Essay on Laboratorio De Analisis Argentina

1977 Words 8 Pages
Process Management Case:
Laboratorio de Analisis Argentina

1. What are the key success factors for LAA?

The key success factors for LAA are as follows: * Management’s belief in achieving and maintaining high-quality service based on fast turnaround times and accurate testing * Management’s recognition that there are flaws in LAA’s current processes and their willingness to fix the problems by doing a thorough analysis of the internal operations * Locally owned and operated (as opposed to LAA’s major competitors) * LAA’s intimate knowledge of local markets (driven by their large network of clinics around the country) * High-level management has international experience that can be applied to the local
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Looking at the Utilization tables it is evident how much of an issue this becomes. From an average day (and even some less than average days) to the highest production day the Lab is not able to process the required number of samples. According to our research, production capacity is below demand levels 56% of the sampled days in June. While the testing and Processing departments operate at approximately 90% capacity on the average day, it is the Separation process that must be immediately addressed to increase production capacity to the levels demanded by LAA’s clients and promised by it’s management.

The Capacity vs. Demand table shows how far below production requirements the Separation stage is. Separation is the only step operating below required production levels. Separation’s output level causes undo stress on the follow-on steps of LAA’s testing process (Testing, Communication, etc.) by forcing the down stream departments to play catch up on days with lower traffic. The inefficiency in Separation department also delays the amount of time it takes for clients to get results, which is the impetus of management’s desire to review LAA’s internal processes.

In general, the bottleneck step is that which has the lowest available capacity. In our case, on average, Separation - highlighted in yellow in the Throughput Table and red in the Utilization Table - actually has negative available capacity on an average day and up to negative 55%

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