SRACA ConferenceA Company’s Perspective – New Road Cases

Toowoomba – August 2014

The Heads of Workplace Safety Authority (HWSA) initiated a national intervention and compliance campaign in 2008. It recommended a national focus for central sterilising supply departments to ensure implementation of control measures that reduce the risks associated with manual tasks. It also recommended particular attention be paid to the design of containers, handling of loan sets, lifting equipment and work area design. Subsequently a cross functional team was formed with representation from hospitals, suppliers, transport organizations and of course SRACA.This presentation will discuss the contributions and perspective of the supplier organizations that formed part of the project team.

A Company’s PerspectiveNew Road Cases

It’s hard to choose from so many quotes!

“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”Arthur Schopenhauer

OH&S

Industry Standardization

Potential Cost Efficiencies

Design Longevity

Transport Industry Adoption

Central to the initiative was OH&S BUT

there were other important factors to consider

Supplier Perceived Value

OH&S• Very little if any historic injuries from the suppliers perspective.• Suppliers acknowledged the potential for injury but believed most of the potential was

at the hospital side of the supply chain.

Workcover Australia conducted a survey and found that 60% of respondents claimed that the discomfort they experienced was related to their present job which involved the handling of surgical loan sets.

Supplier Perceived Value

Industry Standardization• The initiative removed the debate on road cases or not road cases.• Any perceived benefit (competitive advantage) from use of the road case would be

eliminated.• Suppliers were concerned whether “other” supplier organizations would make the

investment.• Suppliers were concerned whether a critical mass of hospitals would make the capital investment to support the initiative.• ACCC associated costs were incurred to ensure that competitors could work together on an industry solution.

Supplier Perceived Value

Potential Cost Efficiencies• A single industry supplier offered the potential to reduce road case costs but only for

those organizations currently using road cases. In fact the new design was finally more costly than the previous road cases.

• The solution of lifting devices and slip sheets in road cases provided a less efficient pick pack operation over the existing practises

• The inclusion of reduced injuries into the cost equation was perceived to offer most advantage to the hospital organizations but this was still

considered to be a value add by the suppliers.• Transportation costs were expected to increase.

Supplier Perceived Value

Design Longevity• The adoption of the road case constituted a very significant capital investment with a

defined amortization period….. What if• The design needed to change to accommodate longer trays, different lifting

devices, better storage potential, better transportation capabilities?• The product was not durable over the period of amortization?• A better design was determined?

Supplier Perceived Value

Transportation Industry Adoption• The code called for carriers to use tail loaders, lifting devices, ramps etc. but…….

• Tail lifters are not on every vehicle – Cost to fit substantial.• Ramps presented OH&S issues for large vehicles.• Some express delivery vehicles have no capability for housing ramps etc.• Some hospitals do not have lifting devices for road cases. Specially at the

loading/unloading dock.• Adoption of the code would increase lead times and costs.• Subsequent agreement that the code would not be applied to transport industry until appropriate solutions were determined.

Supplier Perceived Value

SummaryThe major advantage was to provide a safer method to handle surgical instruments.This was the primary objective in determining an industry solution and the objective is achievable through the solution.

The solution does require increased costs in terms of capital, freight and labour.

The solution has not been fully adopted by all suppliers and hospitals.

“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”Arthur Schopenhauer

Thank you