creating value:cost reduction through process analysis

Unrestricted Internal Use© 2013, Carestream Health

Creating Value:Cost Reduction through Process

Analysis

Paul LiottiManager

Technical Communciations & Localization

• Manager, Technical Communications & Localization• Carestream Health Inc., a medical device and

imaging solution company, located in Rochester, NY, USA

• Manage a team of technical writers, training designers, animators/illustrators and localization coordinators

• Create external and internal customer facing user material.

• Paul Liotti, Localization Management Professional

Introduction

p.2

The Golden Egg

p.3

X

Today’s Key Takeaways

p.4

• Importance of defining and establishing Value within your processes

• Identifying Waste• What is it?• Where does it lurk?• What drives it?

• Relevance of Governance and Control

• Significance of continuous Improvement and Standardization

p.5

Drivers, Opportunities and Results

• Expanding, emerging markets• Portfolio diversification• Shorter product shelf-life• Shrinking budgets• ‘Good Enough’ Quality Assurance

The Drivers

p.6

• Leaner Workflows• Increasing Value-Add Touchpoints• Process Improvement• Increased Leverage Opportunties• Reduced Cost Structure Model

Service-Owned

Client-Driven

The Opportunities

p.7

• Learning to work smarter, not harder • Balance• Creating value• Standardization without complexity• Respecting the individual• Decreasing organizational stress• Control and governance

The Results

p.8

• Accomplish more in a shorter period of time

• Increase throughput without increasing the stress to the organization’s infrastructure

• Educate, strengthen and increase the capability within your organization

• Lower the rate of defects

p.9

Cornerstones of Identifying & Reducing Costs

Continuous Improvement

Cornerstones of Identifying & Reducing Costs

p.10

Waste Elimination

Concept of Value

Governance&

Oversight

First Cornerstone: Adding Value

p.11

Concept of Value

Value-Add vs. Non-Value Add

p.12

Value-Added Non-Value Added

Any process or operation that shapes or transforms a product or service into a final form that the client will pay for.

Process steps that take time, resources, or space, without transforming or shaping the product or service that is sold to the client.

Any activity that does not add value is waste and only adds cost to the process

Value-Added Thought Map

p.13

Process

Flow

Value-Added Non-Value-Added

Necessary

Reduce

Unnecessary

Normal Abnormal

Eliminate

Second Cornerstone: Removing Waste

p.14

WasteElimination

Greatest Sin of All: Muda (Waste)

p.15

“The greatest waste is the waste we do not see.”

-- Shigeo Shingo

Hidden Waste: What Lies Beneath

p.16

“Sea of Waste”

Information systems & technology

gaps

Excessive controls

Unbalanced workload

Outdated policies

No backupor cross-training

Undefined Roles

Disorganized workplace

Changing priorities

Lack of Training

LanguageOutput

Source Input

Hidden Waste: What Lies Beneath

p.17

“Sea of Waste”

Information systems & technology

gaps

Excessive controls

Unbalanced workload

Outdated policies

No backupor cross-training

Undefined Roles

Disorganized workplace

Changing priorities

Lack of Training

LanguageOutput

Source Input

Continuous Improvement

Third Cornerstone: Continuous Improvement

p.18

• Unrelenting focus on creating value• Target/eliminate all waste• Nothing has immunity• Empowered employees

Continuous, Incremental Improvement

p.19

VALUECREATION OF

WASTE

Empowered

Employees

Standardization Drives Sustainable Results

p.20

I

I

I

I

I

S

S

S

S

I I I IPR

OC

ES

S E

VO

LU

TIO

N

TIME

I = ImprovementS = Standardize

Improvement Litmus Test

p.21

2a

Challenge: Is there an easier way to Implement?

1

Implement Immediately

2b

Challenge: Is there a way to increase the Impact?

X

Low priority; not worth pursuing

Difficult Ease of Implementation Easy

Lo

wIm

pa

ct

Hig

h

IT Upgrade

Outsourcing

Cross-Training

New SOP

Tying It All Together: Governance/Oversight

p.22

Governance&

Oversight

Governance & Oversight

p.23

• Plan and Execute• Assessment / Design of Solution• Resource Planning• Implementation

• Monitor and Control• Oversight• Governance• Metrics• Reporting

Roles

Dependencies

Schedules

Communications

Project Management

Analyze

Define

Document

Client Facing

Plan & Execute Monitor & Control

Oversight

Metrics Reporting

Governance

Functional Implementers

Start to Finish: A Governed Workflow

p.24

p.25

Standardization Exercize

Impact of Standardization Exercize

p.26

Step 1:

Draw a letter M at the top left intersection. Bottom of the M touches the Intersection.

1

Impact of Standardization Exercize

p.27

Step 2:

Draw the letter W at the bottom left intersection. Top center of W touches the intersection.

1

2

Impact of Standardization Exercize

p.28

Step 3:

Draw the letter W at the bottom right intersection. Top center of W touches the intersection.

3

1

2

Impact of Standardization Exercize

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Step 4:

Draw an arc from the letter M to the top right intersection.

3

41

2

Impact of Standardization Exercize

p.30

Step 5:

Draw another arc from the top right intersection to the bottom right W.

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2

Impact of Standardization Exercize

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Step 6:

Draw an arc between the two bottom W's.

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Impact of Standardization Exercize

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Step 7:

Draw the letter O in the center left box.

5

3

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Impact of Standardization Exercize

p.33

Step 8:

Draw an arc from the letter M to the tangent of the circle.

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Impact of Standardization Exercize

p.34

Step 9:

Draw an arc from the left W to the tangent of the circle.

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Impact of Standardization Exercize

p.35

Step 10:

Draw a circle for the eye; halfway between M and circle

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Impact of Standardization Exercize

p.36

Step 11:

Draw an arc for the mouth. Half way between M and circle. Must be a happy pig!

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Impact of Standardization Exercize

p.37

Step 12:

Draw a squiggly line near the top of arc on the right for the tail.

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Impact of Standardization Exercize

p.38

Step 13:

And finally draw two dots in the middle of the circle for the pig’s nose

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Not the Egg, but the Goose

p.39