Service and Operational Management Final Paper
Introduction:
In this project we will examine the procurement process for the Far Eastern Memorial Hospital for medical supplies. These medical supplies do not include the medical drugs but rather the day-to-day operation supplies and equipment that are use to for the needs to support the doctor and patient needs.
Suppliers are eager to have their new products approved and sold to the hospital. However under the current process there are a lot of inefficiencies involved with the approval process and management of the procurement operations. The issues are listed below and needs to be resolved.
Define:
Issues with the current system:
Inventory are organized and defined under the following categories under the current system:
- Y: Fast moving
- A: Slow moving
- W: Consignement
Item Categorization:
Item | Inventory Management |
Y - Fast Moving | All departments (Nurse, Surgical etc.) personnel will estimate lowest inventory QTY. Personnel will notify purchasing for replenishment when QTY reach the lowest inventory QTY. (Request->Buyer sets price and place order -> Hospital places order to vendor -> Vendor delivers the product) |
A - Slow Moving | Request to be sent out if there are needs to purchasing -> Buyer set the price and place order -> Vendor delivery to fulfill order. Post inspection of received item will reflect in current month’s report. However discrepancy will occur with QTY. |
W - Consignment | All department personnel will record the QTY and send out report per week of QTY. End of the month provide report to procurement for arrangement to place order of QTY used and payment to vendor. |
Problem: