lean healthcare rev01

Breakthroughs In Patient Flow: Truly Lean Thinking in Healthcare

STRATEGIC HEALTHCARE MANAGEMENT & INFORMATICS21-23 July 2010, @ Pullman Hotel Bangkok by Anawat Jorapunyanont – B-Excellence Co., Ltd.

We don’t know what we don’t knowWe can’t act what we don’t knowWe won’t know until we search

We won’t search what we don’t questionWe don’t question what we don’t

measureHence, We just don’t know

Vision of Six Sigma - Anonymous

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Lean vs ???

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Warren Buffett

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Andrew Carnegie

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Carnegie’s Approach to ROIC

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Carnegie Steel Capital

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Henry Ford : ROIC Driven by Capital Turnover and Cost

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Ford’s Approach to ROIC

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Ford Motor Company Financials

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Source of Ford’s Success

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Alfred Sloan : ROIC Driven by EBIT Margin

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Alfred Sloan, General Motors (1920-1964)

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Sloan’s Approach to ROIC

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General Motor Market Share

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Kiichiro Toyoda : ROIC driven by EBIT Margin and Capital Turnover

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Kiichiro Toyoda , Shigeo Shingo, Taiichi Ohno (Toyota 1960-1990)

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Toyota’s Approach to ROIC

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Toyota Inventory Turns

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Lean Production Strategy

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Lean Thinking

• Specify value – can only be defined by the ultimate customer

• Identify the value stream – exposes the enormous amounts of waste

• Create flow – reduce batch size and WIP

• Let the customer pull product through the value stream – make only what the customer has ordered

• Seek perfection – continuously improve quality and eliminate waste

From Lean Thinking by Womack and Jones

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Benefits

• Lean provides tangible benefits• Reduces costs not just selling price

– Reduces delivery time, cycle time, set-up time – Eliminates waste – Seeks continuous improvement

• Improves quality • Improves customer ratings and perceptions • Increases overall customer satisfaction • Improves employee involvement, morale, and

company culture • Helps “transform” businesses

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The Power of Lean in HealthCare

• Virginia Mason Medical Center in Seattle, Washington, has been using lean management principles since 2002.

• By working to eliminate waste.

• Created more capacity in existing programs and practices so that planned expansions were scrapped, saving significant capital expenses: $1 million.

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The Virginia Mason Medical Center Strategic Plan

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Areas of Focus

1.“Patient First” as the driver for all processes

2. The creation of an environment in which people feel safe and free to engage in improvement including the adoption of a “No-Layoff Policy”

3. Implementation of a company-wide defect alert system called “The Patient Safety Alert System”

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Areas of Focus

4. Encouragement of innovation and “trystorming” (beyond brainstorming, trystorming involves quickly trying new ideas or models of new ideas)

5. Creating a prosperous economic organization primarily by eliminating waste

6.Accountable leadership

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The Results

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Patient Flow Improvement Project

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Value Stream Mapping

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RESULTS FROM ADOPTING LEAN PRINCIPLES

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Business Transformation – Financial Perspective

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SG&A Market Value

Growth

G&A

Sales/Mktg

R&D

Material

Labor

Mix

Volume Revenue

ProfitCOGS

Price

OverheadEconomic

Profit (EVA)

Profitable Analysis

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Patients Flow Simulation

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About Instructor

Anawat Jorapunyanont Key ProfessionalAchievements• Certified Manger of Quality/Organizational Excellence ASQ• Certified Six Sigma Master Black belt by BMG USA• Lean Master• Change Leadership by BMG USA• Design for Six Sigma by Motorola University• TRIZ Theory of Inventive Problem Solving by Creax-UK Education / Qualification• Master degree of Financial and Banking Chulalongkorn University• Mini MBA Essec University France • Master degree of Industrial Engineering Chulalongkorn University• Production Technology King Mongkut’s Institute of Technology North

Bangkok

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About Us

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Some of Our Experiences

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Thank you for your attention.

Lean Thinking“Do More with Less”

Visit us atwww.BXLNC.com

anawat@BXLNC.com 087 005 0052

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The Lean Train

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