Oireachtas Joint and Select Committees

Thursday, 22 October 2015

Public Accounts Committee

Health Service Executive Financial Statements 2014
2014 Annual Report and Appropriation Accounts of the Comptroller and Auditor General
Vote 39: Health Service Executive
Chapter 19: Compliance with Prompt Payment Legislation in the Health Sector
Chapter 20: Management of Private Patient Income in the Health Sector
Chapter 21: Control over the Supply of High-Tech Drugs and Medicines

10:00 am

Mr. John Swords:

Yes, absolutely. We have the statistical evidence on the reduction of inventory in the first instance. There is a culture change as well because people are habitual by nature. Work is organised in three shifts and there may have been three locations of stockholding. We have reduced this to one, particularly in theatre, which is one of the high-spend areas. We know that 7% is the industrial norm and we are meeting that at a minimum. This is significant given the stockholding arrangements of any major hospital.

There is also the question of obsolete stock, which is where Deputy Dowds may be referencing or going ahead to. On average, this is 2% or 3% throughout the industry.

That is removed because one does not have obsolete stock as one does the rotation. All the clinician has to do in the instance of the Kanban on the point of use is to turn the barcode, as one sees in supermarkets. One often sees "out of stock" or whatever it might be. We come along and we wand it. In particular with the NDC, and at this point in time in particular to Tullamore, we want it, it goes directly onto the system, the requisition is created, the picking list is created, it is put onto voice, it is right down through the system, it is returned to the hospital and the efficiencies, even on the warehouse floor, are 20% extra productivity because of the introduction of the technology that we brought into place.

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