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How to use benchmarking to reduce planning and purchasing costs
1Eastman Kodak Company, Rochester, NY, USA.
Hospital Materiel Management Quarterly
|July 6, 1997
Summary
Materiel management teams can demonstrate their value by benchmarking their services. This approach provides data-driven answers to justify staffing and improve inventory management and total cost.
Area of Science:
- Operations Management
- Supply Chain Management
Background:
- Materiel management departments often face scrutiny regarding staffing levels.
- A disconnect exists between management's perception of staffing needs and the department's operational requirements.
Purpose of the Study:
- To address the recurring question of "Why do you have so many people?" with data.
- To validate the necessity and effectiveness of materiel management services through objective analysis.
- To initiate a benchmarking project to improve planning, purchasing, and scheduling.
Main Methods:
- Initiated a benchmarking project in early 1993.
- Focused on comparing planning, purchasing, and scheduling services with other companies.
- Aimed to gather data to answer "How do you know?" regarding operational efficiency.
Main Results:
- The benchmarking project provided insights into the operations of other companies.
- The study aimed to demonstrate the materiel management group's expertise and value.
- Techniques for initiating and conducting benchmarking were developed.
Conclusions:
- Benchmarking provides a data-driven method to justify staffing and operational needs.
- Understanding and demonstrating the value of materiel management is crucial for resource allocation.
- Implementing benchmarking can lead to improved planning, purchasing, and scheduling processes.