9. Materials management & hscm

10. OBJECTIVES Materials Management- basic introduction
Materials Management- importance
Materials Management- various functions
Materials Management- hospital operations
Materials Management & SCM
Materials Management & IT
Role of Physician in Materials Management
Supply chain managers
Inventory Management & SCM

11. Introduction Materials 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.

12. Evolution In 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.

13. 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.

14. 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.

15. Scope Starts with planning and purchasing.
Ends with social responsibility of customers.
Effects ROI & profitability.

16. Differences Importance Cost Classification Customer Quality
Quality Control
Purchase
Import
Conversion

17. Materials Management -Healthcare
Timing of the materials
Patient Safety
Materials Cost

18. Organization CMD BOD CEO Share Holders Personnel Manager Financial
Materials
Manager
Production
Manager
Marketing
Manager

19. Functions
Broad Classification
PRIMARY FUNCTIONS
SECONDARY FUNCTIONS

20. 1 Primary Functions Material Planning & Control Purchasing
Storing & Stock Keeping
Inventory

21. 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.

22. 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.

23. Purchasing
Purchasing is defined as the act or process of buying or exchange of goods and services.

24. 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.

25. Inventory Control
Inventory is defined as those goods which are procured, stored and used for the day-to-day functioning of any organization.

26. Secondary Functions Quality of materials. Delivery and storage.
Transportation and handling of materials.
Control of wastage.
Disposal of surplus, obsolete and scrap material.

27. Materials Management & Hospitals Objectives
Survival & Growth.
Maximum service to customers.
Advancement to employees.
Technological lead over the competitors.

28. Integrated Concept What do you know about materials management?
What is Rheochrematics?
What is integration and interrelation?
What is the main reason?

29. Advantages of Concept Better Accountability. Better Coordination.
Better Performance.
Adaptability to Programming.

30. Benefits of Concept
Reliable and accurate performance for desired results.
Strict adherence to plans and schedules.
Timely and optimum materials procurement.
Optimum inventory turnover.
Good vendor-vendee relations.

31. Materials Manager’s Decisions
Reduce lead time.
Informing suppliers.
Contract with suppliers.
Maintaining multiple suppliers.
Control access to storage areas.
Dispose of inactive stock.

32. Hospital Materials Classification
Expendables
Un-Expendables

33. Expendables
Drugs
Consumables
Kitchen Stores
Linen Stores

34. Un-Expendables Un-Expendables-Operational
Un-Expendables-Support service

35. Operational Diagnostic Equipment Therapeutic Equipment
Bed side Equipment

36. Support Service Engineering Productive Equipment Ambulatory Equipment
Office Equipment
Service

37. Hospital Operations
Clinical Operations
Non-clinical Operations

38. 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.

39. Purpose To facilitate production operations.
To help during the lead time.
To act as a precautionary measure.
To meet various contingencies.

40. 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.

41. Objectives Maximum customer service.
To reduce the financial investment.
Operating Efficiency.
Minimum Inventory Investment.

42. General Classification
Based on functions
Based on usage

43. Function Based Lot size inventory Fluctuation inventory
Anticipation inventory
Transportation inventory

44. Usage Based Raw materials Work-in-progress Finished goods Consumables
Packaging materials
Spare parts

45. Impact on Profitability
Profit = Revenue - Expenditure
R.O.I = Profit / Assets

46. Inventory Factors Number of patients The types of services provided
Location in relation to suppliers
Inventory obsolescene
Relevant costs

47. Inventory Costs Ordering cost Carrying cost Over stocking cost
Under stocking cost