The Adaptation of the Implementation of Just In Time Method - A Case Study in Pharmacy of Kemang Medical Care

10 Pages Posted: 16 Jul 2015

See all articles by A Heri Iswanto

A Heri Iswanto

University of Pembangunan Nasional "Veteran" Jakarta

Date Written: July 13, 2015

Abstract

Introduction - The 30%-50% of the hospital’s income comes from pharmacy. The mishandling management can result in waste. If the drug excess, the hospital got loss, because the drugs will not be used. Unavailable drugs (stock out) can miss the chance to get a profit. Therefore, some efforts are made to manage the pharmacy, one of them: implementing JIT method. Some hospitals successfully implement these methods, including: Kemang Medical Care (Indonesia), Seattle Children's Hospital, Cincinnati Children's Hospital Medical Center, Sacre-Coeur Hospital in Montreal, and the Hospital for Sick Children (USA).

Methodology - The study was conducted only in two hospitals (Kemang Medical Care and Seattle Children's Hospital). The information is gathered from the research reports from those hospitals. Interviews were conducted with those involved in the design, implementation, and monitoring. Questions related to how the JIT is designed, implemented, monitored, and the effects towards the pharmaceutical supplies.

Results - Kemang Medical Care. Cost reduction is calculated from the ratio of purchases to sales. The ratio is increased from 4.39 becomes 8.04; since the purchases are dropped consistently, it is able to compensate the sales. Seattle Children's Hospital. The program takes 18 months and costs $200,000. The implementation of JIT is able to save 23,000 work hours per year and reduce the cost 5% of supply. The costs are equivalent with the ROI for amount $2.5 million in the first year and a profit of 1,200%.

Discussion - The JIT method is more focused on the efforts to reduce the variation in the form of a good visual representation. JIT is a cost control method that eliminates the activity of continuous daily scheduling. Controlling is made easier with a good visual representation. Reduction of variation and visual representation are important in the implementation of JIT.

Keywords: Just-in-Time, Pharmacy, Cost Reduction

Suggested Citation

Iswanto, A Heri, The Adaptation of the Implementation of Just In Time Method - A Case Study in Pharmacy of Kemang Medical Care (July 13, 2015). Available at SSRN: https://ssrn.com/abstract=2629907 or http://dx.doi.org/10.2139/ssrn.2629907

A Heri Iswanto (Contact Author)

University of Pembangunan Nasional "Veteran" Jakarta ( email )

Jl. RS. Fatmawati
Pondok Labu
South Jakarta, DKI Jakarta 12450
Indonesia
+622177218925 (Phone)
+622177218925 (Fax)

HOME PAGE: http://www.upnvj.ac.id

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