Empirical comparison of just-in-time and stockless materiel management systems in the health care industry

Despite the limitations, this study is the first comparative empirical investigation of two relatively new materiel management systems applied in hospitals. The results show that hospital managers have significantly rated the possibility that more effective use of some materiel management resources can be achieved by adopting either a JIT or stockless system over conventional materiel management systems.     

How is your materiel management audit program?

This article has provided a view from the auditor's eyes of some key components inherent in a sound materiel management system. Every system, however, has its own unique characteristics, some of which may contain internal control situations that are not addressed herein. Although most will apply, not every comment contained in this article will be practical to all systems. The hospital size, utilization, patient mix, service mix, physical outlay, organizational structure, financial condition, and management philosophy will all have an influence on the role of materiel management. Automation of various materiel management functions can be beneficial by providing informational and control enhancements not feasible in a manual system. However, automation also raises new internal-control concerns that need to be addressed. Strong internal control techniques and compliance with adequate policies and procedures will prepare materiel management for its role in future hospital operations.     

CEO expectation: the Star Wars materiel manager of the 1990s, or C-3PO as role model

Materiel-intensive expenditures account for a significant portion of all hospital costs, second only to salaries and wages, yet materiel managers may often be overlooked as key members of the management team. This is alarming since the potential exists for materiel managers to impact annual savings of hundreds of thousands of dollars by operating efficient departments. Materiel managers have a tremendous opportunity to enhance their image and improve hospital productivity in the coming decade. The challenges of the 1990s will stretch materiel managers' skills toward enhancing their professionalism and achieving the expectations of themselves and top management. If materiel managers will effectively utilize (C3)PO they will increase their educational levels, continue to learn new skills, maintain a customer-oriented management style, exercise creativity, develop and adhere to standards, and be proactive in their responsibilities. The benefits of their success will be felt by patients, hospitals, the industry, and materiel managers everywhere.     

Materiel executives and the managed cost continuum in a capitated environment

Strategies that involve supplier partnerships and pose high risk for both hospitals and suppliers are an increasing trend. The materiel management professional who is proactive and able to assess risks in a managed care contractual environment will be the winner as materiel management becomes a network function rather than individual hospital function.     

The materiel manager's role in executive management

The ability to achieve advancement for materiel management is a potential that few have challenged and achieved. Reasons for this lack of growth vary in degree, but the opportunities in the 1990s will be tremendous. The political skill and team leadership ability expressed by materiel managers throughout hospitals will ultimately result in whether this challenge is met or not. Materiel managers will need certainly to change their perception of their own role, as well as the perception of hospitals, in order to achieve this. The road will be challenging, but with the winning attitude, skill building, and proven management ability, I believe that materiel managers will become successful in hospital executive management in the 1990s.     

Restructuring materiel management functions: a method for prioritizing changes and reducing costs

The success of any manager depends highly on the ability to seize on opportunities that will achieve the organization's goals. Hospitals are currently searching for ways to reduce costs while maintaining or enhancing the quality of services. Quality services are increasingly being defined as those that are most responsive to customer needs. It is important, as hospital management restructures materiel systems or methods of operation for reduced costs, to focus on the user departments as the customers. The consolidation of materiel management activity should not be seen as a loss of control at the user department level. Instead it can be seen as a new way of providing service with higher quality. User departments should see concrete benefits on a weekly basis, including reduced time spent on materiel management functions; increased planning of purchasing, inventory, and distribution functions; and assistance in meeting restricted supply budgets.     

Controlling inventory in a small specialty hospital

Controlling inventory in a small specialty hospital has many parallels to controlling inventory in a large, acute care hospital. However, in a specialty hospital, there seems to be a plethora of specialty items that must always be on hand in ample supply. To achieve a significant inventory reduction, a strategic plan was developed that revolved around training sessions with the materiel management team, meetings with key hospital staff, and the establishment of two prime vendor contracts. In 1991, the annual inventory value in the general storeroom was approximately $2.3 million; in 1992, the inventory value was $1.6 million, and the projected inventory value for 1993 is $1.2 million. Implementing a just-in-time program to control inventory is best achieved through a collaborative effort with all of the materiel management team feeling a sense of contribution as well as receiving recognition from hospital administration.     

Survival depends on effective partnerships with suppliers, management, and physicians

Partnering in health care materiel management circles is a concept that has been discussed for years. We, as materiel managers, have never accomplished effective partnering; but I propose that if we are to have a professional future, we should learn to establish effective partnership arrangements with our various customers--externally and internally.     

Efficient materiel handling and distribution: a design perspective

This article offers a condensed examination of facility design and the interface between owners, hospital managers, and architects in planning for hospital materiel handling and storage needs. A brief history is given of the evolution of materiel management and progress today in efficient ordering, storing, distributing, and inventory and billing. The article closes with a discussion of work redesign and personnel vs. equipment concerns. Two case studies exemplify similar goals from different approaches.     

Managing materiel in a multidivisional corporation

By using centralized purchasing and prime vendor contracts, the Allied Services material management department has been able to handle very effectively the purchasing needs of this multidivisional health care complex. Through active enforcement of Allied Service's materiel management policies and procedures, the department continues to be able to acquire the products and services that are necessary to keep the many programs running. Most importantly, these products and services continue to be acquired while the three significant attributes of materiel management--quality, availability, and service--are maintained.     

Hospital material management in Taiwan: a survey

The new insurance policy that began in 1995 for all people in Taiwan and severe competition within the health care industry are some of the pressing issues forcing hospitals to improve their operational efficiency. A primary productivity improvement for hospitals is the reduction of the cost of material management because the materiel function on average controls 30-40 percent of the operating dollars in a Taiwan hospital. In this article, a fuzzy clustering method is used to classify the different types of materiel management systems within Taiwan hospitals. Inventory turnover rates and fill rates are compared among those different types of systems by using multivariate analysis of variance. The results show that the differences in both inventory turnover rates and fill rates are statistically significant among different material management systems.     

Business process reengineering: a pathway for performance improvement

Health care materiel management executives are coping with a revolutionary environment. Demands and constraints are being placed on hospitals that necessitate both long-term solutions and rapid responses. Materiel management executives can play a vital role in transforming their areas from a passive service center to an active command center. It is essential that the materiel management executive play an active role in the change process.     

Strategic imperatives for managing materiel into the next century

The next century of opportunity is less than a decade away. Materiel management must involve itself in the strategic changes occurring within the health care industry and its respective institutions. Those materiel managers who are aggressively ensuring that their operations are supported by a well-developed and well-orchestrated operational infrastructure are now well positioned to address the future challenges of this decade. Unfortunately, many other materiel managers are focusing their attention and efforts solely on the management of materiel for which they currently have control. Materiel managers must develop an acute awareness of the support needs of their respective organizations. Those who are not apprehensive about venturing from the traditional materiel management world will be exposed to incredible educational opportunities and will receive responsibilities of unparalleled organizational importance.     

Balancing clinical priorities in an era of diminishing resources

By learning to ask both manufacturers and clinicians why a technology is needed, how it compares to the existing technology, and whether it will eliminate the need for the existing technology and by demanding specific answers, much more rational decisions can be made, which will be in the best interests of the community the hospital serves. Materiel managers can play a key role in fostering this process. In addition, by helping department managers develop long-range multiyear plans, materiel managers can help hospitals better manage their existing assets and make better long-term purchasing decisions.     

The role of certification in the buyer/planner position: a case study at Harley-Davidson Motor Company.

The use of buyer/planners may becoming more popular. If they are, the reason is probably that many companies are integrating materiel management skill sets as a way of increasing the effectiveness of their supply chains. Harley-Davidson recently created a supply management function composed of buyer/planners. This article describes the method it used to achieve the transition, the training plan it implemented to support the process, and the role management played in achieving success.     

Patient product availability through the use of systems thinking: developing coherent relationships

The traditional techniques of quality improvement, such as just-in-time delivery, can only go so far in dealing with materiel management issues. A further step is necessary: the implementation of systems thinking. This type of thinking focuses on the interconnectedness of all the members that exist throughout the system. This article explains the nature of systems thinking and how it can be used in materiels management to describe and improve the availability of materiels needed.     

基于模糊物元分析的航材仓库选址决策

在分析空军航材仓库选址影响因素的基础上,基于模糊物元分析原理,建立了航材仓库选址决策的模糊物元分析法。模糊物元分析法可对航材仓库选址决策进行定量分析,从而确定各选址方案的排序。最后,结合实例进行了应用分析,获得了满意的结果。航材仓库选址决策的模糊物元分析法,为空军航材仓库选址决策提供了一种更为科学、有效的方法。     

医院精细化管理的核心要素——信息化体系的构建与运行实践

医院精细化管理是目前国内医院管理者们研究的热点领域,其中医院管理流程再造和信息化管理体系的构建是其重要的基础课题。本文着重阐述了医院自主研发具有较强适应性、针对性和操作性的信息化体系的构建,旨在为大幅减少人力的消耗,提高工作效率,减少工作疏漏,通过人、财、物、信息的统一管理,为实施医院精细化管理奠定基础。     

Maximizing purchase decision factors other than price

Assessing and acquiring technology does not have to be chaotic, driven solely by price, clinical preference, and emotion. With the tools available, it can be distilled to a process of organized common sense, which results in maximum flexibility for the user and allows materiel managers to procure the best, most cost-effective equipment for the hospital.     

How to get top management support for MRP (materiel requirements planning) II

Getting top management support for materiel requirements planning (MRP) is not impossible. When senior management supports the effort, the success rate skyrockets and companies experience results that improve their bottom-line performance. This article describes a step-by-step process for gaining top management's commitment to the effort.