Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
In most of tertiary care hospitals, the materials management function Is generally responsible for end-to-end supply management function including but not limited to demand planning, sourcing, procurement, central storage, preservation, distribution and dispensing to patient care areas. This scope includes the handling of both equipment and consumables related to clinical supplies, medical devices, medical equipment, pharmaceutical drugs, general supplies, spare & MRO supplies, printing & stationary supplies, laundry and linen supplies and food related supplies.
All the functions are linked through integrated computer systems to ensure integrity of data, transparency & accountability and more importantly the availability of right product at right cost (lowest possible) from the right (genuine) source at the right time and for the right patient to ensure round the clock continuity of safe patient care. Besides, all tasks are performed as per the international safety standards, regulatory guidelines while complying the internal quality standards.
In recent years, the image and perception of Materials Management function has been shifted from transactional processing department to key strategic player to gain competitive edge in market due to both the realization & recognition from hospital leadership and the amount of value it contribute to overall profitability of hospital operations. In race of getting competitive edge, one of the conventional approach is to cut cost. When It comes to making a choice between reducing personnel or materials supply costs, hospital leadership generally opt materials supply sharing 40- 45% of total operating expenditure of any mid to large size hospitals around the world.
It is therefore, increasingly, healthcare executives are considering materials management resources as a strategic asset and human capital that can be leveraged to meet operational, clinical and financial performance imperatives.
On the revenue side, surgical procedures performed in operating room has traditionally been of the highest revenue generators for hospitals followed by diagnostic services like laboratory and radiology and out-patient consulting clinics.
The aim of this project report is to understand the supply chain operations at The Aga Khan University Hospital particularly processes linked with Operating Room (OR) supplies to assess the Inefficiencies and wastages which if eliminated can bring operational excellence and satisfaction.
Lean Six-Sigma process review methodology is adopted to identify the defects & errors in current process compare to standard best practices, device appropriate systems, processes and measurement tools to assess the performance of OR supply chain on regular basis. Most of the qualitative and quantitative data presented in this report was collected from AKUH's internal supply chain systems, on-field learning survey, team based brainstorming sessions, policies & procedures manual and literature reviews.
Khowaja, M. A. (2016). Improving supply chain efficiency of operating room (OR) in a hospital environment (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/210
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