Professional Documents
Culture Documents
Byung-Hyun Ha
bhha@pusan.ac.kr
Case Overview
Intent diagnosis of supply chain Business overview Supply chain Production planning
Whats wrong?
How to fix it?
Meditech Surgical
Background
Endoscopic surgical instrument maker
Minimally invasive surgery
Meditech Surgical
Problems
New production introduction needs to be flawless Consistently fail to keep up with demand during initial order Customers wait over six weeks to have orders delivered
Distribution
Central warehouse Two primary channels to hospitals
Domestic dealers
Order and receive products from multiple manufacturers Independent and autonomous entities
International affiliates
Subsidiaries of Largo Healthcare Similar to domestic dealers from Meditechs point of view
Internal Operations
Assembly
Manually intensive Using component parts in inventory Assembly line with a tem of cross-trained production workers Cycle time for assembly of a batch of instruments
2 weeks
Packaging
Using machine
Sterilization
Cobalt radiation sterilizer, about 1 hour
Operation Organization
Forecast
Annual: during the fourth quarter of each fiscal year Monthly: using annual forecast broken down proportionately
At the beginning of each month: adjustments of forecast
Planning of assembly
Using monthly demand forecasts transfer req. = month forecast finished goods inventory + safety stock Approved throughout the organization after 1 to 2 weeks
FG Inventory
2 16 weeks
2 weeks
push
pull
1 week