Business ethics: the materiel/manufacturing perspective

The discussion of purchasing practices and product integrity, which have ethical implications for materiel/manufacturing management, serves to illustrate how routine decisions can have larger implications for the firm as a whole. Management needs to take a proactive role in confronting ethical issues by (1) demonstrating a corporate commitment to sound ethics in business practices, (2) providing written policies where appropriate to provide a basis for sound ethical conducts, (3) educating various functional areas to understand their responsibility in seeming unrelated ethical problems, (4) delegating authority in ethical issues where such issues are considered in decision making, and (5) fostering interfunctional communication as a means in establishing corporatewide responsibility. The basic philosophical principles of JIT serve as a blueprint for recognizing and managing ethical responsibility. The unexpected by-products of a JIT implementation may be vendor/customer good will and an excellent reputation for the firm.     

An investment perspective for hospital materiel managers

Materiel managers are making investments every time they authorize capital, supply, or personnel requisitions on behalf of their departments or organizations. While not as formal as external investments in securities or the like, internal investments are even more critical to the organization's success and carry the same fiduciary obligations. Generating an acceptable return is a necessity rather than an option as concerns internal investments; the same formal analysis that is applied to external investments should be extended to internal ones as well. Adopting an investment perspective is a critical first step in seeing internal initiatives as investments and obtaining an appropriate return.     

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.     

Managing unofficial inventory: a piece of the materiel management foundation

The implementation plan will remain the same: target an area of opportunity, measure and document the amount and value of the unofficial inventory, establish PAR levels, implement the use of hand-held terminals to assist in inventory control, and integrate inventory control with the implementation of new programs that will impact ordering, receiving, distribution, and invoicing. It is anticipated that the inventory in the main OR alone can be reduced by $1.5 million if we move forward with a stockless JIT system. This would reduce the days of inventory on hand from approximately 100 days to between 7 and 14 days. This could also mean a holding cost reduction of $150,000. The merit of reducing unofficial inventory is evident. Managing unofficial inventory is merely one piece of the successful materiel management foundation. The other foundation pieces include contract compliance and price negotiations, systematic methods of ordering products, and timely distribution of products to the end user. PHS cannot effectively move forward to a new, innovative materiel system for the future until we first measure, analyze, and document the present conditions. Once the foundation is laid by improving present business practices, then the framework of the structure can be designed and constructed. The goal is to implement a system that utilizes the full potential of people, equipment, logistics, and information so that our customers, the patient caretakers, do not have to worry about anything except the delivery of quality care.(ABSTRACT TRUNCATED AT 250 WORDS)     

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.     

MRP (materiel requirements planning) II implementation: a case study

Manufacturing resource planning (MRP II) is a powerful and effective business planning template on which to build a continuous improvement culture. MRP II, when successfully implemented, encourages a disciplined yet nonthreatening environment centered on measurement and accountability. From the education that accompanies an MRP II implementation, the employees can better understand the vision and mission of the organization. This common goal keeps everyone's energy directed toward the same final objective. The Raymond Corporation is a major materiels handling equipment manufacturer headquartered in Greene, New York, with class "A" MRP II manufacturing facilities in Greene and Brantford, Ontario and an aftermark distribution facility in East Syracuse, New York. Prior to the implementation of MRP II in its Greene plant (from 1988 through 1990) good intentions and hard work were proving to be less than necessary to compete in the global market. Certified class "A" in February 1990. The Raymond Corporation has built a world-class organization from these foundations.     

Regional business development policy in Central and Eastern Europe: a mechanism design perspective

This paper explains one aspect of the challenges faced by regional development policy in Central and Eastern Europe. At issue is a policy for the development and expansion of small and medium sized enterprises (SMEs). The causes and dynamics of difficulties with SME development policies are analyzed in a mechanism design/game theory framework, in which “policy failure” arises as an equilibrium phenomenon. The model results deliver a cautionary note: that indiscriminate application of market criteria may be counterproductive in an environment characterized by severe constraints on material wealth accumulation.     

Humor: no materiel manager should be without it

Humor has the potential to be positive or negative, character building or destructive. Many suggest that a sense of humor is necessary for good health, whether of an individual or an organization. This article presents ways in which managers can foster a "laughing with" (instead of "laughing at") attitude as a means of managing stress, enhancing teamwork, and maintaining employee satisfaction in the face of adversity.     

Efficient estimation of income distribution parameters

The parameters of several families of distributions are estimated by means of minimum χ²; use is made of random samples taken from Dutch income-earning groups in 1973. The numerical search routine used, is the Complex method due to Box. The χ² function is evaluated by standard numerical integration procedures. The lognormal and the Gamma families are rejected because of a poor fit. The log t and the log Pearson IV families are introduced. This results in a considerable improvement of χ² critical levels. The generalized Gamma and the Champernowne function describe the income distribution reasonably well in some cases.     

World-class materiel flexibility: one plant's victory over materiel-related downtime

It is not uncommon for the materiel managers in a manufacturing company to be blamed for downtime and the consequent failure to meet production targets. To avoid downtime, materiel managers need to look at their role in solving materiel-related downtime and to address the problems that cause downtime in the same way they would address other process quality problems.