MANAGERIAL ECONOMICSPresentation Date:09 March 2014Prepared By:Group 4 THE IMPACT OF CUSTOMERS DEMAND TO MANAGERIAL DECISIONS: A CASE STUDY OF MEDILAUND SDN BHD

Group 4 : Team Members

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INCORPORATE : 1997PARENT COMPANY : Radicare (M) Sdn BhdADDRESS : Lot No.5, Jalan Waja 16, Kaw Perusahaan, Teluk Panglima Garang Selangor 1st plant constructed in 2000 & 2nd laundry plant constructed in 2006 Combined load of up to 70 tonnes per day.Company Background

SCOPE OF SERVICE - end to end linen and laundry services- LINEN RENTAL Soiled linen collection Clean linen suppliesTransportation of clean and soiled linenSpecialised equipment and consumables supplies (weighing scales, trolleys and linen bags)User TrainingProvision of reportsAdvisory and Additional Services Conduct on-site survey /scoping studies, consultation and advice the customer on the type and quantity of clean linen required for use by the customer

*Receiving Soiled LinenSegregation Soiled LinenLoading into Tunnel WasherTransferred to Tunnel WasherWater & Chemical InjectionWashingPressDryingVisual InspectionIroning & FoldingQuality ControlTying & StrappingPackingDeliver Clean Linen to User

Medilaund Laundry Process

Activities

LAUNDRY PLANT OPERATIONSTotal Of Machines : 45 MachinesWashing Machines : 10 UnitsDrying Facility : 18 UnitsIroning Facility : 5 UnitsFolding Faciltity : 4 UnitsGarment Facility : 2 UnitsLaundry CapacityWashing CapacityDaily Capacity : 71,000 Kg/DayPlant 1 Capacity : 40,000 Kg/DayPlant 2 Capacity : 31,000 Kg/Day

Finishing CapacityDaily Capacity : 62,000 Kg/DayPlant 1 Capacity : 35,000 Kg/DayPlant 2 Capacity : 27,000 Kg/DayCapital Investment : RM47 Millions

Plant 1 Facility : RM20 MillionsPlant 2 Facility : RM27 Millions

Process Expertise : Healthcare LaundryTechnical Expertise: Germany & Danish Laundry TechnologyLaundry Standard : As/Nz S 4146:2000Disinfection Control : 1- Thermal 2-ChemicalsDisinfection Control : Microbiology Test

Objectives of Study

Operational DefinitionsManagerial Decision

Shortfall

Adequate Linen

Acceptable Linen-

Timely Delivery

Operational Definition

Managerial DecisionShortfallEdwin (2009) - application of economic concepts & economic analysis to the problems of formulating rational managerial decision. Shapiro (1989) - areas inc. assessment of investible funds, selecting business area, choice of product, determining optimum output, determining price of product, determining input-combination and technology, sales promotionWebster - any business decision can be analyzed with managerial economics techniques- commonly applied to risk analysis, production analysis, Pricing analysis, capital budgeting Brooker (1996) - to provide the firm the optimal solution to managerial decision problemsMaster Agreed Procedure (MAP) Shortfall means the difference in between quantity ordered by customer and quantity supplied by concession company. Customer means Ministry of Health and concession company refer to awarded company such as Radicare group.

Operational Definition

Adequate Linen Acceptable LinenTimely Delivery

Technical Requirement Performance Indicator (TRPI) Adequate linen means quantity of linens which as per ordered should supply by concession company to their customer (MOH).Technical Requirement Performance Indicator (TRPI) Acceptable Linen means quality of linen supplied to their customer should meet or exceed as per Quality Guidelines.Technical Requirement Performance Indicator (TRPI) Timely Delivery means Clean linens should arrived to customers place as per mutually agreed delivery schedule. Any changes is delivery schedule concession company should well communicate to their customers.

Problem StatementMedilaund Main Focus Main customers : Hospitals (Govt. and private) & health training facilitiesHigh health standard End-users : PatientsCustomers demand delegated as Medilaunds KPI:

Problem StatementcontMedilaunds is driven to develop strategic managerial decisionsDevelop strategic managerial decisions focusing on the production activities

Data Analysis and FindingsAdequate Linen

Acceptable Linen - Siva

Timely Delivery Munesh

Profit Halina & Siva

Adequate Linen Ekin & AleenzPlease elaborate each point using key words only-add more slides if necessary

Acceptable Linen Medilaund are responsible to collect soiled linen, wash and deliver back the clean linens to customer.

The clean linens should be fit to used by end users (patients). It means clean linens should be meet or exceed the quality acceptance level as per stated in TRPI which set by MOH.

Unfortunately, Medilaund has to loosen the quality acceptance level especially for non critical defects such as faded linen, oil stain, wax stain and crumple.

This is one of the managerial decision to increase yield (about 30%).

Timely Delivery MuneshPlease elaborate each point using key words only-add more slides if necessary

Profit Halina & SivaPlease elaborate each point using key words only-add more slides if necessary

Managerial Decisions in MedilaundReduce Washing Cycle Reduce Quality Level

Outsource

Reduce Washing CyclePlease elaborate each point using key words

add more slides if necessaryMunesh

Reduce Quality Level Please elaborate each point using key words

add more slides if necessaryMunesh

OutsourcePlease elaborate each point using key words

add more slides if necessaryHalina

Recommendations

Implementations

Conclusion

Thank you !

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