Improving Management of Purchase Orders for Appliances  

Oleh:

Ting, Shieng Wan ; Tompang, Sokarni Binte ; Hoon, Ong Peck ; Bahaon, Maszeni Bte

Jenis: Article from Proceeding
Dalam koleksi: 12th ANQ Congress in Singapore, 5-8 Agustus 2014, page 1-4.
Topik: Order Management; Contract Management; 5-Whys; Supply Management; Productivity
Fulltext: PS-2.5-P0140.pdf (401.81KB)

Isi artikel

The Department of Physiotherapy sells 175 Stock Keeping Units (SKU) of appliances to the patients of Singapore General Hospital. Appliances are purchased from various vendors via ad-hoc purchase, value/quantity contract or staggered delivery order. The large number of SKUs, number of orders, purchase options, as well the varying demand for the different items complicated the order tracking process, resulting in a large number of outstanding invoices. The goal for this Rapid Improvement Event (RIE) project was therefore to eliminate the occurrences of outstanding invoices due to overdrawing, and indenting quantities from expired purchase order. The 5-Whys technique was used to identify the root cause of the occurrence of outstanding invoices. Through this technique, the team identified “the lack of an efficient and effective tracking strategy” as the root cause. The manual tracking system used was privy to only 1 staff member, and was tedious and ineffective in identifying the balances and validity of the orders. Based on this finding, the team developed an easy-to-use spreadsheet to track orders, with colour codes for better visualization, and prompts for timely action. This enables anyone covering the duties of the stock clerk to manage with ease. The number of outstanding invoices decreased from 37 over 9 different purchase orders to zero in the 9 months before/after implementation of the system. Other benefits includes reduction in man-hours from tracking contract balance, decreasing instances of shortages in supply, and allowing actions (e.g. re-contract, extension, option year) to be taken more promptly, avoiding unnecessary delays

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