Hospital Procurement Process: As-Is And To-Be Model Analysis

1. Apply the concepts of process modelling and e-procurement to model and re-engineer supply chain processes.

2. Apply the concepts of e-procurement to re-engineer  the process to reduce process cost and time.

3. Provide a report on your BlueWorksLive As Is Model analysis. This is to include:

1. Comments
2. Problems

4. 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 BlueWorksLive Process.

As-Is Model Analysis

The businesses nowadays are in process to find the correct tools and methods to improve their transactions processes. Hence, the most appropriate tool is a business process tool that helps to provide brief details about each process for the business models.

The purpose of this report is to present a hospital procurement As-Is process and To-Be process using IBM Blue Works Lives to briefly describe each process. The report also provides comments and problems based on As-Is model analysis along with focus on backorder problem and three-way match problem.

 

Figure 1: As Is Process

The above figure provides Hospital procurement As-Is process through step by step process that contains three swimlane that are as follows.

Staffs- ERP system is used for managing and operating functions in the organization.

Accounting- All the financial related data such as inventory, invoice maintenance, request for credit and payment method, debit or cheques are recorded.

Supplier- Products and services are delivered as required by the organization.

 

Figure 2: Hospital Management

The level is set where report of current stock is initiated by the staff of hospital management. The recorder quantity is then calculated where new order in ERP is generated.

 

Figure 3: As Is Procurement Process

In this stage, if the orders are backed then it is checked for alternative supplier and if available then it is further processes and if not available then purchased order is emailed. The alternate supplier if available then ERP is adjusted for all the orders where all the orders for the items are emailed to the new supplier. The next step is to cancel old order for old suppliers which may be emailed or maybe not.

Figure 4: As Is Supply Process

This stage shows that after all the emailing of the order item the received order item is stored in GRN form. Then reconciliation of GRN is done with the supplier delivery docket.

 

Figure 5: As Is Resource Collection Process

The reconciled GRM with supplier delivery docket is then checked in this stage for any errors that are present. If no error is found then the received order item is entered into the ERP and if error is found then the errors are resolved with the suppliers. After the order item is entered into the ERP it is further processed in next stage.

 

Figure 6: As Is Payment Process

The received item is then arranged in the storage where invoice is created for delivery and invoice is booked into the system. The invoice is checked against GNR and purchase order and if it is matched then credit request is submitted to be supplied by email to resolve the issues with the supervisor. Finally the payment method is selected between cheque payment and debit payment which is then paid to the supplier as per the chosen payment method.

To-Be Model Proposal

 

The supplier sometimes has no stock and this creates problem for hospital. This back order problem has been resolved through finding available alternative supplier in case, the supplier has no stock and hospital is not able to process further due to unavailability of stock. 

Three way Match Problem

 

The invoice, GRN and Invoice do not match sometimes and hence create problems. This three way match problem is solved in the following way. The invoice is booked and matched with GNR and PO, if it is matched then payment is further processed.

 

Figure 7: To Be Process

The above figure provides Hospital procurement To-Be process through step by step process that contains four swimlane that are as follows. This is the improved process proposed for hospital procurement process.

Staffs- ERP system is used for managing and operating functions in the organization.

Purchasing- The purchasing department is helpful in managing the order and its details which are stored in stock.

Accounting- All the financial related data such as inventory, invoice maintenance, request for credit and payment method, debit or cheques are recorded.

Supplier- Products and services are delivered as required by the organization.

 

Figure 8: To-Be Hospital Management Process

The level is set to run current stock report where calculation of recorder quantity take place and after that purchase order form is filled to receive purchase order. The purchase order is checked and if it is correct then purchase order gets approval and if not correct then purchase order is revised to correct it. The purchased order when revised and corrected it is then approved.

 

Figure 9: To-Be Procurement Process

In this stage, the approved order is then entered into the system and if it has back orders alternative supplier is checked and if there is no back order then purchased order is emailed. The alternate supplier is available then ERP is adjusted for all orders to email to the new supplier. Then further the old order is cancelled on old suppliers.

 

Figure 10: To-Be Supply Process

The emailed order is then stored with GRN form as supplier supply item for further process in the next stage.

 Figure 11: To-Be Resource collection Process

The received item in this stage is then checked for errors and if errors found supervisors resolve the errors. If the errors are not found then in both case the item is entered into the ERP which is then arranged on the storage.

Solving the Backorder and Three-Way Match Problems

 

Figure 12: To-Be Payment Process

The invoice is created for the delivery which is booked into the ERP system to check with GNR and PO. If it is matched then resolved with the supervisor and then payment method is chosen between cheque and debit. Finally the payment is made to the supplier as per the hosen method.

The problem of back order is that in case of non-availability of stock with supplier and hospital cannot wait for next week to get the stock. This is solved through finding alternate supplier and if alternate supplier is available then ERP is adjusted for all orders which is further processes.

The problem of three way match problem where matching of invoice, GRN and Invoice need to be matched for effective payment. This problem is solved through resolving of issue with the supervisor if matched and then payment is processed.

Conclusion

Therefore, the business process modeling described in this report is effective in describing the Hospital procurement process in detail. The As-Is process and To-Be process briefly describes the working process of hospital procurement process and solves the issues of backorder and three-way match problem.

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