Arnold Palmer Operational Challenges Case Study Paper Read the case and watch the case video carefully at first, and write-up case study notes, use your ow

Arnold Palmer Operational Challenges Case Study Paper Read the case and watch the case video carefully at first, and write-up case study notes, use your own words, it needs 1page and includes the information below(may need 3 paragraphs). Notes should cover the following three key points (at a minimum).

1. State the mission of the company discussed in the case

2. Identify a key operational challenge at the company

3. Make a high-level strategic recommendation to address that challenge

Link: https://mediaplayer.pearsoncmg.com/assets/_embed.t…

The case name is: JIT at Arnold Palmer Hospital MANAC
Discussion Questions*
Another current Lean project is passenger unloading and
loading. Lean instructor Allison Fletcher calls this “the most
unique project I have worked on.” One exciting aspect of deplan-
ing is Alaska’s solar-powered “switchback” staircase for unload-
ing passengers through the rear door (see photo). Alaska is saving
two minutes, or nearly 17%, off previous unloading time with this
new process. Alaska Airlines’ Lean culture has made it a leader in
the industry.
1. What are the key ingredients of Lean, as identified at Alaska
Airlines?
2. As an initial phase of a kaizen event, discuss the many ways
passengers can be loaded and unloaded from airplanes.
3. Document the research that is being done on the aircraft
passenger-loading problem.
* You may wish to view the video that accompanies this case before
addressing these questions.
JIT at Arnold Palmer Hospital
Video Case
Orlando’s Arnold Palmer Hospital, founded in 1989, specializes
in treatment of women and children and is renowned for its high-
quality rankings (top 10% of 2000 benchmarked hospitals), its
labor and delivery volume (more than 14,000 births per year), and
its neonatal intensive care unit (one of the highest survival rates
in the nation). But quality medical practices and high patient sat-
isfaction require costly inventory—some $30 million per year and
thousands of SKUs.* With pressure on medical care to manage
and reduce costs, Arnold Palmer Hospital has turned toward con-
trolling its inventory with just-in-time (JIT) techniques.
Within the hospital, for example, drugs are now distributed at
the nursing stations via dispensing machines (almost like vending
machines) that electronically track patient usage and post the related
charge to each patient. Each night, based on patient demand and
prescriptions written by doctors, the dispensing stations are refilled.
To address JIT issues externally, Arnold Palmer Hospital
turned to a major distribution partner, McKesson General
Medical, which as a first-tier supplier provides the hospital with
about one-quarter of all its medical/surgical inventory. McKesson
supplies sponges, basins, towels, Mayo stand covers, syringes, and
hundreds of other medical/surgical items. To ensure coordinated
daily delivery of inventory purchased from McKesson, an account
executive has been assigned to the hospital on a full-time basis,
as well as two other individuals who address customer service
and product issues. The result has been a drop in Central Supply
average daily inventory from $400,000 to $114,000 since JIT.
JIT success has also been achieved in the area of custom surgical
packs. Custom surgical packs are the sterile coverings, dispos-
able plastic trays, gauze, and the like, specialized to each type of
surgical procedure. Arnold Palmer Hospital uses 10 different cus-
tom packs for various surgical procedures. “Over 50,000 packs are
used each year, for a total cost of about $1.5 million,” says George
DeLong, head of Supply-Chain Management.
The packs are not only delivered in a JIT manner, but packed
that way as well. That is, they are packed in the reverse order they
are used so each item comes out of the pack in the sequence it is
needed. The packs are bulky, are expensive, and must remain sterile.
Reducing the inventory and handling while maintaining an
ensured sterile supply for scheduled surgeries presents a challenge
to hospitals.
Here is how the supply chain works: Custom packs are assem-
bled by a packing company with components supplied primar-
ily from manufacturers selected by the hospital, and delivered by
McKesson from its local warehouse. Arnold Palmer Hospital
works with its own surgical staff (through the Medical Economics
Outcome Committee) to identify and standardize the custom
packs to reduce the number of custom pack SKUs. With this inte-
grated system, pack safety stock inventory has been cut to one day.
The procedure to drive the custom surgical pack JIT system
begins with a “pull” from the doctors’ daily surgical schedule. Then,
Arnold Palmer Hospital initiates an electronic order to McKesson
between 1:00 and 2:00 P.M. daily. At 4:00 A.M. the next day,
McKesson delivers the packs. Hospital personnel arrive at 7:00 A.M.
and stock the shelves for scheduled surgeries. McKesson then reor-
ders from the packing company, which in turn “pulls” necessary
inventory for the quantity of packs needed from the manufacturers.
Arnold Palmer Hospital’s JIT system reduces inventory
investment, expensive traditional ordering, and bulky storage and
supports quality with a sterile delivery.
Discussion Questions**
1. What do you recommend be done when an error is found in a
pack as it is opened for an operation?
2. How might the procedure for custom surgical packs described
here be improved?
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 Arnold Palmer Hospital.
4. When a doctor proposes a new surgical procedure, how do you
recommend the SKU for a new custom pack be entered into the
hospital’s supply-chain system?
*SKU = stock keeping unit
** You may wish to view the video that accompanies this case before
answering these questions.
• Additional Case Studies: Visit My OMLab for these case studies:
JIT after a Catastrophe: How Caterpillar responded after a tornado tore apart its Oxford plant.
Mutual Insurance Company of Iowa: Applying JIT in an insurance office.
Endnote
1. The term 5S comes from the Japanese words seiri (sort and
clear out), seiton (straighten and configure), seiso (scrub and
clean up), seiketsu (maintain sanitation and cleanliness of self
and workplace), and shitsuke (self-discipline and standardiza-
tion of these practices).

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