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to Proposal Improve the UMHS Inventory and Handling EfficiencyMaterial Management System of Bedside Materials To: Mr. Derek Huntman Warehouse Manager Materiel Services Department University of Michigan Health System Jacquelynn Lapinski Lean Coach / Project Manager University of Michigan Hospital C.S. Mott Children's & Women's Replacement Hospital Project From: IOE 481 Senior Design Project Group 4 Michael Mark Michael Priesand Vincent Zhang Date of Submission: February 16, 2009 Table of Contents Introduction......................................................................................................................................2 Background......................................................................................................................................3 Goals and Objectives.......................................................................................................................4 Key Issues........................................................................................................................................4 Project Scope...................................................................................................................................4 Proposed Approach..........................................................................................................................5 Data Preparation Phase................................................................................................................5 Data Collection Phase..................................................................................................................5 Data Analysis Phase.....................................................................................................................5 Expected Impact..............................................................................................................................6 Project Team and Experience..........................................................................................................6 Project Client...............................................................................................................................6 Project Coordinator......................................................................................................................6 Project Team................................................................................................................................6 Support Required from Operating Entities......................................................................................6 Schedule...........................................................................................................................................6 Estimated Team Hours Required.....................................................................................................7 Approval..........................................................................................................................................7 Introduction 2 The University of Michigan Health System (UMHS) has implemented a Logical Unit of Measure (LUM) material management systems in several departments. However, there are many departments that still use a Just in Time (JIT) system. Management has reported that on average, Ffive to seven times a day at the Surgical Intensive Care Unit (SICU), and Pediatric Cardio Thoracic Unit (PCTU) departments of the University of Michigan Health System (UMHS) materials are missing from their clean room. In the JIT system, Nnurses are forced to into a process of obtaining these missing materials as quickly as possible without a when they are needed by the patients. In addition, when materials are missing, there is no standardized procedure for how the nurses can obtaining these materials in an orderly fashion. To reduce the amount of times a day materials are missing, the Materiel Services Department is implementing a A Logical Unit of Measure LUM material management system, which will deliver lower quantities of materials to the hospitals clean rooms at a more frequent rate multiple times a daycompared to the current JIT model. By having material handlers deliver materials more frequentlyThe Materiel Services Department has expressed interest in collecting data from theasked our team to perform a series of studies on the nursing staff of the two hospital departments to identify and quantify the non-essential non-value added labor of obtaining missing materials. This data collection will help to develop a standardized procedure for obtaining missing materials. The purpose of this project is to perform a series of studiescollect data and develop a recommendations that will improve the material management systems of the SICU and PCTU.to decrease or eliminate waste due to operational failures within the hospital system. The This project team will consist of observe observing the nurses daily operations of the nurses in the two departments mentioned above and, collecting quantifiable data on the non-essential non-value added labor related to obtaining missing materials,. Upon collecting and analyzing this data, . the teamAfter performing these studies, the project will also make recommendations to streamline the process of obtaining missing materials. These recommendations will have various expected impacts, such as allowing nurses to spend more time with patients. This proposal presents the detailed action plan, timeline, and supporting documentation for this project. Background The University of Michigan Health SystemUMHS must carry large numbers and varieties of materials in inventory at all times. The inventory for the departments that use the JIT system is kept in a several categorized rooms, including the PAR room and the Materiel Services supply rooms. These large inventory rooms are stocked once a week on average to continue delivering the materials to the patient just in time.___just in time, definition of it_____ It is critical for the quality of patient care that materials are at the right place at the right time. However, in the departments being studiedSICU and PCTU, nurses are calling the Materiel Services Department up to 5 five or even 7 seven times a day on average due to a the shortage of materials. Additionally, nurses do not have a standardized procedure for obtaining missing materials. These shortages distractThis system causes inefficiencies in the nurses from their daily operations processes of the nurses and decrease the quality of patient care. Additionally, nurses do not have a standardized procedure for obtaining missing materials. __flow___ Therefore, the Materiel Services Deparment has determined to transition to a Logical Unit of Measure to help 3 fix this problem. This project will identify and quantify the areas in need of improvement within the studied departments and allow Materiel Services to gain a better understanding of the issues. Goals and Objectives The primal goal of this project is to develop recommendations which: Reduces or eliminates the non-value non-essential labor Standardize procedures Manage materials more effectively Enables nurses to spend more time with their patients The objectives of the project are to identify and quantify the non-essential, non-value added labor and to document the procedure related to obtaining missing materials. This project will consist of a series of studies on the nurses daily operations related to obtaining missing materials that aim to identify and quantify this non-essential non-value added labor. The collection and analysis of this data will lead our team to develop recommendations which may include: Decreasing or Eeliminating the non-essential non-value added work that is involved in locating missing products Increasing the time nurses spend with their patients Examining the current inventory layout into supermarkets outside patients rooms Optimizing material handling efficiency through standardized procedures Analysis of the investment of implementing a Logical Unit of Measure material management system, comparing hard and soft costs Key Issues The following key issues are the driver for this project: Materials are not immediately available to the nurses when they are needed Nurses obtaining missing materials is non-essential, non-value added labor These wasted motions are reducing the time nurses are able to spend taking care of patients There is no standardized procedure for obtaining missing Project Scope The project scope includes the process for obtaining missing materials in the SICU and the PCTU. This process may include nurses, nurses aids, clerks, technicians, and the Materiel Services Department. This process will begin when a nurse needs a material and it is missing, and it ends when the material is obtained. Any task that does not involve obtaining missing materials for the nurses of the SICU and PCTU is excluded from the scope of this project. Our focus is to collect quantifiable data on the 4 nursing staff as it relates to the non-essential, non-value added labor of obtaining missing materials. The final goal is to make a recommendation that will improve this process. Proposed Approach This project will examine the daily operations related to obtaining missing materials of the nurses working in the SICU and PCTU departments of the hospital. This project will be performed in three phases: Data Preparation, Data Collection, and Data Analysis. Data Preparation Phase During this initial phase of the project, the nurses will be shadowed to understand their daily tasks and take note of any problems they encounter with missing materials. The nurses will be shadowed for a total of 30 person-hours. Also within this phase of the project, a survey will be developed for the nurses to provide first-hand information about the process of obtaining missing material. Surveys will be composed of both questions that are broad, and questions that are specific to each department. Data Collection Phase The data collection phase will consist of three work measurement studies: Spaghetti diagram Time Study Work Methods Analysis First, a nurse spaghetti diagram will be developed to map out where they have to travel to obtain missing materials. A drawn to scale layout of the two departments will be needed to develop this. It may also be beneficial to develop a spaghetti diagram of the missing material itself, to map out where the material has to go through before it gets to the nurses. Next, a time study will be performed to determine the time required to obtain missing materials. These time measurements will be triggered the by material being missing, and will be terminated once they are obtained. This time study will be used to establish a standard time for obtaining missing materials. The final part of the data collection phase will be a work methods analysis to determine the sequence of interactions that are involved in obtaining missing materials. This methods analysis will also display how frequently materials are missing and will identify missing materials as irregular work elements. Data Analysis Phase Process allowances will be calculated for the irregular work elements that were identified. These process allowances are required whenever there are delays due to irregular work elements. Analysis of the time study data will be used to calculate normal times. quantify any adjustments and any irregular work elements that are non-essential and non-value added. Identifying the waste will allow our team to develop our recommendations for improving inventory and handling efficiency of bedside materials. This in turn will increase the time nurses are able to spend with patients, by reducing the time they are forced to look for missing products. 5 Expected Impact Once the data has been collected and analyzed, it is expected to be used as a benchmark for future improvements. The recommendations that will be made from our data are expected to: Be used for future studies Eliminate the non-essential non-value added labor of obtaining missing materials Increase the quality of the patient care Project Team and Experience The following team members will collaborate throughout this project: Project Client Derek Huntman, Warehouse Operations Project Coordinator Jacquelynn Lapinski, Lean Project Manager Project Team Michael Mark, Senior IOE Student Resume attached, see Appendix Michael Priesand, Senior IOE Student Resume attached, see Appendix Vincent Zhang, Senior IOE Student Resume attached, see Appendix Support Required from Operating Entities Our project client will provide us with continuous details of the project. He will give information regarding the current issues, as well as any necessary historical data and contact information. If the team needs assistance with the Materiel Services Department, the client will help communicate those needs to his people. We will have weekly meetings with him to present our progress and to receive guidance. Our project coordinator is will guide the team and help us develop our project. The coordinator will help spark ideas for the project as well as act as a liaison between the team and the nursing managers of the two departments within the project. She will give our team feedback and help us make our project successful and significant. Schedule To complete the three phases of our project, and to develop a recommendation for eliminating the non-essential non-value added work and increasing time nurses spend with patients, our team will follow the key dates below. To see a more detailed schedule, see the Gantt Chart in the Appendix. 6 Key Dates The following key dates are displayed below: Task Receive project approval Observe the nurses, material handlers, and clerks Develop and Receive approval for nurse survey Distribute nurse survey Interview nurses Conduct time studies Perform work method analysis Draw spaghetti diagrams Analyze data collected and develop recommendations Present interim report and presentation Conduct quantitative comparison of recommendations Complete final report Deliver final project report, including presentation to client Timeframe By February 16 February 13 February 16 By February 18 February 18 March 4 February 18 February 25 February 18 March 4 February 18 March 4 February 18 March 4 February 25 March 9 March 9 March 16 March 16 April 1 By April 13 By April 28 Our team will be meeting with our project coordinator every Wednesday afternoon from 2 to 3 pm and with our project client every Monday morning from 8 to 9 am. Estimated Team Hours Required Each member of the team will contribute 8 to 10 hours per week. These numbers can vary from week to week, depending on the workload. Approval Approved by: Derek Huntman, Warehouse Manager Date Jacquelynn Lapinski, Lean Project Manger Date Michael Mark, Project Team Member Date Michael Priesand, Project Team Member Date 7 Vincent Zhang, Project Team Member Date 8 Michael Mark Local Address 2222 Fuller Ct. Apt. 401A Ann Arbor, MI 48105 (989) 327-4438 OBJECTIVE AVAILABLE EDUCATION Permanent Address 3604 Christy Way W. Saginaw, MI 48603 Phone (989) 799-5287 mikemark@umich.edu Seeking a summer internship in the Industrial and Operations Engineering and Mathematics field, specifically Quality Controls, Structural Programming, Software, and/or Civil Engineering. May 2009 University of Michigan, College of Engineering Senior, pursuing a BSE in Industrial and Operations Engineering and a Minor in Mathematics GPA: 2.5/4.0 Courses: Quality Control Probabilities and Statistics Ergonomics LEAN Manufacturing Facilities Planning Honors Math Visual Basic Software: Excel MiniTab Mathematica Maple Flash Access CAD Photoshop Languages: C++ PHP Visual Basic HTML Matlab MySQL Ann Arbor, MI Date of Graduation: December 2009 COMPUTER SKILLS Built and modified computers Repaired on-site: o Hardware replacement o Software handling Saginaw, MI June 2008 September 2008 EXPERIENCE New China Restaurant Manager and Designer Renovated, redesigned, and managed a Chinese restaurant Set up POS credit card system Installed electrical sound system Helped workers by taking tables Performed duties ranging from cashier to delivery boy Increased revenue by 25% Managed workers hours Trained and hired new restaurant employees LS&A Information Technology Computer Technician Serviced computers of all faculty and staff of the University of Michigans Literature, Science, & Arts College Ann Arbor, MI Sept. 2004 May 2005 LANGUAGES Proficiency in Japanese Spoken Chinese (Cantonese dialect) 9 Michael I. Priesand 502 Elm St. Ann Arbor, MI 48104 Phone: 216-533-2204 Email: priesand@umich.edu OBJECTIVE To obtain a full time consulting position, with a focus in healthcare management engineering and process improvement, available summer 2009. EDUCATION University of Michigan Ann Arbor, Michigan, July 2009 B.S.E., Industrial & Operations Engineering, G. P. A.: 3.16/4.0, Dept. G. P. A.: 3.38/4.0 Courses: Optimization Methods, Operation Management and Analysis, Measurement of Work, Simulation, Lean Manufacturing, Practicum in Health Systems EXPERIENCE Dana Holding Corporation Lima, OH Industrial Operations Engineer Co-Op, summer 2008 Implemented the Line Sequence Operator to coordinate steering shaft part assembly and regulate the work in process on the line, which increased production 15% Launched the Dana Operating System Production Board, which collected and monitored key performance indicators and identified areas of improvement Collaborated as part of a five person Operations Excellence team that reduced floor space 50% and sustained one-piece flow throughout the assembly line Dana Holding Corporation Maumee, OH Applications Engineer Co-Op, winter 2008 Performed Oil Fill Study test on M70 T-Rib rear axle, which led to a 25% reduction of oil usage Presented material cost reduction findings on Oil Fill Study to Ford Motor Company Axle Engineers Pi Lambda Phi Fraternity, Epsilon Chapter Ann Arbor, MI Alumni Chair, fall 2007 - fall 2008 Developed and distributed alumni fraternity newsletter to keep alumni up to date on current events and achievements of the fraternity Established the alumni linkage program to connect brothers from the previous chapter to ours Beachwood Family Aquatic Center Beachwood, OH Maintenance Manager, summer 2007 Supervised tasks which maintained the appearance and the functionality of the aquatic center Created a daily work assignment chart to optimize efforts of maintenance workers during peak hours of the day Pi Lambda Phi Fraternity, Epsilon Chapter Ann Arbor, MI Founding Father, December 2005 Contributed to the re-founding The University of Michigans chapter of the nations first non-sectarian fraternity by developing an expansion plan Presented to both Pi Lambda Phi Nationals and The University of Michigan Inter-Fraternity Council COMPUTER SKILLS Platforms: Windows Vista, Mac OS X, Linux OS Languages: C++, MATLAB, MAPLE, Visual Basic 2005 Applications: Microsoft Office, AutoCAD, MiniTab, Adobe Photoshop ACTIVITIES 10 Student Astronomical Society Relay for Life University of Michigan Womens Basketball practice team Nian (Vincent) N. Zhang 200 E. Davis Ann Arbor, MI 48104 Education: University of Michigan Ann Arbor B.S. Industrial and Operations Engineering E-mail: nzha@umich.edu Cell (615) 957-4320 2009 Work Experience: VEdancewear Director Beijing, China & MI, USA (April 1st- present 2008) Sourced and engaged with a wholesale shoes manufacturer in Beijing Established an internet banking facility to handle orders and payments cross-continents Developed and implemented marketing strategies for the sale of dancewear to a college demographic Sold $8000 dollars worth of goods in the first 4 month of operations. Created a website that helps with marketing, order processing, customers and supplier relationship management. www.vedancewear.com www.club-nex.com Entrepreneurship, Ann Arbor, Michigan (December 1st- present 2008) Invented an online solution that helps student organization manage their organization finances Implementing marketing strategies to University of Michigan Did this succeed? Whats the progress? If it didnt go too well, dont put it in. I think one successful entrepreneurship activity is good. More might give the impression that you like tod do too many things without being dedicated to one. Id suggest putting down the dancewear thing and not this. Einstein Bro Bagels Manager, Ann Arbor, Michigan Worked on a team initiating the franchise in Ann Arbor Trained new baristas (May Aug, 2007) Michigan Stock Pitch Competition Awards, Ann Arbor, Michigan (Feb, 2007) Champion of 2006 Michigan Stock Pitch Competition and was awarded with $2000 One of only two engineering participants in this competition (60 participants) Shanghai Jiao Tong University (SJTU) and University of Michigan Student Ceremony CoHost, Shanghai, China (June 29th, 2006) What was the event? Go into more specifics. Did you source for sponsors? Any financials involved? Skills: 11 Languages: Fluent in Mandrin Programming: Basic Matlab, Basic C++, Visual Basic Activities: Michigan Dance Team, Michigan Ping Pong Club, Michigan BOSS? Whats BOSS 12

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