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Logistics Improvement Project

Logistics Improvement Project. April 2009. Project Charter. Business Problem/Opportunity Statement

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Logistics Improvement Project

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  1. Logistics Improvement Project April 2009

  2. Project Charter Business Problem/Opportunity Statement • Melbourne Health spent over $1.9m on taxis and couriers in 07/08. With better coordination across the organisation on use of taxis, couriers and pool cars we should be able to provide a better level of service at a lower cost. Scope • Couriers – internal and external, VIC usage only. Focus on supply and 5 main users (Payroll, pathology, NWMH, RPC, VIDRL) • Taxis – all patient and non-patient spend across the whole of MH Measures of Success • $ spent on taxis and couriers • Number of journeys • Pool car utilisation % Alignment to Business Plan • This is aligned to the ‘Deliver Financial Strategies’ section of the MH business plan

  3. Measure stage • Numbers: financial and usage data from MH systems • Qualitative: observations and interviews • Audits: actual trips done over two-week period • Mapping: geographical representation of audit data

  4. Map – Monday 29th September

  5. Analysis Stage • Root Cause Analysis • In depth analysis of taxis & couriers • Solution generation • Risk assessment

  6. Cause & Effect Diagram

  7. Proposed Solutions Pilots: • Start new internal courier runs • Implement taxi reporting and departmental management systems Implement: • Communication strategy re public transport • Management responsibility for courier and taxi usage

  8. Lessons Learned Define: • Taking time to brief the team, understand the problem, and see it from our customers’ point of view Measure: • Value of observing actual services • Challenges in obtaining the full picture – combination of supply/finance data plus audit • Involvement of teams in mapping – having fun, generating new insights Analysis: • Very detailed analysis of every courier run, every site and every service needed • Time required • Seen benefits of corporate not silo approach • Learnt more about our areas – we didn’t understand the detail of how our courier services worked before

  9. Next Steps • Completion of pilot with continuous improvement • Sustainability: • Publicise, promote and embed courier service • New procedures for taxis rolled out • Financial tracking • Ongoing management workplan

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