8 months exposed 90% waste, streamlined 2 departments, met corp measures

1. Challenge: How is the department going to increase production, meet department
goals, and create a positive environment?
Customer profile: Healthcare services provider. Department of 13 people split into 2 subgroups with similar
processes (Tricare and Medicare)
Business Problem and Impact Measure and Analysis
Problem: Department not meeting Corporate targets Data Analysis:
• Accounts not moving through process quickly: • Tricare: Tracked defects and reasons for rejections,
“aged inventory” at 87 days vs less than 30 days analyzed processes for working accounts
target • Medicare: Measured frequency of discrepancy types,
• Poor quality: Defects at 98 % vs new root cause defect rates, and time to work discrepancy types
target Root Cause:
• Low production rate: less than 80 units vs more • Tricare: lack of knowledge transfer, poor morale, and
than 150 target inconsistent data entry
• Medicare: inefficient process causing waste (90%) and
Impact: Reimbursement $ tied up in inventory and high labor increasing inventories; ineffective production goals not
costs creating incentive
Improve and Control Results and Benefit
Tricare: Tricare:
• Created a standardized, simplified, data entry template • Production rate increased from 22 units per day to 30 units
• Developed work aid to provide reference on how to work per day (36%)
specific types of accounts • Reorganization of department: reducing staffing from 8 to
• Developed trust based environment and associate training 2, resulting in approx $300K annual savings
Medicare: • Defect rate reduced from 98% to new root cause analysis
• Batched production schedule by discrepancy type to Medicare:
eliminate switching costs • Production rate increased from 80 units per day to 150
• Reordered production schedule to focus on new accounts units per day (88%)
first • Aged inventory decrease from 87 to less than 30 days
• Reestablished production goals

2. Six Sigma Green Belt storyboard: TAMMY PENA
Corporate overview: 1 department split into 2 subgroups, Tricare & Medicare
Frustration in re-work, bad moral, not meeting corporate production goals and aged day measures.
Tricare Profile: No one wanted to touch it. 8 FT Analyst Medicare Profile: Everyone works Medicare with 5 FT Analyst
Define: Tricare approval process < 1% approval
Measure : 2-3 day process Production goal 22 Medicare analyst have too much
69% time 6…gossip
to
71%
Analyze: 5s / 5 why 97%
84% 84%
3… value
10%
31% 29%
Track Errors 16% 16% From a natural mix of
create checklist
3% 90% waste workload daily goals were
1 2 3 4 5
Review Process met in 1.5 hours a day
Consolidate notes
update resources What are they doing with their time?
Manager: I have a demand from corporate to address AGED UNITS!!!!
Do you know how?
Is it AX?
Account number only Unable to sort No thought process
No order Unable to TREND No direction Not if AX
Easy to mess up No consistency
Only value is by aged Manually entered
WASTE
Improve: Data entry Template & Pre-Approval Process Don’t forget
in process
Don’t click the wrong arrow
Repeats if AX next day
Confusion as to what counts Don't forget
Not by TYPE Manually entered
Control
May or may not match Medi DB
KNOW YOUR INVENTORY ENGAGE IN YOUR PROCESSES
Control/Response Plan Highlights Benefits of Project
 Process meetings twice a month  Less wasted time and effort


Root cause analysis is shared with team
Shared documents are protected


Opportunity for communication & team work
Sustained resources updated by manager
$$$Non Value added behaviors that can be eliminated. $$$
 Less frustration
Stereotypes | bullying | inaccessibility | fomenting confusion | office politics | unknown expectations
 More data entry less error
 Pre-Approval Process  Less time away from manager
• Ethics &
Results
Baseline Improved Communication & Translation
Responsi
bility
Confidentiality
• Workload not
meeting
RESULTS:
production ..oh
The job that no-one wanted,
Production increase
Average Aged Days
22
87
30
30 TRICARE. I asked for the challenge,
well
• Hold Company
Moral Gossip
Errors & Rejections 99% 2% worked collaboratively to get BOTTOM LINE
Units/Time avg 25 min avg 16 min results and drive change
People as top priority Production 80/150 Aged Days 87/30
• Eliminate
• Confused
• Little People
Implement a
WASTE
Communication Confusion
• Who just do
what they are
new system
Re-Org 8 analyst to two & Increased Production 27%
told
3
Through the DMAIC Process Sigma Green Belt and Lean Certification the department is now meeting corporate measures
2/20/2012 Tammy Pena | (904) 894-9179 | tammy.pena@gmail.com | also on LinkedIn 2