LTP ASSIGNMENT 1

Name: Anirudh Srikant

2013PGP042

Section:

Roll Number:

Details of work performed for the assignment

Sitting
No.

Date

13/2/
15

15/2/1
5

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

16/2/1
5

Time
5:00
PM to
7:00
PM
3:00
AM to
5:30
AM
1:00 A
M to
3:30
AM

Total

For how long did you work? (in

Hours)

2 hours

2.5 hours

2.5 hours

7 hours

Remarks?
Case Reading
+
Supplemental
Info Reading
Current Reality
Tree +
Evaporating
Cloud
Decided on
Injection +
Future Reality
Tree

LTP ASSIGNMENT 1

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 Bank

The 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 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.

Blood Products
Blood 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
1 The unseparated blood is also known as whole blood. It contains all the 3
components: Red blood cells, platelets and plasma.

LTP ASSIGNMENT 1
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 Bank

Dr. 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.

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Blood demand is highly unpredictable. Our forecasting software does not

do a good job.

We do not have an ERP system.

Current Reality Tree

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Evaporating Cloud

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Future Reality Tree