Materials Management Proposal
Materials Management Proposal
Laura Dean
2/7/2011
Materials Management Proposal
Materials and operations management play a crucial role in the success of any organization. Of particular importance to the materials and operations divisions is management’s complete understanding of the hospitals 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 must work together to ensure the hospital runs efficiently and maintains profitability. Furthermore, one will also understand the importance of a supply chain and possible constraints to the implementation of the process. Additionally, one will understand the effects of a new collaborative planning process and why such 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 care as "total expenditures can total nearly 50% of a hospital's budget" (Langabeer, 2008, p. 241). Materials managers are held responsible 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 ultimate use or consumption” (Langabeer, 2008, p. 242).
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 healthcare services (outputs)” (Langabeer, 2008, p. 6). Just as materials managers have many functions and goals, so too do operations managers. Key functions of the operations manager include “workflow, physical
Laura Dean
2/7/2011
Materials Management Proposal
Materials and operations management play a crucial role in the success of any organization. Of particular importance to the materials and operations divisions is management’s complete understanding of the hospitals 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 must work together to ensure the hospital runs efficiently and maintains profitability. Furthermore, one will also understand the importance of a supply chain and possible constraints to the implementation of the process. Additionally, one will understand the effects of a new collaborative planning process and why such 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 care as "total expenditures can total nearly 50% of a hospital's budget" (Langabeer, 2008, p. 241). Materials managers are held responsible 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 ultimate use or consumption” (Langabeer, 2008, p. 242).
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 healthcare services (outputs)” (Langabeer, 2008, p. 6). Just as materials managers have many functions and goals, so too do operations managers. Key functions of the operations manager include “workflow, physical
References: Langabeer, J. R. (2008). Health care operations management: A quantitative approach to business and logistics. Sudbury, MA: Jones and Bartlett Publishers, Inc. Richey, R.G. (2009). The supply chain crisis and disaster pyramid: A theoretical framework for understanding preparedness and recovery International Journal of Physical Distribution & Logistics Management, 39 (7), 619-628 DOI: 10.1108/09600030910996288 Sentient Health Pte Ltd. (2007). Reducing hospital waste using open supply automation. Retrieved February 7, 2011 from http://www.sentienthealth.com/en/downloads/supply.pdf