SHEGER COLLEGE MASTERS OF BUSINESS ADMNISTRATION(MBA)PROGRAM

OPERATIONAL MANAGEMENT GROPUP ASSIGNMENT TWO (2)

PREPARED BY: ID NO.

[Link] DEBELO …………………. SCMBA/477/15

[Link] ABABU……………………. SCMBA/507/15

[Link] TESHOME…………………SCMBA/434/15

[Link] LEMA…………………………. SCMBS/494/15

[Link] MIDEKSA………………. SCMBA/503/15

[Link] FEKEDA…………………. SCMBA/456/15

SUBM DATE: FEBRUARY/22 /2024

SUBM TO: Gebre S.(PHD)

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 CASE ONE (1)

1. Why is it important for Arnold Palmer Hospital to get a patient’s assessment of

health care quality? Does the patient have the expertise to judge the health care he
or she receives?
 Importance of Patient Assessment of Health Care Quality at Arnold
Palmer Hospital

It is important for Arnold Palmer Hospital to obtain a patient's assessment of health

care quality for several reasons. First, patient feedback provides valuable insights
into the hospital's performance and areas for improvement. By understanding how
patients perceive the quality of care they receive, the hospital can identify strengths
and weaknesses in its services and make necessary adjustments to enhance patient
satisfaction.
Second, patients are the recipients of health care services and have firsthand
experience of their interactions with the hospital staff, facilities, and treatment
outcomes. Their perspectives and opinions are crucial in evaluating the
effectiveness and efficiency of the hospital's operations.
While patients may not possess the technical expertise of healthcare professionals,
their assessment of health care quality is still valuable. Patients can evaluate
aspects such as communication, responsiveness, cleanliness, and courtesy, which
are essential components of quality care. Their feedback provides a unique
perspective that complements the hospital's internal measures and helps identify
areas for improvement.

2. How would you build a culture of quality in an organization such as Arnold

Palmer Hospital?

 Building a Culture of Quality at Arnold Palmer Hospital

To build a culture of quality at Arnold Palmer Hospital, several strategies can be

implemented:
a. Leadership Commitment: The hospital's leadership, including Executive
Director Kathy Swanson, should demonstrate a strong commitment to quality and
continuous improvement. This commitment should be communicated throughout
the organization, emphasizing the importance of quality in all aspects of patient
care.
b. Employee Empowerment: Employees should be empowered to take ownership
of quality improvement initiatives. They should be encouraged to identify

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problems, track performance, and develop solutions at the grassroots level. This
fosters a culture of accountability and continuous learning.
c. Comprehensive Measurement: Implementing a comprehensive measurement
system is crucial for monitoring and improving quality. Arnold Palmer Hospital
utilizes various tools such as Pareto charts, flowcharts, and process charts to track
performance indicators like morbidity, infection rates, readmission rates, costs per
case, and length of stays. These measurements provide valuable data for
identifying areas of improvement and benchmarking against other hospitals.
d. Patient-Centered Approach: The hospital's longstanding philosophy of
providing comprehensive, compassionate, and family-centered care should be
reinforced. This approach ensures that each patient is treated as an important
individual and receives care from a knowledgeable physician-directed team.
e. Continuous Learning and Benchmarking: Arnold Palmer Hospital engages in
continuous learning by benchmarking against other hospitals both nationally and in
the southeast region. This allows the hospital to identify best practices, learn from
others, and strive for excellence in patient care.

3. What techniques does Arnold Palmer Hospital practice in its drive for quality
and continuous improvement?

 Techniques for Quality and Continuous Improvement at Arnold

Palmer Hospital

Arnold Palmer Hospital employs several techniques in its drive for quality and
continuous improvement:
a. Patient Surveys: The hospital conducts in-depth surveys to gather accurate
information about how patients and their families judge the quality of care. These
surveys provide valuable feedback that helps the hospital gain quick knowledge
from patient feedback and make informed decisions.
b. Internal Measures: In addition to patient surveys, Arnold Palmer Hospital
utilizes various internal measures to track performance. These measures include
monitoring morbidity, infection rates, readmission rates, costs per case, and length
of stays. By tracking these indicators, the hospital can identify areas for
improvement and measure progress over time.
c. Empowering Employees: Arnold Palmer Hospital empowers its employees to
provide gifts up to $200 to patients who find reason to complain about any hospital
service. This empowers employees to address and resolve issues promptly,
fostering a culture of responsiveness and continuous improvement.
d. Tools and Techniques: The hospital utilizes tools such as Pareto charts,
flowcharts, and process charts to analyze data and identify areas for improvement.

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These visual tools help in understanding the root causes of problems and
implementing effective solutions.
e. Benchmarking: Arnold Palmer Hospital benchmarks its performance against
other hospitals nationally and in the southeast region. This allows the hospital to
compare its performance, identify areas of excellence, and learn from best
practices in the industry.
By implementing these techniques and fostering a culture of quality, Arnold
Palmer Hospital has achieved high rankings in patient satisfaction and has one of
the highest survival rates for critically ill babies

CASE TWO (2)

1. Why is accurate inventory such an important issue at Wheeled Coach?

Accurate inventory is crucial at Wheeled Coach due to the custom nature of its
business, which involves building thousands of different and constantly changing
configurations of ambulances. The custom nature of the business results in a wide
range of options and special designs, leading to a potential scheduling and
inventory nightmare. The accurate inventory is essential to ensure that the right
components are available for the diverse ambulance configurations. Additionally,
the MRP system requires increased inventory accuracy, and excess inventory can
lead to operational inefficiencies and increased costs. Therefore, accurate inventory
is vital to support the dynamic and unique changes in ambulance configurations
and to prevent overstocking and rejection of inventory at inconvenient costs.

2. Why does Wheeled Coach have excess inventory, and what kind of a plan would
you suggest for dealing with it?
Reasons for Excess Inventory and Plan for Dealing with It

Wheeled Coach has excess inventory due to several factors, including the rapid
changes in ambulance design and technology, as well as customer changes made
after specifications had been determined and materials ordered. Additionally, the
long lead times of purchased items contribute to excess inventory, as the
throughput time at Wheeled Coach is only 17 days, while many purchased items
require much longer lead times.
To address the excess inventory, a comprehensive plan should be implemented,
including the following steps:
 Review and Adjust Procurement Practices: Evaluate the procurement
process to identify opportunities to reduce lead times for critical

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 components. This may involve working closely with suppliers to streamline
the supply chain and reduce the time between ordering and delivery.
 Implement Lean Inventory Management: Adopt lean inventory
management principles to optimize inventory levels and reduce excess stock.
This may involve implementing just-in-time (JIT) inventory practices and
setting up Kanban systems to trigger replenishment based on actual demand.
 Enhance Forecasting and Demand Planning: Improve forecasting
accuracy to better anticipate changes in ambulance design and customer
specifications. This can help align inventory levels with actual demand and
reduce the risk of overstocking.
 Optimize Material Requirements Planning (MRP): Fine-tune the MRP
system to ensure that inventory levels are aligned with production
requirements and customer demand. This may involve adjusting order
quantities, safety stock levels, and reorder points based on demand
variability and lead times.
 Continuous Monitoring and Adjustment: Establish a process for ongoing
monitoring of inventory levels and performance metrics. Regularly review
inventory turnover rates, carrying costs, and obsolete inventory to identify
areas for improvement and make necessary adjustments.

3. Be specific in your suggestions for reducing inventory and how to implement

them.

Specific Suggestions for Reducing Inventory and Implementation

Specific Suggestions:

1. Supplier Collaboration: Collaborate with key suppliers to explore

opportunities for reducing lead times and improving supply chain efficiency.
This may involve negotiating shorter lead times, implementing vendor-
managed inventory (VMI) programs, and establishing strategic partnerships
with reliable suppliers.
2. Demand Forecasting Improvement: Invest in advanced demand
forecasting tools and techniques to enhance accuracy and reliability. Utilize
historical data, market trends, and customer insights to develop more precise
demand forecasts, enabling better inventory planning and management.
3. Inventory Optimization: Conduct a thorough analysis of inventory levels
and carrying costs to identify excess and obsolete inventory. Implement
inventory optimization strategies, such as ABC analysis, to prioritize
inventory management efforts and focus on high-value items.

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 4. Just-in-Time (JIT) Practices: Introduce JIT practices to minimize excess
inventory and align production with actual demand. Implement pull-based
production systems and establish close coordination between production
schedules and material replenishment.
Implementation:

 Cross-Functional Collaboration: Engage cross-functional teams, including

procurement, production, and inventory management, to collaborate on
implementing inventory reduction initiatives. Foster a culture of continuous
improvement and encourage input from employees at all levels.
 Performance Metrics: Establish key performance indicators (KPIs) related
to inventory management, such as inventory turnover ratio, carrying costs,
and stock out rates. Regularly monitor these metrics and use them to track
progress and identify areas for further improvement.
 Training and Education: Provide training and education to employees on
the importance of inventory management and the specific strategies being
implemented. Ensure that employees understand their roles in optimizing
inventory levels and reducing excess stock.
By implementing these specific suggestions and fostering a culture of continuous
improvement, Wheeled Coach can effectively reduce excess inventory, improve
inventory accuracy, and enhance operational efficiency.

CASE THREE (3)

1. What are the major pros and cons for companies to set up production in
Ethiopia?
Major Pros and Cons for Companies to Set Up Production in Ethiopia

 Pros:

 Abundant and Cheap Labor: Ethiopia offers a large and cost-effective

labor force, making it an attractive destination for manufacturing operations.
The base salary of workers is significantly lower compared to other
manufacturing hubs, providing cost advantages for companies.
 Tax Incentives: The Ethiopian government provides tax exemptions for the
first five years to incentivize foreign companies, reducing the initial
financial burden for companies setting up operations in the country.

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  Potential for Growth: Ethiopia's goal to create 2 million manufacturing
jobs by 2025 presents an opportunity for companies to contribute to the
country's transition from an agrarian nation to a manufacturing hub.
 Cons:

 Political Instability: Ethiopia's political instability poses a potential risk for

companies operating in the country. Uncertainty related to political
developments can impact business operations and create challenges for long-
term planning.
 Infrastructure Challenges: Underdeveloped infrastructure in Ethiopia may
lead to logistical and operational difficulties for companies. This includes
longer delivery times for products to reach international markets, potentially
affecting customer satisfaction and supply chain efficiency.

2. How could inferior working conditions influence the efficiency of production

for companies?
Influence of Inferior Working Conditions on Production Efficiency

Inferior working conditions can significantly impact the efficiency of production

for companies in Ethiopia. Poor working conditions may lead to lower employee
morale, increased absenteeism, and reduced productivity. Additionally, inadequate
working conditions can contribute to higher employee turnover rates, leading to
disruptions in production and increased recruitment and training costs. Moreover,
substandard working conditions may result in health and safety concerns,
potentially leading to work-related injuries and illnesses, further impacting
production efficiency and overall operational performance.

3. What factors influence productivity of the companies that decide to set up

operations in Ethiopia?

Factors Influencing Productivity of Companies in Ethiopia

Factors Influencing Productivity:

 Labor Management: Effective management of the abundant and cheap

labor force is crucial for productivity. This includes providing adequate
training, implementing fair labor practices, and ensuring a safe and healthy
work environment.

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  Infrastructure Development: Addressing infrastructure challenges, such as
improving transportation networks and logistics, is essential for enhancing
productivity and operational efficiency.
 Compliance with Standards: Adhering to international labor standards and
best practices is important for maintaining high productivity levels and
ensuring the well-being of the workforce.
 Supply Chain Management: Efficient supply chain management, including
timely procurement of raw materials and components, is critical for
maintaining production schedules and meeting customer demand.
 Government Support: Continued support from the Ethiopian government,
including infrastructure investments, regulatory stability, and incentives for
foreign investment, can positively influence the productivity of companies
operating in the country.
By addressing these factors and prioritizing the well-being of the workforce,
companies can strive to maintain high levels of productivity while operating in
Ethiopia.