materials management- basic introduction materials management- importance materials management-...
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MATERIALS MANAGEMEN
T &HSCM
Materials Management- basic introductionMaterials Management- importanceMaterials Management- various functionsMaterials Management- hospital operationsMaterials Management & SCMMaterials Management & ITRole of Physician in Materials ManagementSupply chain managersInventory Management & SCM
OBJECTIVES
IntroductionMaterials Management is a basic part of any organization.
Life blood of any manufacturing or service organization.
In India known as an Integrated Activity.
Plays a vital role in developing our economy.
Requires time-to-time controlling.
Lions share in the total cost of a product.
EvolutionIn olden days, materials are taken for granted.
By the end of 1950s, the concept of materials function became important.
Recognized as separate department from past 40 to 45 years.
Indian industry realized its importance from 1970s.
Hospitals Materials are defined as the equipment, apparatus and supplies procured, stocked and utilized by an organization.
Management means bringing together the available resources so as to achieve a specific objective.
Hospitals Materials Management is the art and science of planning, organizing and controlling the flow of materials from their initial purchase, internal operations to the distribution at the service points.
Definition
According to IFPMM, Materials Management is defined as a total concept of any organizational structure whose core responsibility is to maintain systematic flow and control of materials from identification of the needs through customer delivery.
Scope Starts with planning and purchasing.
Ends with social responsibility of customers.
Effects ROI & profitability.
Differences• Importance• Cost• Classification• Customer• Quality• Quality Control• Purchase• Import• Conversion
Materials Management -Healthcare
Timing of the materials
Patient Safety
Materials Cost
OrganizationCMD
Share Holders
BOD
CEO
PersonnelManager
FinancialManager
MaterialsManager
Production Manager
Marketing Manager
Functions
Broad Classification
PRIMARY FUNCTIONS
SECONDARY FUNCTIONS
Primary Functions
1Material Planning & Control
Purchasing
Storing & Stock Keeping
Inventory
Material Planning & Control
Basic interrelated managerial functions.
Known as Siamese twins.
Planning is pre-operational activity.
Control is post-operational activity.
P&C is based on sales forecast and production plans.
Definition
Materials Planning and Control is a scientific technique of determining in advance the various requirements of materials, spares, equipments, etc as directed by the production programme.
Purchasing
Purchasing is defined as the act or process of buying or exchange of goods and services.
Stores & Stock Management
The stores and stock management comprises of all activities of carrying inventories of all goods handled by any organization ensuring optimal supply and customer service.
Inventory Control
Inventory is defined as those goods which are procured, stored and used for the day-to-day functioning of any organization.
Secondary Functions
Quality of materials. Delivery and storage. Transportation and handling of materials. Control of wastage. Disposal of surplus, obsolete and scrap
material.
MATERIALS MANAGEMENT & HOSPITALS OBJECTIVES
Survival & Growth.
Maximum service to customers.
Advancement to employees.
Technological lead over the competitors.
Integrated Concept
• What do you know about materials management?
• What is Rheochrematics?
• What is integration and interrelation?
• What is the main reason?
Advantages of Concept
Better Accountability.
Better Coordination.
Better Performance.
Adaptability to Programming.
Materials Manager’s Decisions
Reduce lead time.Informing suppliers.Contract with suppliers.Maintaining multiple suppliers.Control access to storage areas.
Dispose of inactive stock.
HOSPITAL MATERIALS
CLASSIFICATION
Expendables
Un-Expendables
Drugs
Consumables
Kitchen Stores
Linen Stores
Expendables
Un-Expendables-Operational
Un-Expendables-Support service
Un-Expendables
Diagnostic Equipment
Therapeutic Equipment
Bed side Equipment
Operational
Engineering
Productive Equipment
Ambulatory Equipment
Office Equipment
Service
Support Service
Hospital Operations
Clinical Operations
Non-clinical Operations
Inventory
Inventory is defined as the materials and supplies that a business or institution carries either for sale or to provide inputs or supplies to the production process.
(OR)Inventories are known as the stock of materials of any kind stored for future use, mainly in the production process.
To facilitate production operations.
To help during the lead time.
To act as a precautionary measure.
To meet various contingencies.
Purpose
Inventory Management
Inventory Management is defined as the planning and designing of procedures to maintain an optimum level of the idle sources for a predetermined service level.
OBJECTIVESMaximum customer service.
To reduce the financial investment.
Operating Efficiency.
Minimum Inventory Investment.
General Classification
Based on functions
Based on usage
Function Based
Lot size inventory
Fluctuation inventory
Anticipation inventory
Transportation inventory
Usage BasedRaw materials
Work-in-progress
Finished goods
Consumables
Packaging materials
Spare parts
Impact on Profitability
Profit = Revenue - Expenditure
R.O.I = Profit / Assets
INVENTORY FACTORS
Number of patientsThe types of services provided
Location in relation to suppliers
Inventory obsolesceneRelevant costs
Inventory Costs
• Ordering cost
• Carrying cost
• Over stocking cost
• Under stocking cost