Application of Just in Time Systems in Arnold Palmer Hospital

       Introduction

Just in time (J.I.T) is an inventory control system of management which effectively reduces carrying costs in order to improve business return on investment. Carrying costs involves the costs of ordering and holding stocks (Huff et al, 2004). This means orders are made when need arises. Just in time system exposes hidden causes of inventory keeping thus it’s very costly to introduce it in a business. Just in time system improves profitability and productivity as noted by D.Jerry Bowman (1990) in journal industrial engineering.

McKesson medical is the main supplier of Arnold Palmer hospital therefore if an error or default is found on a pack when an operation is about to be carried out, the pack should not be used for the operation, another pack should be ordered to ensure medical safety is achieved (Huff et al, 2004). The doctors should notify the account executive and service personnel of the default so that they can record down that order as a default and identify the main cause of the default. For instance, if it’s about the pack not being sterile they can make effort of finding out the main cause of this.

Improved provision of custom surgical packs

Custom surgical packs play an important role in the realization of the goals of any hospital and Arnold is not exceptional. The application of just in time systems can make these goals to be realized (Johnson, 2007). The supply chain of Arnold palmer hospital seems to be a long and complex one. It invest the hospital making orders to McKesson medical who in turn notifies the packing company and finally the packing company notifies its suppliers (Huff et al, 2004). This process may create inconveniences and may prove to cost a lot in terms of time management. Therefore the system must be revised and improved even though just in time system is working. Changes in patient attendance or incase of emergencies are some of the inconveniences and may lead to supply shocks (Johnson, 2007). There a system to solve this problem should be implemented. For example, the hospital should consider shortening the supply chain by making orders directly from the packing company.

Examples of Just in Time Systems and their relevance to Arnold hospital

The oil industry in most cases adopts just in time system. Its supply chain involves mining crude oil which is taken to refineries and then the various products supplied to customers as orders are made (Huff et al, 2004). Just in time in this case may not work especially when a major calamity like an earthquake occurs. Such a calamity might destroy the refinery and the transfer system thus production cannot take place.

The major leakage in the transfer system might occur as recently experience by the British petroleum company (B.P) in the United States of America (U.S.A).This costed time and expertise in terms of technology to solve the problem. The customer’s profitability also went down as a result of supply shock. Another example of J.I.T system is when book manufactures make orders to their suppliers who in turn make orders from the suppliers and finally suppliers make orders from paper mills. A disorder in the paper mills might occur thus affecting the supply chain (Huff et al, 2004). When a doctor proposes a new surgical procedure a new surgical pack is ordered. This interrupts the number which was originally ordered leading to a supply shock. Therefore in the supply chain this is recorded as a supply shock (Huff et al, 2004).

References

Aghazadeh, S. M. (2004) Does Manufacturing Need to Make JIT Delivery Work?  Management Research News. Patrington: Vol. 27, Iss. 1; p. 27

Gil, Reynaldo (2001, Jun). New trends in business force re-evaluation of supplier relationships.  Frontline Solutions. Duluth, 2(6), 26-30.

Johnson, A., (2007).  Integrated supply chains to be explored.  Manufacturers Monthly. Sydney.            (ProQuest)

Roger, D., Lockman, D., Schwerdt, G., O’Donnell, B., & Huff, R., (2004).  Supply Chain          Security.  Material Handling Management, 59(2), 15-18.  (ProQuest)