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Understanding benchmarking.

In order to meet the challenges facing health care today, organizations are turning to new approaches. Benchmarking is one such approach. Benchmarking is externally driven, encouraging organizations to look outside their own walls to learn from others and achieve exemplar performance. Organizations can benchmark within their own systems, against competitors, against "best-in-class" companies in the same general industry and against "best-in-class" companies in different industries. A four-step approach to benchmarking includes planning, collecting information, analyzing results and adapting and improving. A benchmarking study team composed of the process owner and other users of the process conducts the study. Application of benchmarking to healthcare materiel management is particularly appropriate, since many materiel management processes occur in other industries and, therefore, best practices outside the healthcare industry may be adapted. The practice, through growing in other industries, is still very new in health care.

Data Collection↗

Materials managers earn their grades from hospital execs.

The 1994 Survey on CEO/CFO Satisfaction With and Expectations for Hospital Materials Management provides an inside look at how hospital executives size up their materials management departments. The survey of 143 hospital CEOs and CFOs conducted by Kowalski-Dickow Associates, a materials management consulting firm based in Milwaukee, sheds light on executives' perceptions of the performance, characteristics and future of materials management. Materials managers can use the information to begin--or enhance--communications with senior management. The study was completed in cooperation with the American Society for Healthcare Materials Management and Materials Management in Health Care. Funding for the survey was provided by the American Sterilizer Company (AMSCO), Erie, PA; General Medical Corp., Richmond, VA; Kimberly-Clark, Roswell, GA; Milcare/Herman Miller, Zeeland, MI; and Owens & Minor, Glen Allen, VA.

Attitude of Health Personnel↗

Communication: an essential element in internal control.

In a healthcare organization, an internal control system segregates duties by function within the organization's financial operations. But segregating duties by function can result in poor internal communication that, in turn, can undermine an organization's internal processes and procedures. Effective communication can serve as an essential link between internal controls and operational effectiveness.

Accounting↗

Materials management crucial to overall efficiency.

Because supplies are important to many departments, improved materials management may be an integral part of a hospital's productivity assessment. A successful program should encompass technical as well as managerial aspects of materials management. While looking at national performance statistics may provide a basis, each hospital should set its own standards in line with its strategic plan.

Efficiency↗

Achieving superior performance through process improvement.

The regular and continuous use of process improvement practices leads to superior performance, according to an international study of management practices. Process improvements enable hospitals to translate total quality management (TQM) and continuous quality improvement (CQI) initiatives into action. This article presents a step-by-step approach to process improvement in the hospital environment.

Management Audit↗

Developing performance measurement systems that support continuous improvement.

Many organizations are in a perpetual state of change. Changing markets, changing competition, changing organization structures, total quality initiatives, and reengineering are often the rule rather than the exception. Often these initiatives fail to yield the desired results or, in the extreme, fail entirely. The reasons for this failure, of course, can be many and multiple. However, one that often stands out is the lack of change in the performance measurement system as the needs for measurement change.

Commerce↗

CEO/CFO responses to materials management survey.

A national survey of chief executive officers (CEOs) and chief financial officers (CFOs) reveals that while CEOs and CFOs are satisfied overall with materials management at their hospitals, a number of individual facets of materials management need improvement. The survey also shows that reducing supply expenses and better managing operating room (OR) inventories are two of the best ways that materials managers can help reduce hospitals' total annual operating expenses.

Attitude of Health Personnel↗

Accountability: the force behind empowerment.

The first part of this article will focus on an examination of the more traditional practice of "process accountability," which typically uses policy-based methods that rely on the development, measurement, and reporting of standards. This will be followed up by an examination of the more ephemeral, though vastly more valuable and powerful "attitude" of "personal accountability."

Attitude↗

Performance measurements for a continuous improvement strategy.

In many organizations, performance measurement systems have not appreciably changed to reflect organizational and environmental changes. The objective of this article is to analyze the results of an inappropriate performance measurement system, define the characteristics required of a performance measurement system in a continuous improvement (CI) organization, and give some examples of more appropriate performance measures in a CI company.

Industry↗