Proving ROI With RFID in Medical Device Distribution 1
Proving ROI With RFID in Medical Device Distribution John C Reese, PMP RFID Project Manager Zimmer Ohio 2
Agenda Who Zimmer Ohio Is What s unique about this industry s distribution model AS-IS Process Challenges TO-BE RFID Solution Expected ROI Questions 3
Who is Zimmer Ohio Exclusive distributor of Zimmer Inc. products, trauma and orthopedic surgical products, in most of Ohio - Implants and Instruments Trauma Hip Knees Shoulders Elbows 4
What makes the Surgical Distribution Model Unique 5
What makes the Surgical Distribution Model Unique Loan Product for Surgical Cases 6
What makes the Surgical Distribution Model Unique Pre Surgery Loaning Product Multiple High Value Items Implants (200 500+) for each surgical case 7
What makes the Surgical Distribution Model Unique Pre Surgery Loaning Product Multiple High Value SKUs Implants (200 500+) for each surgical case Instrument Trays (5 25+) 8
What makes the Surgical Distribution Model Unique Post Surgery Returning Loans All Product (except 4 10+ implants) 9
What makes the Surgical Distribution Model Unique Post Surgery Returning Loans All Product (except 4 10+ implants) Bill for consumed products 10
AS-IS Process Challenges Business Requirements Voice of our Customer On Time 100% Accurate, and 100% Complete 11
AS-IS Process Challenges How we Meet These Requirements Today 50,000 ft View of Current Process 12
AS-IS Process Challenges Current Process Receive Excel Pick Sheet from Sales Representative Inspect it Nexgen Femorals CR-FLEX POROUS 5952-13/17 L-01 1 R-02 CR-FLEX PRECOAT 5950-13/17 L-01 R-02 CR-FLEX MINUS POROUS 5952-13/17 L-05 1 R-06 13
AS-IS Process Challenges Current Process Receive Excel Pick Sheet from Sales Representative Inspect it Pull Inventory 14
AS-IS Process Challenges Current Process Loan Inventory Scan it 15
AS-IS Process Challenges Current Process Loan Inventory Scan it 1 st Inspection for accuracy 16
AS-IS Process Challenges Current Process Loan Inventory Scan it 1 st Inspection for accuracy 2 nd & 3 rd Inspections for accuracy 17
AS-IS Process Challenges Current Process Loan Inventory Scan it 1 st Inspection for accuracy 2 nd & 3 rd Inspection for accuracy Deliver case 18
AS-IS Process Challenges Current Process Return Inventory / Close Loan Material Number Determine which Loan each item is on Lot Number 00-5956-013-02 6971234 19
AS-IS Process Challenges Current Process Return Inventory / Close Loan Determine Loan Item are on Remove Items from Loan 20
AS-IS Process Challenges How we Meet These Requirements Today Manual Pick Sheet check 5 minutes Triple Inspection 30 minutes Scanning Implants and Instruments for loans 10 minutes to 1 hr Removing Implants and Instruments from loans 20 minutes to 1 hr 15 minutes 21
AS-IS Process Challenges Non Value Add = 1 2 ½ hours for every surgery case! 22
TO-BE Process With RFID Why RFID? Potential to: Reduce errors. Barcodes often times don t read and need to be hand keyed. Reduce time to perform repetitious operations Mistake proof, eliminate inspections Uniquely identify each item for item level tracking 23
TO-BE Process With RFID Our Methodology Incorporate process reengineering rather than just using RFID as faster way to scan. Mistake proofing Eliminate inspecting in mass Incorporate quality in the process Look for breakthrough results Find a Vendor/Partner who was willing to learn our business model and understands process as well as the technology 24
TO-BE Process With RFID How we will Meet The Requirements Tomorrow? Pick Sheet Scan & Print Pick List 1 minute System Prints a Pick List 25
TO-BE Process With RFID How we will Meet The Requirements Tomorrow Pick Sheet Scan & Print Pick List 1 minute Pull Product 26
TO-BE Process With RFID How we will Meet The Requirements Tomorrow Pick Sheet Scan & Print Pick List 1 minute Pull Product RFID Scan & Submit 1 minute System Creates a Variance Report 27
TO-BE Process With RFID How we will Meet The Requirements Tomorrow Validate Tray contents by weight 15 seconds per tray OK Mistake Proofing With RFID 28
TO-BE Process With RFID How we will Meet The Requirements Tomorrow Post Surgery Remove from loan 2 minutes System Removes all items from loans 29
TO-BE Process With RFID How we will Meet The Requirements Tomorrow Pick Sheet Scan & Print Pick List 1 minutes Double Inspection of Instrument Contents only 10 minutes RFID Scan of Implants and Instruments for loans 1 minute Removing Implants and Instruments from loans 2 minutes 30
Expected ROI With RFID Process Steps AS-IS TO-BE Time Reduction Pick Sheet Scan 5 1 4 Pull Implants & Instruments No Change 0 Loan Instruments 10-60 1 9-59 Triple Inspection Implants Instruments Remove Implants & Instruments from Loans 15 15 1 10 14 5 30-75 2 28-73 Total 75-170 15 60-155 31
Hard Dollar ROI Time Savings Total Equivalent FTE s TO-BE 3 hour reduction per specialist per day 32
Questions? 33