HOUSEKEEPING
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Case Discussion
HILLVIEW HOSPITAL
AGENDA
01
03
HOW TO APPROACH
CASE STUDIES
CLASS DISCUSION
02
BREAKOUT ROOMS
01
HOW TO APPROACH
CASE STUDIES
UNDERSTANDING
THE PROBLEM
What info. is
needed?
What are the decision
criteria?
What is the decision that
needs to be made?
What is the issue?
UNDERSTANDING
THE PROBLEM
• What is the nature of the problem being faced?
• What functional unit(s) in the organization does the issue
affect?
• What is the context?
•
6 Ps: Plant, Parts, People, Partners, Policies, Processes
What is the issue?
UNDERSTANDING
THE PROBLEM
• Large-scale problems could have multiple solutions
• Break problems down into individual decisions to create
action plan
What is the decision that
needs to be made?
What is the issue?
UNDERSTANDING
THE PROBLEM
• What are your competitive priorities?
Cost, Quality, Delivery, Flexibility
• What, if any, ethical issues should be considered?
What are the decision
criteria?
What is the decision that
needs to be made?
What is the issue?
UNDERSTANDING
THE PROBLEM
• What data will you need to collect?
• What type of quantitative/qualitative analysis can guide
your decision?
What info. is
needed?
What are the decision
criteria?
What is the decision that
needs to be made?
What is the issue?
02
BREAKOUT ROOM
DISCUSSION
CASE SUMMARY
WHAT IS THE ISSUE?
WHAT DECISION(S) NEED TO BE MADE?
WHAT ARE THE DECISION CRITERIA?
WHAT INFORMATION DO YOU NEED?
CASE SUMMARY
WHAT IS THE ISSUE?
• Soap supplier changed formula
without informing hospital
• Concerns about product safety
• Product quality has decreased
WHAT DECISION(S) NEED TO BE MADE?
WHAT ARE THE DECISION CRITERIA?
• Patient Safety
• Cost
• Supplier location
• Payment terms
WHAT INFORMATION DO YOU NEED?
• General supplier info (location, terms)
• Per unit cost
• Total annual cost
• Product safety and quality information
•
•
Should Hillview change their soap
supplier?
If so, who should they choose?
COST ANALYSIS
COST ANALYSIS
Price per case
(Given)
Number of L per case
(# Bottles x L per bottle)
Cost per L
(Price per Case/ L per case)
Annual Material Cost
(Price per L x 4,500 L per year)
Cost per Order
Ordering Cost
(52 weeks/Deliv. Freq. x Ordering Cost)
Installation cost per unit
Total Installation cost
(Cost per unit x 1100 units)
Cost
Bergman Labs
Altrex
Dolphin
ChemCare
$40.50
$49.00
$35.42
$38.00
6.0
7.2
7.2
6.8
$6.75
$6.81
$4.92
$5.59
$30,375.00
$10.00
$30,625.00
$22,137.50
$25,147.06
$10.00
$173.33
$30,548.33
$260.00
$1.50
$30,625.00
$22,137.50
$1650.00
$27,057.06
POLL TIME!
QUALITATIVE
ANALYSIS
Relational Criteria
Payment Terms
Completely kills bacteria
Location
Other Customers
Quality
Cost
Bergman Labs
Poor communication
net 30
Yes
Local
Hospitals, schools
Said they will improve
$30,548.33
Altrex
Good reputation
net 30
Yes
Local
Hospitals
Satisfactory product
$30,625.00
Dolphin
net 30
No
Not Local
Hospitals, schools, restaurants
Nice smell
$22,137.50
ChemCare
net 15
Yes
Not Local
Hospitals
Dries out skin
$27,057.06