Reference no: EM132248389
Application Integration Assignment - Hospital Procurement Process Model
1. You are given an actual hospital procurement process (see attached Table 1 and related Figure 1). This is to be modeled as the 'As Is' Process using IBM Blue Works Lives. Sign up for the 1 month free trial of the full version of this SaaS application.
Export your process, or use screen shots to depict your process diagram in your report.
2. Provide a report on your BlueWorksLive As Is Model analysis. This is to include:
- Comments
- Problems
- Costs
- Times
As an extension exercise to earn full marks for this assignment, calculate the Weighted Average Cost (WAC) for this process. Use an Excel spreadsheet. Identify each case (path through the process), and add the total cost for each case. Then, consider the probability for each path, with the total probability adding to 100%. Apply the probability percentages to the total costs, and sum to obtain the WAC.
3. 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.
Hint: Do not copy the As Is Process and make a few incremental changes. Start afresh and submit a simplified redesigned process.
Provide your analysis. In particular, how have addressed the following problems:
a) Backorder problem. The supplier has no stock and the hospital does not find out for a week until the start of the next ordering cycle.
b) Three-way match problem. The Purchase Order, GRN (Goods Received Note) and Invoice from Supplier need to be matched by Accounts Payable to pay the supplier.
These 3 documents often do not match resulting in a short or delayed payment to the supplier.
Again, as an extension exercise, you can consider the WAC of the To Be Process. You can make the following assumptions:
- IT capital investment of $50,000 for the ROI calculation
- 'As Is' and 'To Be' processes are each daily processes, 365 days p.a.
- Costs in the 'To Be' process are only a preliminary feasibility and do not have to be highly accurate.
Attachment:- Assignment File.rar