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Highlights from ExL Pharma's 3rd Lean Sigma & Kaizen



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Highlights from ExL Pharma's 3rd Lean Sigma & Kaizen

  1. 1. Highlights from ExLPharma’s 3rd Lean Sigma & Kaizen for Life Sciences R&D<br />March 23-24, 2010<br />Philadelphia, PA<br />
  2. 2. Examining How Lean Concepts Help Create a Strong Company Culture: Examples from the Healthcare Sector<br />
  3. 3. Lean Healthcare is a Global Movement<br />Data source: visitors to<br />
  4. 4. Lean is Fundamentally About:<br />People doing work<br />People managing other people<br />People facing problems <br />
  5. 5. No waiting<br />No waste<br />Zero harm<br />Why Lean for Healthcare?<br />Source: an NHS hospital, UK<br />
  6. 6. Improving Radiology /MRI Access Time<br />Source: Children’s Medical Center, Dallas TX<br />
  7. 7. The Iceberg of Lean<br />5S<br />Kaizen<br />A3<br />VSMs<br />Heijunka<br />Std Work<br />Culture<br />Management System<br />Philosophy<br />
  8. 8. “Equally Important Pillars” of The Toyota Way<br />
  9. 9. Leader’s Job is to Develop People<br />Source: John Shook and Toyota<br />
  10. 10. Different Types of Kaizen<br />Mgmt<br />Kaizen<br />Very few<br />Large problems<br />Six Sigma<br />Few<br />Medium problems<br />Kaizen<br />Event<br />Many<br />Small problems<br />Daily Kaizen<br />Adapted from: “The Toyota” Way Fieldbook, Liker and Meier<br />
  11. 11. Top Down and Bottom Up<br />Source: Lean Hospitals, Graban<br />
  12. 12. Hoshin = “compass”<br />Pointing the direction<br />Kanri = “management” or “control”<br />HoshinKanri<br />A process for embedding strategy and aligning an organization toward common goals<br />Developed by YojiAkao (non-Toyota)<br />Using PDCA cycles to:<br />Create goals<br />Choose measurement points<br />Link daily activities to high level goals<br />Hoshin Kanri<br />
  13. 13. Purpose: What’s True North?<br />Quality<br />Decrease Defects and Waiting Time by 50% each year<br />Customer<br />Business<br />Engagement<br />No. of Suggestions Implemented<br />Increase Productivity 10% each year<br />
  14. 14. Align Measures @ Each Level<br />Patient & Employee<br />Patient Falls<br />Sprains & Strains<br />
  15. 15. Mindset<br />Extreme customer focus (patient)<br />Striving for perfection, not just beating benchmarks<br />Process focus, not just results<br />Value Stream Map  Breaking down silos<br />Focus on reducing batches & delay to improve flow, not on “working faster”<br />Standardized Work  Consistent, but not constraining<br />Lean as “way of being” not a project or event<br />Management<br />Leaders as mentors and coaches, not “bosses”<br />Manager as process improver, not fire fighter<br />Hoshin Kanri / Strategy Deployment  Alignment of work / goals at all levels<br />For Real Lean Transformation<br />
  16. 16. Staffing<br />Leveling workloads, not just “dealing with it”<br />Staffing based on workload & processes, not benchmarks (right staffing levels, not too many, not too few)<br />Problem Solving<br />“No problems is a problem”<br />Root cause, not workarounds<br />Suggestion System  True daily kaizen and employee engagement<br />Everyone a problem solver every day using the scientific method (PCDA)<br />A3 Structured problem solving<br />Blame-free culture<br />Mistake proofing Culture of prevention, not punishment<br />For Real Lean Transformation<br />
  17. 17. Identifying Non-Value and Strengthening Clinical Processes to Reduce Variability<br />
  18. 18. What are the major challenges to the deploying Lean Sigma in clinical operations and what are effective strategies to address these challenges?<br />Where are the prerequisites that need to be in place before Lean Sigma becomes established in clinical operations?<br />3<br />Key Questions for theAudience and Panel<br />
  19. 19. A. What are the pre-requisites?<br />Compelling Business Case <br />“A Burning Platform”<br />Leadership Support<br />Support Organization<br />Methodology to Assess Benefits<br />4<br />Response to Key Questions<br />
  20. 20. The Burning Platform<br />The pharmaceutical industry is faced with a number of significant challenges<br />Increasing Cost<br />Increasing Cycle Times<br />Decreasing Probabilities of Success<br />Nowhere is this more evident than in the clinical area<br />5<br />I. Compelling Business Case<br />
  21. 21. The strong, unwavering support <br />of senior leadership is <br />an essential pre-requisite<br />6<br />II. Leadership Support<br />
  22. 22. 7<br />III. Six Sigma Organizational Structures<br />ManagersEmployees<br />Business Function<br />
  23. 23. Roles<br />Project Sponsor / Process Owner<br />Master Black Belt<br />Six Sigma Champion<br />Finance Representative<br />8<br />Six Sigma Roles and Responsibilities<br />
  24. 24. In order to consistently evaluate the benefits of Six Sigma projects, you need<br />Independent evaluators that have<br />Appropriate training<br />Finance/business basics<br />Six Sigma methods<br />A consistent set of rules<br />Cost of running a project to measure rate of return on Six Sigma inestment<br />9<br />IV. Methodology to Assess Benefits<br />
  25. 25. B. What are the major challenges?<br />Organizational Bandwidth<br />Resistance to change<br />10<br />Response to Key Questions<br />
  26. 26. Most organizations are busy with the “real work” of drug development<br />Difficult to find the time or energy to work on important projects<br />11<br />What are the major challenges?I. Organizational Bandwidth<br />
  27. 27. 12<br />No time for Six Sigma?<br />
  28. 28. Too busy to change<br />We have always done it this way<br />This is a regulated business - you can’t just change things<br />13<br />What are the major challenges?II. Resistance to Change<br />
  29. 29. All Black Belts are trained in OCM methodology<br />Use business sponsor to help remove these barriers<br />14<br />What are the major challenges?Resistance to Change<br />
  30. 30. Right Message/Messenger<br />Acceptance across the organization that Six Sigma will address critical parts of Lilly strategy<br />Right People<br />Staffing key roles with full-time, high potential leaders<br />Right Infrastructure <br />IT tracking system and guidelines for HR, Finance prior to launch<br />Right Projects and Governance <br />Project selection and execution aligned with company priorities and managed by accountable line organizations <br />Right results <br />Robust measurement and reporting that reinforces the message and supports appropriate project selection<br />15<br />Critical Success Factors<br />
  31. 31. Still have any questions? For additional information on ExLPharma’s Lean Sigma & Kaizen for Life Sciences R&D Conferences, please visit<br />

Editor's Notes

  • Top-down or bottom-up? The personal benefit of involvement within a Lean projectThe role of senior leadership in altering a culture through support &amp; attentionUncovering the characteristics of a successful lean effort versus a failed one
  • There are A LOT of good things happening around the world with Lean in healthcare, including the United States
  • This is NOT about turning the hospital into an assembly line or a factory. This is about meeting our GOALS, MISSION, and PURPOSE in a better way… and it’s fundamentally about THINKING
  • A lot of organizations LOVE the idea of eliminating waste. But they often miss the mark…
  • A lot of organizations LOVE the idea of eliminating waste. But they often miss the mark…
  • Even with empowered staff solving problems, top managers and leaders still need to set direction
  • AKA Strategy DeploymentUsed by Toyota, P&amp;G, Bank of America, HP, Bridgestone tire, etc.Hoshin – shiny needleKanri – once we set direction, how to manage??Akao was a Japanese professor
  • Aligned measures. Input from each level. Not necessarily measuring the EXACT same things, but what’s important in that area.
  • 100 kaizen events won’t make you lean, can you truly develop these habits if “lean” equals four kaizen events over three years? Not going to get this done through typical hospital committees, either
  • 100 kaizen events won’t make you lean, can you truly develop these habits if “lean” equals four kaizen events over three years? Not going to get this done through typical hospital committees, either
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