The Effects of Inventory Management Systems On Service Delivery. A Case Study of Ndejje Health Centre, WAkiso.

TABLE OF CONTENTS

DECLARATION ......................................................................................................................... i

APPROVAL ................................................................................................................................ ii

DEDICATION ........................................................................................................................... iii

ACKNOWLEDGEMENT ......................................................................................................... iv

TABLE OF CONTENTS ............................................................................................................ v

LIST OF TABLES ..................................................................................................................... ix

LIST OF ABBREVIATION/ACRONYMS ............................................................................... x

ABSTRACT ............................................................................................................................... xi

CHAPTER ONE ........................................................................................................................ I

1.0 Introduction ........................................................................................................................... I

1.1 Background of the study ........................................................................................................ I

1.2 Problem statement. ................................................................................................................ 3

1.3 Purpose of the study .............................................................................................................. 3

I .4 Research objectives ............................................................................................................... 3

I .5 Research questions ................................................................................................................ 4

I .6 Scope of the study ................................................................................................................. 4

1.6.1 The subject scope of the study ........................................................................................... 4

1.6.2 The geographical scope of the study .................................................................................. 4

1.6.3 The time scope ................................................................................................................... 4

1.7 Significance of the study ....................................................................................................... 5

CHAPTER TWO ....................................................................................................................... 6

LITERATURE REVIEW ............................................................................................................ 6

2. I Introduction ........................................................................................................................... 6

2.1. I Inventory Management ...................................................................................................... 6

2. I .2 Inventory ............................................................................................................................ 8

2.2 Inventory management practices ........................................................................................... 9

2.2. I Re-Order Level ................................................................................................................... 9

2.2.2 Economic Order Quantity .................................................................................................. 9

2.2.3 Just-In-Time ..................................................................................................................... IO

V

2.2.4 Vendor Managed Inventory ............................................................................................. 10

2.2.5 Activity Based Costing Analysis ..................................................................................... 11

2.3 Inventory Management practices and Health Service Delivery .......................................... 12

2.3.1 Timing; the Most Crucial Aspect. .................................................................................... 12

2.3 .2 Patient safety; the first priority ......................................................................................... 12

2.3.3 Cost (Affordability); An important variable .................................................................... 12

2.2.0 Inventory management systems ....................................................................................... 13

2.2.1 Periodic Review system . ····························································· 13

2.2.2 Fixed order point system or continuous review or re-order point system or a two bin

system ........................................................................................................................................ 13

2.3.0 The concept of service delivery ....................................................................................... 13

2.3.1 What is service delivery? ................................................................................................. 13

2.3 .2 Customer service .............................................................................................................. 14

2.3.3 Provision of quality service .............................................................................................. 14

2.4 Services offered by Ndejje health centre ............................................................................. 15

2.4.1 Maternity services ............................................................................................................ 15

2.4.2 General health treatment services .................................................................................... 15

2.4.3 Client care services ........................................................................................................... 15

2.5 Customer satisfaction .......................................................................................................... 15

2.6 The relationship between inventory management and ........................................................ 15

2.7 The conceptual framework .................................................................................................. 16

CHAPTER THREE ................................................................................................................ 17

RESEARCH METHODOLOGY .............................................................................................. 17

3. 0 Introduction ......................................................................................................................... I 7

3. I Research Design .................................................................................................................. 17

3 .2 Study Population ................................................................................................................. 17

3.3 Sample Size ......................................................................................................................... 17

3.4 Sampling Design and Procedure ......................................................................................... 18

3.5 Data Sources ........................................................................................................................ 18

3.5.1 Secondary data collection ................................................................................................. 18

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3 .5 .2 Primary data collection .................................................................................................... 19

3.6 Area of Study ...................................................................................................................... 19

3.7 Data Collection Instruments and Tools ............................................................................... 19

3.7.1 Questionnaires .................................................................................................................. 19

3.7.2 Interviews ......................................................................................................................... 19

3.8 Procedure of Data Collection .............................................................................................. 20

3.9 Data Analysis ...................................................................................................................... 20

CHAPTER FOUR ................................................................................................................... 21

DA TA PRESENTATION, ANALYSIS AND INTERPRETATION O FINDINGS ............... 21

4.1 Introduction ......................................................................................................................... 21

4.1.1 Respondents gender .......................................................................................................... 21

4.1.2 Respondents age ............................................................................................................... 22

4.1.3 Educational levels of the respondents .............................................................................. 22

4.1.4 Staff works duration ......................................................................................................... 23

4. I .5 Staff works departments ................................................................................................... 24

4.2 Findings on the first objective which was to examine the inventory management system

used at Ndejje health centre ...................................................................................................... 25

4.2. I Findings on inventory management system used by Ndejje health centre. Here ............. 25

4.2.2 Findings on inventory control system .............................................................................. 25

4.2.3 Findings on the understandability of the inventory management system ........................ 26

4.2.4 Findings on the procurement system at Ndejje health centre ........................................... 27

4.2.5 Findings on up to date recording of inventory at Ndejje health center ............................ 28

4.2.6 Findings on training of staff to handle inventory ............................................................. 29

4.3 Findings on the second objectives which was to identify the various services offered by

Ndejje health center to its clients .............................................................................................. 30

4.3. I Findings on operations always carried out in theatre and their schedules ....................... 30

4.3.2 Findings on extension of services to the public ............................................................... 3 I

4.3.3 Findings on queues of clients at Ndejje health center ...................................................... 33

4.3 .4 Findings on sufficiency and affordability of services to clients ....................................... 33

4.3.5 Findings on different health services offered to clients by Ndejje health center. ............ 34

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4.3.6 Findings on the effects of inventory management system and depaiimental .................. 35

4.4.0 Findings on objective three which was to exainine the relationship between Inventory. 37

CHAPTER FIVE ..................................................................................................................... 39

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ..................... 39

5.0 Introduction ......................................................................................................................... 39

5.1 Summai·y of major findings ................................................................................................ 39

5.1.2 Findings on inventory maimgement system used by Ndejje health centre Ndejje health 39

5.1.3 Findings on the level of service delivery of depaiiments in Ndejje health centre ........... 39

The level .................................................................................................................................... 3 9

5.1.4 Findings on the relationship between Inventory management system and service delivery

at Ndejje health centre ............................................................................................................... 39

5.3 Conclusion ........................................................................................................................... 40

5.4 Recommendations ............................................................................................................... 40

5.5 Areas of further research ..................................................................................................... 41

REFERENCES ........................................................................................................................ 42

APPEDIX 1: QUESTIONNAIRE ON THE EFFECTS OF INVENTORY

MANAGEMENT ..................................................................................................................... 44

ABSTRACT The study focused on the effects of inventory management system on service delivery at Ndejje health centre. The purpose of the study was to establish the relationship between the inventory management system and service delivery. The objectives of the study were to examine the inventory management system used in Ndejje health centre, to identify the various services offered by Ndejje health centre to its clients and to examine the relationship between inventory management system and service delivery. Data was collected using a combination of descriptive and analytical research in nature with the aid of stratified random sampling methods. Questiormaires and secondary sources of information were utilized to obtain the required data. The collected data was coded using frequency tables and analyzed using spearman's rank correlation coefficient. It was established that Ndejje health centre did not have established inventory management system in place and that the staff did not understand clearly which system the health centre uses. It was also established that the departmental services were greatly affected by the operations of the inventory department. This was revealed by the strong relationship analyzed from the collected data of RS - 0. 7 between inventory management system and service delivery at Ndejje health centre. The recommendations made included; the establishment of inventory management system to recruit or train the existing staff to specifically manage inventory, scheduling activities, carrying on regular stock takes and maintaining up to date records for all inventory flows to ensure proper accountability and have money value in inventory management system.