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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. Observation: Hospital Unit 5C
Julie

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

11. 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

12. Simulation Framework
Sean

13. Simulation Sub-Process
Sean

14. SIPOC
Sean

15. Future SIPOC
Sean

16. 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

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

18. 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

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

20. 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

21. Training Flyer
Eric

22. 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

23. Metric Monitoring
Eric

24. 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

25. QUESTIONS?
ERIC