALYSIS
• Based on inventory value of items stored
• Classifies products into three groups based on their level ofdemand
predictability and how much deviate from their forecasts.
X items- ordered frequently with frequent replenishment
Have low demand variation that is predictable
Y items- ordered less frequently such as every few weeks or less
more variation in the demand amount
Z items- orders more infrequent and irregular
they have most demand variation and are the most difficult to
predict.
GOLF ANALYSIS
• GOVERNMENT SUPPLY, ORDINARY AVAILABLE, LOCAL AVAILABILITY, FOREIGN
SOURCE
• Based on the source of material
SOS ANALYSIS
• Seasonal , off seasonal
• Seasonal but available for a limited period
• Seasonable but available throughout the year
• Off seasonal items whose quality is determined on different consideration.
MAINTENANCE, REPAIR AND
CONDEMNATION
• Preventive maintenance of equipments
• Logbook to maintain for all equipments
• Timely repair of equipments
• Arranging for storing spare parts
• Annual technical inspection
• Serviceabilty of equipments to be assessed
• Annual Maintenance Conract to be renewed timely
CONDEMNATION
Criteria:
• Non- functional and beyond economic repair
• Non functional and obsolete
• Functional but obsolete
• Functional but hazardous
• Functional but no longer required
CONDEMNATION PROCEDURE
• Condemnation committee comprising three or four members is
constituted by competent authority
• The committee will declare the item condemned and make
recommendations for further disposal
• Condemned items are taken off from the inventory ledger
• Effective measures are taken for disposal of surplus items before it
becomes unfit for use
ROLE OF NURSE
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THANK YOU
