Vendor Managed Inventory (VMI) & Linen Asset Management Platform (LAMP) of Ren Ci Hospital

Transcription

1 Vendor Managed Inventory (VMI) & Linen Asset Management Platform (LAMP) of Ren Ci Hospital Loh Shu Ching World Congress on Integrated Care November

2 AT A GLANCE Staff Strength Local 40% Foreign 61% Nursing 66% Administration 17% Allied Health 12% 509 Ancillary Support 3% Doctors 2% 3 Facilities 15 Wards Bed Occupancy Rate 530 Beds Sep % 92.2% 97.4% 96.5% Total patients served in FY12/13 across all Ren Ci facilities: 1707 (Information updated as of 30 September 2013)

3 REN CI HOSPITAL AT A GLANCE Progress and Transformation Origin: 174 beds : 444 beds Today: 530 beds Community Hospital begins operation 2015: 802 beds Moving into new Nursing Home at Bukit Batok St 52 Ren Ci Hospital established Sep 1994 Expansion to Nursing Home Jun 1999 Dec 2008 Q Reaching out to more needy sick and frail seniors in the community

4 MATERIALS MANAGEMENT DEPARTMENT Before Nov 2012 No MM system Relied on manual tracking Tedious procurement process Information Deficit / no visibility Unable to establish accountability (individuals, wards) Unable to control pilferages and losses No knowledge of utilisation patterns Unable to perform accurate budget forecasts Manual linen counting process (manpower and accuracy issues) Problem recruiting staff 4

5 Not Sustainable.. 5

6 REN CI S RESPONSE VENDOR MANAGED INVENTORY SYSTEM 6

7 Vendor Managed Inventory (VMI) Scope Material Planning at Institution and Ward levels. Store Management. Auto -Top Up (On-Site) Provide Stock Consumption and Visibility at wards Ease of Scalability Pay-Per-Top-Up Model 7

8 Before Implementing Vendor Managed Inventory (VMI) Ward Store Ward Store Ward Store CH Central Store LTC Stores NH Stores Multiple deliveries to central stores from suppliers Purchases are not consolidated Lack of stock consumption visibility at the wards led to ineffective replenishment High inventory holding (4 weeks at central store and 2 weeks in the wards)

9 Current VMI Model Site A Bin RFID System Ward Store Ward Store Site B 3PL Managed Warehouse Implementation at 3 sites, 500 beds Consolidated deliveries to sites Reduction of central stores No stock take and store activities in Central Store Reduction of stockholding from 6 weeks to 2 weeks Consolidated purchasing for 3 sites Consumption tracking at the wards Delivery to wards Ward Store Ward Store Ward Store Site C One Supply Chain Integrated System (From Purchasing to Consumption)

10 Nursing Home Pre-Setup status Post-Setup status

11 NURSING HOME RFID Replenishment System using two-bin Kanban method Eliminates counting Improves space utilization First in First Out; Reduces waste

12 Community Hospital Pre-Setup status Post-Setup status

13 Monthly Consumption Average Consumption for the past 6 months ( Mar 13 to AUG 13 ) CHMO $ CHOFP $3, CHW11 $6, CHW12 $5, CHW13 LTCMO $ $5, LTCOFP $3, LTCWA&B LTCWC&D NHMO $ $21, NHOFP NHW502 NHW503 NHW504 NHW505 NHW506 NHW508 NHW509 $- $2, $4, $4, $4, $3, $5, $6, $8, $8, $10, $15, $20, $23, $25,000.00

14 Benefits Before After Reduced Inventory Holding at Central Storage Area (reduced Capital Outlay; pay-per-top-up) Reduction of Storage Area (central Stores) (Freed up Hospital space) Reduction of procurement & Planning Activities Per annum 4 weeks No Inventory 200sqm About 2,400 PO O sqm. 610 PO (75% reduction) Non-stock purchases Reduction of Stock take items 432 SKU 20 SKU (non medical) Reduction of Nurses Effort in Store Related Activities Per annum 728 hours (14 per week) No required Stock Consumption and Visibility Limited Information Ward Level Visibility

15 LINEN ASSET MANAGEMENT PLATFORM (LAMP) 15

16 Linen Asset Management Platform (LAMP) Scope Leasing of linens Procurement & Material Planning of Linen Linen distribution Managing laundry performance Joint linen loss management 16

17 Linen Asset Management Platform (LAMP) LAMP Accessories 17

18 Hospital s Pain Points Inability to accurately count linen (especially soiled linen) Difficulty in establishing taking- / handing-over accountability Overstocking of linen items to meet fulfillment / compensate losses Inability to control pilferages & losses Potential Benefits Accurate inventory accounting through an automated, paperless system Automated accountability log with date & time stamps Substantial reduction in buffer stocks to optimal par level Substantial reduction in linen losses enabled by asset visibility Billing inaccuracies Accurate & automated billing process Lack of accurate data for long-term planning / proactive decision making Availability of accurate, consistent real-time data on common platform

19 Linen Management Total Linen Deployed Qty 1

20 Costs and funding Cost involved for this project - 3 years project costs about $1 million - 17% is the set-up cost - Tap on AIC Healthcare Productivity Fund (HPF) - HPF funded 2/3 of the set up cost 20

21 Benefits Benefits Just-In-Time Inventory System 1) Reduction in central store inventory Holding 2) Reduction in Storage 3) Reduction in Stock Items Productivity Outcomes (KPIs) 1)100% 2) 100% 3) 95% 1)100% 2) 100% 3) 95% Achieved Outsource Management 4) Reduction in manpower 4) 90% 4) 80% Use of IT System 5) Reduction in Procurement and Planning Activities 6) weekly saving in nursing manpower 5) 72% 6) 14 hours 5) 75% 6) 14 hours 21

22 Lessons Learnt Constant communication at every step Change is hard HR must be involved at the start Anticipate teething problems - identify ward stock - Product standardisation - Par levels established Issues with non-stock management 22

23 Thank you! For more information, log on to 71 Irrawaddy Road Singapore Tel: Fax: