Chapter 16 :JIT and Lean Operations

Kelompok 7

Akhmad Riyanto (1306402721) Agus Nurrokhmat (1406578804) Olga Marcelina (1406566735)

Study Case:
JIT at Arnold
Palmer
Hospital
Arnold Palmer Hospitals

Arnold Palmer Hospitals is one of the most important hospitals in

the US where it specializes in treatment of women and children. One
of its main goals is manage a reduce costs, for this reason Arnold
Palmer hospital uses some crucial just-in-time (JIT) techniques. These
techniques help to maintain the control of its inventory with a high
efficiency and low cost. The mission of this case will be answering the
discussion questions, but focusing in Just-in-time strategies trying to cut
costs, variability and waste.
Discussion Questions
1. What do you recommend be done with an error is found in a pack
as it is opened for an operation?

Get another pack as soon as possible.

APH uses a JIT system where the pack are bulky, expensive and
must remain sterile, but this scenario showed us that they have one-
day to get back the pack and used another spare pack accounted
in inventory. This one-day allows the hospital to talk with McKesson
(Delivery Company) and recognize and identify the reason of the
error and make the correction action. This question displayed the big
advantage of the JIT system inventory for APH.
2. How might the procedure for custom surgical packs described here be improved?
APH could reduce the number of packs in the buffer from one day to less than one
day fix leading

Procedures for custom surgical packs may be increased by reducing

the quantity of packs in the buffer to less than one day. Time is crucial
in this case scenario because normally the hospital has one to fix this
issue. If they try to handle this problem in less than one day, will be a
big improvement and an increase in efficiency.
3. When discussing JIT in services, the text notes that suppliers, layout,
inventory and scheduling are all used, provide an example of each of
these at APH.

Inventory is at a minimum to ensure that bad product is not made,

shipped and stored the plus at APH is that quality is enhanced by
maintaining only limited storage, Scheduling that meets JIT demands,
schedules only what is needed when it is needed. Layout is modified
to be near to the work are and with no space for excess storage.
Suppliers get on board with high quality frequent deliveries.
4. When a doctor proposed a new surgical procedure, how do you
recommend the SKU for a new custom pack be entered into the hospitals
supply chain system?

If a Doctor proposes a new surgical procedure and the hospital needs

a new customize surgical pack, the recommendation will be
introduce for revision of this new procedure to the Medical-Economic
Department. Changes in medical packs or new medical instruments
can change the hospitals budget (favorable or unfavorable of the
hospital). This kind of proposal must be evaluated for this department
since main goals hospital is reducing cost in the supply chain and JIT
systems.
Problems
16.2
Problems 16.2
Solution

D = 39.000 units
Q = 150 units
p = 1.000 units
d = 150 units
H= $10
Setup labor cost per hour = $40
 (1502)(10)(1150/1000)
S=
2(39000)
$2,45
Setup Time =
$40/hour
(22500)(10)(0,85) Setup Time = 0,06125 hours
S=
78000

Setup Time = 3,7 minutes

191250
S= = $2,45
78000