chapter 11- inventory management.pptx

Module 11 STERILE STORAGE AND TRANSPORT / CH 17 - Inventory Management  Objectives: As a result of successfully completing this chapter, students will be able to: Review the importance of effective inventory management, and explain basic inventory...

Module 11 STERILE STORAGE AND TRANSPORT / CH 17 - Inventory Management  Objectives: As a result of successfully completing this chapter, students will be able to: Review the importance of effective inventory management, and explain basic inventory management concepts. Explain common inventory replenishment systems: Par-level systems Automated supply replenishment systems Exchange cart systems Requisition systems Case cart systems STAT orders Review the use of bar codes and radio frequency identification to track inventories. Describe procedures for effectively distributing supplies to clinical units and the operating room. Review important inventory management concepts: Perpetual inventory systems Alternative inventory control methods Total acquisition costs Inventory turn rates and service levels Inventory information systems Space utilization  Terminolog y Inventory- Reusable equipment and consumable items that are used to provide healthcare services for patients Consumable Inventory- Items which are purchased, used and discarded Reusable Inventory- Assets that are relatively inexpensive that such as medical devices and sterilization containers that can be reused as healthcare services are provided to patients Stock out- A condition that occurs when inventory items that are needed to provide healthcare services to patients are unavailable Capitol Equipment- Assets that are relatively expensive such as sterilizers or washers that require significant advance planning for purchase Asset- Something of value that is owned by an organization or person Consumable Inventory Cycle (Disposable Items) Discard Purchase Use Store  Central Service Consumable Inventory Items Detergents Cleaning Supplies Disposable Wrappers Processing Chemicals Sterilizer Quality Assurance Testing Products  Inventor y Must be managed to prevent Stock Outs Must be managed to provide equality patient care Must be managed to control operating costs  Inventory Management Concerns Unofficial Official Inventory Inventory Consumable products found in Consumable products found in Central Service and other user areas such as storerooms, warehouses, and surgical locations satellite storage areas and labs. These items have usually Can be counted as an asset on been expensed the facility’s balance sheet (charged) to the (financial statement) user departments are stored in unofficial location Inventory Management Hospitals must strive to find the balance between adequate supplies and cost-effectiveness  Too Much/Little Inventory Too much Too little Too much cash invested Supply Shortages in excessive stock levels Emergency Purchases May need to borrow $ to pay suppliers Negative Effect on More storage space Patient Care needed Leads to Hoarding in Greater Risk of Damage, User Departments Loss, Obsolescence or Frequent Handling to pilferage/theft Move Inventory to Requires more time to Point- of-use Manage  Inventory Facts: Facilities spend approximately 30% of their operating budget on consumable supplies Facility inventories of consumable supplies represent an average of 50 days’ usage requirements Facilities typically have a greater value of unofficial inventory than official inventory  Managing Consumable Storage Inventory Standards Storage locations must be kept clean Clutter or overstocking can lead to package damage Packages must be protected from “events” that can contaminate them  Carts and Totes used to Transport Sterile Items Must be Kept Clean  Expiration Dates Somedates Those commercially sterilizedand must be checked items Expiration Dates are Located have expiration in datesnot be outdated (expired) items must Different Places on Packaging dispensed for use  Packages with this type of statement are determined to remain sterile unless their barrier is compromised by an event Event-Related Sterility Applies to all packages. Even packages with expiration dates can have a shortened shelf- life if they are compromised by an event (i.e. moisture, holes, tears, etc.) Interpreting Product Information, what does the label say? Common Package Information Manufacturer’s Product Reference Lot (Batch) Number Number Identifies Product product to a Expiration specific Date production run Package Symbols Do Not Reuse – Single Use Only Date of Manufacture  Automated Use a computerized method to document and track transactions Automated systems yield more data because the information is more easily managed and stored Manual and Automated Inventory Systems Manual Use a paper method to document and track transactions Automated Inventory Systems Inventory Replenishment Systems - A variety of systems PAR-Level used to replenish consumable supplies in Systems Periodic Automated patient care areas Replenishment (PAR) Establish a standard stock level for each department CS/MM employees inventory each area and restock quantities to the Exchange Cart Systems A system where a specified amount of supplies are placed on a cart that is stored in the user unit. A duplicate cart is kept in another location and the full cart is exchanged for the used cart on a routine schedule Requisition Systems An inventory distribution where items are requested (requisitioned) by the user department and dispensed from a central storage location Case Cart Systems An inventory control system primarily used in the operating room, that uses a cart that is specifically prepared for one procedure  STAT Order Abbreviation for the Latin word, “Statim,” which means immediately or at once  Automated Inventory Tracking Systems Used to facilitate the accurate tracking of inventory Usually done using Bar Codes or Radio Frequency Identification Bar CodesMachine-readable rectangular bars and spaces arranged in a specific way to represent letters, numbers, and symbols  Radio Frequency Identification A tracking system in which identify of an item is wirelessly transmitted with radio waves Commonly abbreviated as: RFID ABC Inventory Control An inventory management strategy that indicates storeroom controls should first address the relatively few items with the greatest value (A Items), and should lastly address the many items with the lowest value (C Items) For example, more attention and time should be tracking a total joint implant (A Item) than a gauze sponge (C Item) Alternative Inventory Control Methods Other methods that may be used to manage inventory in a healthcare facility. Inventory control methods are selected based on the needs of the specific facility Min/Max System Stock is ordered when a predetermined minimum quantity is reached  Economic Order Quantity Products are purchased in the quantity that is most economical. For example, by the case, box, or dozen. Stockless Supplies The supplier (vendor) provides complete inventory, storage, and distribution services to the facility Just-in-Time (JIT) System A system in which minimal stock is kept on site and most orders are delivered when needed  Consignment System ITEMS ARE STORED THE SUPPLIER DOES IMPLANTS ARE AT THE HEALTHCARE NOT CHARGE FOR COMMONLY FACILITY, BUT THE INVENTORY CONSIGNMENT OWNED BY THE UNTIL IT IS USED ITEMS SUPPLIER Pick-n-Pack System Products are ordered from a vendor and are prepacked for specific departments Office supplies and forms are often handled with a pick-n- pack system Total Acquisition Costs Purchasing, Materiels Management, Central Service, and other departments must analyze costs to assure that costs are minimized without sacrificing quality Acquisition Costs are more than the Purchase Price of items Other Costs Associated with Acquisition include: Physical Storage Costs Disposal of Expired Items Theft/Pilferage Obsolescence Freight and Delivery Charges Stock Outs Overstocks (the costs of more-than-required quantities of products on hand)  Inventory is Constantly Changing New Items are constantly being introduced New Equipment and Technologies often require disposable components Planning is important to ensure that CS is made aware of the new items and educated about them  Inventory Turnover Rate The number of times per year that inventory is purchased, consumed, and replaced Inventory Service Level The percentage of items filled (available) when an order is placed An order is placed to 100 items 92 items are available. 8 are out of stock The Inventory Service level is 92% (100-8=92) The Stock Out Rate is 8% (100-92=8) Inventory Stock Out Rat e The percentage of items that cannot be filled (are not available) when an order is placed Inventory Information Systems Inventory is the same as cash When it is managed improperly it costs the facility money Inventory information systems help manage inventory Card Systems Manual System Keeps information cards on items Cards contain the following information: Item description, vendor source, unit(s) of measure Information on orders placed Receipt Transactions Issue Transactions Adjustments Computerized Systems Process inventory transactions quickly Provide well-organized and analyzed data that is helpful in decision- making Require a substantial investment Keeping Things Organized Stock Locator Systems Assign a specific location to every item in the inventory system Techniques for Effective Space Utilization Storage space is always in high demand. Every effort must be made to utilize existing space efficiently Cubic footage (volume) should be utilized to take advantage of all available space Make sure bins and items fill the space from the front to back and top to bottom of shelves Place items of like size and type along side each other Add additional shelves where there is additional space Leave space between items for future add-in items Gravity Flow Racks Are filled from the back and as items are pulled from the front, replacement items slide into their place Allow easy access and efficient stock replenishment The Importance of Inventory Management Cannot be Understated Proper Inventory Management: Supports quality patient care Provides efficient support for healthcare providers Manages the facility’s supply costs Contributes to a patient-safe environment