How do prescriptive analytics help in decision making

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Reference no: EM131370057

Assignment: OPENING VIGNETTE Chapter 1:

Magpie Sensing EmploysAnalytics to manage a Vaccine Supply ChainEffectively and Safely

Cold chain in healthcare is defined as the temperature-controlled supply chain involvinga system of transporting and storing vaccines and pharmaceutical drugs. It consistsof three major components-transport and storage equipment, trained personnel,and efficient management procedures. The majority of the vaccines in the cold chainare typically maintained at a temperature of 35-46 degrees Fahrenheit (2-8 degreesCentigrade). Maintaining cold chain integrity is extremely important for healthcareproduct manufacturers.

Especially for vaccines, improper storage and handling practices that compromisevaccine viability prove to be a costly, time-consuming affair. Vaccines must be storedproperly from manufacture until they are available for use. Any extreme temperatures ofheat or cold will reduce the vaccine potency; such vaccines, if administered, might notyield effective results or could cause adverse effects.

Effectively maintaining the temperatures of the storage units throughout the healthcaresupply chain in real time (i.e., beginning from the gathering of the resources, manufacturing,distribution, and dispensing of the products) is the most effective solution desired inthe cold chain. The location-tagged real-time environmental data about the storage unitshelp in monitoring the cold chain for the spoiled products. The chain of custody can beeasily identified to assign product liability.

A study conducted by the Centers for Disease Control and Prevention (CDC) looked atthe handling of cold chain vaccines by 45 healthcare providers around United States. TheCDC reported that three-quarters of the providers experienced serious cold chain violations.

A WAY TOWARD A POSSIBLE SOLUTION

Magpie Sensing, a start-up project under Ebers Smith and Douglas Associated NC.,provides a suite of cold chain monitoring and analysis technologies for the health careindustry. It is a shippable, wireless temperature and humidity monitor that proVidesreal-time,location-aware tracking of the cold chain products during the shipment. MagpieSensing's solutions rely on rich analytics algorithms that leverage the data gatheredfrom the monitoring devices to improve the efficiency of cold chain processes andpredict cold storage problems before they occur. Magpie Sensing applies all three typesof analytical techniques-descriptive, predictive, and prescriptive analytics-to turn theraw data returned from the monitoring devices into actionable recommendations andwarnings. The properties of the cold storage system, which include the set point of the storagesystem's thermostat, the typical range of temperature values in the storage system, andthe duty cycle of the system's compressor, are monitored and reported in real time. Thisinformation helps trained personnel ensure that the storage unit is properly configured tostore a particular product. All temperature information is displayed on a dashboard thatshows a graph of the temperature inside a specific storage unit.

Based on the information derived from the monitoring devices, Magpie's predictiveanalytic algorithms can determine the set point of the storage unit's thermostat andalert the system's users if the system is incorrectly configured, depending on the varioustypes of products stored. Magpie's system also sends alerts about possible temperatureviolations based on the storage unit's average temperature and subsequent compressorcycle runs, which may drop the temperature below the freezing point. Magpie's predictiveanalytics further report possible human errors, such as failing to shut the storage unitdoors or having an incomplete seal, by analyzing the temperature trend and alerting theusers via Web interface, text message, or audible alert before the temperature bounds areactually violated. A compressor or a power failure also can be detected. The estimatedtime before the storage unit reaches an unsafe temperature also can be determined,which allows users to look for backup solutions, such as using dry ice to restore poweror working on other actions to prevent product spoilage.

In addition to predictive analytics, Magpie Sensing's analytics systems canprovide prescriptive recommendations for improving the cold storage processes andbusiness decision making. Prescriptive analytics help users dial in the optimal temperaturesetting, which helps to achieve the correct balance between freeZing andspoilage risk; this, in turn, proVides a cushion-time to react to the situation before theproducts spoil. Its prescriptive analytics also gather useful meta-information on coldstorage units, including the times of day that are busiest or periods where the system'sdoors are opened. This can be used to help formulate additional design training plansand institutional policies to ensure that the system is properly maintained and notoverused.

Furthermore, prescriptive analytics can be used to guide equipment purchase decisionsby constantly analyzing the performance of current storage units. Based on thestorage system's efficiency, decisions on distributing the products across available storageunits can be made based on the product's sensitivity.

Using Magpie Sensing's cold chain analytics, additional manufacturing time andexpenditure can be eliminated by ensuring product safety throughout the supply chain,and effective products can be administered to the patients. Compliance with state andfederal safety regulations can be better achieved through automatic data gathering andreporting about the products involved in the cold chain.

QUESTIONS FOR THE OPENING VIGNETTE

1. What information is provided by the descriptive analytics employed at MagpieSensing?
2. What type of support is provided by the predictive analytics employed at MagpieSensing?
3. How do prescriptive analytics help in business decision making?
4. What are possible ways to report actionable information in real time to theconcerned users of the system?
5. What other situations might need real-time monitoring applications'

Reference no: EM131370057

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