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Article
Publication date: 8 June 2023

Jean C. Essila and Jaideep Motwani

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most…

Abstract

Purpose

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most significant expense, the SC, accounts for 38% of total expenses in a typical hospital, while most other industries can operate within 10% of their operating cost. This makes healthcare centers supply-chain-sensitive organizations with limited facilities for high-quality healthcare services. As the cost drivers of healthcare SC are almost unknown to managers, their jobs become more complex.

Design/methodology/approach

Guided by pragmatism and positivism paradigms, a cross-sectional study has been designed using quantitative and deductive approaches. Both primary and secondary data were used. Primary data were collected from health centers across the country, and secondary data were from healthcare-related databases. This study examined the attributes that explain the most significant variation in each contributing factor. With multiple regression analysis for predicting cost and Student's t-tests for the significance of contributing factors, the authors of this study examined different theories, including the market-based view and five-forces, network and transaction cost analysis.

Findings

This study revealed that supply, materials and services represent the most significant expenses in primary care. Supply-chain cost breakdown results in four critical factors: facility, inventory, information and transportation.

Research limitations/implications

This study examined the data from primary and secondary care institutions. Tertiary and quaternary care systems were not included. Although tertiary and quaternary care systems represent a small portion of the healthcare system, future research should address the supply chain costs of highly specialized organizations.

Practical implications

This study suggests methods that can help to improve supply chain operations in healthcare organizations worldwide.

Originality/value

This study presents an empirically proven methodology for testing the statistical significance of the primary factors contributing to healthcare supply chain costs. The results of this study may lead to positive policy changes to improve healthcare organizations' efficiency and increase access to high-quality healthcare.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 17 December 2021

Farouq Alhourani, Jean Essila and Bernie Farkas

The purpose of this paper is to develop an efficient and effective preventive maintenance (PM) plan that considers machines’ maintenance needs in addition to their reliability…

Abstract

Purpose

The purpose of this paper is to develop an efficient and effective preventive maintenance (PM) plan that considers machines’ maintenance needs in addition to their reliability factor.

Design/methodology/approach

Similarity coefficient method in group technology (GT) philosophy is used. Machines’ reliability factor is considered to develop virtual machine cells based on their need for maintenance according to the type of failures they encounter.

Findings

Using similarity coefficient method in GT philosophy for PM planning results in grouping machines based on their common failures and maintenance needs. Using machines' reliability factor makes the plan more efficient since machines will be maintained at the same time intervals and when their maintenance is due. This helps to schedule a standard and efficient maintenance process where maintenance material, tools and labor are scheduled accordingly.

Practical implications

The proposed procedure will assist maintenance managers in developing an efficient and effective PM plans. These maintenance plans provide better inventory management for the maintenance materials and tools needed using the developed virtual machine cells.

Originality/value

This paper presents a new procedure to implement PM using the similarity coefficient method in GT. A new similarity coefficient equation that considers machines reliability is developed. Also a clustering algorithm that calculates the similarity between machine groups and form virtual machine cells is developed. A numerical example adopted from the literature is solved to demonstrate the proposed heuristic method.

Details

Journal of Quality in Maintenance Engineering, vol. 29 no. 1
Type: Research Article
ISSN: 1355-2511

Keywords

Article
Publication date: 23 August 2022

Jean C. Essila

This study aims to identify empirically proven strategies for reducing healthcare supply chain inventory costs.

Abstract

Purpose

This study aims to identify empirically proven strategies for reducing healthcare supply chain inventory costs.

Design/methodology/approach

The author conducted in-depth interviews in 80 hospitals covering different supply chains. The author treated the healthcare firm as the unit of analysis and examined Vrat's taxonomy of inventory models based on the static and dynamic complexity theories of inventory models to identify an appropriate approach. The author addressed 33 highly priced and moderately priced stock-keeping units from 1,432 items and test several inventory policies. Next, the author applied combinations of inventory models, testing probabilistic hybrid inventory models.

Findings

The study finds that medical supplies, equipment, and medications are indispensable for a quality healthcare system. Hence, healthcare supply chain management (SCM) professionals must adopt basic inventory cost-reduction strategies, implementing inventory software functionalities effectively and efficiently. This study shows that probabilistic hybrid inventory techniques in healthcare SCM effectively determine an optimal stocking level, significantly reducing costs.

Research limitations/implications

This study analyzes data from primary care and (to some extent) secondary care institutions. Although tertiary and quaternary care systems do not represent a large portion of the healthcare system, future research should also address these highly specialized organizations' needs.

Practical implications

This study proposes practical strategies to help continuously improve supply chain operations in healthcare organizations worldwide.

Originality/value

This study suggests probabilistic hybrid inventory models as empirically proven solutions for evaluating stock-keeping units in the healthcare sector. In doing so, the study provides a new healthcare supply chain approach, proposing a modified taxonomy of inventory models.

Details

Benchmarking: An International Journal, vol. 30 no. 8
Type: Research Article
ISSN: 1463-5771

Keywords

Book part
Publication date: 5 October 2020

Hasan Cinnioğlu

The current Industry 4.0 era is considered not only as a process that dominates technological developments but also as a process that influences the leadership styles. Management…

Abstract

The current Industry 4.0 era is considered not only as a process that dominates technological developments but also as a process that influences the leadership styles. Management 4.0 is essential for businesses to find and apply the appropriate technologies in the age of Industry 4.0. The leadership styles that business managers will adopt in order to be successful in this process and to survive in an intensely competitive environment can play an important role. At this point, a significant problem arises: identifying leadership styles that will bring success. In this context, the primary purpose of this chapter is to explain the modern leadership styles that business managers can adopt or follow in the age of Industry 4.0. In line with this purpose, the chapter first describes the historical development of leadership, leadership theories and modern leadership styles, such as transactional, transformational, technological, strategic, visionary and agile leadership, and all these concepts are discussed based on the Industry 4.0 perspective.

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