Hospital Glove Supply Chain Proposal
Hospital Glove Supply Chain Proposal
Sal Cusumano,
Health Care Operations Management OPS/HC 571
January 17, 2011
Professor Jeff Wells
Abstract
Team A Hospital has been a successful hospital in San Francisco, California for a number of years. The hospital has often been at the cutting edge of exciting and new technology but as with many other organizations the downturn in the economy has affected the hospital’s bottom line. The CEO of Team A Hospital is looking for any way possible to help cut costs. One way to cut costs would be to use a different supplier for surgical gloves. Currently, the gloves are purchased from a local supplier, but union issues have caused the price of the gloves to rise and have led to many inconsistent deliveries, which has often put the hospital in a difficult situation. The CEO would like management to look into purchasing gloves from an international supplier, preferably in China.
MATERIALS REQUIREMENTS PLAN
Due to the many issues and problems Team A Hospital has had with the local union, the hospital has decided to look into purchasing gloves from Hello Kitty Gloves out of China. Currently Team A Hospital uses an average of 500 boxes of gloves a week. Research done by the hospital shows Hello Kitty Gloves will be able to meet all of the demands of the hospital. An agreement can also be made to guarantee next day delivery in the case of emergency, if needed. Purchasing gloves from Hello Kitty Gloves will solve all of the issues the hospital had been having with local unions. Team A Hospital will no longer have to worry about inconsistent deliveries from the union, and save money in the process.
HOW TOTAL QUALITY MANAGEMENT WILL BE USED
Total quality management (TQM) is a management approach aimed at satisfying all customer requirements, needs and expectations using a Continuous Improvement (CI) approach (Dvir, n.d.). There are six principles TQM follows to improve management. The six principles are
Sal Cusumano,
Health Care Operations Management OPS/HC 571
January 17, 2011
Professor Jeff Wells
Abstract
Team A Hospital has been a successful hospital in San Francisco, California for a number of years. The hospital has often been at the cutting edge of exciting and new technology but as with many other organizations the downturn in the economy has affected the hospital’s bottom line. The CEO of Team A Hospital is looking for any way possible to help cut costs. One way to cut costs would be to use a different supplier for surgical gloves. Currently, the gloves are purchased from a local supplier, but union issues have caused the price of the gloves to rise and have led to many inconsistent deliveries, which has often put the hospital in a difficult situation. The CEO would like management to look into purchasing gloves from an international supplier, preferably in China.
MATERIALS REQUIREMENTS PLAN
Due to the many issues and problems Team A Hospital has had with the local union, the hospital has decided to look into purchasing gloves from Hello Kitty Gloves out of China. Currently Team A Hospital uses an average of 500 boxes of gloves a week. Research done by the hospital shows Hello Kitty Gloves will be able to meet all of the demands of the hospital. An agreement can also be made to guarantee next day delivery in the case of emergency, if needed. Purchasing gloves from Hello Kitty Gloves will solve all of the issues the hospital had been having with local unions. Team A Hospital will no longer have to worry about inconsistent deliveries from the union, and save money in the process.
HOW TOTAL QUALITY MANAGEMENT WILL BE USED
Total quality management (TQM) is a management approach aimed at satisfying all customer requirements, needs and expectations using a Continuous Improvement (CI) approach (Dvir, n.d.). There are six principles TQM follows to improve management. The six principles are
References: Dvir, R. (n.d.). A TQM Approach to the Improvement of Information Quality. Retrieved from http://web.mit.edu/tqdm/papers/other/evans.html