Materials Management Proposal

Materials and trading trading trading operations direction lay out a crucial role in the success of any organization. Of incident wideness to the materials and operations divisions is managements complete assureing of the infirmarys functions as a whole entity. After reading this paper, one will understand the importance of materials management and operations management as well as how both departments mustinessiness work together to ensure the hospital runs efficiently and maintains profitability.Furthermore, one will also understand the importance of a add up filament and possible constraints to the implementation of the process. Additionally, one will understand the do of a new collaborative planning process and why such(prenominal) a process is secure to the hospital. Finally, suggestions will be given to alter the hospital to manage the turn in chain in situations of calamity. Role of Materials and trading operations Management Materials management is perhaps the most cardinal part of health care as total expenditures can total nearly 50% of a hospitals budget (Langabeer, 2008, p. 41).Materials managers are held responsible for many functions. However, the most all important(predicate) attribute a materials manager must possess is coordination. Materials management directs the health care total chain by coordinating the flow of goods from manufacturers, by means of distributors, by dint of hospital receiving docks, to the point of ultimate use or consumption (Langabeer, 2008, p. 242). trading operations management is another important function of a hospital. Healthcare operations management is the quantitative management of the supporting business systems and processes that transform resources (or inputs) into health care run (outputs) (Langabeer, 2008, p. 6).Just as materials managers have many functions and goals, so in any case do operations managers. Key functions of the operations manager hold workflow, bodily layout, ca pacity design, physical network optimization, staffing levels, productivity management, tot up chain and logistics management, fiber management, and process engineering (Langabeer, 2008, p. ). Goals of the operations manager entangle cut down greets, reducing variability and improving logistics flow, improving productivity, improving the quality of customer service, and unendingly improving business processes (Langabeer, 2008). However, the most important goal operations managers must strongly consider when implementing a materials management plan is reducing be. operations managers have many opportunities to crucify costs.Costs can be lessen by analyzing budgets, tracking resources, and purpose ship canal 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 palingenesis progress either monthly or quarterly. A hospital with inhibit tracking and management systems will be much more possible to reduce costs because it understands the underlying cost structure (Langabeer, 2008, p. 9). A hardly a(prenominal) ways materials management influences operations management are as follows the constitution of the activities in the materials management department is actually quite operational, they have an clashing on downstream departments and longanimous satisfaction, they are labor-intensive processes, and many multiplication they draw from the same labor talent pool (Langabeer, 2008, p. 244).Constraints to the Supply chain of mountains 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 bring out levels, higher labor costs, space constraints, and multiple product classifications ( sensate 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 stream clientele inventory, consumption, charging and ordering procedures. Examples of this include the use of bar codes or radio frequency identification to identify and track inventory as it moves throughout the supply chain (Sentient Health, 2007, p. 2). However before 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. concord to Sentient Health (2007), the advantages of automation include reduced manual effort, greater knowledge accuracy, modify inventory exertion, improved cash flow, improved space utilization, and imp roved purchasing decisions (p. 3). While understanding the benefits of such a system is important to the process, knowing which areas the system will have an effect on is hurtful 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). cause and Justification of a New Collaborative Planning Process Although automation is one resource 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 focus of S&OP is to coordinate demand and supply with the intention of increasing the hospitals profitability (Langabeer, 2008). To ensure the S&OP process is successful, the hospitals operations management must focus on four-spot key principles (1) provide a plebeian base of information ne arly the immediate market dynamics (2) manage supply chain writ of execution (3) manage product portfolios collaboratively 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 relationship between retailers and suppliers with the intent to achieve in force(p) 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 difference 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 com mon philosophy among all parties of implementation (2) operations managers must use proper(postnominal) 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 victorious part in the process.Finally, for CPFR to be successful, milestones must be set. Particular milestones of importance to the hospital include an improvement 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). make do in a Disaster SituationDisaster situations are touchy 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 effectively handle such a situation to ensure patien t of safety, customer satisfaction, and profitability remain a priority. Richey (2009) refers to a pyramid when discussing supply chains in disaster situations.The composition of the pyramid includes the following tiers capstone-resource management left-facing presence corner-collaboration, which is based on the relationship management theory right-facing front corner-communication, 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 construct of long-term commitment (2) fostering information development and exchange for facilitating strategic planning based in limited safeguarding and (3) developing contingency programs that coordinated the flexibility for responding to the inevitable changes in expected events while pursuing sometime s inconsistent goals.ConclusionMaterials and operations management work hand-in-hand to ensure the hospital runs as efficiently as possible. Furthermore, understanding all aspects of the supply chain will ensure materials and operations managers are readily equipped to roll in the hay with situations of disaster. However, operations and materials managers must understand the importance of such a concept. thought 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.