Function of drug store management & coding methods

For B.pharma & MBA- Pharma students

1. Function of store management & Coding methods Presented By: Debasish Ghadei

2. Contains Introduction Function of stores Coding methods Objective of coding Criteria for effective coding Methods for store coding

3. Drug store   pharmacy  also called " drugstore " in American English is a retail shop which provides prescription drugs, among other products. At the pharmacy, a pharmacist oversees the fulfillment of medical prescriptions and is available to give advice on their offerings of over-the-counter drugs.

4. Introduction Store management is “ to receive materials, to protect them while in storage from damage & unauthorized removal, to issue the material in the right quantities, at the right time to the right place and to provide these service promptly and at least cost”.

5. Functions of Stores 1.Receipt 2. Storage 3. Retrieval 4. Issue 5. Records 6. Housekeeping 7. Control 8. Surplus management 9. Verification 10. Interaction & coordination

6. Receipt Any item of goods or material that enters the organization always enters through the stores. Similarly , every item unless specifically excluded, has to leave through the store. Stores is the final account keeper of all materials. Material sent by any supplier after the security clearance comes to the stores. Stores check the document carried by the carrier, known as Delivery Challan , against the copy of the Purchase Order placed on the supplier by the organization.

7. Cont. Once the adequacy is established and quantity is verified the material is sent for testing for quality parameters . Some times quality control tests are elaborate and time consuming . If the policy of receipt is to unload the material subject to quality control acceptance, it is cleared for unloading. Unloaded material is kept on the hold if it not yet cleared by quality control department. If the material is rejected it is sent back to the supplier.

8. Storage Once the unloaded material is approved by the quality control department, as per the quality plan in the quality system, it is moved to a specific place in the stores layout. The material is so stored that it becomes easy to retrieve and issue subsequently. Storage should also ensure protection against deterioration , damage and pilferage.

9. Cont. Detailed system is adopted for location and labeling of items while in storage. Storage plan is made keeping in mind , 1 . nature of the product- physical state, toxicity, in flammability and other hazards 2. volume and weight- heavy or light 3. movement frequency- fast moving or slow moving

10. Retrieval Easy and quick retrievability of items that are demanded by the internal customers. Easy identification, maximum space utilization and minimum handling are key factors to retrieval functions . It is common knowledge in many of the companies that after hours of searching for the item is declared to be out of stock. This causes hold up of production process and avoidable urgent purchase of out of stock material. This function takes place as per established retrieval system.

11. Issue Fulfilling customer demand for the item in minimum time, keeping quality high and cost minimum is issue. An internal customer doesn’t pay the price but he has to fulfill requirement of authorization for the demand . A duly authorized indent or requisition for the item is the key

12. Records Maintaining records of receipt and issue. Updating the stock levels as per movement of materials . Basic records of store are bin card and stock register. 1. Bin card is placed on the bin in which items are stored. 2. This gives information about receipt, issue and balance . 3. stock register gives all the information in the bin card and also the value.

13. Housekeeping Maintenance of spic and span cleanliness in the store and ensuring principle of Place for Everything and Everything in its place is fully implemented . Good housekeeping ensures satisfactory work practices

14. Control Taking measures to ensure material plan is being adhered to. Any changes in consumption pattern or replenishment pattern are closely monitored for corrective action. Material movement is watched to identify nonmoving material for disposal. Effective control puts into effect management objective of ‘ no shortage and no excess’.

15. Surplus management Effective disposal system for unneeded material to reduce inventory cost and proactive measures to eliminate deterioration and obsolescence. Obsolete items are good in all respect but have no useful role in the company due to changes that have occurred in the course of time .

16. Cont. Surplus items are those that have accumulated due to faulty planning, forecasting and purchasing. Hence a usage value is associated with these items. Scrap is wastage generated due to processes like turning , boring drilling etc. and also due to bad manufacturing . it is said that in India nearly Rs . 2500 crores are tied up as obsolete, surplus and scrap items.

17. Verification Stock verification to eliminate gap between information and physical stock. In stores some items are maintained as stock items. The stores triggers the procurement cycle for such items when a predetermined reorder level is reached. Hence correct stock position through verification is critical to ensure ‘no shortage and no excess’ for the item.

18. Interaction & coordination Very close interaction between Purchasing, production , quality control and engineering functions is obviously needed in the discharge of the functions discussed so far. It also becomes necessary to coordinate the flow of material samples and information through a network of departments for performance of stores functions. Besides, every management function being an internal customer interaction is very important.

19. Coding methods

20. Coding Coding is the systematic concise representation of equipment, raw materials, tools, spares , supplies etc.in an abbreviated form employing alphabets , numerals, colours, symboles etc . Coding refers to the process of assigning symbols to the parts.

21. OBJECTIVES OF CODING To bring all similar items together under one classification or group. To classify an item according to its nature of characteristics. To avoid duplication and confusion. To fix essential parameters to specify an item.

22. CRITERIA FOR EFFECTIVE CODING Code should be Simple. Code should be unique. Coding should be compact, concise and consistent. Code should be sufficiently flexible to meet future demands .

23. METHODS OF STORE CODIFICATION Alphabetical codification Numerical codification Mnemonic codification Combined alphabetical & numerical codification Decimal codification

24. ALPHABETICAL SYSTEM The ‘Alphabets’ are used as symbols or codes to identify the items of stores. Group of items according to their nature and use are allotted an alphabetical starting code and other alphabets are used to identify exact items.

25. NUMERICAL SYSTEM The numerical system of codification uses only numbers as codes of various materials kept in the stores. It is simple method and easy to understand. Simple Number : To represent different groups of items. Either one number 0 to 9 is allotted to each item of a group. If total items in a group are more than 10, then two numbers 00 to 99 are allotted and so on.

26. Cont. Block Number : To represent material belonging to each of the items as subgroups . The material of same characteristics or having similarities are sub grouped as one item. The block can be of three or more numbers Dash(-) or stroke(/): It is used in between numbers to represent the material belonging to sub-group.

27. MNEMONIC SYSTEM When we use letters to help memory, we call such a system a mnemonic system. A special application of the alphabetical system. Alphabets are allotted to an item according to its initials or abbreviation Eg : Stainless steel: SS Copper: Cu

28. Advantages: It is an alphabetic system designed with an objective of easy memorization. Disadvantages: This system is confusing: one symbol may convey impression of two or more objects Eg : Tb : Tablet or Tube

29. COMBINED ALPHABETICAL AND NUMERICAL CODIFICATION It is the combination of both the alphabetical and the numerical system In order to improve upon the alphabetical system, and also to take advantage of the numerical system, this system allows alphabets to be retained to a limited extent and then uses the number codes. The materials are first grouped under some main classes and then it allows sub grouping under numbering system

30. Decimal Codification It is simple and easy to codify items under this system. Under this system items up to 5,00,000 can be easily codified and at the same time each symbol will give the history, size, specification and complete picture of the item. Modern industrial concerns are generally adopting 7 to 11 digits for codifying the materials. In the decimal codification system, each digit indicates some thing or the other. Example:

31. Colour Coding Here colours are used to identify the content. Generally is used for Pipelines, Rawmaterials , lubricants etc.

32. Barcode Barcodes are machine readable symbols in the form of numbers and parallel lines used universally to identity and track products. Barcodes play a key role in supply chains , enabling retailers, manufacturers , and transport providers to easily identify and track products as they move through the supply chain.

33. QR CODE

34. Sectors Retail & FMCG Healthcare Food & Agriculture Transport & Logistics Government