This document outlines a quality improvement project to reduce variations in the procurement process at a hospital from October 2015 to March 2016. The project team collected data on procurement variations and identified issues like unplanned requirements, brand deviations, and consumption pattern changes. Their plan was to reduce variations to 0% by improving the procurement process, demand projection tool, and vendor follow up. Corrective actions like scheduling the projection tool, following up with vendors, and timely payments were implemented. Data showed reductions in variations over time. The conclusion states that using the PDCA model helped achieve the goal and increased the supply chain department's efficiency.

1. QUALITY IMPROVEMENT PROJECT
To Reduce the Variations in
Procurement Process
Prepared by
Mr. Rajesh
Manager – SCM, Shimoga

2. Introduction
• Supply chain department in the hospitals are
the veins of the organization through which all
the requirements for patient care like
consumables, medicines and surgical items
are made available at right location right
quantity and at right specifications with more
cost effective

3. Problem Statement
• Variations in the procurement process

4. Duration of the project
• October 2015 – March 2016 (6 months)

5. Team Member
• Mr. Rajesh – SCM Head
• Mr. Jaypal – Deputy Manager SCM
• Mrs. Prashanthi V – Store Executive
• Ms. Pallavi K – Purchase Executive
• Mr. Prateek Singh – Deputy Manager Quality

6. Data Collection
1.372%
1.151%
0.818%
2.000% 2.000% 2.000%
0.000%
0.500%
1.000%
1.500%
2.000%
2.500%
Oct'15 Nov'15 Dec'15
% of variations from the procurement process
Benchmark

7. Process Flow
Planni
ng
PR
POGRN
Consu
mption

8. loopholes
• Unplanned requirement
• Brand deviations
• Change in the consumption pattern

9. PLAN
AIM
• To reduce the variation in the procurement
process to 0%
OBJECTIVE
• To improve the procurement process of the
materials in Supply chain department
• To project the demand by running the PR tool at
scheduled time
• To follow up with the vendor

10. DO (Corrective action)
• PR Tool - scheduled a proper slot to run the tool
• Proper follow up with the vendor for the pending
items either after the lead time or within the lead
time
• PR tool designed and has a track on
– Exceptions
– Alternates
– ROL for VED
• Timely payment to vendor

11. Planning through ABC Analysis

12. ExceptionsfromformularyforPlanning

13. daytodaychangeinbrandsforcostsavings

14. Vital drugs ROL

15. CHECK
0.500%
0.320%
0.270%
2.000% 2.000% 2.000%
0.000%
0.500%
1.000%
1.500%
2.000%
2.500%
Jan'16 Feb'16 Mar'16
% of variations from the procurement process
Benchmark

16. Sustenance Plan
• The PLAN phase is successfully implemented in
the DO phase, this ACTION has achieved the goal
of the Quality improvement process in the
selected area i.e. to reduce the variation in the
procurement process and is graphically shown in
CHECK phase.
• Corrective actions have been implemented across
all the stores and counter checked by HOD on
regular basis
• Training of staff on a periodic basis have been
initiated

17. Conclusion
• This PDCA model helped the SCM department
to achieve its goal and as its one of the
quality indicator the efficiency of the
department has increased.