Page 39 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes and the Mayo Clinic formed a collaboration in 2010 called the Healthcare Transformation
Group that seeks to facilitate the adoption and implementation of GS1 Standards. GS1 is a
voluntary, global standards group that brings together all relevant stakeholders, including
hospitals, manufacturers, distributors and group purchasing organizations.
Hospitals may need to update their materials management information systems and
enterprise resource planning systems to be able to accept and use supply chain standards.
Most newer systems already have the capabilities. Joseph Dudas, vice chair of supply
chain management at the Mayo Clinic, Rochester, Minn., says two things will drive
standards adoption: the desire to improve patient safety and regulations that demand it.
The Food and Drug Administration is poised to roll out a unique device identification
system for medical devices. “If organizations are not mobilizing and preparing now to
adopt these standards, the cost to implement quickly will increase,” says O’Bara. “The
requirement to do this is coming.”

Dudas urges CEOs to challenge supply chain leaders to spur adoption. “Every dollar
saved in the supply chain goes right to the bottom line,” he notes. “CEOs need to recognize
the importance of the supply chain and treat it as a strategic function. They need to ask
hard questions of supply chain leaders and set aggressive goals.”
Question:

1. What do you understand from the given case?
2. Write down the case facts.

Source: http://www.hhnmag.com/hhnmag/jsp/articledisplay.jsp?domain=HHNMAG&dcrpath= HHNMAG/Article/data/
06JUN2012/0612HHN_FEA_dataGATE

3.5 Summary

 Codification/cataloguing is basically an identification system for each item of the
inventory.
 Standardization supports the fundamental precepts of build-to-order and mass
customisation.

 Unique identification of the materials – whether they are raw materials, work-in-process
or finished goods – is the first step towards a good materials management system.
 In codification system, the codes should consist of minimum possible number of digits.

 The coding system should be logically fit for the needs of the users and the methods of
data processing employed.
 The code design should be flexible to accommodate changes without disturbing existing
codes.
 Numerical Method is used where materials accounting is to be mechanized by use of
punched cards or computers.

 In numerical cum alphabetical method both numerical along with alphabet is allotted for
each item.

 Standardization enables the materials manager to achieve overall economy and ensures
interchangeability of parts.
 By using national standards, it is easier to locate sources of supplies and in the case of
machine parts, the replacements can be obtained easily.

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