evgeniy epanchintsev_12 tocpa conference_eng_april 2014_russia
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Evgeniy Epanchintsev_12 TOCPA Conference_Eng_April 2014_RussiaTRANSCRIPT
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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
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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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Clinic
Central warehouse(CW)
Department 1 Department 2 Department N
Regional
warehouse(RW)
Supplier
Supplier
Supplier
Accounting
Distribution scheme
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Clinic
Central warehouse (CW)Regional warehouse
(RW)
Supplier
Supplier
Supplier
Distribution scheme. UDE
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
Clinic
Central warehouse (CW)
Department 1 Department N
Accounting
Distribution scheme. UDE
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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:
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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.
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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
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12th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com
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: