Evgeniy Epanchintsev_12 TOCPA Conference_Eng_April 2014_Russia

Applying TOC Distribution System for

medical supplies in a clinic

Evgeniy Epanchintsev, RUSSIA

26th April 2014

www.tocpractice.com

12th International Conference of the

TOC Practitioners Alliance TOCPA

April 26-27, 2014 Moscow, Russia

12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com

Evgeniy Epanchintsev

Starting from 2002 has been the Head of

the IT group at the Clinic of Traumatic

Surgery Orthopedics and Neurosurgery.

Mr. Epanchintsev has been using TOC since

2012. He takes part in the activity of the

clinic's development group and implements

projects in the area of IT support at the

Clinic

Took training courses both in Critical chain

project management and management

in distribution and retailwww.clinicniito.ru

[email protected]


Clinic

Central warehouse(CW)

Department 1 Department 2 Department N

Regional

warehouse(RW)

Supplier

Supplier

Supplier

Accounting

Distribution scheme


Clinic

Central warehouse

(CW)

Department 1

Department N

Distribution scheme. UDE

W replenishes departments upon request

All departments place requests on monthly or longer basis as a safety

Inventory of different items does not correspond to the real consumption

rate

Departments fear that when it is required they will not be

able to receive what they need

Many items in the inventory are not moving for months


Clinic

Central warehouse (CW)Regional warehouse

(RW)

Supplier

Supplier

Supplier


Inventory of different items at the CW does notcorrespond to the real

consumption rate of all departments

Size of batches from RW are determined by theavailability of items and the delivery convenience

There are supply problems of certain items, whichcauses non-availability of them both at the CW and the

departments and finally leads to customer dissatisfaction

Items with inventory above the consumption rate expire


Clinic

Central warehouse (CW)

Department 1 Department N

Accounting


Accounting of medicines andconsumables consumption is to

be performed after the patient

discharge ( 1-3 weeks delay in

the accounting, but in severe

cases - up to several months )

The system responds to the changing needs very slowly


Make to availability, avoid denial of service provision to departments

Bring stock buffer of both the departments and CW in line with real consumption

Develop a distribution scheme on TOC-basis for the whole MTA chain

Delay of transactions posting in the accounting should not exceed one day

Stage 1

Tasks of Stage 1:


Changes in an overloaded system

Treatment of patients it is impermissible to interrupt the supply of medicines and consumables

Stage 1

Additional conditions:

Peculiarities:

There are many SKU equivalents in different doses and packages


Clinic

Central warehouse (CW)

Department 1 Department N

Distribution scheme

Inventory buffer levels are determined by replenishment time (7-9 days) of each SKU Surpluses were brought in balance with calculated value. Surpluses were transferred to the central warehouse. Daily accounting of used items On a weekly basis a request is sent to the CW for the inventory replenishment based on weekly consumption. Replenishment is delivered next day Fears about not receiving what is needed were allayed. Denial of Service = an emergency.


Clinic

Central warehouse (CW)Regional warehouse

(RW)

Supplier

Supplier

Supplier

Distribution system

W buffer of each item = sum of buffer inventory at the departments (safety, "intermediate" option)

Analysis and adjustment (manual) of the departmentsbuffer-levels depending on the consumption rate

W replenishment during 1-2 days based on daily consumption

RW creates a buffer stock based on date of delivery from the Supplier. Our goal is to ensure availability for

CW, streamline supply fluctuations


Stock of medicines and consumables, $

Situation in March 2014

September 2013 March 2014

In Departments 68 13

At the central warehouse 32 51

TOTAL 100 64

Inventory turnover 5,4 8,5


Set the W buffer level according to the consumption during replenishment time (2 days)

Dynamic buffer management at the CW and the departments

Change internal CW processes

Reduce replenishment time at the departments to 1-3 days

Stage 2

Tasks of Stage 2:

Evgeniy Epanchintsev_12 TOCPA Conference_Eng_April 2014_Russia

Documents

toc since2012

toc distribution system

theavailability of items

departments place requests

departments size of

problems of certain

customer dissatisfaction

managementin distribution