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.     

The materiel manager-chief financial officer alliance.

There is a gold mine of potential inventory reductions, expense reductions, and revenue increases in most hospitals that can be tapped by more intensive materiel management. The first step is incorporating the necessary ingredients for a strong materiel management effort--the right people and a state-of-the-art computer program. Reorganization may be necessary to establish a more unified, consolidated approach to materiel management. Second, conduct an audit of the entire hospital to identify opportunities for improvement and to establish baseline management data. Finally, push forward the process of system changes (which also establishes necessary controls) until results are accomplished--a process that usually requires one to three years. The alliance between the materiel manager and the CFO is definitely beneficial to the hospital and to the individuals involved.     

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.     

Purchasing without paper (well, almost no paper).

This article describes the process by which one company was able to substantially reduce the amount of paperwork required for purchasing material. After considering all the variables that affected the amount of paperwork, it developed three different models to use in ordering materiel, one for materiel delivered by the vendor in standard containers, one for materiel delivered by a carrier in standard containers, and the last for materiel that is best delivered in variable quantities.     

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.     

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.     

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.     

Partnership in education: central service prepares students for materiel management duties

Partnership in education looks at one technical college's approach to meeting the demand for trained workers in central service and materiel management. This article examines the partnership formed between a college, area health care facilities, and industry to design, develop, and implement a central service materiel management program.     

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.     

Children's hospitals: specialty hospitals that treat children specially

Any reader who has children will agree that they make special patients, whether at home or in the hospital. These patients have unique requirements for love and compassionate care, and children's hospitals deliver on their promises. The well-run children's hospitals researched for this article have converted their material management operational challenges to opportunities. They have built thoughtful material management strategic plans, reorganized their support services to provide customer service to end users, and they have centered their materiel management efforts around service and quality improvement.     

航材供应链管理的集成体系

基于现代物流供应链集成管理理论,结合航材工作的军事特征,给出航材供应链管理的基本内涵。在此基础上,系统提出以航材供应链的战略管理、航材供应链的信息管理、航材供应链的流程重组及航材供应链的风险管理等为主要构成的航材供应链管理的集成体系。     

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.     

Pressure ulcers and materiel management: cost-effective prevention and care

In summary, it's important for the materiel manager to have an understanding of the clinical aspects of pressure ulcers. By understanding how ulcers are staged, treated, and prevented, the materiel manager will have a better idea why certain products are needed and how they are used to reduce overall patient costs. Specialty beds, replacement mattresses, and high-end overlays represent a significant cost--approximately $500,000 to $1 million based on studies cited in this article. Further proven by research is the fact that these costs can be reduced by carrying out utilization plans with specific criteria for patient selection. Finally, materiel managers can be key coordinators in the entire process since they are often on the front lines in any institution's cost containment efforts.     

A new focus on inventory performance and bottom-line profits

This article is about a new way to measure inventory performance and about putting a dollar focus on inventory management priorities. It reviews the financial impact of inventories and shows how the information from any materiel requirements planning (MRP), MRP II, ERP, DRP, or orderpoint system can be used for setting individual objectives for inventory reduction, measuring performance by inventory segment, and monitoring continuous improvement. It will also consider the merits of paying performance bonuses to materiel planners and review some inventory reduction results.     

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.     

Special needs of adult critical care units

This article has highlighted some of the specific needs of adult critical care units and the role that both the nurse manager and materiel manager play in today's changing health care system and environment. The key to success in meeting the specific needs of critical care patients lies in open communication and collaboration between the materiel management department and the department of nursing. The challenges are many, yet cooperation and an understanding of one another's needs can do much to create successful relationships within critical care settings and ensure optimal patient safety.     

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。     

Defining cost of quality in the materiel department

The first step in reducing the cost of poor quality is to identify the defects controlled by materiel management. This article discusses the defects the authors have identified and measured in their efforts to reduce quality costs.     

Health care reform and the hospital supply chain

With health care reform, hospitals will be differentiated in the marketplace by how well they manage the costs of services. Because products will be market priced, hospital materiel managers will have to minimize all other related acquisition costs. The key opportunities will be in changing processes to eliminate non-value added administrative, supply chain, and process activities and their attendant costs.