Salary and Wage Management

I. SALARY AND WAGE COST EVALUATION

A. Institutional labor cost evaluation
B. Technical evaluation of labor cost
Pre-analytical Time: The time involved in collecting the specimen and preparing
samples and instruments.
Analytical Time: The time during which the test is actually performed and the results are
calculated.
Post-analytical Time: The time in which the report is made and routine maintenance is
performed
C. Accounting and budgeting labor analysis
Total (Paid) Hours: The total number of hours for which an employee is paid; includes
actual time spent in the laboratory as well as benefit hours paid (productive

Productive (Worked) Hours: The actual hours worked, including overtime.

Nonproductive (Benefit) Hours: Hours for which the employee is compensated but plus
nonproductive). Not available for work.
D. Full-time equivalents
Full-Time Equivalent (FTE): An accounting calculation of the number of full-time
employees represented by the payroll hours.

II. PRODUCTIVITY MEASUREMENT

A. The productivity model
Productivity Model: Workload units divided by labor units.
1. Selecting a productivity index
2. Selecting final productivity units
B. Billable procedures as a workload unit
Billable Procedure: A test for which the laboratory may issue a charge.
C. Weighted workload labor estimation techniques
Weighted Workload Labor Estimation: A system that assigns a value (usually in a unit
defined as 1 minute) to a specific task performed in a standardized manner, obtained by
analyzing and timing each step in the production or performance process.
1. Weighted workload procedures
2. Example of a weighted workload program
a. CAP workload system
b. Determining a WLU value
c. Weighted workload value productivity calculations
D. Productivity standards

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III. WAGE AND SALARY BUDGETING
A. Position control master
B. Budget projections
1. Annualized projections
2. Monthly projection for the month

Material Management

I. MATERIAL MANAGEMENT
Material Management: The systematic process of overseeing and controlling the
acquisition and utilization of supplies to ensure both availability and cost effectiveness.
A. Goals of material management
B. Definition of supplies
Supplies: Products that meet specific time and price criteria.
II. SUPPLY ORDERING PROCESS
A. Purchase order
Purchase Order: A document arborizing the purchase of a product from a vendor.
Traveling Requisition: A catalog of products used to order supplies stocked by
material management. or services
B. Traveling requisition
C. Standing orders
Standing Orders: A purchase order issued for a product or service to be delivered
according to a preset schedule.
D. Product standardization committee

III. INVENTORY MANAGEMENT

A. Inventory level checks
Perpetual System: A system that keeps account of the inventory each time a product
is used or removed from inventory.
Periodic System: A system whereby inventory levels are checked according to an
established timetable.
Random Checks: A method used to verify inventory levels.
B. Stock replenishment techniques
1. Minimum-maximum
2. Just-in-time
C. Financial control of inventory
Economic Ordering Quantity (EOQ): A formula used to determine the quantity
supplies to order at one time.

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 Economic Ordering Point (EOP): The point at which inventory should be re
ordered
Optimal Reorder Time (ROT): The best time to place an order to take advantage
of EOQ and EOP.
1. Inventory management methods
2. Inventory formulas and management tools
3. Example of inventory management methods

IV. PROJECTION OF BUDGET SUPPLY COSTS

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