CASE STUDY       OFMEDITECH SURGICAL               JOHN             ASHOK             S AT H I A               NITHI      ...
INTRO: MEDITECH SURGICAL• LARGO HEALTH CARE COMPANY • MEDITECH SURGICAL – ENDOSCOPIC   INSTRUMENTS• STRATEGY FOLLOWED • AG...
V.P. OPS                         DIRECTOR   DIR PLG,  PM 1       PM 2        SUPPLIER   DISTN &                           ...
ENDOSCOPIC SURGICAL      INSTRUMENTSPermits minimally invasive surgeryMarket created in early 80’s, rapidly growingOld pro...
CASE: MEDITECH SURGICAL Intent – diagnosis of supply   chain Business overview Supply chain Production planning – 6 weeks ...
BUSINESS OVERVIEWNational and Meditech split the marketCompete based on product innovations, customer service, costNationa...
EXTERNAL SUPPLY CHAIN                                                   Hospitals                                      Dom...
INTERNAL SUPPLY CHAINParts Inventory   Assembly   Bulk Inventory   Packaging &                                            ...
PRODUCTION PLANNINGAnnualForecast            Monthly            Revision                         Transfer                 ...
Monthly        PRODUCTION PLANNING    Plan                             MRP                                                ...
WHAT IS GOING ON?Demand is quite predictableUsage in hospitals is quite stableMarket share moves slowly over timeWith each...
WHAT’S WRONG?Poor service for new product introductionsPoor forecasting?Panic ordering?And high FG inventory
WHY DID MEDITECH THINKDEMAND WAS UNPREDICTABLE?Poor information systemsNo one looked at demandNo one had responsibility fo...
WHAT TO DO?Recognize that demand is stable and  predictableEstablish accountability for forecastEliminate planning delays ...
CASE DISCUSSION QUESTIONS1. WHAT AREMEDI TECH’ S PROBLE MSIN I NTRODUCI NG NEWPRODUCTS ? INMANUFACTURI NG ALLPRODUCTS ?
CASE DISCUSSION QUESTIONS2. WHAT IS DRIVINGTHESE PROBLE MS,BOTHSYSTEMATICALLY ANDORGANIZATIO NALLY?
CASE DISCUSSION QUESTIONS3. WHY IS THECUSTOME R SERVICEMANAGE R THE FIRSTPERSON TORECOGNISE THEMAJOR ISSUES?
CASE DISCUSSION QUESTIONS4. HOW WOULD YOUFIX THESEPROBLEMS?
THANKYOU
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Scm case 1

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Scm case 1

  1. 1. CASE STUDY OFMEDITECH SURGICAL JOHN ASHOK S AT H I A NITHI KRISHNA
  2. 2. INTRO: MEDITECH SURGICAL• LARGO HEALTH CARE COMPANY • MEDITECH SURGICAL – ENDOSCOPIC INSTRUMENTS• STRATEGY FOLLOWED • AGGRESSIVE COMPETITION (NATIONAL MED CORP) • NEW INNOVATIVE INSTRUMENTS • FIRST CLASS SALES FORCE • RAPID PRODUCT DEVELOPMENT • FLAWLESS REPUTATION - VISION • MORE THAN 200 PRODUCTS
  3. 3. V.P. OPS DIRECTOR DIR PLG, PM 1 PM 2 SUPPLIER DISTN & MGMT CS CENTRAL BU PLANNING CS & BU DISTRIBUTI ON INVENTORQUALITY YSUPPORT LOGISTICSSERVICES MATERIAL
  4. 4. ENDOSCOPIC SURGICAL INSTRUMENTSPermits minimally invasive surgeryMarket created in early 80’s, rapidly growingOld products continually updated and replaced with new product introductions
  5. 5. CASE: MEDITECH SURGICAL Intent – diagnosis of supply chain Business overview Supply chain Production planning – 6 weeks LT What’s wrong? How to fix it?
  6. 6. BUSINESS OVERVIEWNational and Meditech split the marketCompete based on product innovations, customer service, costNational sells to physicians; Meditech sells to material managersCustomer preferences change slowly
  7. 7. EXTERNAL SUPPLY CHAIN Hospitals Domestic DealersPart Meditech Meditechsuppliers Assembly Warehouse Hospitals Int’l Meditech Affiliates
  8. 8. INTERNAL SUPPLY CHAINParts Inventory Assembly Bulk Inventory Packaging & Sterilization FG Inventory2 - 16 2 1weeks weeks week
  9. 9. PRODUCTION PLANNINGAnnualForecast Monthly Revision Transfer Requirements Monthly Plan MRP Parts Weekly Procurement Assembly Plan Schedule
  10. 10. Monthly PRODUCTION PLANNING Plan MRP Order point; Material Order quantity PlanParts Inventory Assembly Bulk Inventory Packaging & FG inventory Sterilization
  11. 11. WHAT IS GOING ON?Demand is quite predictableUsage in hospitals is quite stableMarket share moves slowly over timeWith each new product, dealer must build inventory to fill pipeline
  12. 12. WHAT’S WRONG?Poor service for new product introductionsPoor forecasting?Panic ordering?And high FG inventory
  13. 13. WHY DID MEDITECH THINKDEMAND WAS UNPREDICTABLE?Poor information systemsNo one looked at demandNo one had responsibility for forecast errorsTendency to shift the blameBuilt-in delays and monthly buckets in planning systemAmplifier in planning system
  14. 14. WHAT TO DO?Recognize that demand is stable and predictableEstablish accountability for forecastEliminate planning delays and/or reduce time bucketAlternatively, put assembly within pull system and eliminate bulk inventory
  15. 15. CASE DISCUSSION QUESTIONS1. WHAT AREMEDI TECH’ S PROBLE MSIN I NTRODUCI NG NEWPRODUCTS ? INMANUFACTURI NG ALLPRODUCTS ?
  16. 16. CASE DISCUSSION QUESTIONS2. WHAT IS DRIVINGTHESE PROBLE MS,BOTHSYSTEMATICALLY ANDORGANIZATIO NALLY?
  17. 17. CASE DISCUSSION QUESTIONS3. WHY IS THECUSTOME R SERVICEMANAGE R THE FIRSTPERSON TORECOGNISE THEMAJOR ISSUES?
  18. 18. CASE DISCUSSION QUESTIONS4. HOW WOULD YOUFIX THESEPROBLEMS?
  19. 19. THANKYOU

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