Laboratorio De Analisis Argentina

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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…show more content…
The Separation bottleneck must be solved in order to reduce the inefficiency of the entire process. The Testing and Processing secondary bottlenecks should also be addressed to streamline LAA throughput. It is the low levels of available capacity in the beginning steps and the high levels of available capacity at the later steps that factor into the high standard deviation seen on chart exhibit 4. 3. How does demand variability impact capacity issues at LAA? What can the company do to control variability in demand? With the bottleneck occurring so early in the process, it is critical that the early steps become more efficient. Hiring more personnel for this step would help ease the back up here but more staff would also increase expenses at a time when the company is trying to reduce costs. An alternative fix would be schedule regular pick ups and deliveries to reduce the uncertainty and efficiency of the way drop offs are occurring. Additionally, if pickups were scheduled, costs could be reduced as LAA could rely on their six trucks to make 4 scheduled pick up/deliveries and could eliminate the need to outsource to a private company. Another thought to address this step is to completely outsource the pick ups, thereby eliminating the cost of truck fuel, maintenance and other expenses. The major problem with the current delivery system in place is that drop offs can occur at any time during a 16-hour work day.

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