Synopsis: Michael Stefanic‚ director of cost management at Owens & Minor (O&M)‚ a medical and surgical supplies distributor and Daniel Borunda‚ material systems manager at Virginia Mason (VM) Medical Center came together to try to battle healthcare costs and improve the healthcare supply chain. Virginia Mason‚ a private non-profit healthcare organization based out of Seattle‚ offered both primary and specialized care and developed the Virginia Mason Production System (VMPS). The VMPS was a modified version
Premium Costs Inventory Pricing
Technische Universität München Management Accounting -Case Study- Harvard Business Case Case Study: Owens & Minor Structure of the Case Study 1. O&M: Company Profile 2. Costing and Pricing at O&M 3. The Case 4. O&M‘s Proposal 5. Solution of the Case-Questions © Gunther Friedl – WS 11/12 Case Study: Owens & Minor Owens & Minor‚ Inc: Company Profile Headquarter: Mechanicsville‚ Virginia‚ U.S Revenue 2010: $ 8.12 billion Number of employees 2010: 4‚800 One of the leading distributors
Premium Pricing Costs Cost
VMPS Facts What is the Virginia Mason Production System? The Virginia Mason Production System (VMPS) is a management method that seeks to continually improve how work is done so there are zero defects in the final product. Using this method‚ Virginia Mason (VM) identifies and eliminates waste and inefficiency in the many processes that are part of the health care experience‚ making it possible for VM staff to deliver the highest quality and safest patient care. By streamlining repetitive and low-touch
Premium Health care Patient Health care provider
Date: March 12‚ 2012 Course: Management Accounting & Control Case: Session 3: Owens & Minor (A) Date: March 12‚ 2012 Course: Management Accounting & Control Case: Session 3: Owens & Minor (A) Case Background: Who: Jose Valderas‚ divisional VP for Owens & Minor (O&M) What: How does O&M sell ABP (activity based pricing) to Ideal? Could they implement ABP to help Ideal? Why: O&M needs to improve margins; by understanding where costs are derived from
Premium Pricing Costs Cost
Case Summary: Owens & Minor Inc. Owens & Minor Inc. is one of the leading distributors of medical and surgical supplies. The company headquarters in Mechanicsville‚ Virginia‚ U.S. In 2010‚ the company has 4800 employees‚ with revenues of $8.12 billion. The company provides 200‚000 products from about 1200 manufacturers; the products include gloves‚ wound closure devices‚ sterile procedure trays‚ intravenous products‚ operating room items‚ etc. The core business-process of Owen & Minor Inc. is that
Premium Medicine Pricing Procurement
| Owens & Minor | Case Analysis | | | 2/1/2011 | | Executive Summary Owens & Minor is a distributor of surgical and medical supplies to hospitals and other health care facilities. Due to changing demand from customers‚ the company is facing increased operating costs‚ which has resulted in lower profit margins and even losses. In 1993‚ O&M recorded an $18 million profit‚ which was reduced to a loss of $11 million in 1995. The entire industry is experiencing similar
Premium Supply chain Pricing Supply chain management
What were reasons for implementing lean management at Virginia Mason Hospital? Lean thinking begins with driving out waste so that all work adds value and serves the customer’s needs. Identifying value-added and non-value-added steps in every process is the beginning of the journey toward lean operations. In order for lean principles to take root‚ leaders must first work to create an organizational culture that is receptive to lean thinking. The commitment to lean must start at the very top of the
Premium Lean manufacturing Toyota Production System Health care
Assessment of Supply Chain: case study of Virginia Mason (VM) and Owens and Minor (O&M) 1. Assessment of Total Supply Chain Cost (TSCC) CostTrack program has become Total Supply Chain Cost (TSCC). These two programs were developed by Owens and Minor (O&M)‚ the contrast between these two programs was that TSCC was focus on performance driven in the supply chain. TSCC was created as an activity-based pricing model which was related to products supplied in the pharmaceutical area‚ rather than volume
Premium Supply chain management Supply chain Pricing
Página 1 9-100-055 REV: FE BR UAR Y 14‚ 2002 VG NARA YAN AN LI SA M BRE Owens & Minor‚ Inc. (A) Era janeiro de 1996. José Valderas‚ vice-presidente da divisão de Owens & Minor (O & M)‚ um $ 3 bilhões distribuidora de suprimentos médicos e cirúrgicos‚ estava dirigindo de volta ao seu escritório Savage‚ Maryland. Sua mente estava processando a notícia que acabara de ouvir. Sistema Único de Saúde Ideal‚ um hospital não-for-profit cadeia que nos últimos 10 anos tinha comprado suprimentos a partir de
Premium
Case Summary: Owens & Minor‚ Inc. Owens & Minor‚ Inc. is one of the nation’s largest distributors of medical and surgical supplies that has been in operation for over 114 years. Obtaining and keeping profitable customers was critical for Owens & Minor‚ Inc. The company had an opportunity to negotiate business with Ideal Health Systems‚ a manufacturing company‚ when Ideal’s $30 million annual medical/surgical supply contract was up for bid. This was an opportunity Jose Valderas‚ divisional vice
Premium Pricing Marketing Manufacturing