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Demand Flow
Clinical Area
DF Stage
Demand Flow is:A two bin supplies delivery system that uses visual triggers to deliver the right supplies, to the right place, at the right cost
Demand Flow’s objective:To remove the end-user from the supplies management business, while optimizing supply availability, eliminating supplies lead time, and reducing cost
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Demand Flow
Kanbans sized exactly to LUM requirement
End-user removed from supplies management
Elimination of excess and obsolete supplies
Order placement is error-proofed
Cost per order line significantly decreased
Product standards set and maintained
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SCM Dashboard
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SCM Dashboard
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SCM Dashboard
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SCM Dashboard
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Objectives
• Save Critical Resources: Time and Money!
• Remove silos and develop a unified data driven supply chain operation
• Introduce and sustain standard work and lean processes that drives continuous improvement
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Pre-Demand Flow
Excess supplies overran clinical work areas
Unreliable methods to ensure FIFO posed a
risk to patients
Inventory levels were “eyeballed”, reorder quantity was “best
guess”
Unreliable system was driving millions in
waste
Clutter led to chaos and cost
Too much clinical time was spent searching for
supplies; delaying patient care
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Post Demand Flow
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Operating Room
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Operating Room
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GI Lab
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The Journey
Compartmentalized Supply Chain Operations
Inventory Management Push Distribution Redundancies & Rework Basic Tools &
Infrastructure Fill-rate = 82% (inpatient
only)
Unified Supply Chain Focus on Total Cost of
Ownership Variance Control Visibility to all Spend Data Driven Operation Kanban Distribution Disciplined Processes
o Standard Work Continuous Improvement
28K clinical hours saved 30% less storage space 97% overall fill-rate 37K less stat/rush orders $900K saved in medical
supply expense (ops ex) CS warehouse reduced
$300Ko 8K to 4K sqft
33% supply chain staff efficiency
o 12 to 8FTE, who now also service surgical services
OperationsJuly 2011
Current Operation
RealizedGoals
(annual numbers)
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1. Average SKU’s available = 164
2. Average time to service = 25 mins
3. Weekly time required to service floors 1-11 = 252 hours
1. Average SKU’s available = 278
2. Average time to service = 5 mins
3. Weekly time to service 1-11 under LUM = 60 hoursa. 4.0FTE efficiency improvementb. Redeployed to service OR, Lab, etc
DFGeneral Inpatient
Pre-DFGeneral Inpatient
The Journey
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Annual Savings
~$1,000,000 saved on medical supply expense!!
~28,000 clinical hours saved!!
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Program Impact
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Program Impact
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11Jul-1
1
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12Jul-1
20
500
1000
1500
2000
2500
3000
3500
4000
0
100
200
300
400
500
600
700
800
900
1000
Direct Issues
Waiting Time (HRS)
Dir
ect I
ssue
s
Hou
rs W
aitin
g
Direct Issues/Call Downs
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Lean Impact (Efficiency)
Room Size: 7ft x 12ft (84sqft)Supply Value: $8,943SKU Variety: 41
Room Size: 4ft x 7ft (28sqft)Supply Value: $1,810SKU Variety: 57
Outpatient Lab Then
Outpatient Lab Now
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Lean Impact (Rapid 5S)