Business Process Modelling: Analysis of Hospital Procurement Processes

This project undertakes a comprehensive analysis of hospital procurement processes, employing business process modelling techniques. It begins by examining the As-Is process, detailing the roles of staff, accounting, and suppliers, and illustrating the flow through figures. The analysis delves into various aspects including hospital management, procurement, supply chain, resource collection, and payment processes. The project identifies key problems such as back-order issues and three-way match discrepancies. Subsequently, it proposes a To-Be model that addresses these challenges by refining the initial processes and providing detailed diagrams of the system's five core processes: hospital management, procurement, supply, resource collection, and payment. The proposed solutions include implementing checks to avoid back-order problems and involving supervisors to resolve three-way match issues, ultimately aiming to increase organizational efficiency. The project concludes by highlighting the improvements offered by the To-Be model, which mitigates the drawbacks of the As-Is process, and offers a bibliography of cited sources.

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...................................................................................................................2
Hospital Management......................................................................................................................2
Procurement.....................................................................................................................................2
Supply..............................................................................................................................................2
Resource Collection.........................................................................................................................2
Problems and Comments.................................................................................................................2
Hospital Procurement As-Is Process...............................................................................................2
Process Model Analysis...................................................................................................................2
Hospital Management......................................................................................................................2
Procurement.....................................................................................................................................2
Supply..............................................................................................................................................2
Resource Collection.........................................................................................................................2
Problems and Comments Resolution...............................................................................................2
Conclusion.......................................................................................................................................3
Bibliography....................................................................................................................................4

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Introduction
The deemed report has discussed the hospital procurement as-in process and discussed
different aspects associated with it. The problems to purchase and payment process has been
discussed along with the supply chain and resource collection has also been cited attention with
suitable figures for each of the parts before concluding the paper.
Hospital Procurement As-Is Process
Figure 1: As Is Process
Source: (Created by Author)
The figure above has offered an insight into the Hospital Procurement As-Is-Process by
step by step process which consists of three swim lane and has been discussed as follows:
Staff- The deemed system is used for the purpose of operating and managing the organizational
functions.
Accounting- The financial information of the organization such as the invoice orders, inventory
size, credit & debit requests, financial transaction history and others are recorded through the
system.
Supplier- The supply chain of the organization are to be maintained by the system in
consideration.

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Process Model Analysis
Hospital Management
Figure 2: Hospital Management As-Is process
Source: (Created by Author)
The standard is implemented where the current size of stock is initiated with assistance
of the hospital’s management staff. Post the above discussed step the recorder quantity is
calculated when the discussed system generates a new order.

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Procurement
Figure 3: As Is Procurement Process
Source: (Created by Author)
The deemed step, validates the order progress and if in case the order is backed, then an
alternative supplier would be identified and approached for availability. If the latter is available,
then the order will be processed further and the purchase order will be emailed in other case. The
next step would be adjusting the ERP for new orders in which the deliverables from the suppliers
are mailed to them. The final process of the deemed step is to cancel the old order where the old
supplier may be notified through mail or may not be.

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Supply
Figure 4: As Is Supply Process
Source: (Created by Author)
The deemed step cites that the received order items are stored in the GRN form post
emailing of ordered item. The reconciliation of the GRN is proceeded with assistance from
supplier delivery docket.

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Resource Collection
Figure 5: As Is Resource Collection Process
Source: (Created by Author)
The deemed step evaluates the reconciled GRM for any errors or flaws. In case an error is
determined which is rectified with assistance of the supplier, while in the other scenario, the
received order item is stored in the ERP.

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Payment
Figure 6: As Is Payment Process
Source: (Created by Author)
In the deemed step the received item is entered in the storage post which the invoices and
the PO are compared and if they are compatible in nature and figure then the credit request is
accepted and enquired about the payment mode before completing the payment process. The
payment is made as per the choice of the receiver.
Problems and Comments
Back order Problem

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The supplier is out of stock and the organisation is unaware of the situation until the
initiation of the ordering cycle.
Three way Match Problem

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All three invoice that includes the suppliers invoice, Goods received note and the
purchase order needs to be compatible in nature & figures.
Hospital Procurement To-Be Process
Figure 7: To Be Process
Source: (Created by Author)