Material Management in Laboratories

Material Management

• Supplies are the second largest laboratory expense, after labor.
• Material management is a system for acquiring and using supplies efficiently.
• A centralized material management department is divided into purchasing and stockroom sections.
• Purchasing handles vendor orders and invoices.
• Stockroom manages inventory levels and distribution.
• Key material management goals include timely supply delivery, minimizing spoilage, avoiding backorders, maximizing storage space utilization, and minimizing financial investment in inventory.

Goals of Material Management

• Supplies arrive on time.
• Spoilage is minimized
• Backorders and delays are avoided.
• Storage space is used effectively.
• The most economically advantageous price is obtained.
• Financial resources are not tied up in inventory.

Supplies

• Supplies are products meeting specific time and price criteria.
• Items consumed within a year or with a shelf life under a year (e.g., reagents, rapid tests) are considered supplies.
• Items costing under $1000 are considered supplies, even if used for several years (e.g., micropipettes).

Capital Items

• Items exceeding the criteria for supplies are capital items (e.g., laboratory analyzers).

Purchasing Documents

• Request for Purchase - an interim document initiating the ordering process.
• Purchase Order - a formal order committing the organization to purchase.
• Traveling Requisition - a catalog of stocked products for departmental requests; tracked and charged to individual departments monthly.

Standing Orders

• Standing orders are for frequently ordered items with predictable usage or short shelf lives.
• Vendors deliver products in accordance with predefined schedules.
• This streamlines ordering and reduces lead times.
• The advantage is timely delivery, bulk discounts, efficient vendor management of inventory.

Inventory Management

• Perpetual system - tracks inventory each time a product is issued or received.
• Periodic system - counts and orders at specified times.
• Random checks - confirm perpetual system accuracy.

Inventory Management Tools

• Economic Order Quantity (EOQ) - the optimal quantity to order at one time.
• Economic Ordering Point (EOP) - the point at which inventory should be reordered to prevent shortage.
• Optimal Reorder Time (ROT) - the ideal time to place an order to utilize EOQ and EOP benefits.

Quality Assessment and Performance Improvement

• Quality Control (QC) evaluates specific components of quality in products and services.
• Quality Assurance (QA) assesses the entire organization's quality.
• QA focuses on outcomes (patient care).
• QC focuses on products.
• Management by Objectives (MBO) established performance goals and then metrics.
• Total Quality Management (TQM) satisfies customers' needs.
• Continuous Quality Improvement (CQI) continuously monitors and improves quality.

Quality Assessment and Improvement (QA&I)

• Defining "quality" is difficult and evolving.
• Historically, quality assessment encompassed statistical tools that evaluated products (QC) and the entire organization's quality (QA).
• QA&I incorporates both concepts-quality improvement is a continuous process.

Safety Management and Workplace Hazards

• Individual worker responsibility for safety and following established workplace safety procedures is crucial.
• Employers are responsible for creating clear safety policies, providing employee safety training, and providing adequate equipment and facilities.
• Employee compliance with company safety policies is essential.
• Structural separations may be necessary to prevent cross-contamination between different tasks/activities and hazardous materials.
• Proper fire prevention is essential- including careful handling of flammables, readily available fire extinguishers, and designated evacuation procedures.
• Electrical safety measures, proper personal protective equipment and disposal procedures need to be addressed and strictly adhered to.
• Emergency procedures, including first aid supplies, access to safety personnel and appropriate communication networks are crucial in case of accidents.