Ops/hc 571 - Hospital Glove Supply Chain Proposal

Hospital Glove Supply Chain Proposal

OPS/HC571

October 5, 2012

Hospital Glove Supply Chain Proposal

Succession Health Care System has been recognized as a primer center of excellence that provide care for the community. The hospital had been a leader in utilizing new technology and the developed of cutting edge programs for their patients helping us be a leader in health care. Today hospitals are under enormous financial pressure in maintain cost while still provide a high service quality. To maintain this strong lead role Succession is looking at opportunities for savings through the organization.

The CEO of Succession has asked the leadership team to develop and analysis cost saving measures for the organizations. A great opportunities lies within the hospital supply chain process for hospital executives seeking to reduce cost, and gain new efficiencies. One measure the team is addressing is the utilization and acquisition of non-surgical a surgical gloves. Gloves are currently acquired through local suppliers. Union issues have arisen increasing the glove cost and inconsistent delivery practices that have financial and quality implications for Succession. The leadership team is assessing the process of glove purchase through internal supplier such as china as a mean of deceasing cost while still providing service quality.

Materials Requirement Plan

Succession Operational and material management leaders must establish a material requirement plan (MRP) for obtaining gloves through new vendors. Material planning is necessary to optimize and organize the flow of materials within the production process to achieve increased productivity. Addressing material flow consist of organized, structured and consist movement of product within the material requirement plans. The efficient utilization of space with stock can help lower investment cost and increase saving for the origination. Top key process development must include Inventory control, Establishment of consistent delivery schedules and the implementation of inventory control. An analysis of past practice is critical in determining necessary changes for future success. Properly maintained inventory of the current glove stocks from the onset are critical for ensuring minimal stockpiling with future orders. Another key component is the analysis data of the process. Reports generated need to include accessibility, demand, and supply history, forecasting capabilities and market benchmarking trends. In moving forward Succession must look at integration internet based technology to increase the efficiency of MRP systems that will help decreasing cost.

Total Quality Management Process Evaluation

Organizations must remain competitive and maintain high customer satisfaction to gain a market edge. Tools and techniques of total quality management (TQM) are useful to aid supply chain management (SCM) toward improvement goals. TQM and SCM share the goal of cost reduction; TQM focuses more on quality aspects to reach this goal and SCM on supply delivery (Talib, Rahman, & Qureshi, 2010). However both approaches influence improved customer satisfaction and competitiveness. "TQM practices are related to performance throughout the supply chain and certain practices leads to better performance" (Talib, Rahman, & Qureshi, 2010, p. 56). TQM offers tools supporting developing total integration along the supply chain. TQM plays a key role in evaluating implementation of the new SCM process and uses monitoring techniques during process improvement for continuous follow up.

TQM helps strengthen communication along the supply chain. One TQM improvement method is Six Sigma. With direction from the chief executive officer (CEO), EVSC will use Six Sigma as the quality method for determining process improvements in the glove supply chain (University of Phoenix, 2002). Six Sigma focuses on reducing defects or variations in a process; it uses data collection, process charts, statistical tools and analysis, and control charts for tracking improvement (Langabeer, 2008). One helpful tool is an as-is and improvement phase flowchart (see Appendix ???). These process charts show a current workflow and one with the streamlined workflow. Six Sigma uses the structured process of DMAIC: define, measure, analyze, improve, and control. Using these tools will help identify opportunities to reduce supply chain variations; Six Sigma tools such as control charts or dashboards permit administrators to track ongoing progress.

Project Management Evaluation Tools

Several project management tools are available to evaluate the proposed process. Six Sigma uses DMAIC as the process improvement structure. A Gantt chart is a useful tool to manage DMAIC projects by using bars indicating project activities over a timeline (Langabeer, 2008). The different DMAIC sections are split along the upper horizontal axis with the activities within each section along the y-axis. The Gantt chart is an easy-to-use chart depicting key tasks, resources, and needed time for completing project tasks.

Another useful project management tool is a dashboard or scorecard. Like a Gantt chart these tools outline key deliverables for a project. Dashboards or scorecards monitor estimated timelines, costs, scope, risks, and project progress (Langabeer, 2008). With the EVSC Six Sigma project the Gantt chart using the DMAIC framework serves as the best resource for tracking the progress and keeping members on task.

Financial Forecasting

The