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)     

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.     

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.     

Materiel management reengineering: value creation through innovation

By reengineering their department's core processes, materiel managers can expand their role in the health care setting while realizing significant cost savings. Using a team model, Inova Health System materiel management staff integrated their processes for vendor selection, purchasing, inventory reduction, and utilization across three hospitals and ancillary services. An integrated approach at all levels of the organization gained buy-in from administrators and staff systemwide.     

Read my lips--no more late deliveries

Over 70,000 materiel requirements planning (MRP) and manufacturing resource planning (MRP II) systems have been implemented in this country in the last 20 to 30 years. Yet the question many of the companies who own these systems are asking is, "Was it worth it?" Less than a third of the companies are answering in the affirmative. Two key differences between the satisfied and the not-so-satisfied companies are (1) support to the user community and (2) management involvement in the day-to-day use of the system. Without these two items, the improvements brought about by an MRP or MRP II system will most likely be mediocre at best.     

Integrating MRP (materiel requirements planning) into modern business

Time is the commodity of the '90s. Therefore, we all must learn how to use our manufacturing systems to shorten lead time and increase customer satisfaction. The objective of this article is to discuss practical ways people integrate the techniques of materiel requirements planning (MRP) systems with just-in-time (JIT) execution systems to increase customer satisfaction. Included are examples of new ways people use MRP systems to exemplify the process of continuous improvement--multiple items on work orders, consolidated routings, flexing capacity, and other new developments. Ways that successful companies use MRP II for planning and JIT for execution are discussed. There are many examples of how to apply theory to real life situations and a discussion of techniques that work to keep companies in the mode of continuous improvement. Also included is a look at hands-on, practical methods people use to achieve lead time reduction and simplify bills of material. Total quality management concepts can be applied to the MRP process itself. This in turn helps people improve schedule adherence, which leads to customer satisfaction.     

Materiel management in the operating room: a case study

The hospital continues to be pleased with the progress of our material services program in all areas, but especially surgery. It took a few simple, basic methods, such as exchange carts and inventory control, mixed them with people who actually care about doing a good job, and the whole program moved forward dramatically. People, both in materiel services and surgery, have accomplished a tremendous amount in the past two years. They have made, and will continue to improve, an already excellent program.     

A formal set of algorithms for project scheduling with critical path scheduling/material requirements planning

A hybrid model combining the critical path method (CPM) with material requirements planning (MRP) has been suggested (Aquilano) as a more robust method for scheduling projects and resources. The primary advantage of this technique is that resource acquisition lead times as well as inventory records are integrated into the process of computing the project schedule. This paper presents a set of formal CPM/MRP algorithms that may be used to compute the early and late start schedules as well as the critical sequence. A number of modifications have been incorporated into the CPM/MRP technique to improve the viability of CPM/MRP as a tool for application to actual project scheduling problems. A simple example project is used to demonstrate the CPM/MRP model.The CPM/MRP technique is designed to overcome a basic shortcoming of previously suggested project scheduling methodologies. CPM was initially designed to schedule projects subject to technological constraints only. Later, additional techniques were introduced to consider constraints upon various aspects of resource availability (Davis). None of the suggested techniques attempted to integrate resource acquisition lead time with the generation of requirements for resources. Obviously such a technique would require the integration of inventory records into the scheduling technique.The combination of CPM and MRP provides a possible vehicle for overcoming this drawback in CPM. Both CPM and MRP are linear models that generate schedules based upon precedence relationships. An integrated approach is useful since activities could be scheduled subject to information about the inventory position. An activity may be scheduled as soon as all resources are on hand. It is only delayed by those resources which must be acquired and activities which proceed it in the project network.CPM/MRP also shows promise as an aid to constrained resource scheduling since computations regarding resource availability are an integrated part of the technique. The effect of resource allocation decisions is immediately evident in the MRP-type time phased records.Results of the tests run on short projects of up to 300 activities and resources have shown that the program does work satisfactorily. Execution time for a 300 item network tested was approximately ten seconds on a CYBER 175.     

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.     

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.     

装甲装备周转器材多级库存控制优化研究

分析了我军装甲装备周转器材库存控制现状,借鉴供应链管理环境下的多级库存优化控制思想和美军先进的速率管理理论,采用联合库存管理和多级库存优化控制策略对周转器材库存进行优化控制。     

A study of MRP benefits and costs

This paper describes benefits and costs of MRP systems based on a large survey of MRP users. These users report they have achieved significant improvements in inventory turnover, delivery performance, and other benefits, and that further improvements are expected when their MRP systems are fully implemented. A series of regression models are also described in the paper which explain why some companies achieve more benefits from MRP than others. The models are not only fitted to the sample data, but they obtain good predictive results on a holdout sample. These models indicate that companies should stress a broad approach to implementation; there is no one overriding factor which guarantees MRP success.     

MJO库存控制模型研究

寻找有效的库存控制方法对企业提高运营效率意义重大。整合物料需求计划(MRP)、准时化生产(JIT)和最优生产技术(OPT)三种方法而成的M JO库存控制模型,可以做到既保证客户服务水平,又不占用过多资金,是实现有效库存控制,进而提高运营效率的重要手段。     

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.     

The people side of MRP (materiel requirements planning)

A montage of ideas and concepts have been successfully used to train and motivate people to use MRP II systems more effectively. This is important today because many companies are striving to achieve World Class Manufacturing status. Closed loop Materiel Requirements Planning (MRP) systems are an integral part of the process of continuous improvement. Successfully using a formal management planning system, such as MRP II, is a fundamental stepping stone on the path toward World Class Excellence. Included in this article are techniques that companies use to reduce lead time, simplify bills of materiel, and improve schedule adherence. These and other steps all depend on the people who use the system. The focus will be on how companies use the MRP tool more effectively.     

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.     

MRP II (material requirements planning): one year later

This article addresses the continued need for the behavior change process that must be managed long after materiel requirements planning (MRP II) implementation. Mason & Hanger, Pantex Plant is the final assembly and dismantlement facility for all United States nuclear weapons. On October 1, 1990, Mason & Hanger implemented a full production cutover to MRP II. One year later, following class A certification, the MRP II implementation team is still actively managing the change process through education and training programs and overall continuous improvement initiatives. Actual behavior change problems are identified together with the proven solutions implemented in a government-owned, contractor-operated facility environment. Performance measurements ranging from senior management planning to shop floor accomplishments and cost variance reports are shown as normal management tools used to identify target improvement areas.     

Integrating MRP (materiel requirements planning) II and JIT to achieve world-class status

The concepts and principles of using manufacturing resource planning (MRP II) for planning are not new. Their success has been proven in numerous manufacturing companies in America. The concepts and principles of using just-in-time (JIT) inventory for execution, while more recent, have also been available for some time, and their success in Japan well documented. However, it is the effective integration of these two powerful tools that open the way to achieving world-class manufacturing status. This article will utilize a newly developed world-class manufacturing model, which will review the aspects of planning, beginning with a business plan through the production planning process and culminating with a master schedule that drives a materiel/capacity plan. The importance and interrelationship of these functions are reviewed. The model then illustrates the important aspects of executing these plans beginning with people issues, through total quality control (TQC) and pull systems. We will then utilize this new functional model to demonstrate the relationship between these various functions and the importance of integrating them with a total comprehensive manufacturing strategy that will lead to world-class manufacturing and profits.     

Developing rapport between materiel management and surgery

A materiel management system, developed into an efficient organization, seems to be the most practical solution to solve interrelations between two complex operational departments, the CPD and surgery, be it for supply acquisition, inventory, processing, or distribution. The goal is to develop the most intelligent and efficient method so that the materiel management facility renders the required service to the surgical department, which in turn, services patient needs at the lowest possible cost.     

Supplier involvement through certification: a case study

The Clarkson Company is located in the Reno-Sparks area of Nevada. We are a manufacturer of slurry valves for mining, pulp and paper, power generation, and various other industries. Because of the diverse nature of the applications for which the valves are used, the product can be configured a vast number of ways. Therefore, we use the assemble-to-order methodology for our master production scheduling. It became apparent over a decade ago that the use of materiel requirements planning (MRP) would aid us in controlling our low volume, high option mix environment. That journey led to The Clarkson Company becoming a Class A user of MRPII in June of 1990.