Application of Lean Tools in Medication Ordering Systems for Hospital Speaker :Sasan T Khorasani Texas Tech University

Authors SASAN T Khorasani Jennifer Cross Ramyar Feizi MD Saiful Islam Texas Tech University Jennifer Cross Ramyar Feizi MD Saiful Islam

Introduction Lack of effective SCM increases the cost in health care Health care systems must have the ability to provide high-quality service at reasonable costs. One of the main critical aspect of supply chain management in health care is pharmaceutical SCM Lean tools are expected to be an effective way to improve agility of medication ordering systems

Supply Chain in Health Care Most of health care have realized the importance of SCM-healthcare Supply chain management practices applied to health care systems can relate to lean tools and simulation Optimization of inventory levels of drugs and the ordering process of pharmaceuticals are absolutely essential

Lean in Health Care  Lean is a philosophy centered on continually improving a process by removing non-value added elements, or ‘waste’(Ohno 1988). Most health care units face the challenge of the rising cost of their services Lean tools can help Health care organizations to reduce costs

Methodology Analyzing a hypothetical case study and improving the performance Applying integrated VSM, Simulation, and SCM methodology Pull vs Pull system

Case Study Pharmacy α meets its demands for drugs through one wholesalers in Texas Batch size for each order is 100 This study investigates the number of the discarded drugs in the current state

As-Is Model

As-Is Model results by simulation

Push System To improve the order quantity of the system, EOQ was applied. Safety Stock:

Push System Result

Pull System A Kanban system applied to the hypothetical case study Kanban is aimed to increase the agility of system Kanban is applied for eliminating non-added value

Pull System Result

Conclusion The waste values can be reduced from 16.92% (as-is model) to 5.34% (pull system) by utilizing the EOQ model together with a Kanban system. Using the push system, alone resulted in a total drug waste of 8.02% Adding Kanban to this system resulted in another waste reduction of almost 3%.

Future work Comparison between the effects of the various lean tools on waste reduction in the pharmaceutical supply chain. Validation of the results achieved from the simulation model

Reference Khorasani, S. T., Maghazei, O., & Cross, J. A. (2015, January). A STRUCTURED REVIEW OF LEAN SUPPLY CHAIN MANAGEMENT IN HEALTH CARE. In Proceedings of the International Annual Conference of the American Society for Engineering Management. (p. 1). American Society for Engineering Management (ASEM).

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