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How to Manage Your Improvement Metrics More Efficiently and Effectively

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KaiNexus webinar by Mark Graban

In this Webinar you will learn:

Some of the common mistakes people make when looking at performance metrics and the resulting problems
Simple, but statistically valid and effective methods for creating, maintaining, and reviewing charts over time
When to react and ask “what happened?” when reviewing new data points metrics... and when to stop overreacting to each data point
How to integrate this into your use of KaiNexus or for charts you create in Excel

Published in: Business
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How to Manage Your Improvement Metrics More Efficiently and Effectively

  1. 1. How to Manage Your Improvement Metrics More Efficiently and Effectively @MarkGraban (Presenter) VP of Improvement & Innovation Services Mark@KaiNexus.com @Jeff_Roussel (Host) VP of Sales Jeff.Roussel@KaiNexus.com
  2. 2. Agenda & Logistics • Presentation (45 minutes) • Q&A (10 minutes) – Use the GoToWebinar Meeting Panel to submit a question at any time • Recording link & slides will be sent via email – Also – see the “Handouts” feature and Chat box
  3. 3. About Mark Graban • 20+ years practicing Lean – 10 years in manufacturing – 11+ years in healthcare • Books: – Lean Hospitals – Healthcare Kaizen (co-author Joe Swartz) • www.MarkGraban.com New 3rd Edition!
  4. 4. Why Measure?
  5. 5. Are We Improving?
  6. 6. My Most Favorite Book Ever http://www.spcpress.com/ http://amzn.to/2jJ4fiN Donald J. Wheeler, PhD
  7. 7. Are We Improving?
  8. 8. Daily Lean Management
  9. 9. Source: Thinking Lean at ThedaCare (DVD)
  10. 10. How Are We Doing Compared to Our Goal?
  11. 11. "Bowling Chart"
  12. 12. Are We Improving?
  13. 13. Can We Tell From This?
  14. 14. A Better Dashboard Limited information you need to make decisions
  15. 15. Easier to Tell From This? 400 450 500 550 600 650 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Total Cases
  16. 16. In KaiNexus…
  17. 17. Are We Improving?
  18. 18. Need to Avoid Bad Conclusions “The average patient satisfaction increased from 87.2 to 89%” 86% 87% 88% 89% 90% Before After
  19. 19. Need to Avoid Bad Conclusions “The average patient satisfaction increased from 87.2 to 89%” 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Before After
  20. 20. Need to Avoid Bad Conclusions “The average patient satisfaction increased from 87.2 to 89%”
  21. 21. Need to Avoid Bad Conclusions “The average patient satisfaction DECREASED from 87.2 to 85%”??
  22. 22. Are We Improving? 76 78 80 82 84 86 88 90 92 Patient Satisfaction (Different Data Set)
  23. 23. Linear Trendlines are Easy
  24. 24. Can Linear Trends Be Misleading? 76 78 80 82 84 86 88 90 92 Patient Satisfaction
  25. 25. Same Chart Different Timeframe 78 80 82 84 86 88 90 92 Patient Satisfaction
  26. 26. Are We Improving?
  27. 27. How Can We Tell?
  28. 28. How Should We React?
  29. 29. 0 10 20 30 40 50 60 3/1/07 3/2/07 3/3/07 3/4/07 3/5/07 3/6/07 3/7/07 3/8/07 3/9/07 3/10/07 3/11/07 3/12/07 Responding to Daily Changes KB GOAL Daily Production Average Praise Team PT PT Are we helping? Is this process stable? KB Kick Butt
  30. 30. Isn’t it always the system? It’s (almost) always the system.
  31. 31. Signal vs. Noise? "While every data set contains noise, some data sets may contain signals. Therefore, before you can detect a signal within any given data set, you must first filter out the noise.
  32. 32. “X” Control Chart (Chart for Individual Values) Goal = 25 minutes Upper Control Limit Lower Control Limit
  33. 33. In KaiNexus…
  34. 34. Surgical Cases Table
  35. 35. Surgical Control Chart 0 100 200 300 400 500 600 700 800 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Total Cases NOISE
  36. 36. Patient Satisfaction Run Chart “The average patient satisfaction increased from 87.2 to 89%”
  37. 37. Patient Sat. Control Chart 78 80 82 84 86 88 90 92 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Patient Satisfaction NOISE
  38. 38. Lab Turnaround Time What Happened? SIGNAL
  39. 39. Another "Special Cause" What Happened? SIGNAL
  40. 40. X and MR Chart Combo
  41. 41. Does This Small Business Have Predictable Revenue? X chart MR chart SIGNAL
  42. 42. Is My Blog Traffic Increasing?
  43. 43. Evaluate Over Time 0 500 1000 1500 2000 2500 3000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 LeanBlog.org Daily Page Loads
  44. 44. “Western Electric” Rules • Any single point above or below 3-sigma LCL or UCL • 8 consecutive points on same side of mean • 6 consecutive points moving same direction • 14 alternating up/down points in a row Full rules à http://bit.ly/WErules
  45. 45. Evaluate Over Time 0 500 1000 1500 2000 2500 3000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 LeanBlog.org Daily Page Loads
  46. 46. Shift the Limits as Indicated 0 500 1000 1500 2000 2500 3000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 LeanBlog.org Daily Page Loads
  47. 47. Example of Process Shift • If you made a change that you expected to improve the system, use a control chart to test the hypothesis 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Process Shift Daily TAT
  48. 48. Example of Process Shift • If you did NOT make a change, you need to investigate to determine the cause of this signal 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 0 5 10 15 20 25 30 35 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Process Shift Daily TAT
  49. 49. Are We Hitting Our Goals?
  50. 50. Performance vs. Goals
  51. 51. System View vs. Reactive
  52. 52. Control Chart View
  53. 53. Another Example Goal
  54. 54. Control Chart View Goal
  55. 55. So We Should Do Nothing?
  56. 56. Improve the System!
  57. 57. NOT Understanding Variation Leads To… • Pressuring people to get better results by working harder within the same system • Wasting time looking for explanations of a perceived trend when nothing has changed • Not focusing on systemic improvements that would shift the mean
  58. 58. Our Next Webinar "The Intersection of Culture and Technology: Capturing Improvement Where it Happens" – Matthew Cannistraro – Thursday February 23, 1 PM ET • KaiNexus.com/webinars
  59. 59. Ask Us Anything! • Mark Graban & Dr. Greg Jacobson • Next Episode Feb 14, 1 pm ET • Register & submit questions via http://kainexus.com/webinars • Past episodes available on YouTube
  60. 60. Other Resources www.KaiNexus.com
  61. 61. Podcasts • www.KaiNexus.com/podcasts • Subscribe via: – iTunes – Google Play – Stitcher
  62. 62. Thanks! • Web: – www.kainexus.com – blog.kainexus.com – www.MarkGraban.com • Webinars on Demand: – www.kainexus.com/webinars • Social Media: – www.twitter.com/kainexus – www.linkedin.com/company/kainexus – www.facebook.com/kainexus @MarkGraban VP of Services Mark@KaiNexus.com @Jeff_Roussel VP of Sales Jeff.Roussel@KaiNexus.com BONUS RECORDING WILL BE SENT: HOW TO CREATE CONTROL CHARTS

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