11th Annual International Conference on Industrial Engineering and Operations Management

IMPLEMENTATION OF CONSOLIDATION STRATEGY TO IMPROVE PROCUREMENT PERFORMANCE IN GOVERNMENT HOSPITAL (A Case Study : Joglosemar Central Vertical Hospital)

KIRANA RUKMAYUNINDA RIRIH, Hery Suliantoro & Sultan Arunizal
Publisher: IEOM Society International
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Track: Case Studies
Abstract

One effective way to improve service performance is to improve procurement management. In terms of purchasing or purchasing itself, the cost spent reaches around 60% of the total budget. The better the procurement function is implemented, the more cost savings will be acheived. The procurement activities at the hospital have the aim to fulfill medical and non-medical needs in quality health services and to ensure continuity in health services. Hospital goods or services procurement itself is guided by policies regulated in Presidential Regulation Number 16 Year 2018 and LKPP Institution Regulation Number 9 Year 2018. Based on this, a strategic policy emerged in the procurement of goods/services aimed at achieving VFM, namely the implementation of a procurement consolidation strategy. This research used 11 main criterias to measure VFM through Analytical Hierarchy Process (AHP). Those are quality (19.4%), time (14.0%), costs (13.4%), efficiency (9.50%), effectiveness (8.80%),provider or supplier (8.40%), quantity (7.20%), risk allocation (6.90%), sustainability (4.70%), location (4.00%), and innovation (3.60%). As the results, an assessment of the performance of the implementation of the consolidation strategy in the procurement of goods / services of Joglosemar's Vertical Hospital obtained a value of 61,945 which included in the category of satisfaying performance

Published in: 11th Annual International Conference on Industrial Engineering and Operations Management, Singapore, Singapore

Publisher: IEOM Society International
Date of Conference: March 7-11, 2021

ISBN: 978-1-7923-6124-1
ISSN/E-ISSN: 2169-8767