National Hospital Procurement
Conference
Improving Operational Efficiencies
through
Optimising Warehousing Systems
Adeel A...
Presentation Overview
• Introduction to Alfred Health
• Supply Chain Operations
• Key Challenges
• Key Achievements
• Futu...
Introduction
Alfred Health – a three campus health provider servicing
inner south-eastern Melbourne
The Alfred - largest a...
Key Statistics
974 beds across 3 campuses
• The Alfred (600+)
• Caulfield Hospital (approx. 200)
• Sandringham Hospital (a...
Major Services Offered
Community hospital, general medical & surgical,
Maternity, ED etc.
Heart & lung transplantation, ma...
Supply Chain Operations
Warehouse Operations Team
Key Supply Chain Metrics
Procurement
- Alfred Health Annual Budget : $890m
- Goods and Services Annual Spend : $291m (32%)...
KEY CHALLENGES
People/Systems
•Efficiency Dividend/Cost reduction target (5%)
•System Robustness
•Lack of Technology
•Storage space limit...
Change Management
• Unknown current state
• Lack of clear goals/complexity
• Fear of failure
Common Barriers
Efficiency Improvement
Initiatives
Visual Management
Introduction
What’s in it for Me?
Recognition
With clear quantitative targets and visual management
everyone can understand the actual ...
Operations Control Board
Ongoing Projects Key Metrics Staff Allocation Warehouse KPI’s
Skill Matrix Suggestions OHS issues...
Skill Matrix
Access
current
skill level
Identify
Gaps
Provide
Training
Staff
Rotation
Up skilling workforce
• Promoted internal training at Alfred Health
• Utilised training that is government funded
• Rebate...
SWOT Analysis
• Identify team
weakness/threats and
utilize strengths to
overcome them
Nurturing Positive Culture
Rewards and Recognition
• Acknowledgment and positive reinforcement
• Rewards
• Non monetary rewards
• Specialised trainin...
RESOURCE BALANCING
Labour Balancing
457 mins
425 mins
Staff
overworked Gaps
Team Activities
• Quality Control Circles – Productivity improvement tool
Quality Control
Circles
• Team Selection
• Problem Identification
• Theme selection
• Data Analysis
• Best possible soluti...
Space Optimization
Data Analysis
Identify non critical lines that are
large in volume
New strategy to distribute
non critical lines
Desktop d...
Nutrition & Medical
Records stock (BEFORE)
New theatre lines
added (AFTER)
Achievements/Return
SPACE COSTS OHS ISSUES
• 30% of warehousing space released - valued at 200k
• Labour cost savings - 50...
Imprest storage space (before)
Imprest storage space (after)
STAFF EVALUATION
MATRIX
Shift from
mid to top
Shift from
bottom to
mid
Industrial Relations
• Performance management
• Effective communications
with Unions
Future Projects
• Incorporating technology (RF scanning in Imprest,
Picking and receiving etc.)
• Economic Order Quantity ...
Customer Engagement
• Half yearly social gatherings
• Department visits
• Work towards a closer relationship
Summary of initiatives
• Visual Management (Operations Control Board)
• Implementation of a skill matrix
• Trainings Gover...
Questions?
The End
Thank you for your time & attention
Adeel Ahmed - Alfred Health - Improving Operational Efficiencies through Optimising Warehousing Systems
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Adeel Ahmed - Alfred Health - Improving Operational Efficiencies through Optimising Warehousing Systems

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Adeel Ahmed delivered the presentation at the 2014 National Hospital Procurement Conference.

The 2014 National Hospital Procurement Conference explored a number of cost-saving measures in the hospital procurement ecosystem. Highlights included sessions on improving efficiency, savings and patient safety within Australian Hospitals.

For more information about the event, please visit: http://bit.ly/hosprocurement14

Published in: Leadership & Management
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Adeel Ahmed - Alfred Health - Improving Operational Efficiencies through Optimising Warehousing Systems

  1. 1. National Hospital Procurement Conference Improving Operational Efficiencies through Optimising Warehousing Systems Adeel Ahmed - Operations Manager
  2. 2. Presentation Overview • Introduction to Alfred Health • Supply Chain Operations • Key Challenges • Key Achievements • Future Projects • Summary of Initiatives • Change Management • Customer Engagement
  3. 3. Introduction Alfred Health – a three campus health provider servicing inner south-eastern Melbourne The Alfred - largest and best known of the campuses is co-located with Baker IDI, Burnet Institute and Monash University, together forming Alfred Medical Research and Education Precinct – AMREP
  4. 4. Key Statistics 974 beds across 3 campuses • The Alfred (600+) • Caulfield Hospital (approx. 200) • Sandringham Hospital (approx. 100) 2012-13 Alfred Health • Treated 100,000 inpatients • Saw 155,000 outpatients • Employed nearly 8,000 staff
  5. 5. Major Services Offered Community hospital, general medical & surgical, Maternity, ED etc. Heart & lung transplantation, major trauma, adult burns , Large ICU, bone marrow transplant, renal transplant, 2 EDs, dialysis etc. Some acute general medical, residential aged care, rehabilitation, community based services, new ABI unit etc.
  6. 6. Supply Chain Operations
  7. 7. Warehouse Operations Team
  8. 8. Key Supply Chain Metrics Procurement - Alfred Health Annual Budget : $890m - Goods and Services Annual Spend : $291m (32%) - Total no. of Contracts managed : 495 - Total annual value of Contracts : $221m - Total Spend under Management : 76% - Cost savings (Annual) : $3m Warehousing and Distribution - Inventory Lines (SKU) : 1100 - Total Inventory Value : $987k - Stock turns : 15
  9. 9. KEY CHALLENGES
  10. 10. People/Systems •Efficiency Dividend/Cost reduction target (5%) •System Robustness •Lack of Technology •Storage space limitations •Staff skill level •Performance Management/Industrial Issues •Change Management •Customer Engagement
  11. 11. Change Management
  12. 12. • Unknown current state • Lack of clear goals/complexity • Fear of failure Common Barriers
  13. 13. Efficiency Improvement Initiatives
  14. 14. Visual Management Introduction
  15. 15. What’s in it for Me? Recognition With clear quantitative targets and visual management everyone can understand the actual condition.
  16. 16. Operations Control Board Ongoing Projects Key Metrics Staff Allocation Warehouse KPI’s Skill Matrix Suggestions OHS issues Process Flow General Notices Warden list Breaks Schedule Warehouse Layout
  17. 17. Skill Matrix
  18. 18. Access current skill level Identify Gaps Provide Training Staff Rotation
  19. 19. Up skilling workforce • Promoted internal training at Alfred Health • Utilised training that is government funded • Rebates received used for more specialised training • Promoted knowledge sharing sessions • Develop a learning culture
  20. 20. SWOT Analysis • Identify team weakness/threats and utilize strengths to overcome them
  21. 21. Nurturing Positive Culture
  22. 22. Rewards and Recognition • Acknowledgment and positive reinforcement • Rewards • Non monetary rewards • Specialised training for high achievers
  23. 23. RESOURCE BALANCING
  24. 24. Labour Balancing 457 mins 425 mins Staff overworked Gaps
  25. 25. Team Activities • Quality Control Circles – Productivity improvement tool
  26. 26. Quality Control Circles • Team Selection • Problem Identification • Theme selection • Data Analysis • Best possible solution • Presentation to Management
  27. 27. Space Optimization
  28. 28. Data Analysis Identify non critical lines that are large in volume New strategy to distribute non critical lines Desktop delivery model using supplier web portals Remove stock and change warehouse layout Inventory review
  29. 29. Nutrition & Medical Records stock (BEFORE)
  30. 30. New theatre lines added (AFTER)
  31. 31. Achievements/Return SPACE COSTS OHS ISSUES • 30% of warehousing space released - valued at 200k • Labour cost savings - 50k , Inventory cost savings - 200k • OHS incidents prior to change 2, after change 0
  32. 32. Imprest storage space (before)
  33. 33. Imprest storage space (after)
  34. 34. STAFF EVALUATION MATRIX
  35. 35. Shift from mid to top Shift from bottom to mid
  36. 36. Industrial Relations • Performance management • Effective communications with Unions
  37. 37. Future Projects • Incorporating technology (RF scanning in Imprest, Picking and receiving etc.) • Economic Order Quantity (EOQ) formulation for setting inventory levels • Introduction of 5S (Sort, set, shine, standardise and sustain) - TPS philosophies
  38. 38. Customer Engagement • Half yearly social gatherings • Department visits • Work towards a closer relationship
  39. 39. Summary of initiatives • Visual Management (Operations Control Board) • Implementation of a skill matrix • Trainings Government funded training programs • Quality Control Circles (QCC) • SWOT Analysis (Identify Strengths and Weaknesses) • Labor balancing technique • Employee evaluation matrix • Effective Performance Management •Customer Engagement
  40. 40. Questions?
  41. 41. The End Thank you for your time & attention

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