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Lean Thinking In
Medical Practices
Innovation, Action and Quality Improvement




                               Michael Crosnick
What Is Lean?

    • Elimination of waste
      – Toyota Production System (TPS)

    • Philosophy
      – Produce only what is needed, when it is
        needed, with no waste

    • Methodology
      – Determination of value added in the process

    • Tools
      – Five Ss, kaizen event, standardized work, etc.

2
Types of Waste (Muda)

    • Overproduction
    • Waiting
    • Transportation
    • Inventory
    • Motion
    • Over Processing
    • Defects

3
Kaizen Philosophy

    • Employee-led continuous improvement
    • Five steps
      – Specify value
      – Map and improve the value stream
      – Flow
      – Pull
      – Perfection

    • Even if it isn’t broken, it can be improved.

4
Value Stream Mapping

    • Process map of the value stream
    • Includes information processing and
      transformational processing
    • Value-added steps: ―Would the customer be
      willing to pay for this activity?‖
    • Non-value-added steps
      – Necessary
      – Unnecessary


5
Value Stream Mapping
      Suppliers :                                                      Payer                               Customers: Accounting,
Physicians, Appointment           Physician Office
                                                                                                           Payer, Physician (chart)
  Scheduling Software


        102 Patient visits/day
                                   Prep patient,
                                   Verify insurance
               Revisit             authorization,
                                   Exam and Rx.
                                   SOAP note
                                   Discharge summary
                                                            Transcripts

   Check in,                                                                                                      Copy to             Report to
                                       Prep patient,
  Registration                                                                                                    letterhead,         Physician &
                                       Review packet,
Insurance forms                                                  Proof read    Fax revised     Proof read         signature           med records,
                                       Verify insurance,
                                                                 First draft      draft to     second draft       Close chart,        Submit claim
                                       Exam and Rx.,
                                                                               transcription                      File report         or invoice
                New Evaluation         Soap note
                                       Evaluation summary
                                       & plan
                                                                                           3                                2               3
              1                 3                    3                                                     3
                                                                         2                                               5-15 m   P/T     0-1 m
  P/T       1-3 m        P/T 10-60 m          P/T 1-10 m                         P/T             P/T 0-15 m        P/T
                                                                  P/T 5-15 m         0-1 m
  W/T                    W/T 0-15 m           W/T 7-50 m              1-10 d     W/T 1-20 d      W/T 14-90 d       W/T   1-10 d   W/T     1-20 d
             0                 98%                                W/T                                 50%
                         FTQ                                                          90%        FTQ               FTQ    98%     FTQ      98%
  FTQ       99%                               FTQ 20%             FTQ 98%        FTQ


                                                               Current State Metrics
                                                                     P/T = 21-120 min. (average: 71 min)
                                                                     W/T =18-150 days (average: 84 days)
        6                                                            FTQ = 10%
Value Stream Mapping
      Suppliers :                                                      Payer                             Customers: Accounting,
Physicians, Appointment           Physician Office
                                                                                                         Payer, Physician (chart)
  Scheduling Software


        102 Patient visits/day
                                   Prep patient,
                                   Verify insurance
               Revisit             authorization,
                                   Exam and Rx.
                                   SOAP note
                                   Discharge summary
                                                            Transcripts

   Check in,                                                                                                    Copy to             Report to
                                       Prep patient,
  Registration                                                                                                  letterhead,         Physician &

                                                                                                                  X
                                       Review packet,

                                                                   X             X              X
Insurance forms                                                  Proof read    Fax revised     Proof read       signature           med records,
                                       Verify insurance,
                                                                 First draft      draft to     second draft     Close chart,        Submit claim
                                       Exam and Rx.,
                                                                               transcription                    File report         or invoice
                New Evaluation         Soap note
                                       Evaluation summary
                                       & plan
                                                                                           3                              2               3
              1                 3                    3                                                   3
                                                                         2                                             5-15 m   P/T     0-1 m
  P/T       1-3 m        P/T 10-60 m          P/T 1-10 m                         P/T            P/T 0-15 m       P/T
                                                                  P/T 5-15 m         0-1 m
  W/T                    W/T 0-15 m           W/T 7-50 m              1-10 d     W/T 1-20 d     W/T 14-90 d      W/T   1-10 d   W/T     1-20 d
             0                 98%                                W/T                                50%
                         FTQ                                                          90%       FTQ              FTQ    98%     FTQ      98%
  FTQ       99%                               FTQ 20%             FTQ 98%        FTQ




        7
Tools
• Takt time               • Standardized work
• Throughput time         • Kanban
• Five Ss                 • Single minute
                            exchange of die
• Spaghetti diagram
                            (SMED)
• Kaizen blitz or event
                          • Flow
• Jidoka
                          • Pull
• Andon
8
Takt Time
• The speed with which customers must be served to
  satisfy demand for the service.

                     Available work time /day
         Takt time
                      Customer demand/day

• Cycle time is the time to accomplish a task in the
  system.
• System cycle time is equal to the longest task cycle
  time in the system—the rate at which customers or
  products exit the system, or ―drip time.‖

 9
Throughput Time


• Time for an item to complete the entire process,
  which includes:
     – Waiting time
     – Transport time
     – Actual processing time




10
Clinic Example
Cycle, Throughput, and Takt Time

Patient check-in                Move to examining room
   3 minutes                           2 minutes

                    Wait 15
                    minutes




    Nurse does                Physician exam
 preliminary exam             and consultation           Visit complete
     5 minutes                  20 minutes
                     Wait 15                       Wait 10
                     minutes                       minutes

11
Clinic Example
    Cycle, Throughput, and Takt Time
• Patient check-in cycle time = 3 minutes.
• System cycle time = cycle time for longest task =
  physician exam and consultation = 20 minutes.
• Throughput time = 3 + 15 + 2 + 15 + 5 + 10 + 20 =
  70 minutes.
•              8 physicians 5 hours/day
    Takt time
                    100 patients/d ay
     0.4 physician hours/pati ent
     24 physician minutes/pa tient.
    12
Clinic Example: Value-Added Time

• Valued-added tasks:
     – Nurse preliminary exam
     – Physician exam and consultation

• Non-value-added steps, necessary:
     – Patient check-in

• Value-added time = 5 minutes (nurse preliminary
  exam) + 20 minutes (physician exam and
  consultation) = 25 minutes.
• Percentage value-added time = 25 minutes/70
  minutes = 35 percent.
13
Kaizen Blitz or Event

• Determine and define the objectives            Act    Plan

• Determine the current state of the process
• Determine the requirements of the process     Check   Do


• Create a plan for implementation
• Implement the improvements
• Check the effectiveness of the improvements
• Document and standardize the improved process
• Continue the cycle


 14
Standardized Work

     • Written documentation of the way in which
       each step in a process should be performed
     • Not a rigid system of compliance, but a
       means of communicating and codifying
       current best practices




15
Jidoka and Andon

     • Jidoka is the ability to stop the process
       in the event of a problem.
       – Prevents defects from passing from one step
         in the system to the next
       – Enables swift detection and correction of
         errors

     • Andon is a visual or audible signaling
       device used to indicate there is a
       problem in the process.


16
Kanban

         Signal          Signal




     patients     echo   patients   CT




17
Single Minute Exchange of Die (SMED)

• Used to reduce changeover or setup time, which is
  the time needed between the completion of one
  procedure and
  the start of the next procedure
• Steps
  – Separate internal activities from external activities
  – Convert internal setup activities to external activities
  – Streamline all setup activities



 18
Advanced Access

• Patients are unable to obtain timely primary care
  appointments.
• Advanced access scheduling reduces the time
  between scheduling an appointment for care and
  the actual appointment.
• The goal is swift, even patient flow through the
  system.



 19
Advanced Access: Advantages
• Decreases no-show rates
• Improves patient satisfaction
• Improves staff satisfaction
• Increases revenue
     – Higher patient volumes
     – Increased staff and clinician productivity

• Promotes greater continuity of care
     – Increased quality of care
     – More positive outcomes for patients
20
Advanced Access: Implementation

• Advanced access challenges established practices
  and beliefs.
• Balance supply and demand:
  – Obtain accurate estimates of supply and demand.
  – Reduce or eliminate backlog.
  – Minimize the variety of appointment types.
  – May need to:
      • Adjust demand profiles.
      • Increase availability of bottleneck resources.



 21
Lean Sigma

Lean and Six Sigma are focused
on continuous improvement of
the system.
                                      6
      Lean            Six Sigma
Eliminate waste   Eliminate defects
• Achieve flow    • Reduce
  and pull          variation in
                    processes

22

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Lean Thinking In Medical Practices

  • 1. Lean Thinking In Medical Practices Innovation, Action and Quality Improvement Michael Crosnick
  • 2. What Is Lean? • Elimination of waste – Toyota Production System (TPS) • Philosophy – Produce only what is needed, when it is needed, with no waste • Methodology – Determination of value added in the process • Tools – Five Ss, kaizen event, standardized work, etc. 2
  • 3. Types of Waste (Muda) • Overproduction • Waiting • Transportation • Inventory • Motion • Over Processing • Defects 3
  • 4. Kaizen Philosophy • Employee-led continuous improvement • Five steps – Specify value – Map and improve the value stream – Flow – Pull – Perfection • Even if it isn’t broken, it can be improved. 4
  • 5. Value Stream Mapping • Process map of the value stream • Includes information processing and transformational processing • Value-added steps: ―Would the customer be willing to pay for this activity?‖ • Non-value-added steps – Necessary – Unnecessary 5
  • 6. Value Stream Mapping Suppliers : Payer Customers: Accounting, Physicians, Appointment Physician Office Payer, Physician (chart) Scheduling Software 102 Patient visits/day Prep patient, Verify insurance Revisit authorization, Exam and Rx. SOAP note Discharge summary Transcripts Check in, Copy to Report to Prep patient, Registration letterhead, Physician & Review packet, Insurance forms Proof read Fax revised Proof read signature med records, Verify insurance, First draft draft to second draft Close chart, Submit claim Exam and Rx., transcription File report or invoice New Evaluation Soap note Evaluation summary & plan 3 2 3 1 3 3 3 2 5-15 m P/T 0-1 m P/T 1-3 m P/T 10-60 m P/T 1-10 m P/T P/T 0-15 m P/T P/T 5-15 m 0-1 m W/T W/T 0-15 m W/T 7-50 m 1-10 d W/T 1-20 d W/T 14-90 d W/T 1-10 d W/T 1-20 d 0 98% W/T 50% FTQ 90% FTQ FTQ 98% FTQ 98% FTQ 99% FTQ 20% FTQ 98% FTQ Current State Metrics P/T = 21-120 min. (average: 71 min) W/T =18-150 days (average: 84 days) 6 FTQ = 10%
  • 7. Value Stream Mapping Suppliers : Payer Customers: Accounting, Physicians, Appointment Physician Office Payer, Physician (chart) Scheduling Software 102 Patient visits/day Prep patient, Verify insurance Revisit authorization, Exam and Rx. SOAP note Discharge summary Transcripts Check in, Copy to Report to Prep patient, Registration letterhead, Physician & X Review packet, X X X Insurance forms Proof read Fax revised Proof read signature med records, Verify insurance, First draft draft to second draft Close chart, Submit claim Exam and Rx., transcription File report or invoice New Evaluation Soap note Evaluation summary & plan 3 2 3 1 3 3 3 2 5-15 m P/T 0-1 m P/T 1-3 m P/T 10-60 m P/T 1-10 m P/T P/T 0-15 m P/T P/T 5-15 m 0-1 m W/T W/T 0-15 m W/T 7-50 m 1-10 d W/T 1-20 d W/T 14-90 d W/T 1-10 d W/T 1-20 d 0 98% W/T 50% FTQ 90% FTQ FTQ 98% FTQ 98% FTQ 99% FTQ 20% FTQ 98% FTQ 7
  • 8. Tools • Takt time • Standardized work • Throughput time • Kanban • Five Ss • Single minute exchange of die • Spaghetti diagram (SMED) • Kaizen blitz or event • Flow • Jidoka • Pull • Andon 8
  • 9. Takt Time • The speed with which customers must be served to satisfy demand for the service. Available work time /day Takt time Customer demand/day • Cycle time is the time to accomplish a task in the system. • System cycle time is equal to the longest task cycle time in the system—the rate at which customers or products exit the system, or ―drip time.‖ 9
  • 10. Throughput Time • Time for an item to complete the entire process, which includes: – Waiting time – Transport time – Actual processing time 10
  • 11. Clinic Example Cycle, Throughput, and Takt Time Patient check-in Move to examining room 3 minutes 2 minutes Wait 15 minutes Nurse does Physician exam preliminary exam and consultation Visit complete 5 minutes 20 minutes Wait 15 Wait 10 minutes minutes 11
  • 12. Clinic Example Cycle, Throughput, and Takt Time • Patient check-in cycle time = 3 minutes. • System cycle time = cycle time for longest task = physician exam and consultation = 20 minutes. • Throughput time = 3 + 15 + 2 + 15 + 5 + 10 + 20 = 70 minutes. • 8 physicians 5 hours/day Takt time 100 patients/d ay 0.4 physician hours/pati ent 24 physician minutes/pa tient. 12
  • 13. Clinic Example: Value-Added Time • Valued-added tasks: – Nurse preliminary exam – Physician exam and consultation • Non-value-added steps, necessary: – Patient check-in • Value-added time = 5 minutes (nurse preliminary exam) + 20 minutes (physician exam and consultation) = 25 minutes. • Percentage value-added time = 25 minutes/70 minutes = 35 percent. 13
  • 14. Kaizen Blitz or Event • Determine and define the objectives Act Plan • Determine the current state of the process • Determine the requirements of the process Check Do • Create a plan for implementation • Implement the improvements • Check the effectiveness of the improvements • Document and standardize the improved process • Continue the cycle 14
  • 15. Standardized Work • Written documentation of the way in which each step in a process should be performed • Not a rigid system of compliance, but a means of communicating and codifying current best practices 15
  • 16. Jidoka and Andon • Jidoka is the ability to stop the process in the event of a problem. – Prevents defects from passing from one step in the system to the next – Enables swift detection and correction of errors • Andon is a visual or audible signaling device used to indicate there is a problem in the process. 16
  • 17. Kanban Signal Signal patients echo patients CT 17
  • 18. Single Minute Exchange of Die (SMED) • Used to reduce changeover or setup time, which is the time needed between the completion of one procedure and the start of the next procedure • Steps – Separate internal activities from external activities – Convert internal setup activities to external activities – Streamline all setup activities 18
  • 19. Advanced Access • Patients are unable to obtain timely primary care appointments. • Advanced access scheduling reduces the time between scheduling an appointment for care and the actual appointment. • The goal is swift, even patient flow through the system. 19
  • 20. Advanced Access: Advantages • Decreases no-show rates • Improves patient satisfaction • Improves staff satisfaction • Increases revenue – Higher patient volumes – Increased staff and clinician productivity • Promotes greater continuity of care – Increased quality of care – More positive outcomes for patients 20
  • 21. Advanced Access: Implementation • Advanced access challenges established practices and beliefs. • Balance supply and demand: – Obtain accurate estimates of supply and demand. – Reduce or eliminate backlog. – Minimize the variety of appointment types. – May need to: • Adjust demand profiles. • Increase availability of bottleneck resources. 21
  • 22. Lean Sigma Lean and Six Sigma are focused on continuous improvement of the system. 6 Lean Six Sigma Eliminate waste Eliminate defects • Achieve flow • Reduce and pull variation in processes 22