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
p.29
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.
5
3
41
2
Impact of Standardization Exercize
p.31
Step 6:
Draw an arc between the two bottom W's.
5
3
41
26
Impact of Standardization Exercize
p.32
Step 7:
Draw the letter O in the center left box.
5
3
7
41
26
Impact of Standardization Exercize
p.33
Step 8:
Draw an arc from the letter M to the tangent of the circle.
12
5
3
7
8
41
26
Impact of Standardization Exercize
p.34
Step 9:
Draw an arc from the left W to the tangent of the circle.
5
3
7
9
8
41
26
Impact of Standardization Exercize
p.35
Step 10:
Draw a circle for the eye; halfway between M and circle
5
3
10
7
9
8
41
26
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!
5
3
10
11
7
9
8
41
26
Impact of Standardization Exercize
p.37
Step 12:
Draw a squiggly line near the top of arc on the right for the tail.
12
5
3
10
11
7
9
8
41
26
Impact of Standardization Exercize
p.38
Step 13:
And finally draw two dots in the middle of the circle for the pig’s nose
12
5
3
10
11
7 13
9
8
41
26
Not the Egg, but the Goose
p.39