Assignment “HospitalProcurementProcessModel” You are given an actual hospital procurement process (see Table 1 and related Figure 1). This is to be modelled as the ‘As Is’ Process using Draw.io or similar product. Export your process, or use screen shots to depict your process diagram in your report. Provide a report on your As Is Model … Continue reading “HospitalProcurementProcessModel | My Assignment Tutor”
Assignment “HospitalProcurementProcessModel” You are given an actual hospital procurement process (see Table 1 and related Figure 1). This is to be modelled as the ‘As Is’ Process using Draw.io or similar product. Export your process, or use screen shots to depict your process diagram in your report. Provide a report on your As Is Model analysis. This is to include:CommentsProblemsCostsTimes As a bonus exercise (to potentially earn full marks for this assignment), calculate the Weighted Average Cost (WAC) for this process. Use an Excel spreadsheet. Identify each case (path through the process) and add the total cost for each case. Then, consider the probability for each path, with the total probability adding to 100%. Apply the probability percentages to the total costs, and sum to obtain the WAC. Based on the objectives of e-procurement, an automated, improved ‘To Be’ process is to be proposed. Use your imagination! The ‘To Be’ process is to be presented as a new Draw.io or similar Process. Hint: Do not copy the As Is Process and make a few incremental changes. Start afresh and submit a simplified redesigned process. Provide your analysis. In particular, how have addressed the following problems: Backorder problem. The supplier has no stock and the hospital does not find out for a week until the start of the next ordering cycle.Three-way match problem. The Purchase Order, GRN (Goods Received Note) and Invoice from Supplier need to be matched by Accounts Payable to pay the supplier. These 3 documents often do not match resulting in a short or delayed payment to the supplier. Again, as a bonus you can consider the WAC of the To Be Process. You can make the following assumptions: IT capital investment of $50,000 for the ROI calculation‘As Is’ and ‘To Be’ processes are each daily processes, 365 days p.a.Costs in the ‘To Be’ process are only a preliminary feasibility and do not have to be highly accurate. HINT:Calculate the WAC for As Is and To Be. Determine the annual cost savings (As Is – To Be)*365. If the To Be cost is not cheaper than the As Is then redesign it! Next, deduct depreciation of capital = $50,000/5, assuming a 5 year system life. ROI = average annual net cost saving/capital cost. Table 1 As Is Hospital Stores Procurement Process ActivitiesandGatewaysDocumentProcessTimes*RoleTotalCostTypeElapsedWorking($1,000s(min)(min)p.a.)**Minimum/Maximum Levels Set(Outside of Process)Report run on current stock levelsPaper Report3015Stores Manager80Manually calculate reorder quantify basedNew Order Form24060Stores Manager80on current stock below minimum levelKey New Order into ERP systemNew Order Entry in IS24030Stores Clerk50Decision- Item has no backorders – 80%Email Purchase Order to SupplierEmail Order6020Stores Clerk50(Backorders are unfulfilled prior orders.)– Item has backorders – 20%Decision – Alternate Supplier Available – 60%Adjust ERP supplier for all orders of itemSupplier Entry in IS3010Stores Clerk50Send all orders for item to new supplierEmail Order3015Stores Clerk50Cancel old order on old supplierEmail Cancel Order3020Stores Clerk50– Alternate Supplier Not Available -40%Email Purchase Order to SupplierEmail Order6020Stores Clerk50Receive Goods into Store*GRN Paper Form144030Stores Clerk50Reconcile GRN with Supplier Delivery DocketPaper Form12020Stores Clerk50Decision – Are there errors?- Yes – 20%Resolve with SupplierPhone Call12020Stores Clerk50– No errors – 80%Enter received stock against PO in ERP SystemStock Entry in IS12010Stores Clerk50Items put on shelves12020Stores Clerk50Email receipt of invoices (Outside Process)1440Invoices received and booked into ERP SystemInvoice Entry in IS6020Payables Clerk45Decision – Invoice matches GRN and PO – 70%Pay SupplierPayment24010Payables Clerk45– Invoice has errors – 30%Submit credit request to supplierEmail Credit Request24015Payables Clerk45Decision -Supplier accepts credit request – 75%Pay Supplier Process (Detail not required.)Payment24010Payables Clerk45– Supplier rejects credit request – 25%Compile Report for SupervisorReport24020Payables Clerk45Supervisor contacts supplierVerbal conference12040Accounts Supervisor70Pay SupplierPayment24010Payables Clerk45 * Wait Time = Elapsed Time – Working Time GRN is a Goods Received Note used to record incoming goods into the store ** This is the total salary cost per annum for the role, in thousands of dollars. You can use this to calculate the Activity Cost. Assume 46 weeks p.a. and 30 hours per week of productive work. (This is an extension exercise.)
