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

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

3. 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

4. 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

5. 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

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

7. 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

8. As-Is Model

9. As-Is Model results by simulation

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

11. Push System Result

12. 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

13. Pull System Result

14. 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%.

15. 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

16. 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).

17. Thank you!