Business Process Modelling: Hospital Procurement Process Analysis

This report presents a detailed analysis of a hospital procurement process, comparing the current 'As-Is' process with a proposed 'To-Be' process. The report utilizes IBM Blue Works Lives to model the processes, including stages like Hospital Management, Procurement, Supply, Resource Collection, and Payment, with swimlanes for Staff, Accounting, and Suppliers. The As-Is process identifies problems such as backorders and three-way match discrepancies. The To-Be process offers improvements, including alternative supplier checks and streamlined invoice reconciliation. The report highlights the importance of ERP systems and efficient supply chain management in resolving these issues. The analysis provides a comprehensive understanding of the procurement workflow and offers practical solutions for optimizing hospital operations. The conclusion emphasizes the effectiveness of the business process modeling in describing the hospital procurement process and solving the identified problems.

Running head: BUSINESS PROCESS MODELLING
Business Process Modelling
Hospital Procurement Process
Name of the Student:
Name of the University:
Author Note

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BUSINESS PROCESS MODELLING
Table of Contents
Introduction......................................................................................................................................2
Hospital Procurement As-Is Process...............................................................................................2
Process Model Analysis...................................................................................................................3
Hospital Management......................................................................................................................3
Procurement.....................................................................................................................................4
Supply..............................................................................................................................................5
Resource Collection.........................................................................................................................6
Payment...........................................................................................................................................7
Problems and Comments.................................................................................................................7
Hospital Procurement To-Be Process............................................................................................10
Process Model Analysis.................................................................................................................11
Hospital Management....................................................................................................................11
Procurement...................................................................................................................................12
Supply............................................................................................................................................13
Resource Collection.......................................................................................................................14
Payment.........................................................................................................................................15
Problems and Comments Resolution.............................................................................................15
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17

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BUSINESS PROCESS MODELLING
Introduction
The businesses nowadays are in process to find the correct tools and methods to improve
their transactions processes. Hence, the most appropriate tool is a business process tool that helps
to provide brief details about each process for the business models.
The purpose of this report is to present a hospital procurement As-Is process and To-Be
process using IBM Blue Works Lives to briefly describe each process. The report also provides
comments and problems based on As-Is model analysis along with focus on backorder problem
and three-way match problem.
Hospital Procurement As-Is Process
Figure 1: As Is Process
Source: (Created by Author)

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BUSINESS PROCESS MODELLING
The above figure provides Hospital procurement As-Is process through step by step
process that contains three swimlane that are as follows.
Staffs- ERP system is used for managing and operating functions in the organization.
Accounting- All the financial related data such as inventory, invoice maintenance, request for
credit and payment method, debit or cheques are recorded.
Supplier- Products and services are delivered as required by the organization.
Process Model Analysis
Hospital Management
Figure 2: Hospital Management
Source: (Created by Author)
The level is set where report of current stock is initiated by the staff of hospital
management. The recorder quantity is then calculated where new order in ERP is generated.

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BUSINESS PROCESS MODELLING
Procurement
Figure 3: As Is Procurement Process
Source: (Created by Author)
In this stage, if the orders are backed then it is checked for alternative supplier and if
available then it is further processes and if not available then purchased order is emailed. The
alternate supplier if available then ERP is adjusted for all the orders where all the orders for the
items are emailed to the new supplier. The next step is to cancel old order for old suppliers which
may be emailed or maybe not.

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BUSINESS PROCESS MODELLING
Supply
Figure 4: As Is Supply Process
Source: (Created by Author)
This stage shows that after all the emailing of the order item the received order item is
stored in GRN form. Then reconciliation of GRN is done with the supplier delivery docket.

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BUSINESS PROCESS MODELLING
Resource Collection
Figure 5: As Is Resource Collection Process
Source: (Created by Author)
The reconciled GRM with supplier delivery docket is then checked in this stage for any
errors that are present. If no error is found then the received order item is entered into the ERP
and if error is found then the errors are resolved with the suppliers. After the order item is
entered into the ERP it is further processed in next stage.

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BUSINESS PROCESS MODELLING
Payment
Figure 6: As Is Payment Process
Source: (Created by Author)
The received item is then arranged in the storage where invoice is created for delivery
and invoice is booked into the system. The invoice is checked against GNR and purchase order
and if it is matched then credit request is submitted to be supplied by email to resolve the issues
with the supervisor. Finally the payment method is selected between cheque payment and debit
payment which is then paid to the supplier as per the chosen payment method.
Problems and Comments
Back order Problem

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BUSINESS PROCESS MODELLING
The supplier sometimes has no stock and this creates problem for hospital. This back
order problem has been resolved through finding available alternative supplier in case, the
supplier has no stock and hospital is not able to process further due to unavailability of stock.

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BUSINESS PROCESS MODELLING
Three way Match Problem
The invoice, GRN and Invoice do not match sometimes and hence create problems. This
three way match problem is solved in the following way. The invoice is booked and matched
with GNR and PO, if it is matched then payment is further processed.

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BUSINESS PROCESS MODELLING
Hospital Procurement To-Be Process
Figure 7: To Be Process
Source: (Created by Author)
The above figure provides Hospital procurement To-Be process through step by step
process that contains four swimlane that are as follows. This is the improved process proposed
for hospital procurement process.
Staffs- ERP system is used for managing and operating functions in the organization.
Purchasing- The purchasing department is helpful in managing the order and its details which
are stored in stock.
Accounting- All the financial related data such as inventory, invoice maintenance, request for
credit and payment method, debit or cheques are recorded.
Supplier- Products and services are delivered as required by the organization.

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BUSINESS PROCESS MODELLING
Process Model Analysis
Hospital Management
Figure 8: To-Be Hospital Management Process
Source: (Created by Author)
The level is set to run current stock report where calculation of recorder quantity take
place and after that purchase order form is filled to receive purchase order. The purchase order is
checked and if it is correct then purchase order gets approval and if not correct then purchase
order is revised to correct it. The purchased order when revised and corrected it is then approved.