Hospital Topics
ISSN: 0018-5868 (Print) 1939-9278 (Online) Journal homepage: http://www.tandfonline.com/loi/vhos20
Materials Management: An Inexpensive Model for a Materials Management System Richard J. Kutilek M.P.S. , Frank A. Calamari M.B.A. & John F. Rhoder M.P.A. To cite this article: Richard J. Kutilek M.P.S. , Frank A. Calamari M.B.A. & John F. Rhoder M.P.A. (1977) Materials Management: An Inexpensive Model for a Materials Management System, Hospital Topics, 55:5, 42-45, DOI: 10.1080/00185868.1977.9950428 To link to this article: http://dx.doi.org/10.1080/00185868.1977.9950428
Published online: 13 Jul 2010.
Submit your article to this journal
Article views: 1
View related articles
Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=vhos20 Download by: [York University Libraries]
Date: 07 November 2015, At: 08:18
An Inexpensive Model For A Materials Management System
Downloaded by [York University Libraries] at 08:18 07 November 2015
By: RICHARD 1. KUTILEK, M.P.S. Associate Director Bronx Municipal Hospital Center
FRANK A. CALAMARI, M.B.A. Associate Director Bronx Municipal Hospital Center
JOHN F. RHODER, M.P.A. Deputy Director Bronx Municipal Hospital Center
Currently Associate Director of Bronx Municipal Hospital Center. Received a B.A. from St. Francis College (Pa.), M.P.S. in Health Care Administration from C. W. Post College - Long Island University A.H.A. (Member).
Currently Associate Executive Director of Bronx Municipal Hospital Center, wceiwd an A.A.S. Academy of Aeronautics, B.A. Queens College, M.B.A. Health Care Admini+vtration Bauch - Mt. Sinai School of Medicine. A. H.A. (Member), ACHA (Nominee), Metropolitan Health Administration Association (Member), H.S.A. (Member).
Currently Deputy Execu tiw Director of Bronx Municipal Hospital Center. Received a B.S. from lona College, M.P.A. Health Administration from New York Uniwrsity.
urrent literature in the field suggests that a hospital must embark upon a centralized computerized materials management system headed by one person, a Materials Manager, in order to affect desirable functional and financial changes in its supply system. '
C
1. Dimensions
in Healih Service, Vol. 51, No. 10, PROVOCATIVE APPROACHES TO MATERIALS MANAGEMENT, October 1974. pp. 32-38.
2. Maierials Management, Myron L. Olmn, HOSPITALS, XA.H.A., April I, 1972. 3. Materials Management Will Work in Hospiials - Part I, Harold E. Feardon, Ph.D., HOSPITAL PROGRESS, March 1967.
42
However, a program of this type requires high capital outlay for the various hardware and software components of a true centralized system. Due to this, based on its large size, low degree of mechanization and poor capital financing position, the authors found this not to be the best immediate approach for the Bronx Municipal Hospital Center. One of t h e Bueieut Medical Centers
The Bronx Municipal Hospital Center, affiliated with the Albert Einstein College of Medicine, is a 965 bed complex composed of two acute care hospitals, (Abraham Jacobi Hospital and Nathan
HOSPITAL TOPICS
Downloaded by [York University Libraries] at 08:18 07 November 2015
B. Van Etten Hospital). The Center provides all of the basic clinical and sub-specialty services and has an operating budget of over $88 million. In FY '75'76 B.M.H.C. delivered 261,576 inpatient days of care, had 454,783 out-patient visits, and experienced 179,767 visits to its emergency room. Based on these quantitative and qualitative workload measures, B.M.H.C. is one of the busiest medical centers in the New York City area. The large volume of patients treated on a daily basis requires that a tremendous amount of supplies and equipment be readily available for use by the hospital staff. Data for FY '75'76 shows that B.M.H.C. spent over $2,302,836 for drugs, $2,059,638 for surgical supplies and $691,081 for raw food. An ever increasing workload, causing an increasing demand for supplies and operating equipment, dictates that the administration of Bronx Municipal Hospital Center strive for the most efficient requisition, purchase, inventory, receipt, and distribution systems possible in order to deliver high quality patient care while applying the soundest business and economic principals to allocating diminshing resources during a time of fiscal depression.
Program Analysis
A programmatic analysis conducted during the 1973-1974 fiscal year exhibits the following data: A.
Area
Medical/Surgical Household Food Total
B.
FV 1973-1974 Invwtery
$1.582.433
$1 78.935
8.4
11%
1,081,993
204,025
5.3
18%
77.997
11.848
Merchandise
TUI~OWI
Inventory I %of Total Expmnditura
795.661 50,250 ~~$3,538,084
$445,058
6.5 15.8 7.9
15%
6% 12.4%
Functional Analysis 1. Department Heads Impressions Unanimously, the heads of the various departments were unhappy with the way the system operated. Their critiques centered around two major points: a. The unfamiliarity of the Materials Manager with the many highly specific, or interchangeable items in their inventories due to the complicated nature of the products lines, (especially involving pharmaceuti cal and M edicaI/Surgical supplies). Also, the inability of the Materials Manager to rank, in priority order, which supply problem should be given greater attention and which were of less significance.
~
SEPTEMBER/OCTOBER 1977
FV 19731974 Expnditura
~
Pharmacy
Prior Organization
In January 1973, the organizational structure of the Bronx Municipal Hospital Center included a position of Materials Manager, reporting to the Hospital Controller, who was responsible to order, receive, inventory, distribute, and chargeback all pharmaceutical, food, household, and surgical sup plies for the B.M.H.C. complex. The Materials Manager functioned on an equal organizational level as the Director of Purchasing services. Requests for additions or deletions to the item catalog would flow through the Materials Manager and the Purchasing Director to the department heads down to the specialized professional committees charged with evaluating hospital products, (e.g. Pharmacy & Therapeutics Committee, Product Evaluation Committee). If, for any reason. a stockout occurred on a particular item, the Materials Manager would be responsible to decide on the appropriate action to alleviate the condition. The Materials Manager was given specific budgets for each area of supplies; inventory reports were available to him for each area. Purchasing, requisitioning, receiving, and inventorying were done on a manual basis. Distribution was accomplished manually by use of a three man crew and one 18,000 lb. delivery truck. Chargebacks to cost centers were calculated manually but compiled and accumulated by use of computer.
Financial Analysis (Table I1
b. Since the B.M.H.C. system operated without a computer, the paper flow involved added greatly to lead times and also diminished the value of the perpetual inventory cards. This created stockout situations where the Department Head was caught in the middle of the consumer (M.D. or nurse) and the provider (Materials Manager) and had to pass complaints or inquiries through himself to the Materials Manager while being held immediately responsible for not having the specific item available. C.
Personnel Analysis The Department of Materials Management was located in the Storehouse Building, a separate facility on the B.M.H.C. campus, and had the following personnel assigned to it:
43
TABLE OF ORGANIZATION 1 Principal Storekeeper 1 Senior Storekeeper 5 Stockmen 2 Stock Assistants 4 Butchers 3 Supervisory Clerks 6 Senior Clerks 10 Institutional Aides 1 Administrative Assistant 1 Driver 35
Downloaded by [York University Libraries] at 08:18 07 November 2015
D.
Evaluation As mentioned, deliveries were made by a three man crew who many times were reassigned from the various storerooms for this task. It was not uncommon to have a man loading a skid in the storehouse basement, transporting and loading it on the truck, traveling with the truck to the hospital receiving platform, delivering the item(s1 to their destination, and possibly having to walk the 1/8 mile back to the storehouse. It was also not uncommon, to have the delivery truck idle for periods as the driver waited for the deliverymen to return from their destination. In addition, there were numerous complaints of late or lost deliveries by the various operating departments. As shown in Table I, the merchandise turnover level of 7.9 for all items was inefficiently low. The total inventory of 8445,058 representing 12.4% of total expenditures was inefficiently high.
FIndi ngo
Based on the above, clearly the current, centralized, Materials Management system was not providing optimum results for the B.M.H.C. complex; consequently, the administration after many input, analysis, and planning sessions with all concerned, decided to adopt a trial program which would decentralize, in varying degrees, certain supply areas from the centralized Materials Management-Purchasing loop to local departmental control. Proposed Organization
The plan adopted was as follows: It was decided to take three major supply areas, Pharmaceuticals, Medical/Surgical Supply, and 44
Food and turn control of their ordering and inventory over to the respective department heads. The Pharmacy and Food Service Directors immediately welcomed this reorganization of responsibility. The Director of Central Sterile Supply, recently reorganized as an administrative division, also welcomed this reorganization of responsibility. Responsibility for household supplies and the receiving function would remain with the Materials Manager. It was also decided that a specialized delivery team, whose sole job would be to deliver items within the hospital, would be needed. The Associate Director of Support Services welcomed the idea and its potential for further application in the hospital complex. The departments were assigned the task of developing functional plans for decentralizing the Materials Management function taking into account their own special needs and characteristics. The plans were: Pharmacy
The Director of Pharmacy Services requested to assume the materials management and also the purchasing function for his areas. Pharmacy would prepare and cut the purchase orders, (many times phoning the order in and following up with the paper work), the Purchasing Department would issue purchase order numbers in blocks to them while monitoring their dollar expenditures on a daily basis. Pharmacy would maintain their own manual perpetual inventory and establish reorder points for each item. The additional personnel required were as follows: 4 Clerks - to prepare the purchase orders, expedite overdue items and maintain perpetual inventory cards. 1 Stockman - to receive items and issue to working stock area. 1 Administrative Assistant - to supervise ordering levels and establish reordering points. MedIcal/Surglcal
The Director of Central Sterile Supply requested to assume the Materials Management function for this area. He would forward purchase requisitions directly to Purchasing for items used in Central Sterile Supply and those issued formerly from “Stores”. Since it was found that no standardized catalog existed for surgical supplies he would HOSPITAL TOPICS
develop one to insure that items were not being bought directly by the hospital and also specialized clinical areas. Central Sterile Supply would be responsible to monitor perpetual inventory records and establish reorder points. The additional personnel required were as follows: 5 Stockmen - to receive, warehouse and prepare items f o r delivery. 1 Clerk - to maintain the perpetual inventory system. I Administrative Assistant - to develop purchase requisitions and establish reorder patterns.
Downloaded by [York University Libraries] at 08:18 07 November 2015
Food
The Director of Food Services requested to assume the Materials Management function for her area. She would forward purchase requisitions directly to Purchasing for all foods used in the complex. If a problem with a vendor arose she would decide on an alternate product or a menu change. Food Service would be responsible to monitor perpetual inventory records and establish reorder levels. The additional personnel required were as follows: 2 Stockmen - to receive, warehouse and prepare items for delivery. 1 Administrative Assistant - to develop purchase requisitions and establish reorder patterns. 4 Butchers - to receive and prepare meats for use in the complex. Delivery Team
The Associate Director for Support Services designated the Delivery Team to function solely in the hospital. They would meet the truck at the hospital platform and deliver the items to their destination. The truck would immediately return to the storehouse to reload. The personnel required for this function were as follows: 3 Deliverymen I Driver
Hournohold Supplies, Chargeback and Receiving
Would remain under the Materials Manager with personnel distributed in the following manner: SEPTEMBE R/OCTOBER 1977
Household Supplies - 2 Stockmen Receiving - 5 Receiving Men Chargeback - 7 Clerks Remultm Personnel
The new plan utilized personnel resources more efficiently; the total amount of personnel in the new plan was 38. This compared to a total of 39 in the old plan; 35 people in Materials Management*, plus 1 Buyer and 3 Clerks from Purchasing who were responsible for pharmaceutical purchases. FinancialAnalysis
The new plan significantly reduced inventory costs and increased usage control. As shown in Table 11, merchandise turnover and inventory levels for all the decentralized departments were reduced. TABLE I 1 Arn Pharmacy Medical/Surgical Household
Food Total
FY 1976-1976 Expanditurn $2,302,826
FY 19751976 lnvmtow $ 83,762
lnwntwy n Marchandiu % of Total Turnovar Expmditura 27.4 3%
2,069,638
203,316
10.1
9%
147.071
32,096
4.6
21%
691,080 $6.200415
37,432 $356.696
10.4 14.6
5%
6.0%
Functional Analysis
Operationally, all department heads involved reported satisfaction with the new system. Since Pharmacy assumed total control of their supply function, they developed the most sophisticated system of control; these entailed statistical analyses and a pilot project for a computerized, on-line inventory and reorder system. Central Supply and Food Service were able to combat increases in workload and inflation while effecting decreases in unit costs based on the increased control entailed in the new system.
Summary
The current decentralized material management system at the Bronx Municipal Hospital Center has produced significant financial and operational payoffs for the administration. In addition, the zero cost input for the new system during a time of fiscal constraint should serve as a model for other hospital centers striving for additional materials control but unable or unwilling to expend a large amount of funds. *See Material Management Table of Organization.
45
ISSN: 0018-5868 (Print) 1939-9278 (Online) Journal homepage: http://www.tandfonline.com/loi/vhos20
Materials Management: An Inexpensive Model for a Materials Management System Richard J. Kutilek M.P.S. , Frank A. Calamari M.B.A. & John F. Rhoder M.P.A. To cite this article: Richard J. Kutilek M.P.S. , Frank A. Calamari M.B.A. & John F. Rhoder M.P.A. (1977) Materials Management: An Inexpensive Model for a Materials Management System, Hospital Topics, 55:5, 42-45, DOI: 10.1080/00185868.1977.9950428 To link to this article: http://dx.doi.org/10.1080/00185868.1977.9950428
Published online: 13 Jul 2010.
Submit your article to this journal
Article views: 1
View related articles
Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=vhos20 Download by: [York University Libraries]
Date: 07 November 2015, At: 08:18
An Inexpensive Model For A Materials Management System
Downloaded by [York University Libraries] at 08:18 07 November 2015
By: RICHARD 1. KUTILEK, M.P.S. Associate Director Bronx Municipal Hospital Center
FRANK A. CALAMARI, M.B.A. Associate Director Bronx Municipal Hospital Center
JOHN F. RHODER, M.P.A. Deputy Director Bronx Municipal Hospital Center
Currently Associate Director of Bronx Municipal Hospital Center. Received a B.A. from St. Francis College (Pa.), M.P.S. in Health Care Administration from C. W. Post College - Long Island University A.H.A. (Member).
Currently Associate Executive Director of Bronx Municipal Hospital Center, wceiwd an A.A.S. Academy of Aeronautics, B.A. Queens College, M.B.A. Health Care Admini+vtration Bauch - Mt. Sinai School of Medicine. A. H.A. (Member), ACHA (Nominee), Metropolitan Health Administration Association (Member), H.S.A. (Member).
Currently Deputy Execu tiw Director of Bronx Municipal Hospital Center. Received a B.S. from lona College, M.P.A. Health Administration from New York Uniwrsity.
urrent literature in the field suggests that a hospital must embark upon a centralized computerized materials management system headed by one person, a Materials Manager, in order to affect desirable functional and financial changes in its supply system. '
C
1. Dimensions
in Healih Service, Vol. 51, No. 10, PROVOCATIVE APPROACHES TO MATERIALS MANAGEMENT, October 1974. pp. 32-38.
2. Maierials Management, Myron L. Olmn, HOSPITALS, XA.H.A., April I, 1972. 3. Materials Management Will Work in Hospiials - Part I, Harold E. Feardon, Ph.D., HOSPITAL PROGRESS, March 1967.
42
However, a program of this type requires high capital outlay for the various hardware and software components of a true centralized system. Due to this, based on its large size, low degree of mechanization and poor capital financing position, the authors found this not to be the best immediate approach for the Bronx Municipal Hospital Center. One of t h e Bueieut Medical Centers
The Bronx Municipal Hospital Center, affiliated with the Albert Einstein College of Medicine, is a 965 bed complex composed of two acute care hospitals, (Abraham Jacobi Hospital and Nathan
HOSPITAL TOPICS
Downloaded by [York University Libraries] at 08:18 07 November 2015
B. Van Etten Hospital). The Center provides all of the basic clinical and sub-specialty services and has an operating budget of over $88 million. In FY '75'76 B.M.H.C. delivered 261,576 inpatient days of care, had 454,783 out-patient visits, and experienced 179,767 visits to its emergency room. Based on these quantitative and qualitative workload measures, B.M.H.C. is one of the busiest medical centers in the New York City area. The large volume of patients treated on a daily basis requires that a tremendous amount of supplies and equipment be readily available for use by the hospital staff. Data for FY '75'76 shows that B.M.H.C. spent over $2,302,836 for drugs, $2,059,638 for surgical supplies and $691,081 for raw food. An ever increasing workload, causing an increasing demand for supplies and operating equipment, dictates that the administration of Bronx Municipal Hospital Center strive for the most efficient requisition, purchase, inventory, receipt, and distribution systems possible in order to deliver high quality patient care while applying the soundest business and economic principals to allocating diminshing resources during a time of fiscal depression.
Program Analysis
A programmatic analysis conducted during the 1973-1974 fiscal year exhibits the following data: A.
Area
Medical/Surgical Household Food Total
B.
FV 1973-1974 Invwtery
$1.582.433
$1 78.935
8.4
11%
1,081,993
204,025
5.3
18%
77.997
11.848
Merchandise
TUI~OWI
Inventory I %of Total Expmnditura
795.661 50,250 ~~$3,538,084
$445,058
6.5 15.8 7.9
15%
6% 12.4%
Functional Analysis 1. Department Heads Impressions Unanimously, the heads of the various departments were unhappy with the way the system operated. Their critiques centered around two major points: a. The unfamiliarity of the Materials Manager with the many highly specific, or interchangeable items in their inventories due to the complicated nature of the products lines, (especially involving pharmaceuti cal and M edicaI/Surgical supplies). Also, the inability of the Materials Manager to rank, in priority order, which supply problem should be given greater attention and which were of less significance.
~
SEPTEMBER/OCTOBER 1977
FV 19731974 Expnditura
~
Pharmacy
Prior Organization
In January 1973, the organizational structure of the Bronx Municipal Hospital Center included a position of Materials Manager, reporting to the Hospital Controller, who was responsible to order, receive, inventory, distribute, and chargeback all pharmaceutical, food, household, and surgical sup plies for the B.M.H.C. complex. The Materials Manager functioned on an equal organizational level as the Director of Purchasing services. Requests for additions or deletions to the item catalog would flow through the Materials Manager and the Purchasing Director to the department heads down to the specialized professional committees charged with evaluating hospital products, (e.g. Pharmacy & Therapeutics Committee, Product Evaluation Committee). If, for any reason. a stockout occurred on a particular item, the Materials Manager would be responsible to decide on the appropriate action to alleviate the condition. The Materials Manager was given specific budgets for each area of supplies; inventory reports were available to him for each area. Purchasing, requisitioning, receiving, and inventorying were done on a manual basis. Distribution was accomplished manually by use of a three man crew and one 18,000 lb. delivery truck. Chargebacks to cost centers were calculated manually but compiled and accumulated by use of computer.
Financial Analysis (Table I1
b. Since the B.M.H.C. system operated without a computer, the paper flow involved added greatly to lead times and also diminished the value of the perpetual inventory cards. This created stockout situations where the Department Head was caught in the middle of the consumer (M.D. or nurse) and the provider (Materials Manager) and had to pass complaints or inquiries through himself to the Materials Manager while being held immediately responsible for not having the specific item available. C.
Personnel Analysis The Department of Materials Management was located in the Storehouse Building, a separate facility on the B.M.H.C. campus, and had the following personnel assigned to it:
43
TABLE OF ORGANIZATION 1 Principal Storekeeper 1 Senior Storekeeper 5 Stockmen 2 Stock Assistants 4 Butchers 3 Supervisory Clerks 6 Senior Clerks 10 Institutional Aides 1 Administrative Assistant 1 Driver 35
Downloaded by [York University Libraries] at 08:18 07 November 2015
D.
Evaluation As mentioned, deliveries were made by a three man crew who many times were reassigned from the various storerooms for this task. It was not uncommon to have a man loading a skid in the storehouse basement, transporting and loading it on the truck, traveling with the truck to the hospital receiving platform, delivering the item(s1 to their destination, and possibly having to walk the 1/8 mile back to the storehouse. It was also not uncommon, to have the delivery truck idle for periods as the driver waited for the deliverymen to return from their destination. In addition, there were numerous complaints of late or lost deliveries by the various operating departments. As shown in Table I, the merchandise turnover level of 7.9 for all items was inefficiently low. The total inventory of 8445,058 representing 12.4% of total expenditures was inefficiently high.
FIndi ngo
Based on the above, clearly the current, centralized, Materials Management system was not providing optimum results for the B.M.H.C. complex; consequently, the administration after many input, analysis, and planning sessions with all concerned, decided to adopt a trial program which would decentralize, in varying degrees, certain supply areas from the centralized Materials Management-Purchasing loop to local departmental control. Proposed Organization
The plan adopted was as follows: It was decided to take three major supply areas, Pharmaceuticals, Medical/Surgical Supply, and 44
Food and turn control of their ordering and inventory over to the respective department heads. The Pharmacy and Food Service Directors immediately welcomed this reorganization of responsibility. The Director of Central Sterile Supply, recently reorganized as an administrative division, also welcomed this reorganization of responsibility. Responsibility for household supplies and the receiving function would remain with the Materials Manager. It was also decided that a specialized delivery team, whose sole job would be to deliver items within the hospital, would be needed. The Associate Director of Support Services welcomed the idea and its potential for further application in the hospital complex. The departments were assigned the task of developing functional plans for decentralizing the Materials Management function taking into account their own special needs and characteristics. The plans were: Pharmacy
The Director of Pharmacy Services requested to assume the materials management and also the purchasing function for his areas. Pharmacy would prepare and cut the purchase orders, (many times phoning the order in and following up with the paper work), the Purchasing Department would issue purchase order numbers in blocks to them while monitoring their dollar expenditures on a daily basis. Pharmacy would maintain their own manual perpetual inventory and establish reorder points for each item. The additional personnel required were as follows: 4 Clerks - to prepare the purchase orders, expedite overdue items and maintain perpetual inventory cards. 1 Stockman - to receive items and issue to working stock area. 1 Administrative Assistant - to supervise ordering levels and establish reordering points. MedIcal/Surglcal
The Director of Central Sterile Supply requested to assume the Materials Management function for this area. He would forward purchase requisitions directly to Purchasing for items used in Central Sterile Supply and those issued formerly from “Stores”. Since it was found that no standardized catalog existed for surgical supplies he would HOSPITAL TOPICS
develop one to insure that items were not being bought directly by the hospital and also specialized clinical areas. Central Sterile Supply would be responsible to monitor perpetual inventory records and establish reorder points. The additional personnel required were as follows: 5 Stockmen - to receive, warehouse and prepare items f o r delivery. 1 Clerk - to maintain the perpetual inventory system. I Administrative Assistant - to develop purchase requisitions and establish reorder patterns.
Downloaded by [York University Libraries] at 08:18 07 November 2015
Food
The Director of Food Services requested to assume the Materials Management function for her area. She would forward purchase requisitions directly to Purchasing for all foods used in the complex. If a problem with a vendor arose she would decide on an alternate product or a menu change. Food Service would be responsible to monitor perpetual inventory records and establish reorder levels. The additional personnel required were as follows: 2 Stockmen - to receive, warehouse and prepare items for delivery. 1 Administrative Assistant - to develop purchase requisitions and establish reorder patterns. 4 Butchers - to receive and prepare meats for use in the complex. Delivery Team
The Associate Director for Support Services designated the Delivery Team to function solely in the hospital. They would meet the truck at the hospital platform and deliver the items to their destination. The truck would immediately return to the storehouse to reload. The personnel required for this function were as follows: 3 Deliverymen I Driver
Hournohold Supplies, Chargeback and Receiving
Would remain under the Materials Manager with personnel distributed in the following manner: SEPTEMBE R/OCTOBER 1977
Household Supplies - 2 Stockmen Receiving - 5 Receiving Men Chargeback - 7 Clerks Remultm Personnel
The new plan utilized personnel resources more efficiently; the total amount of personnel in the new plan was 38. This compared to a total of 39 in the old plan; 35 people in Materials Management*, plus 1 Buyer and 3 Clerks from Purchasing who were responsible for pharmaceutical purchases. FinancialAnalysis
The new plan significantly reduced inventory costs and increased usage control. As shown in Table 11, merchandise turnover and inventory levels for all the decentralized departments were reduced. TABLE I 1 Arn Pharmacy Medical/Surgical Household
Food Total
FY 1976-1976 Expanditurn $2,302,826
FY 19751976 lnvmtow $ 83,762
lnwntwy n Marchandiu % of Total Turnovar Expmditura 27.4 3%
2,069,638
203,316
10.1
9%
147.071
32,096
4.6
21%
691,080 $6.200415
37,432 $356.696
10.4 14.6
5%
6.0%
Functional Analysis
Operationally, all department heads involved reported satisfaction with the new system. Since Pharmacy assumed total control of their supply function, they developed the most sophisticated system of control; these entailed statistical analyses and a pilot project for a computerized, on-line inventory and reorder system. Central Supply and Food Service were able to combat increases in workload and inflation while effecting decreases in unit costs based on the increased control entailed in the new system.
Summary
The current decentralized material management system at the Bronx Municipal Hospital Center has produced significant financial and operational payoffs for the administration. In addition, the zero cost input for the new system during a time of fiscal constraint should serve as a model for other hospital centers striving for additional materials control but unable or unwilling to expend a large amount of funds. *See Material Management Table of Organization.
45
