Abstract of Dissertation

Keyword : Inventory Management; ABC Analysis; VED Analysis; ABC-VED Matrix; HMIS

Objective : To identify the factors affecting inventory management performance in central store of SDMH and to analyze the consumption trend for determining the rank of items that include drugs and surgical both on the basis of their consumption.

Background : Inventory or stock is defined as the stored accumulation of material resources in a transformation system. The planning and controlling of these inventories is also known as inventory management. It is an important concern for all types of businesses as effective inventory is essential for realizing the full potential of a supply chain. Now a days, Organizations are more concerned with stock control because a lot of funds are invested in stock and most organizations carry out inventory control through stock taking, surprise checks and other methods, but there is always a variance between the actual result and the records kept by these organizations, thus exposing them to stock related costs that affect performance and service delivery.

Methodology : The study was cross sectional, quantitative and focus group. The location of the study was the central store of the SDMH. Total consumable that include drugs and surgical items which was consumed in three months (December 2014- February 2015) in the hospital was taken as the sample. Data was collected through HMIS, records review, unstructured interview of the senior pharmacist, purchase manage and other staffs of the department. Various tools were used to do the data analysis like ABC analysis, VED analysis, ABC-VED matrix and MS Excel.

Findings : As per ABC analysis, the findings that emerged showed that out of 1219 items only 167 items amount for 70% of the total expenditure. Than VED analysis was done by categorizing all the consumables on the basis of its criticality and came to a conclusion that out of 1219 consumables, 212 i.e. only 10% were vital consumables and 886 i.e. only 17% were essential consumables. Later ABC-VED matrix analysis was done to get the list of priority I consumables and it came out to be 356 consumables i.e. 29% consumable were priority I consumables. The general findings of the project were many like no inventory management tools (ABC,VED) were used to do the regular monitoring of the inventory, no proper schedule for indent order and delivery, no access control, no security guard and most of the times CCTV on off mode, time limit protocol for emergency indents were not established, no dedicated place for indents handover, Pests(mice) can be easily seen in the department, Many phone calls remain unattended in the department.

Recommendations : The recommendations for the analysis were Strict control and regular check required for priority I consumables by top management personals, stock should be reviewed according to ABC-VED Matrix analysis, strict access control in central store is required, proper schedule should be maintained for indent order and indent delivery, to have a time limit (maximum 3 hours) for emergency indent delivery, change in the physical arrangement for receiving and delivery of indents, proper pest control in the area where indents are stored, requirement of one cordless phone in central store of SDMH.