LEAN • What? • How? • What helps ? • Conclusion
LEAN – What? RETHINKING & REDESIGN OF BUSINESS PROCESS SHORTENED LEAD TIMES EFFICIENCY IMPROVEMENTS PROCESS COST REDUCTION REVENUE INCREASE REDUCED PROCESS WASTES IMPROVED CUSTOMER SATISFACTION
LEAN – How? HIGH LEVEL ASSESSMENT WHO ? PRODUCT DELIVERED ?
Lean focuses on working on improving processes by eliminating steps that have no value to the customer (i.e., work which the customer is not willing to pay for), and by eliminating process waste (such as wait times, inventory, rework, overproduction, transportation, etc.). In health care, eliminating waiting times alone can add immediate, quantifiable value to the business. LEAN – How? Improving Processesby eliminating… STEPS THAT HAVE NO VALUE PROCESS WASTE WAITING TIME
LEAN – How? (Six steps) • Value – Who is the customer? • Value Stream – What is the service or product being provided to the customer? • Flow – Did the team identify the non-value added distances traveled by parts? • Pull – Waste elimination steps identified at every step of the process, to produce more than before in a way that is value added at the time of delivery. • Perfection - Optimize your process for what you are trying to achieve. • Replication – Can this process improvement be replicated in other parts of the business.
LEAN – What helps? STRONG MANAGEMENT SUPPORT & SPONSORSHIP COMMUNICATION OF SHARED GOALS LEAN IMPLEMENTATIONS
LEAN - Conclusion • Can be applied to any business process or service industry. • Can be used to dramatically reduce lead times • HR recruitment • New product development • Customer development TO GAIN COMPETITIVE ADVANTGE OVER OTHER COMPANIES
Bibliography • (http://www.isixsigma.com/library/content/c060821a.asp) • Caldwell, C., Lean-Six Sigma tools for rapid cycle cost reduction, Healthcare Financial Management. Oct 2006, 60 (10) • Shaffer, Vi. (2008). Case Study: Denver Health Leverages ‘Lean’ for a Breakthrough in Enterprise Patient Scheduling Implementation. Gartner Industry Research. 17 December, 2008.