Materials Management

Submitted to: Proj. Rajendra Deshmukh

1. Policy and Procedure for Maintenance and Repair Work in a Hospital:

Maintenance funds will be used to achieve the greatest benefit for University buildings and associated infrastructure. Within the constraints of available resources, University facilities will be maintained to the best standard possible while meeting statutory obligations and the operational needs of the University community. Choosing between the many competing demands on these maintenance funds is a difficult and demanding task, especially in a climate of increasing costs brought about by factors such as more stringent legislation, rapid growth in the building stock, extended academic programmes and the increasing ratio of research space to teaching space. Maintenance funding is prioritized within budget levels and will be allocated in consideration of the following factors: Statutory compliance; Workplace health and safety; Risk management; Asset life cycles; Impact on teaching and research programmes; Public appearance; and Property loss/damage. Maintenance Standards Maintenance standards will vary depending on the importance of the facility as per the guide below: 1 Not important Carry out only essential maintenance 2 Low importance Defer non-essential maintenance where possible 3 Fair importance Carry out maintenance based on risk assessment 4 Important Maintain to the best standard that resources allow 5 Very important Maintain to a very high standard In relation to rating 5, there will always be some buildings and facilities which, because of their importance, their prominence, aesthetic value or historical significance, must be maintained at a higher standard than that prevailing elsewhere in the University. Maintenance Categories Preventive maintenance is maintenance which is carried out to prevent an item failing or wearing out by providing systematic inspection, detection and prevention of incipient failure. Preventative maintenance is usually programmed. Statutory maintenance is when plant such as lifts, fire systems, fume hoods and air conditioning systems are serviced and maintained in accordance with legislative requirements. Corrective maintenance can be defined as maintenance that is required to bring an item back to working order when it has failed or worn out. Backlog maintenance is maintenance that is necessary to prevent the deterioration of an asset or its function but which has not been carried out. Maintenance Strategies Preventive maintenance - Preventative maintenance tasks are programmed in PROFIT and work orders are automatically generated for the relevant trade supervisor as required.

Preventative maintenance work is prioritised to undertake intervention action to reduce failure and of plant and equipment before it wears out. Statutory maintenance - to undertake specific tasks to ensure that facilities are fit for purpose and safe to use e.g. RCD testing, lift maintenance, air conditioning and fume hood servicing. Statutory maintenance is generally contracted out under comprehensive maintenance contracts to ensure that it is performed as required by law. Corrective maintenance - maintenance task performed to identify, isolate, and rectify a fault so that the failed equipment, machine, or system can be restored to an operational condition within the tolerances or limits established for in-service operations. Asset Management Plan - A five yearly programme designed to address major building repairs and replacement. The Asset Management Plan is generally used for building structure repairs, roof replacement and major fire system replacement. Backlog maintenance - The Universitys backlog maintenance liability is estimated each year. An annual Deferred Maintenance Programme has been set up to address high priority backlog maintenance items. The Deferred Maintenance Programme is normally used to replace building elements that are at an end of their life cycle e.g., air conditioning systems, leaking and rusted roofs etc. Funding Responsibilities P&F are responsible for funding building repairs and maintenance that is due to fair wear and tear. Where possible, maintenance work resulting from misuse and vandalism will be charged to the appropriate party. Work identified as legitimate maintenance items will be prioritized and programmed within funding levels. Building occupants may choose to fund maintenance work if they require the work sooner than normal maintenance programmes can provide. Facilities Assessment The audit scope will encompass assessment of compliance with statutory requirements, condition of the facility, functionality and space utilization. Where resources are available, audits will be carried out as follows: Level 3 Detailed audits Level 2 Walk through audit Level 1 Desktop audit Each facility should undergo a Level 2 or Level 3 audit every 5 years and a Level 1 audit each intervening year. Level 3 audits are usually undertaken by consultancies to provide a comprehensive report for maintenance and to provide a basis for rehabilitation projects. Building maintenance deficiencies will be identified and placed on appropriate works programmes (e.g. Corrective Maintenance, Deferred Maintenance, Rehabilitation, Capital Management Plan, Minor Works etc.).

2. Purchase and Supply Accounting

Create Request Approve Fulfillment

Goods Received Invoice Sent Accrual Created

Invoice Input into Finance

Procreated

Matched

3. Effective Materials Management Programme Implementation:

i. Protect your company against theft Make sure that the only people in your warehouse belong in your warehouse. Pilferage is a larger problem than most distributors realize.

ii.

Establish an approved stock list for each warehouse Most dead inventory is "D.O.A" (dead on arrival). Order only the amount of non-stock or special order items that your customer has committed to buy. Before adding an item to inventory, try to get a purchase commitment from your customer. If this is not possible, inform the salesperson who requests the item that he or she is personally responsible for half the carrying cost of any part of the initial shipment that isnt sold within nine months.

iii.

Assign and use bin locations Assign primary and surplus bin locations for every stocked item. All picking and receiving documents should list the primary bin location (in either characters or a bar code). With correct bin locations on documents, order picking is probably the least complicated job in your warehouse. Assign inexperienced people to this task and your most experienced warehouse workers to receiving inventory and stock management.

iv.

Record all material leaving your warehouse There should be appropriate paperwork for every type of stock withdrawal. Under no circumstances should material leave the warehouse without being entered in the computer. Eliminate "no charge/no paperwork" material swaps. Product samples should be charged to a salespersons account until they are either returned to stock or charged to the customer.

v.

Process paperwork in a timely manner All printed picking documents should be filled by the end of the day. Stock receipts should be put away and entered in the computer system within 24 hours of arrival.

vi.

Set appropriate objectives for your buyers Buyers should be judged and rewarded based on the customer service level, inventory turns, and return on investment for the product lines for which they are responsible.

vii.

Make sure every employee is aware of the cost of bad inventory management Inventory loss through theft, breakage, or loss must be paid for with net profit.

viii.

Ensure that stock balances are accurate and will remain accurate Implement a comprehensive cycle counting program. A good cycle counting program can replace your traditional year-end physical inventory.

ix.

Determine the most advantageous replenishment path for each item in each warehouse Assign one of these "paths" to each item in each warehouse: a. Distributive purchasing The warehouse replenishes stock with a purchase order issued directly to the vendor b. Central Warehousing The stock of one warehouse is replenished with a stock transfer from a central warehouse c. Cooperative Purchasing Several branches "pool" their needs and issue one vendor purchase order in order to meet the vendor minimum order within a reasonable amount of time

x.

Specify guidelines for setting the reorder method an other purchasing parameters to maximize inventory turns and minimize stockouts: a. Minimum/Maximum quantities b. Economic order quantities c. Order up to a specific stock level d. Safety stock quantities e. Preseason buys

xi.

Document replenishment procedures: a. Line buys b. Non-stock items c. Price-break purchasing d. Preseason buys e. Importing material

xii.

Establish customer service, inventory turnover, and return on investment goals for the following 24 months for each branch and major product line After each month end close, compare the goals to the actual results.

xiii.

Initiate an on-going dead stock and excess inventory control program Excess inventory is usually considered to be any quantity of a product greater than a 12 month supply.

a. b. c. d. e. f. g. h.

Transfer excess stock to a branch that needs the material Return the stock to the vendor Lower the price of items with excess inventory Substitute surplus inventory for lower cost items that are still popular Offer special commissions for the sale of surplus merchandise Sell the excess inventory to a competitor Donate excess stock to a non-profit agency Throw it out, take the "write-off" for your financial statement, and free up room in your warehouse.

xiv.

Make inventory management considerations part of corporate strategic planning.