Meditech Surgical Case Study, Operations Management

Case Study

Meditech Surgical

Yousef Naser

Seat # 50

1. what are Meditech's problems in introducing new products ?

-from the first to the 3ed month, there was no finished goods inventory , so the demand increased, and started to back order.

-it took them almost 6 months to stable out inventory with demand.

-they don't have any efficient forecasting methods, data to measure forecast accuracy had not previously been tracked, nor had forecasts and demand information been kept.

In manufacturing All products?

they have extremely low finished goods inventory, and what made this problem even worse the fact that it takes them a really long time to complete finished goods.

2.What is driving these problems, both systematically and organizationally?

Systematically :

- Long time to acquire component parts , maybe a supplier issue

- Panic ordering, because of the unstable deliveries.

- loss of business with some hospitals because of the late deliveries.

- Centralized location, and how that can effect the supply-distribute relation.

Organizationally

- Poor forecasting.

- No information system what so ever.

- really long time to produce finished goods and NO delivery time !

3. Why is the customer service manager the first to notice this issue?

because he represents the company's front line, he receives the customers complaints.

and he used a person to tabulate data to find the problem.

4. What Would I do ?

- Improve the forecasting system in the company.

- Keep good amount of finished goods in inventory.

- Analyze operations to see if i can reduce the time used to produce finished goods.

- Decentralize warehouses.

- assign someone to calculate the time needed for the finished goods to reach its customers after it has been shipped

- and maybe to work with more than one supplier, it might reduce the supplying time/issue.