Materials Management Proposal

Materials and operations caution play a crucial role in the success of any nerve. Of particular greatness to the materials and operations divisions is managements complete considering of the infirmarys functions as a whole entity. After translation this paper, one will generalise the importance of materials management and operations management as well as how both departments must(prenominal) work together to ensure the hospital runs goodly and maintains profitability.Furthermore, one will also understand the importance of a supply chain and possible constraints to the implementation of the bidding. Additionally, one will understand the effects of a new collaborative proviso transition and why much(prenominal) a process is beneficial to the hospital. Finally, suggestions will be given to enable the hospital to manage the supply chain in situations of disaster. Role of Materials and Operations Management Materials management is perhaps the most important part of health f inagle as total expenditures can total nearly 50% of a hospitals budget (Langabeer, 2008, p. 41).Materials double-deckers argon held accountable for many functions. However, the most important attribute a materials manager must possess is coordination. Materials management directs the healthcare supply chain by coordinating the flow of goods from manufacturers, through distributors, through hospital receiving docks, to the point of last-ditch use or consumption (Langabeer, 2008, p. 242). Operations management is another important function of a hospital. health care operations management is the quantitative management of the supporting problem systems and processes that transform resources (or inputs) into healthcare services (outputs) (Langabeer, 2008, p. 6). well(p) as materials managers have many functions and goals, so too do operations managers. Key functions of the operations manager embroil workflow, physical layout, capacity design, physical network optimization, staffi ng levels, proceedsivity management, supply chain and logistics management, quality management, and process engineering (Langabeer, 2008, p. ). Goals of the operations manager include reducing comprises, reducing variability and up logistics flow, improving growthivity, improving the quality of customer service, and continuously improving business processes (Langabeer, 2008). However, the most important goal operations managers must strongly consider when implementing a materials management plan is reducing costs. Operations managers have many opportunities to snip costs.Costs can be reduced by analyzing budgets, tracking resources, and finding ways to reduce product and services costs. Finding waste, improving utilization, and generally stabilizing and reducing the overall cost of delivering services are essential functions (Langabeer, 2008, p. 9). The most effective way for operations managers to reduce costs is to record all aspects of the organization and periodically revi ew progress either monthly or quarterly. A hospital with appropriate tracking and management systems will be much more likely to reduce costs because it understands the underlying cost structure (Langabeer, 2008, p. 9). A few ways materials management influences operations management are as follows the reputation of the activities in the materials management department is actually quite operational, they have an impact on downstream departments and uncomplaining satisfaction, they are labor-intensive processes, and many times they draw from the same labor talent pool (Langabeer, 2008, p. 244).Constraints to the release Chain Constraints are inevitable and every organization is prone to them whether the organization is in the manufacturing sector or service sector. A few constraints hospitals face include managing supply levels, higher labor costs, space constraints, and septuple product classifications (Sentient Health, 2007). Considering the above constraints, the main goal of both operations and materials managers is to reduce costs. The most beneficial way for hospitals to overcome constraints as well as reduce costs is to automate the supply chain. Supply mechanisation is the use of technology to streamline inventory, consumption, charging and ordering procedures. Examples of this include the use of bar codes or radio frequence identification to identify and track inventory as it moves throughout the supply chain (Sentient Health, 2007, p. 2). However forrader implementation can begin, the hospital must evaluate the advantages of automation as well as the factors the hospital must consider when deciding to implement such a system.According to Sentient Health (2007), the advantages of automation include reduced manual effort, greater information accuracy, ameliorate inventory performance, improved cash flow, improved space utilization, and improved purchasing decisions (p. 3). While sense the benefits of such a system is important to the process, conditioned which areas the system will have an effect on is detrimental to the hospitals implementation success.Factors to consider before implementing such a system include mobility, ease of use, cost/budget/objectives, flexibility/ease of integration, and reporting (Sentient Health, 2007, p. 3). personal effects and Justification of a New Collaborative Planning Process Although automation is one option for the hospital to reduce costs and improve supply chains, other options such as sales and operations planning (S&OP) and collaborative planning, forecasting, and replenishment (CPFR).The main concenter of S&OP is to coordinate demand and supply with the intention of increase the hospitals profitability (Langabeer, 2008). To ensure the S&OP process is successful, the hospitals operations management must focus on four key principles (1) provide a common base of information around the fast market dynamics (2) manage supply chain performance (3) manage product portfolios collaborat ively and (4) create business plans and scenarios in which departments can share.According to Langabeer (2008), benefits from the S&OP process include better cross-functional alignment, gap analysis, more efficient resource planning, and more effective use of promotional resources (p. 338). CPFR is another option available to the hospital. CPFR seeks to improve the affinity between retailers and suppliers with the intent to achieve full collaboration and improve the sharing of information around consumer point-of-sales information through the retail supply chain to improve overall chain performance (Langabeer, 2008, p. 338).The main end between CPFR and the other two options available to reduce costs and improve supply chains is a set of guidelines operations managers must follow during implementation. The guidelines are as follows (1) share a common ism among all parties of implementation (2) operations managers must use specific definitions and detail into the business process (3) operations managers must ensure data resulting from the process is precise, easily accessible, and understood completely by all parties pickings part in the process.Finally, for CPFR to be successful, milestones must be set. Particular milestones of importance to the hospital include an usefulness in forecasting accuracy, improvements in customer service levels or fill rates to providers, increased product line availability, reduction of inventory levels, and generally better financial cash flows (Langabeer, 2008, p. 340-341). Coping in a Disaster SituationDisaster situations are difficult to plan for because disasters are unpredictable. However, materials and operations managers must understand the implications a disaster situation has on the hospital as well as ways to efficaciously handle such a situation to ensure patient safety, customer satisfaction, and profitability remain a priority. Richey (2009) refers to a pyramid when discussing supply chains in disaster situatio ns.The composition of the pyramid includes the following tiers capstone-resource management left-facing front corner-collaboration, which is based on the relationship management theory right-facing front corner- parley, which is based on communication theory and back corner-contingency planning, which is based on the competing values theory. According to Richey (2009, p. 621), he interconnection of the above principles include (1) finding ways to effectively partner and develop improving collaborative relationships built of long-term commission (2) fostering information development and exchange for facilitating strategic planning based in limited safeguarding and (3) ontogenesis contingency programs that incorporate the flexibility for responding to the inevitable changes in expected events while pursuing sometimes discrepant goals.ConclusionMaterials and operations management work hand-in-hand to ensure the hospital runs as efficiently as possible. Furthermore, understanding all a spects of the supply chain will ensure materials and operations managers are readily equipped to accord with situations of disaster. However, operations and materials managers must understand the importance of such a concept. Understanding how to handle such a situation will ensure materials and operations managers the ability to maintain order as well as patient safety and continued profitability.