In today’s competitive and demanding health care environment, quality care and cost reduction are paramount to an organization’s success. One management process that can help health care facilities meet this challenge is product standardization.
Inventory is closely linked to product standardization as management seeks to minimize the cost of maintaining different manufacturers’ products and a wide range of types and sizes of products.
Consolidating similar requirements into a single standard whenever possible can reduce the number of types and sizes of a product accepted as standard.
The benefits of minimizing inventory include the reduction of up-front cost, increased storage space and decreased item obsolescence.
Strategic direction
Product standardization can be a challenge because we deal with hundreds of products.
Developing, implementing and setting priorities to focus standardization efforts on priority products and equipment is essential for a successful program.
A health care facility’s policy is the starting point in the product standardization process. Written protocols should be in place to guide the process.
The process should be delineated by policy and procedure and facilitated through a multidisciplinary team or committee.
The policy and procedure set forth the objectives, duties, responsibilities and expected results of the total standardization effort.
The product standardization policy statement should clarify which products and equipment are subject to the standardization process.
Be mindful that product standardization is a continuing process, not only because new products offering technological improvements constantly are being developed, but because hospitals’ needs change.
It is important to identify where new standards are needed. Therefore, periodic review and analysis are essential for both new and existing products.
When establishing a standard, it is important that the quality level of a product be determined by the need or function it is meant to fulfill.
Purchasing a product that has quality below the level required could impair patient care, whereas a product purchase of quality above the level required may not be cost efficient.
In addition to specific criteria for an individual product, general criteria to evaluate competitive products should be agreed upon to help establish a basis for product selection.
Key factors for consideration commonly include criteria under the heading of quality, safety, service and price.
Besides the initial cost of an item, costs for storage, reprocessing, disposal and stocking also need to be considered.
The following are a few key questions to ask: Do materials, design features and benefits meet high standards so that a product can be classified as one of quality? Does the product satisfy claims for what it is intended to do, and are written validation studies available to support the claim? Are written manufacturer’s cleaning/sterilization instructions provided if applicable to the product? Is in-service support and followup provided? Is the product readily available? How long will it take for the product to be delivered from the time of purchase?
Ultimately, the goal is to establish and set product standards that will best meet patient needs. We want products that are safe, efficient and cost effective. Once standardized products have been identified, only selected products should be ordered routinely.
Product standardization, when successfully implemented and effectively maintained in a health care facility, can result in major advantages. These include reducing channels for product selection, providing consistency, promoting contract compliance and offering an inherent standardization procedure with implicit savings. Keep in mind that the absence of product standardization presents greater possibilities for product duplication, customer and patient dissatisfaction, obsolescence, waste and increased product and inventory costs.
Arlene Carlo, R.N., is a consultant, clinical specialist and educator for Case Medical Inc., Ridgefield, N.J.
This article first appeared in the December 2007 issue of Materials Management in Health Care.
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