Optimization of the
supply chain within
AZ Jan PortaelsAZ Jan Portaels
Agenda
• Frank Deckmyn: Director Facility Services AZ Jan Portaels
• Gunter Fonteyne: Partner Xeleos Health Care Solutions
Introduction AZ Jan Portaels1Scope and Objectives of the project2Situation before the project3Supply Chain Concepts Used4Methodology/Change Mgt/Planning5Results of the project6Situation after the project7
1.Introduction AZ Jan Portaels
Total yearly
purchase
430 beds
565 FTE +
112
Specialists
Total annual
turnover :
81.411.848 €
purchase
cost including
medicines:
18.247.741
Specialists
Employees
business unit
Facility Dept:
109 FTE
Employees
Supply Chain
within Facility
17 FTE
3311 SKU’s
2.Scope and Objectives of the project
• Objectives: Reduction supply chain cost, optimization all
resources and improve service levels
• Scope: Flows between central warehouse and internal
departments in both directions excluding drugs and
medicines
3.Situation before the project
3.Situation before the project
• Causes of these bottlenecks:
– Missing clear lean processes, procedures and working
instructions
– Defragmented supply chain organization
– No optimal supply chain infrastructure
– No efficient supporting information technology
• Impact bottlenecks:
– High stock levels/High working capital
– High total cost of ownership within purchasing
– Negative perception service level
– No recall management
– No focus on core activities by nursing
4.Supply Chain Concepts Used
• Lean Business Process Management
• Introduction 5S in central warehouse and wards
4.Supply Chain Concepts Used
• Introduction of inventory management with ABC analysis
• Introduction of KANBAN on the wards
5.Change Mgt/Methodology/Planning
•Change Mgt important: focus on key user management
•Pragmatic approach
•Methodology SAP WMS:ASAP
•Methodology Project Mgt: Prince II
Q2 2009
Start BPM,
Organization
Q3 2009
Start
optimization
existing
technology ,
infrastructure
warehouse
Q1 2010
Go live optimised
technology, start
infrastructure wards
2009
5.Change Mgt/Methodology/Planning
Q2/
2009
Q2 2010
Introduction
Kanban, start
WMS project
Q4 2010
Start roll out
other dept.
Q3 2010
Go live WMS
with scanning
Q4
2011
Q4 2011
Completion roll
out
2009
6.Results of the project
• Estimated Cost of the project:
6.Results of the project
• Soft benefits of the project:
– Improved service levels and positive perception
services
– Focus on core activities nursing staff
– Better management information
– Risk management (contingency with procedures )– Risk management (contingency with procedures )
– Recall management
6.Results of the project
• Hard benefits of the project:
Q1 2010
Optimisation technology:
210.000€
Q2 2010
Q4 2011
Total Benefits:
831.100€
Total
831.100€
Q2 2010
Introduction KANBAN:
17.382€
Q3 2010-Q4 2011
Estimation optimization inventory
wards after roll out :
491.345€
Q3 2010-Q4 2011
Estimation
optimazation reduction
expired stock:
112.373€
7.Situation after the project
7.Situation after the project
Quote from Head Nurse Surgery:“Eindelijk is er een overzicht over onze produkten.
We vinden de produkten redelijk snel omdat de schuiven
doorzichtig zijn. De verzorgingskarren zijn snel aangevuld en
bevinden zich centraal in de berging.
De voorraden zijn kleiner op onze dienst.
Wij hebben een beter overzicht wat voldoende in
voorraad is en wat er moet bijbesteld worden”voorraad is en wat er moet bijbesteld worden”