Team Leader:

Twila Whipple, Respiratory Care
356-4004
Email: twila-whipple@uiowa.edu

Team Membership and Department/Unit:

Dale Flannery, Facility Services
Jackie Heinle, Nursing
Denise Hochstedler, Nursing
Bob Kempf, Shipping & Receiving
Sue Miller, Nursing
Mike Minchk, Respiratory Care
Cindy Moyer, Nursing
Steve Poggenpohl, General Stores
Barbara Schuessler, Nursing
erri Stoner, Value Analysis Program
Sheila White, Anesthesia

Executive Summary

1. Team Charge: "Develop a Process to Manage the Oxygen Regulator Inventory."
   1. Review of current inventory, which includes a review of different kinds and ages of current regulators, purchasing patterns and inventory locations in order to prepare recommendation for future purchases.
   2. Standardization of regulators for UI Hospitals and Clinics. Reduce overall inventory and related staffing expenses.
   3. Review and make final recommendations concerning centralization of regulators. Prepare and implement an action plan for distribution.
   4. Identify E cylinder tank rental fees and discuss and implement ways to reduce this expense.
   5. Specifically identify all dollars that can be saved by MFK from specific budgeted accounts.
2. Process Improvements that have been defined and are to be implemented
   1. Buy-Out of Lost Oxygen E Tanks (Cost is ~$49,200 w/ an ROI of 1.6 years)
      Portable tanks are rented and the tanks are filled with oxygen by Air Products, Davenport, IA. The UI General Stores Compressed Gas division maintains the UI inventory and delivers tanks to the UI Hospitals and Clinics for house-wide distribution by Shipping and Receiving staff. The rental tanks do not have a distinctive label of ownership and a recent physical inventory documented a loss of 1,200 tanks over the last ten years. The per-tank cost of demurrage is $0.07 daily or $25.55 annually, and the UI Hospitals and Clinics continues to pay this amount on lost tanks.
   2. Purchase of Oxygen E Tanks (Cost is ~$120,771 w/ an ROI of 3.0 years)
      The rental tanks do not have any clear notation of ownership and we project that level of loss with rental tanks to continue unless a process change is implemented. Newly purchased tanks will have a distinct label of ownership including a chart to calculate duration of remaining gas contents. (See Page 3). This education tool will help reduce waste of unused contents. The tanks will still be handled through our currently established distribution network and filled by Air Products.
   3. Purchase of New Standardized Oxygen Regulator Inventory (Cost is ~$28,500 w/ an ROI of 2.6 years)
      Regulators are an essential component of portable gas systems. They indicate the amount of gas pressure remaining and regulate the gas liter flow. The current regulators are mostly older units, are of heavy steel construction, and are non-standardized throughout the user areas. Each area currently owns its own inventory however the regulators constantly move throughout the hospital because of patient transfers. As a result areas tend to "hoard" regulators so that the staff has equipment to respond to service demands, including emergency oxygen delivery.

      Our recommendation is that Shipping and Receiving deliver tanks with the regulators already assembled to the tanks. With regulators on each tank there is no need to "hoard." To operationalize delivery with regulators, Shipping and Receiving needs to maintain a standardized inventory of new lightweight and durable regulators. (See Page 4). The older regulators will be used on crash carts and emergency standby inventory since these regulators are used infrequently and are not routinely transported.

Identification of barriers/difficulties that impeded this project and how they were addressed.

1. The initial committee charge was to develop an oxygen regulator inventory management system. Prior to addressing the regulators the team identified that the tank inventory needed to be understood and addressed.
2. Without a process change, continued loss of rental tanks is projected. New UI Hospitals and Clinics-owned tanks with distinctive labels will reduce/eliminate loss.
3. Shipping & Receiving staff will assume the additional charge of assembling regulators on to the tanks. This process change requires a standardized inventory of new lightweight and durable regulators.
4. Staff education is essential to eliminate loss of tanks and regulators. A comprehensive education program is planned. (See action plans below)

Provide action plans to address implementation of recommendations offered by success of the team. Include the name of the Department or Staff responsible.

ACTION / FACILITATOR

1. Purchase lost tanks: Gary Anderson, UI General Stores; Terri Stoner, Value Analysis Program
2. Purchase new tanks: Gary Anderson & Steve Poggenpohl, UI General Stores; Terri Stoner, Value Analysis Program
3. Purchase new labels: Terri Stoner, Value Analysis Program; Twila Whipple, Respiratory Care
4. Tanks w/ regulators distribution: Bob Kempf, Shipping & Receiving
5. Staff Education Bob Kempf, Shipping & Receiving; Barbara Schuessler, Nursing; Terri Stoner, Value Analysis Program; Twila Whipple, Respiratory Care

Quantify all operational savings for UI Hospitals and Clinics (include Master File Key identification).

Proposal Expense Table

Buy-Out of Lost Tanks........170-70-7515 60000     6430 150 00000     $30,660     Fiscal year budget 2001/2002 reduced.
Purchase of New Tank Inventory....170-70-?
No Longer annual purchase of New Regulators 170-70, Nursing, Radiology Oncology, Clinics and Nuclear Med, Anesthesia Inst. Org 6090-260-0000)
Purchase of New Regulators......260 Process Improvement Grant with money from above areas.