MODULE 8: MATERIAL MANAGEMENT

PROF, LABMAN- MS. SARMIENTO || 2021-2022

LABMAN

TOPIC 1: MATERIAL MANAGEMENT AND RELATED

CONCEPTS

MATERIAL MANAGEMENT

is the systematic process of overseeing and controlling the

acquisition and utilization of supplies to ensure the
availability and cost-effectiveness.

GOALS OF MATERIAL MANAGEMENT

PURCHASE ORDER
1. Supplies arrive in a timely manner.
represents a commitment by the organization to purchase
2. Spoilage is reduced to a minimum.
a product or service.
3. Back orders and delays are avoided.
4. Storage space is used to the best advantage.
5. The most economically advantageous price is
obtained.
6. Financial resources are not tied up in inventory.

TOPIC 2: SUPPLY ORDERING PROCESS

SUPPLIES

- are products that meet specific time and price

criteria.
- second largest expense next to laboratory cost.
- largest cost in laboratory: labor cost TRAVELING REQUISITION

TWO SECTIONS OF MATERIAL MANAGEMENT - a catalog of products held in stock by material

management. everytime naglalabas sa gamit sa
In hospital there’s one central management department– central management ginagamit si traveling
they are responsible for these” requisition.
- mamonitor mga lumalabas and pumapasok sa
1. PURCHASING- responsible for oderding the central management.
supplies and processing invoices from vendors
and suppliers.
2. STOCKROOM- maintains the security and
inventory level, it is also responsible for showing
and dispensing supplies throughout different
departments of the hospital.

STANDING ORDERS

method of purchase used for products that have a

predictable usage level or short shelf lives and are
frequently ordered in advance.

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TOPIC 3: INVENTORY MANAGEMENT ECONOMIC ORDERING QUANTITY (EOQ)

INVENTORY MANAGEMENT How Much To Order At One Time? How much?

a continual process of checking stock levels, rotating stock ECONOMIC ORDERING POINT (EOP)
to ensure freshness, or ordering supplies in sufficient
quantities to meet current needs, and minimizing the cost aka “ReOrder Point” (ROP); provides the safety level for
of carrying inventory. reordering inventory. We’re safe but a mark that we need to
order.
INVENTORY CHECK LEVELS
OPTIMAL REORDER TIME (ROT)
1. PERPETUAL SYSTEM- keep account of the
inventory each time a product is used. helps to establish the best time to order to take advantage
2. PERIODIC SYSTEM- the stock level is counted of the EOQ and EOP.
once a week or in a specified time.
3. RANDOM CHECKS- used to document the value TERMS USED IN FINANCIAL CONTROL OF
of supplies at a specific time. e.g annual inventory. INVENTORY

STOCK REPLENISHMENT TECHNIQUES ● ANNUAL USAGE- “workload of the laboratory”

● AVERAGE DAILY USAGE- can be obtained by
● MINIMUM-MAXIMUM dividing the amount of supplies ordered in a year
- establishing a set point (minimum) at by 365 days.
which inventory is to be recorded and a ● COST OF ORDERING- can be obtained by
“reorder to” (maximum) level to be dividing the expenses of the purchasing section by
maintained. the number of purchases or orders issued.
- in a usual setting, u have 10 boxes of ● ANNUAL HOLDING COST- accounts for the
dengue kits, then you set a minimum point expense of maintaining a stockroom for storing
of 5 boxes kits while the maximum is the material not needed immediately.
10 boxes of kixt.- if u reach or consumed 5 ● COST PER UNIT- straightforward calculation once
boxes of kits, u need to reorder another 5 the decision has been made as to the best price
to balance out ur stock level. available.
● JUST-IN-TIME ● LEAD TIME- amount of time or advance notice,
- a commitment is made by the supplier to needed between placing an order and its arrival.
guarantee delivery of an item at the exact
moment of need. INVENTORY FORMULAS AND MANAGEMENT TOOLS

FINANCIAL CONTROL OF INVENTORY EOQ=

1. What is the most economic quantity to order, from

the point of view of financial, storage, and delivery
issues?
2. How can the institution take advantage of bulk
purchase discounts? EOP =
3. What is the best time to place orders to both limit
the amount of financial commitment and ensure
adequate supplies?

For the managers to answer this questions they actually

develop a science that they can use, this is the
OPERATION RESEARCH: ROT =

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P.S: for this module, always round up ● Chief medical officer

● Clinical pathologist
● Medical doctors
● Engineering director
● Facilities manager

ACQUISITION OF PREVIOUSLY OWNED EQUIPMENT

● REMANUFACTURING- the process of the original

equipment manufacturer completely overhauling
the equipment and returning it to service as if it
were new.
● REFURBISHED OR RECONDITIONED- cleaned
TOPIC 4: ACQUISITION AND MAINTENANCE OF and repaired equipment in acceptable working
EQUIPMENT order.
● REPOSSESSED- you bought it as is.
TRADITIONAL PROCEDURE OF PURCHASING NEW
EQUIPMENT PRECAUTION OF PREVIOUSLY OWNED EQUIPMENT

1. Developing a budget 1. Vendor background check:

2. Accepting request - Number of years in business
3. Voting and prioritizing the request - Number of years in present location
4. Purchasing the highest priority items allowed in the - Educational background
budget - References from current and past clients
- License
TEC- TECHNICAL EVALUATION COMMITTEE 2. Understand the deal:
- Price of the equipment
conducts primary evaluation of equipment and - Terms of purchase
technologies. frontline - Service warranty availability
3. Operational status:
MEMBERS: - Fully operational
- Fully operational but with preventive
● Clinical pathologist maintenance
● Laboratory manager - Completely rebuilt
● Procurement officer - Confirm reliability with last equipment user
● Financial service representative
● Biomedical engineer TYPES OF MAINTENANCE SERVICES
● Section supervisor
● Day shift Medical technologist technical experts 1. In-house equipment service
● Technical generalist 2. Manufacturer service
3. Third party service
● Laboratory computer manager

CATEGORIES OF SCHEDULED MAINTENANCE

LAB- LABORATORY ADVISOR BOARD
SERVICES
the final review committee, which takes the
1. Preventive maintenance- allows us to check if
recommendations of the TEC for a final vote. responsible
our things are still functioning well. Periodic
for final review.
procedures to minimize the risk of failure and to
MEMBERS: ensure continued proper operation.
2. Functional testing, performance verification
● Chief executive and calibration- to verify that the equipment is
fully operational. e.g. centrifuge checking after 6
● Chief financial officer
months.
● Chief operations officer
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3. Safety Inspection- it is a visual inspection for

mechanical safety. e.g. checking cables and wiring
of machines and handles.

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