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CASE STUDY ON:ABC AND VED ANALYSIS OF THE PHARMACY STORE OF A TERTIARY CARE TEACHING, RESEARCH AND REFERRAL
HEALTHCARE INSTITUTE OF INDIA
Presented By:
Nitika chaudhary (A01)
Ngangbam Bheigyapati Devi (A04)
Ragini Maddheshiya (A18)
CONTENTS
Objectives of the study
Introduction
Importance of drug inventory management in hospitals
Tools used
Case analysis
Suggestions
Conclusion
OBJECTIVE OF STUDY
To analyze the annual consumption and expenditure
• To use various tools and techniques
To Identify and classify the items in the pharmacy
INTRODUCTION
PGIMER
1500BED
Hospital conducted ABC,VED and ABC-VED matrix
analysis of the pharmacy store.
For identifying the categories of necessary
drug items
Helps to eliminate the stock-out situation and for effective
control.
IMPORTANCE OF DRUG INVENTORY MANAGEMENT IN HOSPITALS
Pharmacy is largely used for therapeutic activities or
services of the hospital.
Large amount of hospital budget is spending on
purchasing and maintaining.
The supply of medicines are irregular most of the time.
To eliminate the out of stock situation.
To minimize the cost incurred in purchasing and
maintaining (holding cost) of the drug inventory.
IMPORTANCE OF DRUG INVENTORY MANAGEMENT IN HOSPITALS
To maintain the consistent supply of the drugs
throughout the hospital.
It is help in decreasing the total cost and increase the
efficiency of the hospital services.
TOOLS
Three type of toots are used
ABC analysisVED
analysisABC-VED
matrix analysis
ABC ANALYSIS
It is the method in which the items or activities are classified according to their priority
B itemsConsumption of
items is 20-25% but expenditure incurred is 20% of total cost.
VED ANALYSIS
VED analysis is based on critical values and shortage cost of the items. It classified drugs into three different
categories
Vital Essential Desirable
ABC-VED MATRIX ANALYSIS
It is a combination of ABC and the VED analysis and useful in controlling the material supplies.
Category 1Vital and
expensive items i.e.,AV,BV,CV,A
E,AR.
Category 3Desirable and
cheaper
ABC ANALYSIS OF PHARMACY STORE IN THE PGIMER HOSPITAL
Category No. of items % of items ADE (Rs.) % of ADE of the pharmacy
A 58 13.78% 27,996,865 69.97%
B 92 21.85% 7,981,331 19.95%
C 271 64.37% 4,034,416 10.08%
FIGURE: ABC ANALYSIS CUMULATIVE CURVE
10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Percentage of ADE of the pharmacy
Cumulative % of items
Cum
ula
tive A
nnual expendit
ure
%
Category No. of items % of items ADE (Rs.) % of ADE of the pharmacy
V 51 12.11% 6,857,814 17.14%
E 250 59.38% 28,963,447 72.38%
D 120 28.51% 4,191,351 10.48%
VED ANALYSIS OF PGIMER HOSPITAL
VED ANALYSIS OF PGIMER HOSPITAL 2007-2008
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Series1; 17.14%
72.38%
10.48%
Percentage of ADE of the pharmacy
Cumulative % of items
Cum
ula
tive A
nnual expendit
ure
%
ABC-VED MATRIX ANALYSIS OF PGIMER
Category No. of
items% of items ADE (Rs.) % of ADE
of the pharmacy
I 93 22.09% 29,691,956 74.21%
II 230 54.63% 8,895,160 22.23%
III 98 23.28% 1425,496 3.56%
FIGURE :ABC- VED MATRIX ANALYSIS 2007-2008
20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% 55.00% 60.00%0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
Series1; 74.21%
22.23%
3.56%
cumulative % of items
Cum
ula
tive A
nnual expendit
ure
%
SUGGESTIONS
Computerized Inventory management software. good customer services and good relationship with
supplier. Reviewing of the inventory level should be
occasionally done to know the seasonal usage of drug items and to ensure how much inventory we have in hand.
The pharmacy department should carefully monitor the order cycle time as fluctuation in it leads to over stock or shortage of inventory.
For high valued drug EOQ method can be used to
determine the order quantity and for lower value items
fixed order interval method can be used.
For small stores like IPD and OPD two bin systems
can be used for inventory control.
CONCLUSION
The ABC and VED techniques helped the pharmacy store to eliminate the out of stock situation and better supervision and efficient control of drugs to eliminate the interruptions in day to day operation of hospital.