CHAPTER I INTRODUCTION Background of the Study Inventory is basically the total amount of goods and materials held in stock by a factory, store and other business. An inventory system is a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and goods being sold. (Chapter 1 Inventory System, 2011) Since manual inventory consumes a lot of time and is prone to errors, it would be helpful to build a system that will computerize the transactions from acquisition of the product description to updating the inventory database. The computerized inventory system will improve employees’ work efficiency by computerizing routinely and time consuming tasks such as the time spent in taking down product information. As a result, the time can be used in more productive activities. The accuracy of the current system will also be improved, since the computerized inventory system would eliminate the need of constantly encoding lengthy details of products by having an inventory database. 2 Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more process can be provided. The Baguio City Hall Monitoring and Inventory System for Supplies and Properties is a proposed system to the Baguio City Hall – General Services Office (GSO). It was proposed to enable the production of correct reports, fast retrieval of correct data, reduce the amount of paper used, and to store large amount of data and information occupying a small office. Some benefits of the system are to provide a computer-based information system for the current inventory and monitoring, to lessen the manual processes, and to make the system store and generate efficient report. (Bendoza, Esoen, Legawen, Pili, & William, 2006) The Proposed Automation of the Benguet District Hospitals Pharmacy Dispensing, Inventory, Purchasing and Sales System is a proposed system to the Benguet District Hospitals. It was proposed to computerize the dispensing, inventory, purchasing and sales processes of the said institution. It was also proposed to automate report generation and preparation. The proposed System will provide a great help to the staff and personnel of the pharmacy. Computerization will ease their report preparation and generation and will eliminate their manual processes. (Celino, Embralino, Locano, Mendoza, Oplas, & Pescador, 2005) 3 The Benguet State University Marketing Center Inventory and Purchasing System is a proposed system to the BSU-Marketing Center. It was proposed to allow authorized users to easily manipulate data and make necessary updates. Specified users can also easily view and retrieve reports. It will also allow them to monitor the products and monthly sales. Some of the benefits of the said system are, first of all it will computerize the record keeping of products. Second, it will provide an efficient and convenient report generation and maintenance. And lastly, it will automate manual computation of sales.(Bayo, Gatayen, Oliva, Paterno, & Pias, 2007) The existing monitoring system of the district hospitals of Benguet is a manual process of recording of all the data that they need for their report such as the name of the medicine or drug, the name of the supplier, the expiration date, the price, the description, and etc. its current inventory system is also a manual process of recording all the data through the use of a record book or a yellow pad paper. With this, the project acts as a computerized inventory and monitoring system for the five district hospitals of Benguet. It stores details of the drugs and medicines, supplier and etc. The system will provide the needed and storing information in a faster, more convenient way by storing file of the medicines and 4 drugs in a computer system that will lessen the effort of owner in storing files every now and then. The system will also monitor the current state of the medicine in order to determine its expiry and the transaction involved. The database is designed for use by the Benguet district hospitals and other authorized user to enable them to easily produce information required by the different people. Statement of the Problem Based on the conducted interview and observations, the group had come up with the following problems being encountered by the project. The study seeks to answer the following problems: 1. What are the recent procedures made in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet? 2. What are the problems encountered in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet? 5 3. What are the procedures in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet that needs to be computerized? 4. What security measures are to be adopted? 5. What are the perceived benefits once the computerization is implemented to the following group: Benguet Capitol; Provincial Health Office (PHO); Provincial Accounting Office (PAO); District Hospitals; and Researchers Objectives of the Study The specific objective of the study is to provide an Online Inventory and Monitoring System for Benguet District Hospitals. Specifically to: 1. Identifying the recent procedures made in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet. 6 2. Solving the problems encountered in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet. 3. Analyzing the recent procedures in the Inventory and Monitoring of Drugs and Medicines in the different district hospitals of Benguet that needs to be computerized. 4. Developing the security measures to be adopted. 5. Conceptualizing the perceived benefits once the computerization is implemented to the following group: a. Benguet Capitol; Provincial Health Office (PHO); Provincial Accounting Office (PAO); b. District Hospitals; and c. Researchers 7 Significance of the Study This IT project intends to provide an accurate and effective Online Inventory and Monitoring System which will benefit the following: Provincial Health Office.The Provincial Health Office (PHO) handles the monitoring of records regarding the inventory of medicines of the different District Hospitals in the whole province of Benguet. Provincial Accounting Office.The proposed system will lessen the time, enhance the level of work, help its processes more reliable and efficient, and provide accuracy and security of data and information. It will contribute to the development of the Benguet Capitol and add to its competence. District Hospitals.The development of better data manipulation, retrieval, and data storage through computer based systems can strengthen Benguet district hospitals’ transactions and operations. It will enable users to retrieve and render correct data on the records. Computerization of files and documents saves time and space in office environment. It will contribute to the development of the district hospitals. 8 Furthermore, the proposed system will lessen the work of employees or officer-in-charge in the inventory and monitoring process and provides faster access of inventory’s information. It will also reduce or eliminate the percentage of human error in tallying in the inventory process. Monitoring and updating of inventory records can be easily accommodated. Researchers.The project serves as a basis of their study. It engages their knowledge in programming activities to create a computerized system. It will also serve as a tool to sharpen their knowledge and ability in developing a computerized system. Scope and Delimitation The proposal aims to establish a better way of communicating for the Benguet District Hospitals, the Provincial Health Office and the Benguet Capitol. It also aims to lessen the work of the authorized personnel in accordance with the inventory and monitoring of drugs and medicines. And lastly, the project aims to lessen data discrepancies and errors which are frequently arising from the current operations. 9 The proposed system is mainly focused on the purchased drugs and medicines, either by the district hospital or the Benguet Provincial Health Office. It includes the documents that are involved and transactions regarding on donated drugs and medicines by the Department of Health. It also includes the forms that are involved for transferring of drugs and medicines from one Benguet District Hospital to another. And lastly, it includes the monitoring of drugs and medicines. The proposed system will automatically determine the stock availability, the indicator andthe expiration of every drugs and medicines. The project is delimited by the procurement system which is not included in the proposed system but accepts theprocured drugs and medicines as an input for the inventory system. 10 Definition of Terms These are some of the words and terms that were used in this project. Their definitions are given within this to further understand their meaning. Annual Supply Procurement Plan (ASPP).The list of supply needed for the incoming year. It is based on the preferences of the Physicians and Pharmacists, unfilled prescriptions and the consumption of previous year. Bidding.The offering of particular prices for something, esp. at an auction. Drug.A substance used in the diagnosis, treatment, or prevention of a disease or as a component of a medication. End-user.The person for whom a hardware or software product is designed from the developers, installers, and servicers of the product. Epidemic.Affecting many persons at the same time, and spreading from person to person in a locality where the disease is not permanently prevalent. Expiration Date. The calendar date on the packaging of a pharmaceutical or food that indicates the last date the item should be used. Fast Moving Drugs and Medicines.Refers to the drugs and medicines that are easily disposed or consumed by patients. 11 Indicator Drugs.Drugs or medicines that are used in the experimental monitoring system of drugs and medicines by the Japan International Cooperation Agency (JAICA). Medicine. A drug or other preparation used for the treatment or prevention of disease. Online. Controlled by or connected to another computer or to a network. Pharmacist.A person who is qualified to prepare and sell medicine. Pharmacy.A place where drugs are compounded or dispensed. Pooled Drugs and Medicines.Refers to drugs or medicines which must be purchased immediately due to immediate need a patient. Prescription.An order, especially by a physician, for the preparation and administration of a medicine, therapeutic regimen, assistive or corrective device, or other treatment. Procurement.The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. Purchase Order.List of drugs and medicines given by the Provincial Health Office (PHO) to the winning bidder to identify the drugs and medicines to be delivered. Regular Drugs and Medicines. Refers to drugs or medicines which undergone the process of bidding. 12 Request Form.A document written by the Pharmacist to other district hospitals or to the Provincial Health Office (PHO) to request drugs or medicines due to lack of supply. Requisition Slip. An official order laying claim to the use of property or materials. Server.A computer or computer program that manages access to a centralized resource or service in a network. Slow Moving Drugs and Medicines.Refers to the drugs and medicines that are not immediately disposed or consumed by patients. Stock card. A stock card is a generic postcard with blank space left on it for future printing.