Fahling Case Study: Presented by Group 6

MANAGEMENT INFORMATION SYSTEMS
FAHLING CASE STUDY

Presented by Group 6:
Akhilesh Kumar (MS20A004),
Asmita Gupta (MS20A008),
Athul Sreyas Jacob (MS20A009),
Caroline Saro J (MS20A013),
Dr. Sai Prasad M( MS20A049),
Manisha(MS20A029),
Namrta Maggo( MS20A035),
Preethi Mithra( MS20A041),
Samikshakiran Deepak Agham( MS20A051),
Siddharth Kanchkar( MS20A058)
INTRODUCTION
1. Competition- Growing and cut throat
2. Productsare well above the average price for surgical equipment, but it is the best
quality
3. A bit about Korea-based Hangyong
4. Meditec faced increased pressure to reduce prices of offered products and
started losing its customers.
5. Factors that were identified to have led to this critical situation were the
substitution of existin high-quality products with cheaper products driven by
privatizations of German hospitals, and constrictions of public financial funding.
6. Product portfolio is excellent in terms of quality standards but no longer
guarantee a differentiation from competitors.
7. As a result managers of Meditec had to react to and initiate innovative product
development processes as essential survival strategies.
MEDITEC
1. ISO certifiied, National leading manufacturer of surgical instruments. It also
offers variety of product-related services and focuses on technology-oriented
strategies in product development.
2. Founded- 1898
3. Corporate Headquarters- Hamburg, Germany.
4. MIS in Meditec
5. By 2009- Company had 380 employees and subsidiaries in three national
locations, where two locations served as manufacturing sites in Northern and
Southern Germany.
6. Customer base: Multiple mid- and large sized German hospitals.
7. Product distribution: Germany, Austria and Switzerland
ORGANIZATIONAL DIVISIONS AND UNITS OF MEDITEC, AS
WELL AS ITS ECOSYSTEM:
1. Meditec offers- trainings for physicians when they buy new instruments, to help them with
the application of complex instruments.
2. It also provides wide range of manuals for registered customers
3. Physicians can introduce new ideas and requirements into the innovation process of
Meditec
THE IT-BASED PSS:
Challenges on selling the product:
1. Expensive offers when compared to competitors - Threat from buyers
2. Discount campaign from competitors- Threat from Competition
3. More complicated to differentiate our products from competitors
Ideas:
The main idea is to convert a product-oriented firm that specialises on product
improvements to move towards providing services along with the products-
Product Service System.
1. Create and offer new and appropriate services around product lines.
2. New processes that support the customers in focusing on core processes and
build on core competencies.
3. Continuous quality inspections
LIFE CYCLE
ORIENTED
PERSPECTIVE:
THE IT-BASED PSS:
Novel business models: key points
1. Results from transformation of business process.
2. Challenges: Need to develop an IT model for adequate information management
to track usage, maintenance requirements etc.
3. IT is the enabler for almost all the mentioned business models. (e.g., the
documentation, logistical and inventory process)
4. These models increase customer retention and increase turnoverors
How to generate more ideas? – ask the people who use the product:
1.Workshops with most important clients
2.Representatives with every stakeholder who is in contact with the entire lifecycle of
the product.
3.Invite representatives in all the departments of Meditec.
WHAT CUSTOMER WANT:
To understand the needs of clients Sally and Marc organized multiple workshops
with their important client to discuss on how can they improve their services and
cope-up with international competitors. From the following workshops they
concluded
Detaching from the pure product centric perspective can help.
Focus should not on product improvements, but for improvements along the
lifecycle of their products
Sterilization process was identified as one of the biggest potential to ease the life
of clients as they have mentioned complaints about the complex process of
sterilization.
Surgical instruments have to pass a complex sterilization process underlying
governmental regulations, and German hospitals are restricted to a single usage
of surgery instruments by law.
Once surgery has used the commodity like
bandages or single-use components, have to be
STERILIZATION disposed of properly.
PROCESS OF After successful sterilization, the surgical

equipment is identified and either prepared for
SURGICAL storing and commissioning or charged to

appropriate cases to be transported to the surgery
INSTRUMENT area.
Instruments are preprocessed in a special cleaning
process to be prepared for the sterilization
process. In parallel, used trolleys and cases are
cleaned.
All the equipment need to pass a checking process
Cases which successfully pass this check are stored

for their next use. After a successful sterilization,
the surgical equipment is identified and either
prepared for storing or charged to appropriate
cases to be transported to the surgery area.
IMPACT OF STERILIZATION:
Asset management and inventory Information play a critical role within the
lifecycle process of surgical instruments
In normal cases, more instruments are available for physicians than are
necessary.
The sterilization impacts the process in two negative ways
1. The number of instruments running through the sterilization process is not
optimized
2. More instruments that are available, the more complex the decision and
search activities to find the orrect instrument during the surgery.
70 to 80 instruments are prepared on the surgery table, but only 30% to 40% are
actually used
IT Challenges:
IT capabilities plays an important role in managing PSS (Product Service System). Co-
ordinating just-in-time processes in providing instruments to clients when needed and
managing logistics is not feasible without having a proper IT infrastructure in place.
The challenges that can arise for Meditec while establishing an adequate IM system
are as follows:
Go-and-return logistic service
Adequate information flow
Easy accessibility to IT system
Documentation of the sterilization process
Individualization in providing PSS
Integration with HIS (Hospital Information System)
Training of hospital personnel
Offer a pay per use model for instruments
Analysis of information flows to identify patterns
CONCLUSION
Change from a Pure product Manufacturing

to Customer-centric solution provider.
Business model change from Product based
to Product Service Systems (PSS).
Increased Focus of customers on their core
competencies
IT most crucial in this transformation
process.
The journey has just begun!.
THANKYOU

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MANAGEMENT INFORMATION SYSTEMS

FAHLING CASE STUDY

PROCESS OF After successful sterilization, the surgical

SURGICAL storing and commissioning or charged to

All the equipment need to pass a checking process

Cases which successfully pass this check are stored

Change from a Pure product Manufacturing

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