msd

medical stores department

STUDY VISIT FOR MSD STRATEGIC BUSINESS UNITS

ADVISORY COMMITTEE MEMBERS

Concept Note

January 2015
 PROPOSAL DETAILS

1. Introduction This is the second year, MSD is implementing its Medium Term Startegic Plan 2014 –
2020 where implementation of the strategic Business Units is the key initiative in achieving
excellence in supply chain geared towards increased revenue, effective operation and
customer satisfaction serving a population of around 44 million people. Each SBU has a
business plan with performance standards and targets to achieve at the end of the
financial year.

On 11th June, 2014, MSD management formed an advisory committee for implementation
of SBU Strategy with specific ToRs.

1. Liaise with the respective SBU Manager and the SBU Director to get the
performance agreement between them, be agreed and signed before July, 2014
2. Monitor the SBUs to ensure implementation of the signed performance agreement
and reporting thereof
3. Advise SBU on execution of business plans that have been approved
4. Enlist professional member/entity who may be visited or invited to share best
practice on running of SBU’s
5. Act as an overseer of business performance conduct and inform SBU heads on
any imminent risks
6. Undertake to devote time and resources to support SBU activities at operational
level
7. Present to EMT quarterly on SBU performance on four key areas of balanced
scorecard
8. In collaboration with Director responsible for the SBU and the SBU head propose
a takeoff approach with clear guidelines of operating SBU in line with MSD
approved MTSP II
9. Accelerate SBU awareness and incentives to all stakeholders by carefully
mapping the DRIVE initiatives with the proposed incentive thereof.

Performance Contracts

The Performance Contracts for the eleven SBUs for the financial year 2014/15 were formally
tabled for discussion, negotiation and consensus between Management and SBU managers and
subsequently signed on 04th August, 2014 .A number of operational and financial performance
measures were jointly agreed by the SBUs.

For the Zonal SBUs, eight (8) performance measures and/or standards were agreed, these were;
Revenue Collection (TZS-Bill), Cash Collection (TZS), Budget Variance, Current Ratio, Customer
Order Fulfillment, ILS timely Delivery, New Customers enrolled, and Unserviceable Stock. For the
remaining three SBU s i.e Vertical Programme, Clearing and Transport different parameters were
set depending on their functional areas.

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General Performance

Generic observation by SAC revealed that SBU’s have performed well when compared to the
previous year 2013/14 business performance. They have surpassed last year Targets, although all
SBUs have not achieved their current financial year 2014/15 set targets.

FINANCIAL PERFORMANCE CASH

Strategic Year to date Budget (July Actual to June, Annual Target for Cash Actual Cash Collection
Business Unit - June) 2013/14 2014 collection FY 2014/15 FY 2014/15

5,674,815,679.7 7,762,590,856.49
Dar 3,075,600,000.00 8 10,066,000,000.00

1,141,440,797.0 1,977,644,729.56
Dodoma 1,906,800,000.00 0 4,314,000,000.00

1,156,857,902.0 2,768,045,880.65
Iringa 2,173,200,000.00 0 3,835,000,000.00

994,103,336.5 2,588,591,186.35
Mbeya 2,370,000,000.00 0 4,793,000,000.00

2,810,977,466.0 4,976,834,231.66
Moshi 3,969,200,000.00 0 7,271,000,000.00

951,049,595.0 2,795,129,427.04
Mtwara 1,736,400,000.00 0 3,835,000,000.00

2,427,511,408.4 4,717,387,081.39
Mwanza 4,650,000,000.00 0 9,587,000,000.00

1,451,407,047.0 3,444,235,010.13
Tabora 1,719,600,000.00 0 3,784,000,000.00

31,030,458,403.27
TOTAL 21,600,800,000.00 16,608,163,231.68 47,485,000,000.00

Stock-outs of some vital and essential medicines and medical supplies has also prevailed

There has been Inconsistent reimbursement of the monthly zonal expenditure forecasts.

None of the SBUs have developed Service Level Agreements (SLAs) – for service
delivery.

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2. Relevance Considering the role of MSD in procurement, storage and distribution of essential drugs
and and medical supplies to the Tanzanian population, and establishment of the Strategic
Objectives of Business Units MSD is confident that, the knowledge and skills that will be acquired from
the Program the referred capacity building program will assist a lot in transforming our SBU’s
operations and therefore maximize efficiency in operations by specifically;

1. Improving Management of Performance contracts in selection of Performance

Indicators, validation of achievement of Indicators to Performance based
Contracts, Incentifying good performance to enhance performance and improve
efficiency and Target setting and cascading within Business Units.

2. Improve Management of Service Level Agreements to enhance efficiency and

service delivery between SBU’s and support service departments

3. Improving the understanding of Monitoring and Evaluation of Performance

Contracts

4. Improving the ability to formulate plans for Supply Chain Partnership with Private
Sector to deliver services efficiently and managing competition with private sector
in public health commodities supply chain including setting up of private
enterprise

5. Improve Commercial operations of the supply chain processes

6. Improve the experience in managing ERP system

3. 1. Mr.Cosmas Nalimi –Monitoring and Evaluation Manager

Beneficiaries 2. Ms.Salome Mallamia-Customer Service Manager
3. Mr.Sako Mwakalobo - Chief Management Accountant
4. Ms.Neema Mwale – Human Resource Manager
5. Mr.Christopher Kamugisha-Legal Secretary
6. Ms.Sitti Abdulrahman –Dar es Salaam SBU Manager
7. Mr.Rajab Mshindo- Chairman Workers Representative
8. Mr.Joseph Moshi – Principal Revenue Accountant

4. Time and The Study visit program under request for benchmarking is scheduled to take place from
Activities October, 2015 in It is a seven day visit covering practical orientation and site visits.

Budget
6. Monitoring Participants upon their return will;
and i. Submit to the Executive Management Team a detailed action plan on how they
Knowledge are s going to put into action the skills and knowledge gained. A copy of the
Management same will be sent to Director of Human Resource for follow up.
ii. Share the knowledge with the Executive Management Team upon a date to be
set.

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Applicant’s Information

Name of Contact Person Cosmas Nalimi

Designation and Department
Physical address
Email address and Telephone
Submission
Date of Submission
Chairman,Stategic Business Unit Advisory Committee
Keko Mwanga, Off Nyerere Road, P.O Box 9081 Dar Es Salaam
cnalimi@msd.or.tz, +255 (0784) 618 300 (mobile)

Signature