Student Dissertation

Agency : Approval TAT; PO Raised TAT; Delivery TAT; ABC Analysis; FSN Analysis; Turnaround Time

Objective : The objectives were: (i) to study the Approval Turn Around Time(TAT), Purchase order raised Turn Around Time(TAT) and Delivery Turn Around Time (TAT) of items used in routine laboratory tests and its gaps (ii) to optimize the Startup laboratory budget (iii) to analyze stock movements in the store and to classify the items on the basis of their consumption value and movement which can improve the efficiency of Inventory management process at Apollo Diagnostics.

Background : Laboratory inventory management is a critical, or essential, component of the quality management system. Efficient and cost-effective laboratory operations need the uninterrupted availability of reagents, supplies, and services. Inability to test, even for a short time, is very disruptive to clinical care, prevention activities, and public health programs. Establishing a purchasing and inventory management program will ensure that: Supplies and reagents are always available when needed, high quality reagents are obtained at an appropriate cost and reagents and supplies are not lost to improper storage or kept and used beyond expiration. In Apollo Diagnostics, there was delay in Approval, Purchase order raised and Delivery turnaround time of items used in routine laboratory test with the significant increase in Startup laboratory budget. So, to increase the efficiency, establishing inventory management is necessary.

Methodology : The study was conducted during February to April 2016 from The Apollo Diagnostics, Hyderabad. This was an analytical study which included analysis of all items (965 items) which were used to perform Routine tests in laboratories The data was collected by observation to study the reasons for delay in Approval TAT, PO Raised TAT, Delivery TAT, item wise consumption and stock movements of items, in depth Interview with a total of 53 staff, Review of records of Hospital Management Information System (INSTA software) and laboratory instrument, Standard Operative Procedures (SOPs) and guidelines of Apollo Diagnostic and email communication. Inventory control had done by following methods by removing extra items, by optimizing item wise consumption per test, by changing vendors with high items price ,by negotiating with same vendors to decrease the item price and following inventory categorization methods,(i) ABC Analysis, (ii) FSN Analysis, iii)ABC- FSN Matrix

Findings : Out of 345 items, 159 items had delay in Delivery TAT 57 items had delay in Approval TAT and 24 items had delay in PO Raised TAT. Delay from the vendors was the highest reason for delay in Delivery TAT, Inadequacy of Required Data and High Indenting Quantity as per Monthly Average Consumption were the highest reason for delay in Approval TAT. Delay in Approval and Technical Issue were the highest reason for delay in PO Raised TAT. The significant reduction in startup laboratory budget by removing extra items, By optimizing item wise consumption per test By changing vendors with high items price and By negotiating with same vendors to decrease the item price and Inventory control had done by analysis by following 3 means of inventory categorization methods,(i) ABC Analysis, (ii) FSN Analysis,( iii)ABC- FSN Matrix

Recommendations : keeping buffer quantity of the critical items at User Level or at warehouse level for emergency purpose and regular follow up with the Suppliers of items can be reduced Delivery TAT. Indent should be raised with adequate data and should be raised in accordance with Monthly Average Consumption from the respective locations to reduce Approval TAT. Indent should be approved within time by the approver and technical Errors by following Correct Indenting Format by the respective locations to reduce PO Raised TAT. Stringent Control and Regular Follow up should be done for (AF) category items as are fast moving and consumed maximum budget and (AN) category items should be in Nil Stocks as they consumed maximum budget and non-moving


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