Lead Time & Buffer Stock

Neeraj LalVice President

Shalby Hospitals

Two basic approaches of Inventory control system:

➢ PERIODIC REVIEW SYSTEM

➢ FIXED ORDER POINT SYSTEM

Methods (Types) of Inventory Methods (Types) of Inventory ControlControl

Periodic Review SystemPeriodic Review System

Stock position is reviewed at definite intervals of time.

The quantity, ordered at each time will vary according to stock position.

➔ Draw backs: It compels periodic review of all items, which make

this system inefficient. This system has inflexible order quantities which

results in avoidable increase in inventories.

Fixed order point systemFixed order point system

✔ In this method orders are placed not at definite intervals of time but only when stock reaches a pre determined level called ROL ( Re order level) .

✔ The quantity ordered will be same each time.

✔ In order to calculate Re order level, one must understand following terms.

LEAD TIMELEAD TIME

➢ It denotes the average duration of time in days between placing of orders and receipt of material .

➢ When orders are placed for any item this lead time has to be taken in consideration, so that orders could be placed at a time when existing stocks are sufficient for needs of the hospital during this period.

BUFFER STOCKBUFFER STOCK

✔ It is called “Buffer Stock”.✔ It is the quantity of stock set a part as an

insurance against variations in demand and procurement period.

✔ It can be calculated by multiplying the difference between maximum and average consumption rate per day with lead time for that item.

Buffer stock can be calculated by a formula:

B.S.= K * Average consumption during

Lead time

Where “K” - is a constant and can have there values.

K – 1, Then 84% availability will be there.

K – 2, Then 95% availability K – 3, Then 99% availability

Preventive Maintenance

& Repairs

HOSPITAL EQUIPMENT HOSPITAL EQUIPMENT PREVENTIVE MAINTENANCEPREVENTIVE MAINTENANCE

➢ It provides hospital engineers and other health care professionals involved with the operation and maintenance of hospital physical plant equipment comprehensive, technical maintenance information. 

➢ This generic approach in hospital equipment preventive maintenance is unique to preventive maintenance in medical facilities.

Cont....Cont....➢ With this approach it is possible to assess

different manufacturers' systems and products, while emphasizing general procedures for preventive maintenance.

➢ Of necessity, the material is technical in many categories for technically oriented hospital engineers, equipment users and maintenance personnel who must evaluate the performance capabilities of different systems and equipment against basic technical data and applications indigenous to the generic category

A Preventive Maintenance Technical Information for each generic equipment or system, including :

1) Equipment types  2) Basic theory of operation

and application  3) Safety hazards and

considerations 

Preventive Maintenance Inspection Procedures, including :

1)Visual Inspection  2)Performance Testing  3)Technical References

(selected) 

Preventive Maintenance Check Lists which include itemized attributes and/or variable parameters to be checked; suggested references, average performance time and appropriate accessories. Preventive Maintenance Check Lists are located separately from the first two sections in order to facilitate easy removal for duplication.

THANK YOU