LTP ASSIGNMENT 1Name: Anirudh Srikant Section: A Roll Number: 2013PGP042Details of work performed for the assignmentSitting No.DateTimeFor how long did you work? (in Hours)Remarks?

113/2/155:00 PM to 7:00 PM2 hoursCase Reading + Supplemental Info Reading

215/2/153:00 AM to 5:30 AM2.5 hoursCurrent Reality Tree + Evaporating Cloud

316/2/151:00AM to 3:30 AM2.5 hoursDecided on Injection + Future Reality Tree

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Total7 hours

Problem Abstract: Majority of blood banks today, regardless of their scale and context, face similar kind of problems like limited product variety, high rate of shortage and outdate of blood products, low revenue levels, huge capital investment and large operating expenses. Despite increasing their blood collection, investing huge amount of money in IT/ERP/forecasting software, buying new equipment and recruiting more personnel, blood banks do not show significant improvement in their operational and financial performance. We will talk about a variety of problems that a typical blood bank faces using an example of a blood bank that operates in Chennai. You need to identify the constraint in this case using the Current Reality Tree and then suggest the solution using a Conflict Resolution Diagram. Then show how your solution will improve the blood bank operations using a Future Reality Tree.

Introduction to the Blood BankThe given not-for-profit blood bank operates in Chennai. It gets its major supply of blood (>95%) from organizing blood donation camps. Such camps are usually organized in schools, colleges, institutions or localities where a large donor turn out is expected. Last year alone the blood bank collected 13000 blood units through 150 blood donation camps. Blood from donors is collected in PVC bags. Units collected during the camp are brought to the blood bank where they are typed (to determine the blood group), tested (to determine if they are safe for transfusion) and stored in refrigerators. The bank then separates 30%-50% of the collected blood into 3 components: red blood cells (RBCs), platelets and plasma and stores the remaining blood as it is[footnoteRef:1]. These blood products are stored separately, in appropriate conditions, inside the blood bank. The blood bank also prepares and issues products like cryoprecipitate and plasma derivatives in small quantities. [1: The unseparated blood is also known as whole blood. It contains all the 3 components: Red blood cells, platelets and plasma.]

Blood ProductsBlood and its products are highly perishable in nature. Red blood cells (RBCs), for example, can be stored safely for up to 30-35 days while platelets last for only five days. Plasma can last for 1 year. It is important to ensure that the blood bank keeps sufficient stock of blood products so that it does not face a shortage. Shortage of blood can result in postponement of surgeries or even death in certain situations. Increasing blood collection can reduce shortage but it also increases the rate of outdate. Outdate refers to the time expiry of blood units once their useful life is over. Outdate is a very serious problem. Since a donor cannot donate blood again for next three months, wasting a donated unit is equivalent to reducing the supply by one unit for next three months. Outdate of blood also causes severe disposal related problems. Since blood bags are made from PVC they cannot be incinerated. Also, blood, if spills out, encourages bacteria growth since it is an extremely good food for germs. The blood bank is constantly striving to minimize the shortage of blood products while ensuring that it does not waste too much blood.

Problems faced by the Blood BankDr. Balasubramanium, the medical officer of the blood bank, mentioned the following problems he was facing:We are capable of supplying only a limited variety of blood products to our customers, i.e., hospitals and patients.We often fall short of meeting demand for various blood products. They find platelets to be perpetually out-of-stock. Any efforts to reduce shortage by increasing collection often result in an increase in the rate of outdate at blood banks due to perishable nature of blood products. Despite using the best forecasting software, both excess as well as shortage co-exist for different blood products at the same time at the blood bank. The financial position of blood banks has not improved despite making huge investments in IT systems.Investment in better technology, new equipment, recruitment of more staff and various process improvement projects have not translated into better results.

When asked about the reasons why his blood bank is struggling with these problems he mentioned the following constraints:We operate under a very limited budget.Our equipment is not technologically advanced enough. We have very a low level of automation.We do not have sufficient staff. The existing staff is not efficient and/or they need more training.We are not able to collect sufficient quantities of blood in donation camps.We do not have sufficiently large blood mobiles, testing apparatus and refrigerators to collect, test and store our inventory.We have very limited storage space. Blood products are highly perishable and maintaining their inventory is a complex job.There are too many safety regulations imposed by the government.Blood demand is highly unpredictable. Our forecasting software does not do a good job. We do not have an ERP system.

Current Reality Tree

Evaporating Cloud

Future Reality Tree