Materials Management Proposal
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- Date Submitted: 07/19/2010 02:19 PM
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Materials Management Proposal
As recently appointed Operations Manager of this hospital, the decision has been made to create a Materials Management Department to direct the hospital’s supply chain. Although operations management focuses on processes to produce and distribute products and services, materials management focuses on product lines or supplies. Materials management includes decisions regarding the procurement, control, handling, storage, and distribution of materials. Materials management is becoming more important because, in many organizations, the costs of purchased materials comprise more than 50% of the total production cost (Reference for Business, 2010). Integrating a centralized process will relieve clinical departments and nursing from the intricacies involved in ordering products (Langabeer, 2008) allowing employees to function and perform in their hired capacity and providing effective and efficient flows of products and services. This proposal will address effects of and justification for the planning process, constraints in the supply chain, and handling supplies during times of disaster.
The Planning Process
To achieve operational excellence at this facility, a strategy will be created through careful operational planning. Operational planning involves mapping the external opportunities and threats with the internal strengths and weaknesses to define strategic alternatives and stake out an appropriate competitive position (Langabeer, 2008). Four phases are included in the planning process: 1) analyze operations and environment; 2) generate strategic alternatives; 3) deploy strategies; and 4) measure, benchmark, review, and adjust.
The first phase, analyze and operations and environment, involves choosing a team with members from both the clinical and strategic levels to include the hospital chief executive office, the chief financial officer, the purchasing manager, the director of nursing, and the chief of medicine...
As recently appointed Operations Manager of this hospital, the decision has been made to create a Materials Management Department to direct the hospital’s supply chain. Although operations management focuses on processes to produce and distribute products and services, materials management focuses on product lines or supplies. Materials management includes decisions regarding the procurement, control, handling, storage, and distribution of materials. Materials management is becoming more important because, in many organizations, the costs of purchased materials comprise more than 50% of the total production cost (Reference for Business, 2010). Integrating a centralized process will relieve clinical departments and nursing from the intricacies involved in ordering products (Langabeer, 2008) allowing employees to function and perform in their hired capacity and providing effective and efficient flows of products and services. This proposal will address effects of and justification for the planning process, constraints in the supply chain, and handling supplies during times of disaster.
The Planning Process
To achieve operational excellence at this facility, a strategy will be created through careful operational planning. Operational planning involves mapping the external opportunities and threats with the internal strengths and weaknesses to define strategic alternatives and stake out an appropriate competitive position (Langabeer, 2008). Four phases are included in the planning process: 1) analyze operations and environment; 2) generate strategic alternatives; 3) deploy strategies; and 4) measure, benchmark, review, and adjust.
The first phase, analyze and operations and environment, involves choosing a team with members from both the clinical and strategic levels to include the hospital chief executive office, the chief financial officer, the purchasing manager, the director of nursing, and the chief of medicine...