Improving Michigan Medicine’s Supply Chain Management of Hospital Supplies Final Presentation IOE 481 - Team #1 Eric Aljure Lia Busse Julie Hahn Sean Hayes Date: April 11, 2017 Lia

Introduction Lia Michigan Medicine Leaders and best in healthcare Looking to improve supply chain for medical supplies System has not been updated in 10 years Lia

Supply Chain at Michigan Medicine Previous System Needed to improve supply chain for medical supplies Inefficient and ineffective Two-Bin System New system launched with lean improvements Need to evaluate and validate Lia Looking to improve supply chain for medical supplies Current system is inefficient and ineffective Launching two-bin system to improve supply distribution Need to evaluate two-bin system

Project Plan Lia Observe Stock Keepers and Supply Replenishment Process Analyze Historical data from previous system Time study data from two-bin system Design Inputs and outputs for a simulation model Evaluate Qualitative and quantitative differences between previous and new replenishment system Lia

Deliverables Lia SIPOC and Future SIPOC Determine Input Parameters Onboarding Plan Dashboard Data Analysis Lia SIPOC and Future SIPOC Determine Input Parameters Input modeling Time Sheet for Stock Keeper Data analysis Quantify two-bin system metrics Bin turnover Stockout rates Supplemental orders

Design and Analysis of a Health Care Supply Chain Management Literature Search Prioritizing Lean Supply Chain Management Initiatives in Healthcare Service Operations Technology improves supply chain operations Simulation modeling evaluates Design and Analysis of a Health Care Supply Chain Management Defined parameters for inventory management LIA

Two-Bin Process Warehouse Two-Bin Cart Hospital Unit Supply Room Kan Ban Julie Stock keepers are responsible for supply distribution Medical supplies are delivered to warehouse Stock keeper stocks two-bin cart Manages inventory levels in specific hospital units Stock keeper goes to each unit If bin is empty (kan ban), exact order quantity is reordered

Observation: Kan Ban Julie Nurses aren’t always following protocol Not putting it in “nurse empty bins” Moving the bins around Etc

Observation: Hospital Unit 5C Julie

Observation: Stock Keeper Julie - Shadowing Mark and Two-Bin System

Simulation Model Julie Our Team Determine inputs and outputs for simulation and collect data Graduate Team Develop simulation model that can be applied to entire hospital Julie The team will focus on the inputs and definition to be for the simulation The actual development of the simulation will be handled by a graduate student class whose sole focus is simulation

Simulation Framework Sean

Simulation Sub-Process Sean

SIPOC Sean

Future SIPOC Sean

Data Analysis Sean Historical stock keeper activity data Historical Data Stock Keeper Activity Data Time Study Data Pre vs Post Pre vs Post Two-Bin System Data Analysis Sean Historical stock keeper activity data Historical time study data Time Study Data for two-bin system Analysis Methods We are currently working to analyze this data Final presentation we will present our findings Final report will share our findings

Data Analysis: Findings Sean Figure 1: Pre Two-Bin vs Post Two-Bin Analysis

Data Analysis: Conclusions Unit Interaction Post two-bin is much higher than pre-two bin Stockout Rate Decreased to 0% when two-bin was implemented Time Stocking time was almost the same Inventory time with two-bin is about 10% higher Sean Unit interaction post two-bin was much higher than pre-two bin Stockouts decreased to 0% when two-bin was implemented Time stocking is very similar/equal Time for inveontry with two-bin is approx. 10% higher

Recommendations Eric Improve Employee Communication Simulation Implementation Metric Monitoring Potential Future Modifications Eric

Improve Employee Communication Challenge Nurses don’t adhere to two-bin protocol Mitigation Plan Training program with stock keepers Informative flyers in accessible locations (nurse bathroom) Eric

Training Flyer Eric

Simulation Implementation Staffing Model Determines optimal amount of workers in new two-bin system Simulation must generate necessary variables Metrics Align tracked metrics with simulation outputs for easier analysis Dashboard tracks metrics over desired periods of time Eric

Metric Monitoring Eric

Potential Future Modifications Barcode Scanners Cost-efficient tracking of current inventory Allows for clearest visibility of current stocking needs Automatic Simulation Updates Simulation runs based on collected activity data Determine way for collected data to directly feed into simulation Eric

QUESTIONS? ERIC