RAJKUMARI AMRIT KAUR COLLEGE OF NURSING

SUBJECT : NURSING MANAGEMENT

TOPIC:
PROCEDURE, RULES FOR MATERIAL
MANAGEMENT, NURSES’ ROLE/ ACTIVITIES IN
MATERIAL MANAGEMENT IN HOSPITAL

SUBMITTED TO: SUBMITTED BY:

MADAM MRS. MADHUMITA DEY MRS. TISHA MARY THOMAS
ASSISTANT PROFESSOR MSc. NURSING 3 RD SEMESTER
R.A.K. COLLEGE OF NURSING R.A.K. COLLEGE OF NURSING

INTRODUCTION
Materials are the major cost factor in an organization. Every organization, big or small, needs proper
feeding for good results. It requires planned and progressive provisioning and purchase to keep the
machinery running. It can be achieved only through effective material management.
1 | Page
Modern technology of efficient material management was developed in USA during second world war
which helped them to make a spectacular progress in improving their productivity. MM is a new
concept in India introduced in sixties. In last few years increasing awareness in different areas of
management is found. Material management (MM) is a new concept in health care field. Hospital
organizations are an ideal situation for application of this concept as 25-40 % of budgetary expenditure
is done on accomplishing the store function. Many hospitals have adopted this management to provide
efficient patient care
CONCEPT OF MATERIAL MANAGEMENT
MATERIALS:
⮚ Materials may be defined as equipment, apparatus and supplies procured, stocked and utilized
by an organization. These are the things needed for smooth functioning of an activity in the
organization.
⮚ Webster defined the word material as ‘relating to the production and distribution of economics,
goods and social relationships of owners and laborers’.
⮚ Materials are any commodity used directly or indirectly in producing a product or service -
considered as the lifeblood and heart of any manufacturing system.

MANAGEMENT
Management refers to bringing together the available resources to achieve a specific objective.

INTEGRATED MATERIAL MANAGEMENT

It is the close co-ordination of all departments that are concerned with the utilization of materials. In
this the material manager is responsible for inter-related functions to ensure the proper balance of
conflicting objectives of individual features.

Classification based on COST CRITERIA:

The material categorized on cost is commonly known as the "ABC" group. ABC stands "Always Better
Control."
⮚ "A" category of material is under strict control and supervision and requires a right estimate.
⮚ "B" category of equipment is under reasonable control.
⮚ "C" category of items is under common control of storekeepers and purchases these materials
on usage estimates.

Classification based on time toleration of non availability criteria.

The material classified on time toleration of non availability is commonly known as the "VED” group.
⮚ "V" category of items are those cannot tolerate its non availability. These items are required to
be all the time available.
⮚ "E" group items cannot tolerate its nonavailability for 2-3 days due to the availability of
alternative items.
⮚ “D”category items may wait for a longer time for its availability.
MATERIAL MANAGEMENT
DEFINITION

2 | Page
 ❖ Material management deals with managing materials such as drugs, supplies, and equipment
to deliver health-care services. It concerns with planning, organizing, and controlling the flow of
materials from their initial purchase, internal operations, and to the distribution at service
point.
❖ Integrated material management includes material planning, indenting, purchase systems,
reducing uncertainties. In demand and supply, handling and transportation, storage, issuing
materials, inventory management and disposal of obsolete, surplus and scrap materials.
❖ Housely defined material management as ‘the management and control of goods, services and
equipment from procurement to disposal.
❖ According to Judith, material management is managing and controlling medical, surgical,
clerical, interdepartmental services, and equipment from acquisition on the floor to disposition

MATERIAL MANAGEMENT IN HOSPITAL

❖ Material management of hospital includes all the activities of store from stage of forecasting of
requirements to utilization to the final disposal for patient care.
❖ It is concerned with providing the drugs, supplies and equipment by the personnel to deliver
health care services.

IMPORTANCE OF MATERIAL MANAGEMENT

The efficiency with which it is performed often determines the success of an organization. It concerns
the flow, conservation and utilization of the materials as well as the quality and cost of the materials.
♦ Financially: Large proportion (25-40%) of health expenditure is on materials
♦ For better availability: Material supplies are not satisfactorily present
♦ Complex requirement: Medical and non-medical items are more in number
♦ Social marketing is to be supported
♦ There is need and potential for increased efficiency and effectiveness in management of materials
(resources)
FOUR BASIC NEEDS OF MATERIAL MANAGEMENT
• To have adequate materials on hand when needed
• To pay the lowest possible prices, consistent with quality and value requirement for purchased
materials
• To minimize the inventory investment
• To operate efficiently

PURPOSE OF MATERIAL MANAGEMENT

•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

AIM OF MATERIAL MANAGEMENT

TO ENSURE 1. The Right quality

2. Right quantity of supplies
3 | Page
3. At the Right time
4. At the Right place
5. At the Right cost
MANAGEMENT TECHNIQUES USED TO ACHIEVE THIS AIM ARE:

RIGHT ITEM
VALUE ANALYSIS
STANDARDIZATION

RIGHT QUANTITY
INVENTORY CONTROL

RIGHT PRICE
COST/BENEFIT ANALYSIS
VALUE ANALYSIS

OBJECTIVES OF MATERIAL MANAGEMENT

Primary objectives: Secondary objectives:
● Right price ● Forecasting
•High turnover •Inter-departmental harmony
•Low procurement & storage cost •Product improvement
•Continuity of supply •Standardization
•Consistency in quality •Make or buy decision
•Good supplier relations •New materials & products
•Development of personnel •Favorable reciprocal relationships
•Good information system
General Objectives:
⮚ To avoid surplus of material
⮚ To have appropriate storage and easy to retrieve
⮚ To ensure distribution to the point of usage whenever required
⮚ To ensure effective and efficient utilization of available resources
⮚ To optimize the use of resources to meet the needs in an efficient manner
⮚ To obtain correct quality of materials at lowest possible price
FUNCTIONS Of Material Management:
⮚ Material planning and programming
⮚ Purchasing and outsourcing
⮚ Inventory control ϖStorekeeping and warehousing
⮚ Standardization and evaluation of all products
⮚ Transportation and material handling
4 | Page
 ⮚ Inspection and quality control
⮚ Cost reduction through value analysis
⮚ Disposal of surplus/obsolete material
⮚ Distribution.

ADVANTAGES
Material management
⮚ Control of inventories is made more accessible and simple
⮚ Eliminates losses caused by the deterioration surplus materials
⮚ Reduces clerical work
⮚ Reduces cost and improves profitability and rate of return on investment
⮚ Minimizes assorted problems of delivery schedules, emergency orders, and storage
⮚ Reduces emergency or rush orders
⮚ Brings better regulation inflow of materials.
⮚ Ensures better storage and facilitate the better coordinated movement of materials into the
production line.

Integrated material management

⮚ Ensures better accountability by having centralization of authority and responsibility for all
aspects of material functions
⮚ Facilitates better coordination of various features of material management
⮚ Encourages effective communication and thus enhances better performance
⮚ Promotes adaptability to electronic data processing for collection, collation, and analysis of data
⮚ Improves team spirit and therefore provides an Opportunity for growth and development.

PRINCIPLES OF MATERIAL MANGEMENT

The following are the principles of material management:
1) Principle of effective management and supervision: It means that material management
must follow principles of planning, organizing, staffing, directing, controlling, reporting and
budgeting for its effective management and monitoring.
2) Principle of sound purchasing: Material management must ensure the sound purchasing
process through sound purchasing methods. There should be an effective purchase system.
3) Principle of negotiations: It means that one must arrive at a common understanding through
bargaining on contract for purchasing, specification, price, and payments, etc. There should be
skillful and hard poised negotiations in material management.
4) Principle of simplicity: Material management system should be simple in operation, and
everybody associated with it should understand its functioning.
5) Principle of productivity: Material management system must reduce cost and improve
profitability and rate of return on investment through inventory management.
6) Principle of controlling: There should be a simple inventory control program in the material
management system.
7) Principle of codification: In material management, a coding system must follow. Assign codes
to all categories of material.
5 | Page
 8) Principle of standardization and specification: It means that standardization and
specification must follow for the acquisition of material.
9) Principle of prioritizations: Principle of prioritization means to procure material on a priority
basis.
ELEMENTS OF MATERIAL MANAGEMENT

1) Demand estimation : The process of estimation & calculation of requirement of supplies and
equipments.
2) Planning : it is done to meet the aims & objectives of material management. Planning is the
listing of necessary equipments & their cost estimation.
3) Procurement : Process of obtaining material from preparation & processing through to receipt
and approval of invoice for payment.
4) Selection of suppliers : select a supplier keeping in mind the price, quality, delivery time,
guarantees & warranties, reputation & reliability of suppliers.
5) Placing orders : it is done using the method per practices of the facility.
6) Receiving and checking purchased items : the store receives the purchased items from the
purchasing department. These items undergo inspection at its respective stores like drug store,
linen store, surgical store etc.
7) Storage : After inspection the received materials are stored till its usage in such a way to prevent
loss or damage.
8) Stock inventory : inventory is the list of non-expendable supplies & equipments kept in the
organization. It includes the number of goods & materials in hand.
9) Maintenance & care : Proper maintenance of equipment is essential to preserve the capital
investment. There should be clear instructions to the staff regarding the care & maintenance of
equipment to prevent damage.
10) Condemnation : Every organization should have a condemnation committee which periodically
condemn the outdated & obsolete items in the inventory.

6 | Page
STEPS : PROCEDURE OF MATERIAL MANAGEMENT SYSTEM

DEMAND
ESTIMATION
DISPOSAL / PROCUREMEN
CONDEMNATIO T/
N PURCHASING

RECEIPT &
MAINTENANCE
INSPECTION
& REPAIR
INVETORY
CONTROL,
STORAGE, ISSUE
& DISTRIBUTION

I. MATERIAL PLANNING & DEMAND ESTIMATION

I (A) 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)

Since materials are essential resources to achieve the objectives of a health care organization, the health
administrator is required to plan the material management system in such a way to ensure adequate
supply of materials to improve the expected pattern with minimum amount of money blocked in
procuring materials in non-productive manner. It is of great importance that material of right quality
should be supplied to consumers in right time and a right place of use.
Material planning is based on certain feedback information and reviews. It is done at all stages and all
levels of management.
TECHNIQUES OF MATERIAL PLANNING

1. BILL OF MATERIAL TECHNIQUE (BOM)

7 | Page
Definition : A bill of materials (BOM) is a comprehensive list of parts, items, assemblies, and other
materials required to create a product, as well as instructions required for gathering and using the
required materials.

Characteristics:
⮚ Often shown in a hierarchical way, a bill of materials (BOM) lists the finished product at the top,
down to individual components and materials.
⮚ BOM is the simplest technique of materials planning.
⮚ This technique is ideally suited to engineering industries.
⮚ The technique is based on demand forecasts.
⮚ Requirement for various materials are listed with their complete specifications

Representation:
⮚ Bills of materials (BOMs) can be presented as an explosion display or an implosion display.
⮚ Explosion of bill of materials refers to splitting the requirements for the product to be
manufactured into its basic components. In this the assembled material is placed at the top and
the component parts at the lowest. E.g. in health care, drugs are manufactured in the
pharmaceutical company from different ingredients.
⮚ BOM implosion displays the linkage of individual parts at the lower level to an assembly at the
higher level. Eg: The sub parts of ventilator like humidifier, heating wires, sensors , screen, key
board panels are assembled together to form the complete ventillatory circuit.
Another example, a computer is exploded into hard drives, computer chips, random access memory
panels, and processors. Each processor is exploded into an arithmetic unit, a control unit, and a register.
The requirements for the arithmetic unit, control unit, and register are imploded into the requirements
for the processor, which are imploded into the requirements for the entire computer.

Types:
⮚ manufacturing bills of materials (MBOMs)
⮚ engineering bills of materials (EBOMs)
⮚ Sales bill of materials (SBOMs)

What are included in the BOM record?

a) BOM Level—Assign each part or assembly a number to detail where it fits in the hierarchy of
the BOM. This allows anyone with an understanding of the BOM structure to quickly decipher
the BOM.
b) Part Number—Assign a part number to each part or assembly in order to reference and identify
parts quickly.
c) Part Name—Record the unique name of each part or assembly. This will help you identify parts
more easily.
d) Phase—Record what stage each part is at in its lifecycle. For parts in production, it is common to
use a term like ‘In Production’ to indicate the stage of the part. New parts that have not yet been
approved can be classified as 'Unreleased' or 'In Design'. This helps to track the parts easily and
make realistic time frames for the project completion.

8 | Page
 e) Description—Provide a detailed description of each part that will help you and others
distinguish between similar parts and identify specific parts more easily.
f) Quantity—Record the number of parts to be used in each assembly or subassembly to help
guide purchasing and manufacturing decisions and activities.
g) Unit of Measure—Classify the measurement in which a part will be used or purchased. It is
common to use ‘each’, but standard measures like inches, feet, ounces, and drops are also
suitable classifications.
h) Flexibility indicator: Indicating your amount of flexibility in your BOM can help make the
production process smoother and to find out the alternatives possible.
i) Procurement Type—Document how each part is purchased or made (i.e. off-the-shelf or made-
to-specification) to create efficiencies in manufacturing, planning, and procurement activities.
j) Reference Designators—If your product contains printed circuit board assemblies (PCBAs),
you should include reference designators that detail where the part fits on the board in your
BOM. Capturing this information in the BOM can save time and help you avoid confusion down
the road.
k) BOM Notes—Capture other relevant notes to keep everyone who interacts with your BOM on
the same page.

2. PAST CONSUMPTION ANALYSIS TECHNIQUE

⮚ In this technique future projection is made on the basis of the past consumption data, which is
analyzed taken in to consideration the past and future plans.

WHEN TO USE PAST CONSUMPTION ANALYSIS?

1. For continuously needed materials and the materials where no bill of materials is possible
2. Historical consumption patterns are expected to continue.
3. Consumption data or requirements are accurate and complete

The past consumption data is the analysis and a projection for the future on the basis of past experience
and future need is made. To prepare such a projection, “average” or “mean” consumption and the
“standard deviation” are taken as bases and as guidelines for each item.
⮚ Statistical tools like mean, median, mode and standard deviation are used in analyzing the past
consumption.
⮚ These are all statistical tools and are very effective to absorb the stock of fluctuation in
consumption of direct and indirect materials where no straight-forward norms of consumption
can be formulated. In the process industries, this technique is particularly suitable.

(3) MATERIAL REQUIREMENTS PLANNING (MRP) :

⮚ MRP is a system for calculating the materials and components needed to manufacture a product.
It consists of three primary steps: taking inventory of the materials and components on hand,
identifying which additional ones are needed and then scheduling their production or purchase.
⮚ MRP is considered a "push" production planning system - inventory needs are determined in
advance, and goods produced to meet the forecasted need. Therefore MRP technique is widely
used along with demand estimation & forecasting.
9 | Page
 ⮚ Lead time -(the period from when an order is placed and the item delivered )- is another key
concept in MRP.
⮚ IBM engineer Joseph Orlicky developed MRP in 1964. Now computerized forms are available to
make MRP.

(4) EXPONENTIAL SMOOTHING TECHNIQUE

It is a time series smoothing & forecasting technique that produces an exponentially weighed moving
average in which each moving calculation or forecast is dependent upon all previously observed values.
Exponential Smoothing Formula
F= α A + (1- α ) B, where F= forecast, A= actual sales data, B= forecast from previous sales data,
α = smoothing constant which varies from 0.1 to 1.0

(STEPS OF PLANNING: covered by Ms. Renu Prakash)

I (b) DEMAND ESTIMATION

First step in handling the problem of supply is that of determining requirement needs. It involves three
factors:
⮚ The kind of articles needed
⮚ The quantity of each article needed
⮚ The time & frequency of delivery.
Formulate a procurement program based on material requirements. Provide supporting data for its
appropriation.

DEMAND ESTIMATION DEPENDS ON cost reduction; lay out proper specification and value analysis.
1. A) COST BALANCE
Cost of a material is included of the actual cost (purchase cost) & the carrying cost.
Carrying cost includes storing to distributing cost. Carrying cost has 20-30% of the cost. It includes:
⮚ Interest on capital (15%) ⮚ Obsolescence
⮚ Manpower cost ⮚ Insurance cost
⮚ Deterioration cost ⮚ Storage cost (racks, almirah, building)
⮚ Pilferage cost
⮚ Stock out cost
⮚ Ordering cost (staff, building, furniture, stationery)
If stock increases, the carrying cost automatically will increases. Similarly if ordering cost is increased,
carrying cost will also increase.
1. B) MATERIAL SPECIFICATION
Characteristics of the material required need to specify. The following are the advantages of material
specification:
⮚ Classification of material: it classifies the material in a precise and definite way, the exact
character of the articles required, their quality or grade, their nature of their construction and all
the other needed special attributes.
⮚ Facilitation of work: it facilitates the work of the service in calling for its supply of articles,
since, with the specifications once made, references thereafter can be made to them by general

10 | Page
 title or number, thus avoiding the necessity of setting forth each time in detail the nature of the
article required.
⮚ Lessen the purchase procedure: it lessens realty the work involved in the purchase of the
articles and also to make it possible accurately to check deliveries for the purpose of securing
assurance that all articles purchased correspond in character and quality to the ones actually
ordered.
The preparation and use of proper specification lie at the foundation of the whole system of supply.
According to AG Thomas:
● It enhances the trading reputation of the purchaser for the knowledge of his needs.
● It informs the dealer that the swiftness during the course of a purchase agreement is not a part
of the purchaser’s policy.
● It saves time of dealers, while incomplete description, on the other hand requires a great amount
of time.
● It also saves the time of a purchasing officer in answering questions of possible bidders, and also
saves the time of those who are to receive or use the goods purchased.
● It avoids the collision between the dealers and those who are to receive and use the articles
purchased.

1. C) VALUE ANALYSIS
It is an organized approach to identify the non-essential costs which are incurred. This process is
essential for cost reduction and is also related to standardization. It examines the facts of functions and
cost of item used to order to determine whether the cost can be reduced without compromising on
quality.

Problems affecting material planning

⮚ Corporate/ Government objectives and plans
⮚ Technology available
⮚ Market demand
⮚ Lead time and rejection rates
⮚ Working capital available
⮚ Nature of inventory required
⮚ Capacity and its utilization of the organization
⮚ Seasonal variations
⮚ Information and data available
⮚ Overall material policy

STEP II. PROCUREMENT

After determining the supply requirement, the next step in the material management is securing or
procuring the needed articles. State governments have laid down detailed rule and regulations
regarding the procurement of materials. Many states have medical stores which are centralized
agencies for procurement of drugs and supplies. State governments also use a system of fixed rate
contract or running rate contract.

11 | Page
DEFINITION : Procurement means acquisition of material and services to carry out various activities in
any organization. It is sourcing & purchasing of goods & commodities by any organization, institution or
a person.

AGENCIES PERTAINING TO PROCUREMENT PROCESS IN GOVERNMENT SECTOR:

⮚ DGHS play a crucial role in purchasing materials of heavy cost.
⮚ Directorate general of supply & disposal (DGS & D, Govt. Of India]
⮚ Medical stores depot (M. S.D. Government of India, Ministry of H & FW]
⮚ Private or public sector undertakings.
⮚ Receiving donations.

OBJECTIVES OF PROCUREMENT SYSTEM

The objective of the procurement system is to secure the articles specified when and where needed and
at the lowest obtainable price.
⮚ Acquire needed supplies as inexpensively as possible
⮚ Obtain high quality supplies
⮚ Assure prompt & dependable delivery
⮚ Distribute the procurement workload to avoid period of idleness & overwork
⮚ Optimize inventory management through scientific procurement procedures

OPERATIONS INVOLVED IN PROCUREMENT PROCESS

⮚ Selecting the vendors
⮚ Arranging upon the purchase price (Negotiation)
⮚ Time and place of delivery
⮚ Verifying deliveries
⮚ Settlement and payment of vendors’ remuneration claim

METHODS IN PROCUREMENT PROCESS AND NEGOTIATION STRATEGIES

1. 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

2. Restricted or limited tender

⮚ From limited suppliers (about 10)
⮚ Lead-time is reduced
⮚ Better quality

3. Negotiated procurement
⮚ Buyer approaches selected potential Suppliers and bargain directly
⮚ Fix at a rate acceptable to both parties
12 | Page
 ⮚ Used in long time supply contracts

4. 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

5. Rate contract: Firms are asked to supply stores at specified Rates during the period covered by
the Contract
6. Spot purchase: It is done by a committee, which includes an officer from stores, accounts and
purchasing departments
7. Risk purchase : If supplier fails, the item is purchased from other agencies and the difference in
cost is recovered from the first supplier

8. Many Suppliers Strategy

⮚ Many sources per item ⮚ Negotiated, sporadic PO‘s
⮚ Adversarial relationship ⮚ High prices
⮚ Short-term ⮚ Infrequent, large lots
⮚ Little openness ⮚ Delivery to receiving dock

9. Few Suppliers Strategy

⮚ 1 or few sources per item ⮚ Exclusive contracts
⮚ Partnership (JIT) ⮚ Low prices (large orders)
⮚ Long-term, stable ⮚ Frequent, small lots
⮚ On-site audits and visits ⮚ Delivery to point of use

10.Contractual services by Directorate General of Supplies and Disposals for Government

Institutions
4. Fixed quantity contract: supply firms are called upon to offer to supply a definite quantity of
stores by a specified date. Such contracts are binding both parties
5. Running Contract: these contacts are for supply of an approximate quantity of stores at a
specified price during a certain period of time.
6. Rate contract: most common contracts in health care institutions, in which firms are asked to
supply stores at specific rates during the period covered by the contract. A Rate Contract or a
Rate Agreement (RC in short) is a procurement cost reduction strategy aimed at standardizing
procurement prices for commonly procured, homogenous and price varying inputs. A rate
contract is also typically established in inputs where the number of suppliers is large.
Quantity to be ordered is not fixed. This system of offers maximum flexibility in ordering
specified quantity of materials at frequent intervals.
Points to remember while purchasing
⮚ Proper specification; Seek order acknowledgement
⮚ Invite quotations from reputed firms
13 | Page
 ⮚ Comparison of offers based on basic price, freight and insurance, taxes and levies
⮚ Quantity & payment discounts and Payment terms
⮚ Delivery period, guarantee
⮚ Vendor reputation (reliability, technical capabilities, Convenience, Availability, aftersales service,
sales assistance)
⮚ Short listing for better negotiation terms

III. RECEIPT AND INSPECTION

Receipt and inspection is done when the orders reach the store. Material inspection is necessary to
ensure the quality of the material received. Whenever an item is delivered the same is verified in the
presence of store in charge, representatives of the supplier and the representatives from the Purchasing
committee of the hospital. Verification is done to ensure that the item is received as per the order
placed. The procedure followed on receiving the supply is depicted below:

IV. INVENTORY CONTROL ,STORAGE, ISSUE AND DISTRIBUTION

IV (A) : STORAGE
PRINCIPLES OF 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

LOCATION & LAYOUT OF STORE: the store should be located where it is easily accessible to both the
suppliers and the consumers. It should be adequate to accommodate all drugs and supplies. Layout of

14 | Page
the stores is dictated by the need to separate different types of materials. Alphabetical arrangements
help in identification and retrieval of supplies.

STORAGE: The central stores undertakes centralized storing of all items. In some hospitals the central
stores takes this responsibility except pharmaceutical products, food items and bulk equipments
(which are directly installed at the site of operation).

PRESERVATION : these are the important part of storekeeping function. When materials remain idle in
the store these materials should be taken care of and looked after properly. Otherwise these materials
may get perished due to natural chemical reaction like rusting by moisture, melting by heat and may
also get affected by insects and rodents etc. Medical supplies requires controlled temperatures and
humidity. These items must be protected from direct light also. Refrigeration must be provided to all
serums and vaccines.

STEP IV (B) : INVENTORY CONTROL

Meaning:
⮚ INVENTORY is the blocked working capital of an organization in the form of materials.
Therefore inventory is a stock to ensure uninterrupted supplies and to have future economic
value.
⮚ INVENTORY CONTROL 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. It includes the minimum and maximum level of each item to be
stocked, level of re-order, buffer stock policies, analysis of the movement pattern of each item
and minimum pilferage are considered.

FUNCTIONS OF INVENTORY CONTROL

•To provide maximum supply service, consistent with maximum efficiency & optimum investment.
•To provide cushion between forecasted & actual demand for a material

BASIC PRINCIPLES OF INVENTORY CONTROL

1. Principle of Safety Stock (SS): The principle of SS means to keep stock usage at an average rate
during the extension of LT (lead time). Safety stock is an additional quantity of an item held in
the inventory to reduce the risk that the item will be out of stock. It acts as a buffer stock.
The SS is the difference between the worst-case scenario (WCS) and the average weekly usage
(forecast) (AWU) during the LT period.

SS = (WCS – AWU ) LT
WCS is also known as Maximum demand expected in a week and AWU is the Expected Demand in a week
In contrast, LT is the time spend in deciding stock replenishment and actual availability of the goods. It
should be logic; it should have all steps, including order (Purchase Order (PO)/Manufacturing Order
(MO)) processing time, Quality Control (QC) check/ quarantine, etc.

15 | Page
2. Principle of average inventory ('INV' stands for Inventory and 'AVG' stands for Average): The
average inventory is the sum of the SS and half the reorder quantity (ROQ).

INVAVG = SS + 1/2ROQ
3. Principle of reorder point: The reorder point (ROP) is the sum of the SS and the quantity used
during the LT. The reorder point (ROP) is the level of inventory which triggers an action to replenish
that particular inventory stock.

ROP = SS + (AWU x LT)

To find lead time demand, multiply the lead time by your average daily/ weekly
sales.
According to this principle, items for which annual consumption is high, place the orders frequently to
keep inventory level as low as possible. Items for which annual consumption is not high, maintain
enough stock and place orders less frequently.

INVENTORY CONTROL TECHNIQUES

1) ABC ANALYSIS : (ABC = Always Better Control)

⮚ This is based on cost criteria.
⮚ It helps to exercise selective control when confronted with large number of items as it
rationalizes the number of orders, number of items & reduce the inventory.
⮚ ABC analysis helps us in segregating the items from one another and tells us how much valued
the items is and controlling it to what extent is in the best interest of the organization.
⮚ About 10 % of materials consume 70 % of annual value (A item)
⮚ About 20 % of materials consume 20 % of annual value(B item)
⮚ About 70 % of materials consume 10 % of annual value (C item)

Annual value or annual usage value (A) is defined as: A= VQ,

where, Q= annual consumption on quantity terms & V= value (cost) per item

A’ ITEMS (Small in number, but consume large amount of resources)

Must have:
✔ Tight control
✔ Rigid estimate of requirements
✔ Strict & closer watch
✔ Low safety stocks
✔ Managed by top management
B’ ITEM (Intermediate, both in terms of its number and the amount of resources)
Must have:
✔ Moderate control
✔ Purchase based on rigid requirements
✔ Reasonably strict watch & control

16 | Page
 ✔ Moderate safety stocks
✔ Managed by middle level management
‘C’ ITEMS (Larger in number, but consume lesser amount of resources)
Must have:
✔ Ordinary control measures
✔ Purchase based on usage estimates
✔ High safety stocks
ABC analysis does not stress on items those are less costly but may be vital.

2) VED ANALYSIS
⮚ Based on critical value & shortage cost of an item
⮚ It is a subjective analysis.
⮚ Items are classified into: Vital, Essential and Desirable
✔ Vital: Shortage cannot be tolerated.
✔ Essential: Shortage can be tolerated for a short period as it can be managed with alternatives.
✔ Desirable: Shortage will not adversely affect, but may be using more resources. These must be
strictly scrutinized.
The vital items are stocked in abundance, essential items are stocked in medium amounts and desirable
items we stocked in small amounts. Vital and essential items are always in stock which means a
minimum disruption in the services offered to the people.

MATRIX OF INVENTORY CONTROL BASED ON ABC ANALYSIS & VED ANALYSIS

There can be combination of these two categories like a matrix combining ABC and VED categories. This
matrix is more relevant in the hospitals.

V E D ITEM COST

A AV AE AD CATEGORY 1 10 70%

B BV BE BD CATEGORY 2 20 20%

C CV CE CD CATEGORY 3 70 10%

CATEGORY 1 - NEEDS CLOSE MONITORING & CONTROL. These items are the most important ones
and require control by the administrator himself.
CATEGORY 2 - MODERATE CONTROL. These items are of intermediate importance and should be
under control of the officer in charge of the stores.
CATEGORY 3 - NO NEED FOR CONTROL. These items are of least importance which can be left under
the control of the store keeper.
Items with high criticality (V), but required in small quantity (A) should receive highest priority. Items
with low criticality (D) and which are required in big quantity should receive least priority. Thus the AV
category becomes the most important for inventory control because the items are very much cost
consuming being a category and also vital for uses. These items can be controlled by the top-level
17 | Page
management. The CD category items are not very costly and at same time of desirable category. These
items can be controlled at the lower level.
The grouping will essentially depend upon the strategy of management and the environment of
functioning. However these simple techniques can be effective in material management system.

3) SDE ANALYIS - Based on availability and problems encountered on procuring the items.
⮚ Scarce
⮚ Managed by top level management
⮚ Maintain big safety stocks
⮚ Difficult : Maintain sufficient safety stocks
⮚ Easily available : Minimum safety stocks

4) FSN ANALYSIS - Based on utilization.

⮚ Fast moving.
⮚ Slow moving.
⮚ Non-moving : Non-moving items must be periodically reviewed to prevent expiry &
obsolescence
5) HML ANALYSIS - Based on cost per unit
⮚ Highest cost
⮚ Medium cost
⮚ Low cost
⮚ HML analysis is used to keep control over consumption at departmental level for deciding the
frequency of physical verification.
⮚ Lists down all the items in the descending order of unit value. Limits are determined by
management

6) XYZ ANALYSIS : based on the value of the inventory stored

⮚ X items are those whose inventory values are high
⮚ Z items are those whose inventory values are low.
⮚ Y items are those which have moderate inventory stocks.

MATRIX OF XYZ & VED INVENTORY CONTROL

18 | Page
 7) GOLF ANALYSIS -basis of source of material
⮚ G- government ⮚ L- Local
⮚ O- ordinary ⮚ F- foreign

8) SOS ANALYSIS
S’ stands for Seasonal and OS stands for Off Seasonal items

FACTORS AFFECTING THE INVENTORY CONTROL MANAGEMNT

There are mainly four factors which can determine the effectiveness of inventory control management.
They are:
I. ORDERING COST : it is the cost of ordering the item and securing its supply. It includes: the
expenses of raising the indents, purchase requisition by the user department till the execution of
order and receipt and inspection of the item, salaries & wages of store personnel employed, rent
for the store, stationery and other consumables used by the store.
II. INVENTORY CARRYING COST: it is the cost incurred for holding the volume of inventory and
measured as percentage of the unit cost of an item. This includes capital cost, obsolence cost,
deterioration cost, tax and insurance cost on stock, storage and handling cost along with wages
and rent of building as in ordering cost.
III. OUT OF STOCK/ SHORTAGE COST : It is the loss that occurs or which may occur due to the
non-availability of materials. This includes: break down or delay carrying out the work,
backorders, loss of goodwill etc.
IV. INVENTORY RECORD SYSTEMS: these are the different systems to record the transaction
involving inventory or account for inventory.
a) Perpectual Inventory System : this implies constant and continuous maintenance of stock
records, and it covers both regular stock taking as well as upto date recording of store books.
b) Periodic inventory system : periodic means at specific points of time like monthly,
quarterly, or at the beginning or end of the year. There will be no recording of inventory in
between.

STEP IV (C) : ISSUE & DISTRIBUTION

19 | Page
The main role of stores in hospital is to ensure uninterrupted flow of materials to various departments
so that smooth and efficient functioning of the hospital is not affected. In order to ensure smooth issue
of materials, a systematic procedure should be followed. Good stores system can greatly help the store
manager in smooth issue, accurate stock status reports, timely detection of discrepancies and prompt
clearance of goods inward notes to expedite bill payment, reduction in losses etc.

Distribution usually involves transportation to various units or health care delivery system. It is an
intricate process focusing on the distribution of right quantity at right time and at right place.

a) Requisition system : The distribution system when new issues are done as and when required.
This is the most widely used method in Indian hospitals. Each user department maintain and
keeps track of its inventories. Periodically or when required, a requisition is prepared and sent
to stores which deliver the requisitioned items
b) Par level: Periodic replenishing to a certain fixed levels.
c) Direct purchasing : medical equipments, computer systems etc are purchased and directly
installed at the site of operation. In that case, after the successful installation of he item the
transaction is recorded in the Material Issued register.

ISSUING & DISTRIBUTION SYSTEM

STEP V : MAINTENANCE & REPAIR

Maintenance and repair will go side by side of various equipments. Proper maintenance helps to reduce
the losses and breakdown of the equipments. It is important to keep an inventory of necessary spares.

STEP VI : ACCOUNTING & INFORMATION SYSTEM

An accounting as an information system (AIS) is a system of collecting, storing and processing financial
and accounting data that are used by decision makers. An accounting information system is generally a
computer-based method for tracking accounting activity in conjunction with information technology
resources.
The accounting & information system aids in controlling the material management system. Accounting
handles the financial matters related to procurement.

20 | Page
STEP VII. DISPOSAL AND CONDEMNATION
Surplus products and non-functional equipments which could not be used within its shelf life,
deteriorated and declared unfit for use, became obsolete or banned due to legal provisions are
considered for condemnation or disposal. Disposal is important to reduce holding cost and in-storage
capacity. All the hospitals have condemnation committee. Disposal is done by sold to other hospitals or
to scarp dealers.

Criteria for condemnation:

The equipment has become:
1. Non-functional & beyond economical repair
2. Non-functional & obsolete
3. Functional, but obsolete
4. Functional, but hazardous
5. Functional, but no longer required

PROCEDURE FOR CONDEMNATION

Following procedure is generally carried out in case of the materials particularly drugs and nondrug
items:
1) A condemnation committee comprising of three or more members is constituted by the
competent authority, the terms of reference of the committee are:
I. To go in details of the reasons as to why this situation has occurred.
II. The people who are responsible for the lapses on the aspects from acquisition to storage and
distribution of materials.
III. To suggest measures to be taken for disposal of the items.
2) The committee members go into details through inventory records right from the point of
demand estimation to the distribution level of materials, and will find out reasons for being an
item surplus and remained unused.
3) The committee will declare the items condemned and make recommendation for further
disposal of items.
4) The condemned items are to be destroyed, so it is to be taken out from the inventory registers, a
write off sanction of the competent authority is obtained before final disposal. The items
particularly medicines which are toxic and cannot be disposed of by burial or as per the relevant
laid down rules under the subject of waste disposal.

The effective measures are taken for disposal of surplus items before it becomes
unfit for use is:
⮚ A list of surplus material is circulated among the hospital staff/user units requesting them to pay
special attention for mobilizing such items and giving priority to this category of items.
⮚ The surplus materials are transferred to other hospitals where these may be required.
⮚ The surplus materials are offered to the manufacturer/ suppliers for buy back.
⮚ In case of materials other than drugs like equipments, instruments any such articles are treated
as salvage or scrap, whatever the case may be, action is taken accordingly:
✔ The materials may be sold by inviting tender.
✔ Open auctions of items through authorized auctioneers

21 | Page
 NURSE MANAGERS ROLE IN MATERIAL MANAGEMENT
SIX BEST PRACTICES IN HOSPITAL MATERIALS MANAGEMENT
Hospital materials management has suffered from many of the same problems as materials
management world wide. Many of the best practices in hospital materials management link back to the
same strategic sourcing methodology in production materials management. These best practices in
hospital materials management are generating the same substantial cost reduction and service level
improvements seen across the manufacturing and retail industries. Where once hospitals just managed
materials, now they are looking to manage materials, expenses and even human capital.
In the 2003 Annual Association for Healthcare Resource & Materials Management conference, a team
composed of several major medical center leaders identified six critical components of Best-In-Class
hospital materials management. They are:
⮚ Manage Dollars, not just Materials. While in a hospital setting, critical stocks must be available
in the right place at the right time, many healthcare organizations currently fail to analyze what
is the right place and how much is required where.
⮚ Collaborate with Physicians and Nursing Staff. In hospital materials management
environments that do not use strategic cost management, administration personal operate the
materials management program with little to no input from the actual working staff.
⮚ Consider total cost, not just price. From ordering costs to the carrying costs of materials, it is
critical for health care setting materials managers to calculate true cost of inventory instead of
looking strictly at dollars spent. For example, requiring expedited delivery because of an out of
stock may prove more expensive than the required materials.
⮚ Create integrated Policies and Procedures. Using centralized ordering systems, such as those
offered in an e procurement environment, help improve adherence to ordering policies and
procedures. This reduces maverick spending and helps ensure consistent stock quality.
⮚ Develop a process, not departmental focus. Using consistent processes makes it easier to
evaluate the efficiency of the materials management method used. Pharmacy inventory
management practices should look largely identical to operating room inventory management
practices.
⮚ Develop team focused, not individual focused processes. One person cannot make or break a
process. While it is encouraged to have specialists in material management rather than making
multiple team members execute the process, the processes should support team goals, not the
preferences of one staff member.
By developing and practisinga materials management program that reflects these six best practices in
hospital materials management, the medical group can cut costs and improve patient outcomes.

MATERIAL MANAGEMENT IN DIFFERENT AREAS OF NURSING

1. Material management in the teaching process in nursing
Material management, as an educational practice in nursing, is an important skill to be developed by the
student. The student’s critical thinking about the products used in the hospital will be stimulated.

22 | Page
 a) For under graduate studies in nursing education:

The nursing curriculum should reinforce the importance of including "Material management" in
different areas of graduation taking account of students' development and the learning stage they have
reached. It is necessary for the graduates to have successive encounters with the theme, so that they
may build their knowledge of material management, from the planning to the acquisition process. The
feeling of unease and discomforts considered relevant to the transformation of the working practices of
health professionals. It is essential that these concerns are discussed, dialogued and thought through in
all their dimensions. In this case, continuing education provides the capacity to do this .

b) For continuing education

Continuing education alone will not transform the practices, but the gradual development of this
educational process can be fully exploited in order to encourage the growth of individuals. Thus,
education becomes a propelling source of professional transformation. When suggesting the inclusion
of material management in continuing education courses, there should be a new perspective on the
relevance of the subject for transforming the empirical knowledge of nurses into a strategic
differentiator in the workplace.

c) For nurse managers education

Professionals believe that participation is the most appropriate way to achieve the changes that meet
the needs of human beings, whether in personal, professional or institutional areas. These workers are
aware of the importance of opinions on administrative needs and priorities, positioning themselves and
raising awareness among institutional leaders about the management of material resources. The
strategy of continuing education provided to the professionals, involved the need for change and
appreciation that the role of each person in the professional practice was essential in the working
process.

2. MATERIAL MANAGEMENT AS A WORKING TOOL

a) As nurse managers : When considering working tools it is important to cite the professional
skills of nurses which have been defined as: “To know how to act in a responsible and recognized
way, which implies in mobilizing, integrating, transferring knowledge, resources and skills that
add economic value to the organization and social value to the individual”.

This also consider the individual skills necessary for managers, such as leadership, persuasion,
teamwork, creativity, decision making, planning, organization and determination. These skills are also
listed as follows: to know how to act, to mobilize, to communicate, to learn, to commit yourself, to take
responsibility and to have strategic vision .

b) As clinical nurse
For the provision of nursing care  the nurses’ responsibility are the tasks directly related to
client support, as well as the leadership of the nursing staff and the management of physical, material,
human, financial, political and information resources.

Nurses must have knowledge (they must know what to do), skills (how to do it correctly) and have the
appropriate attitude to perform their role with positive results .The nurse plays a key role in the

23 | Page
management of material and equipment resources in health services. The nurse usually takes over the
management of the units and the coordination of the care activities that are performed by the entire
healthcare team. In view of this the need to develop a material management system arises. This can be
referred to as a working tool, with the goal of organizing these resources to facilitate nursing care 

It is claimed that the classification of materials is an important management tool. As a result of the
diversity of materials and with the need to minimize situations of shortages, deviations and waste of
materials that hamper the process of hospital management, new management tools have been
incorporated in this process.

3) THE NURSE ON THE CONTROL OF COSTS AND MATERIALS

The management of materials and equipment has concerns about both the qualification of nursing care
and the management costs for the institution.

Faced with increasing technological incorporation, the expansion of health care expenditures and the
need to contain them due to lack of resources, more and more nurses, worldwide, are involved with
issues relating to assistance economic values in their workplaces.

The problem with the managing appropriate costs in healthcare is due to the disproportion between the
demand for necessities and the availability of resources. This has drawn attention to a recent theme in
national nursing literature: the costs related to nursing services. It is considered that knowledge of
nursing costs is a management tool that allows nurses to scale the available resources and make
decisions based on the best scientific evidence 

Concerns about the rising cost of the healthcare supply chain sector, particularly in hospitals, gives rise
to the adoption of control strategies, primarily in the stock of materials, to ensure the viability of these
institutions. The dimension of costs when deploying new technologies has not always been a concern in
public services. However, nowadays, with the need for self-sufficiency and competitiveness in the
market, managing, re-allocating and optimizing resources to minimize costs have become one of the
concerns of nursing. This issue points to the need for the development of managerial competence
processes focused on results.

Thus, the participation of professionals is the most appropriate way to achieve changes that meet the
needs of human beings, whether in personal, professional or institutional areas. These workers are
aware of the importance of their opinions on the administrative needs and priorities; positioning
themselves and raising awareness among institutional leaders about the importance of MM. In addition,
they identify the question "cost versus effectiveness versus satisfaction" and not merely the costs

Therefore, it is imperative to know and understand the administrative reality experienced, in order to
be able to act on it. Thus, it is necessary to discuss with the people that promote, collaborate and use the
materials, about the knowledge they have regarding the management of material resources.

4)The nurse as one of the enactors of material management .

The nurse as one of the enactors of material management is a significant factor Institutions require
their employees have a professional profile and constantly develop to keep pace with technological
innovation, the potential for problem solving, negotiation skills and pro-activity. Within health

24 | Page
organizations the current demand is a nursing profile that requires agility as well as assertive, creative,
and innovative decisions, adding economic value to the company and social value to the individual.

Nurses accept their joint responsibility for MM and feel they are able to modify the existing situation.
They visualize a long road, but understand that their participation along with this management is still
fragile and needs to advance. They realize the need for nursing staff to be aware of the importance of
their involvement as a starting point for advances in this area. Moreover, they understand that MM
should be considered an activity related to nursing and should be incorporated as a professional
attribute.

Therefore, in the nursing practice, MM is of considerable importance and should be given greater
emphasis and frequency, so that all the professionals involved may become aware of its relevance. It is
totally impracticable to conduct the management of care without knowledge of the management of
materials. This calls for discussions on the subject from the academic sphere to the places providing
continuing education in health services.

ROLE OF NURSING PERSONNEL IN MATERIAL MANAGEMENT

Role of head nurse or nurse-in-charge:
⮚ Responsible for keeping an adequate amount of equipment and supplies in the ward
⮚ Make sure that equipments and supplies are in good conditions
⮚ put in a requisition for necessary equipment for repair and maintenance when needed.
⮚ Make sure that equipments and supplies are conveniently located
⮚ Make sure that all the personnel in the ward should clearly know who may use ward articles and
equipments and who assumes responsibility for it .
⮚ The head nurse must be vigilant and prevent waste or misuse by educating the staff in the
economical and appropriate use of all equipments and materials.
⮚ She may sometimes arrange a ward class to enable the staff to know the cost of the equipment
and materials.
⮚ She takes three steps to ensure an adequate stock of available supplies in the ward or unit:
✔ Set a standard for the quantity of each item to be maintained in the ward all the time.
✔ Have a satisfactory system for replacement of broken or worn out equipment.
✔ Make regular inventories of all the items.

Responsibilities of the ward sister

⮚ Keep in mind the amount of supply of materials
⮚ Make sure materials are in good conditions.
⮚ Taking responsibilities to handle supply and equipment.
⮚ Checking for misuse and how to minimize it.
⮚ Educating the junior ward staffs and other health care workers about the economical use of
materials.

NURSES’ ROLE IN MATERIAL MANAGEMENT DURING DISASTER:

⮚ a. Supplies and Equipment:
25 | Page
 ⮚ 1. Extra supplies will be obtained from purchasing personnel through runners.
⮚ 2. Outside supplies will be ordered by the Purchasing Director and brought into the hospital via
the loading dock.
⮚ 3. Be responsible for setting up extra beds in hospital if needed, as well as transporting
storeroom supplies and bringing in extra supplies from other areas.
⮚ 4. Be willing to help with movement of victims from ambulance to Triage.
⮚ b. Materials Management - Purchasing
⮚ 1. Department Head or designee will call in their own personnel as needed after reporting to
Command Center.
⮚ 2. Be prepared to supply all departments with needed supplies.
⮚ 3. Director will designate assistant to supply runners or volunteers to deliver supplies.
⮚ 4. Have an up-to-date list of suppliers who can quickly supply extra materials.
⮚ 5. Have Kardex in Storeroom up-to-date.
⮚ c. Valuables and Clothing:
⮚ Large paper or plastic bags are available in the treatment Areas and the storeroom for patient's
clothing and valuables.
⮚ d. Housekeeping and Laundry
⮚ 1. Department head or designee will call in their own personnel as needed after reporting to
Command Center.
⮚ 2. Be sure all hallways or traffic areas are clear of cleaning carts, equipment and etc.
⮚ e. Operating Room, CSR, PAR, Anesthesia, & OP
⮚ 1. Check area for supplies and equipment.
⮚ 2. Keep minimum list of supplies on hand and be prepared to process additional sterile supplies
quickly.
⮚ 3. Notify anesthetists who will maintain adequate anesthesia and drug supplies.
⮚ f. Hospital Unit - Supervisor will:
⮚ 1. Prepare for expansion by notifying maintenance of number of extra beds needed and where to
set them up.
⮚ 2. Send for extra supplies needed from Purchasing, CSR, Laundry, and Dietary.
⮚ 3. Will make wheelchairs available.
⮚ g. Laboratory
⮚ Have arrangements made to obtain additional blood, equipment and supplies from area
agencies.
⮚ i. Pharmacy
⮚ 1. Report to Command Center, and then remain in department.
⮚ 2. Have list of drug suppliers that can provide emergency supplies quickly
⮚ 3. Keep minimum supply of emergency drugs on hand at all times.
⮚ 4. Pharmacy should remain open and have a runner to deliver needed meds to areas.
26 | Page
 ⮚ j. Respiratory Therapy
⮚ 1. Keep adequate supply of bubblers, cannulas, masks and flow meters available in Respiratory
Therapy Department.
⮚ 2. Be prepared to obtain additional respirators and equipment as needed.
⮚ 3. Keep resuscitation equipment in good operating condition and well marked .
EVIDENCED BASED PRACTICES & RESEARCH ARTICLES FOCUSING ON MATERIAL
MANAGEMENT IN HOSPITALS
1) RESOURCE MANAGEMENT AMONG INTENSIVE CARE NURSES: AN ETHNOGRAPHIC STUDY
Heydari A., etal (2015) : Nurses are the main users of supplies and equipment applied in the Intensive
Care Units (ICUs) which are high-priced and costly. Therefore, understanding ICU nurses’ experiences
about resource management contributes to the better control of the costs. The study investigated the
culture of nurses’ working environment regarding the resource management in the ICUs in Iran. In this
study, a focused ethnographic method was used. Twenty-eight informants among ICU nurses and other
professional individuals were purposively selected and interviewed.
Results: Two main themes describing the culture of ICU nurses regarding resource management
included (a) consumption monitoring and auditing, and (b) prudent use. The results revealed that the
efforts for resource management are conducted in the conditions of scarcity and uncertainty in supply.
ICU nurses had a sense of futurism in the supply and use of resources in the unit and do the planning
through taking the rules and guidelines as well as the available resources and their values into account.
Improper storage of some supplies and equipment was a reaction to this uncertain condition among
nurses.
2) The nurse in the management of materials in teaching hospitals
Bongo C.P. etal., (2013) : This was a qualitative, descriptive study developed in Tertiary Hospital of
Paraná during the period from June to August of 2013. The population studied was composed of eight
nurses working in materials management within six teaching hospitals of Paraná . The study showed
that nurses perform ten categories of activities, distributed into four of the five steps of the materials
management process. The nurse, in performing of these activities, in addition to favoring the
development of participative management, contributes to the organization, planning, and the
standardization of the hospital supply process, giving greater credibility to the work with professionals
who use the materials, and to the suppliers.
3) Challenges experienced by health care professionals working in resource-poor intensive
care settings in the Limpopo province of South Africa
Hulisani Malelelo-Ndou etal (2019) : A qualitative, explorative, descriptive design was used to explore
the challenges experienced by health care professionals working in resource-poor intensive care units..
The population comprised nurses and doctors working in an intensive care unit of one hospital in the
Limpopo province of South Africa. The study revealed that when reources were inadequate,
participants experienced challenges related to provision of suboptimal patient care, the challenge of
non-adherence to protocols and/or instructions and the challenge of practising beyond the scope of
practice. Lack of resources resulted in providing suboptimal intensive patient care. Patients were prone
to infections and their safety might be compromised.

SUMMARY & CONCLUSION

The importance of the involvement of nurses in the management of materials is indisputable. The topic
has been gaining strength with daily practice and in the studies already raised in recent years. However,
it is necessary to stimulate discussion about which roles and what kind of management tools are best
suited to each type of health service.
27 | Page
So today we have discussed about the following:
⮚ Definition and types of material management
⮚ Functions, objectives and principles of material management
⮚ Procedure of material management in detail
⮚ Role of nurse managers in material management

BIBLIOGRAPHY
❖ Vati Jogindra “Principles & Practices of Nursing Management & Administration” 2 nd
edition,2020, pages : 470-475, 485-498
❖ Anoop N., etal “Text book of Nursing Management” 1st edition, pages: 424- 445
❖ Cherie A. and Gebrekidan B.A. “Lecture Notes on Nursing Leadership and Management”
Chapter 7, pages: 149-151
❖ http://www.purchasing-procurement-center.com/hospital-materials-management
❖ http://materialsmanagement.info/inventory/cyclical-system-of-inventory.htm
❖ https://www.investopedia.com/terms/b/bill-of-materials.asp#:~:text=A%20bill%20of
%20materials%20(BOM)%20is%20a%20centralized%20source%20of,to%20individual
%20components%20and%20materials.
❖ https://www.scielo.br/pdf/reeusp/v49n4/0080-6234-reeusp-49-04-0632.pdf
❖ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4733552/
❖ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6489151/
❖ http://www.objnursing.uff.br/index.php/nursing/article/view/3791/html

28 | Page