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Lusaka Hospital Purchasing System Report

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Lusaka Hospital

Purchasing System


Proposed System Overview: Threats and Controls

Written By: Liu Xudong, Qian Hui Ching, Yuying Ji, Tian Yu and Hayden Montgomerie

Table of Contents

1.1 Team Responsibilities

1.2 Team Management Statement

2.1 Executive Summary

3.1 Background

4.1 System Overview

4.1.1 Operation

4.1.2 Goals

5.1 Threats and Controls

5.1.1 Threats and Controls for Goal 1

5.1.2 Threats and Controls for Goal 2

5.1.3 Threats and Controls for Goal 3

5.1.4 Threats and Controls for Goal 4

5.1.5 Threats and Controls for Goal 5

6.1 Reference List

1.1 Team Responsibilities

Liu Xudong (26683741) - Threats and controls for goal 4, background, goals.

Qian Hui Ching (26079771) - Threats and controls for goal 3, team management statement, goals, system operation.

Yuying Ji (25375237) - Threats and controls for goal 5, team management statement, goals, table of contents and formatting.

Tian Yu (25673947) - Threats and controls for goal 1, team management statement, background, goals.

Hayden Montgomerie (26960834) - Threats and controls for goal 2, team management statement, executive summary, system operation, goals.

1.2 Team Management Statement

At the beginning of the assignment, the group as a whole agreed that communication mostly through social media for the majority of the assignment would work the best, as with a group of five people it can often be hard to meet up, especially for lengthy periods of time in which to work on a written report. This was achieved through the use of Google Docs, with which we were able to collaborate effectively in a very efficient manner, with all members being able to access the data simultaneously, allowing for no inconsistencies. This suited all group members and allowed us to complete the report in the least amount of time possible. The report was structured in such a way that the workload could be divided evenly with ease. This allowed us to be even more efficient in our completion of the report as everyone was able to complete each of their written components at the one time. This was appropriate for each group member as it meant no member undertook an unfair amount of work in relation to the others. In addition to this division of work, we worked to ensure that all group members contributed evenly to sections of the assignment which were worked on collaboratively, and that all members were in agreement on the final product. Other group responsibilities have been assigned to ensure that all areas of the report are completed concurrently, therefore allowing for us to work as a group and demonstrate teamwork. It has allowed us to complete the report in a given timeframe, while also managing other day to day demands. In all, the group will work cooperatively to provide a collaborative effort to complete this report to the best standard possible in the most efficient manner.

2.1 Executive Summary

This report aims to outline a system appropriate to ensure proper management of the Lusaka Hospital and the goals related to this system. The system will have challenges relating to each of its goals, which present themselves in the form of threats. This report will outline these threats and controls which can be put into place to ensure these threats do not prevent the system from achieving its goals when put in place. As Mirvis & Lawler outline, a system alone tends not to be a solution, only with the addition of other factors can the problem be solved (1983).

3.1 Background

Hospitals in Africa generally face challenges gaining access to resources and specific medications which allow recovery of acute conditions. Even if they do become available, they are highly sought after, meaning not all hospitals or patients may have access to them. This can cause other issues such as theft, and increase in ill patients.

The Lusaka Hospital is an organisation which provides care to seriously ill patients. As this organisation is large, the control systems in place within must be formalised to ensure that it can be managed to a high standard. Due to the lack of access to a large capital budget, the proposed system will allow for the purchasing process to be undertaken using resources currently available to the hospital.

4.1 System Overview

4.1.1 Operation

Initially a stocktake will be performed to determine inventory needed to be ordered. To ensure accuracy for the purchase order, this count will be performed by two separate staff members and cross checked. If a different amount is returned by each member of staff, the stock will be recounted. Internally a purchase requisition will be created based on the inventory needing to be ordered, which will then be processed as a purchase order, sent to the supplier. This order can be placed over the phone, which is convenient and efficient as the hospital has telephone services with good coverage. With some access to internet, urgent after-hours orders can be placed online; this will be promptly processed and added to the next available delivery.

When the order is received, a receipt of goods is supplied, which will be used to cross check the quantity of stock ordered with the quantity of stock received. When checking the received order, the inventory will be quality assured, to prevent the regular occurrence of counterfeit drugs. If the amount received is correct, the receiving department will accept the delivery and communicate the receipt of goods in order to update the inventory records. The delivery will then be reported to the warehouse manager, who will in turn report to director of manufacturing, after which the inventory department will store the goods.

The supplier will subsequently issue an invoice for the order to the hospital, which will then be approved by the accounts payable department, who reports to the financial controller. This invoice will then be recorded in the hospital’s purchases journal, for its ongoing records. This entry will then be further relayed to the accounts payable of the hospital, to keep record of the amounts owed to suppliers. The next step in this system is the payment of the invoice which will proceed being performed by the cashier, after being approved by the treasurer of the hospital. To maximise the security of any invoice payments, a voucher processing method will be used, where a payment voucher is created when the supplier invoice is approved by the treasurer. This identifies the supplier, lists outstanding invoices and indicates the net amount owing after any discounts or allowances. This system ensures every action is authorised by a document, reducing the chance for error. After payment of the invoice has occurred, this is once more matched up against the hospital’s accounts payable to ensure that they have accurate records of the amounts owed to suppliers.



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