Laboratorio De Analisis Argentina (LAA) Harvard Case Solution & Analysis

Problem Diagnosis

            The technical director of the company Laboratorio De Analisis Argentina (LAA) had been given the responsibility by the owner of the company to ensure that on an average 5000 samples are processed each day.The sample data has been collected by the technical director to analyze all the capacity and the operational issues in the whole process comprising of a range of steps. The samples had been collected by the technical director from three sources for the month of June. The three sources from which the sample data was collected were the samples that were collected from the other 40 labs of the organization, all those samples that were collected on-premises and the samples that were sent to the organization from other external labs.

            The competition in the field of medical testing had been increasing and it had been compulsory for Laboratorio De Analisis Argentina (LAA) to cope up with the increasing demands of the technology therefore, the management of the organization had to evaluate all the key strengths and weaknesses of the organization and identify all those areas where improvements could be incorporated to make the entire process more efficient and quick. Therefore an ion-depth analysis needs to be performed to evaluate each step of the entire process and identify the deficiencies and inefficiencies so that Laboratorio De Analisis Argentina (LAA) could achieve efficient operations. The technical director has to provide the recommendations to his boss with a time period of 1 week so that all the lab’s problems could be dealt in the best way possible.

Analysis & Diagnosis

            The whole process of the lab of sample from the collection of the samples to providing the sample to the customers was composed of numerous important steps. All the steps are a reason for the success of the business and there is still a lot of room for improvement among all the processes. Throughout the case the information for each of the step was not provided in the same metric for each of the step within the process. In order to compare the capability of each of the steps of the entire process, all the values have been converted in minutes per 1000 samples. The calculations in minutes for each step per 1000 samples is provided in the appendix.

            The minutes for each step per 1000 sample could service as a starting point to analyze the avail be time for each of the step however, these calculations do not represent the efficiencies of each of the steps because these calculations do not take into account the number of the workers that are required at each step of the process. In order to remove the bottleneck from the process the ratio of samples per minutes and the worker ratio per step should be equal to each other and fit with each other. More people should be involved in the testing stage than in the communicating stage which should be around 10 times more and 3 times more people should be involved in the processing step than the distribution step. However, this is not the situation at Laboratorio De Analisis Argentina (LAA).

            Therefore, further calculations have been performed on the basis of the total full time and part time workers that are involved at each step of the process. The resource unit load calculations have been performed in order to calculate the minutes per each sample at each step are required and it could be seen that the highest time to work on a particular sample is required in the testing and the communications department. However, this should not be the case with the communications department.

Laboratorio De Analisis Argentina (LAA) Case Solution

            Furthermore, the calculations for the resource unit capacity have also been performed in order to calculate the total capacity of each of the step. The highest capacity has been found to be for the distribution department which is the least problem creating department for the company. However, the lowest capacity is for the separation department therefore, the separation step is the bottleneck of the process. Bottleneck is a step with the lowest level of capacity. Secondly, it should also be noted that the next lowest capacity has been calculated for the processing step..........................

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