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Materials Management- basic introduction Materials Management- importance Materials Management- various functions Materials Management-

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Presentation on theme: "Materials Management- basic introduction Materials Management- importance Materials Management- various functions Materials Management-"— Presentation transcript:










10 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 Share Holders BOD CEO Personnel Manager Financial Manager Materials Manager Production Manager Marketing Manager


20 Primary Functions 1 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 M ATERIALS M ANAGEMENT & H OSPITALS O BJECTIVES 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 Managers Decisions Reduce lead time. Informing suppliers. Contract with suppliers. Maintaining multiple suppliers. Control access to storage areas. Dispose of inactive stock.


33 Drugs Consumables Kitchen Stores Linen Stores

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

35 Diagnostic Equipment Therapeutic Equipment Bed side Equipment

36 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 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 O BJECTIVES 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 Profit = Revenue - Expenditure R.O.I = Profit / Assets

46 I NVENTORY F ACTORS 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

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