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Developing a Lean Hospital Management System

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by Marc Baker and Ian Taylor of Lean Enterprise Academy shown at the Lean Summit 2010 - New Horizons for Lean Thinking on 2/3 November 2010

Published in: Education, Business, Technology
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Developing a Lean Hospital Management System

  1. 1. Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 Fact - Lean Works in Healthcare In experiments where lean thinking has been applied properly, the results – in terms of patient care, costs and quality – have been extraordinary. Hypothesis - Lean will never take root in Healthcare as it stands……. Because lean contradicts with the way Healthcare is currently managed: when Healthcare managers come across lean they are often enthusiastic about its potential but they cannot and do not create the conditions for its benefits to be maintained.
  2. 2. Introducing Mikael Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy
  3. 3. Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy We have set up a value stream management system which sits parallel to our line management structure. We have also put in place supporting structures including an operations management team, improvement teams consisting of staff members, written work standards, procedures for handling deviations, visual management as well as comprehensive data support. BUT our senior management team is not yet fully committed and has not invested enough time in learning of lean principles and the design of a lean transformation. They also do not invest enough time at the ”Gemba” to learn, or in their managements team meetings to follow up. As a result, some of their direct and indirect report areas are also less than fully committed. The situation is starting to change, but we would like your advice how we can inspire and engage the senior management to get more involved and committed to make the lean transformation a core part of their agenda? Mikael’s Question
  4. 4. Exercise Answer Mikael’s Question Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy
  5. 5. Introducing Teresa Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy
  6. 6. Teresa’s Question Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy
  7. 7. Exercise Answer Teresa’s Question Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy
  8. 8. Decision Making……Its’ a Process Current State Map - Management Decision Making Process 60 Mins 10020 Mins PT = 2225 Mins LT = 76745 Mins Finish Define phase C/T=480mins 1-4 staff Proposal C/T = 90 mins 5 staff Planning Scope etc C/T =1520 mins 1-3 staff several days with waits 1st meeting C/T = 60 mins 4 staff Initial approach C/T= 15mins 2 staff I I I I 14400 Mins 480 Mins 1520 Mins 15 Mins 10020 Mins 10020 Mins Value add = 2.9% Assumes all process time is Value Add 90 Mins 30060 Mins Decision y/n C/T = 60 mins 5 staff 60 Mins I Way Forward Excludes Informations flows to check diaries, venues etc 53 Days Lead time…… 1.5 Days Process time Lean Enterprise Academy Copyright Lean Enterprise Academy 2010
  9. 9. Current State Map - Management Decision Making Process 60 Mins 10020 Mins PT = 2225 Mins LT = 76745 Mins Finish Define phase C/T=480mins 1-4 staff Proposal C/T = 90 mins 5 staff Planning Scope etc C/T =1520 mins 1-3 staff several days with waits 1st meeting C/T = 60 mins 4 staff Initial approach C/T= 15mins 2 staff I I I I 14400 Mins 480 Mins 1520 Mins 15 Mins 10020 Mins 10020 Mins Value add = 2.9% Assumes all process time is Value Add 90 Mins 30060 Mins Decision y/n C/T = 60 mins 5 staff 60 Mins I Way Forward Excludes Informations flows to check diaries, venues etc While we’ve been waiting………… 2133 new Orthopaedic referrals 3130 new Outpatients seen in Clinic 31 Clinics Cancelled 1233 Operations completed 187 Operations cancelled Copyright Lean Enterprise Academy 2010 Decision Making……Its’ a Process Lean Enterprise Academy
  10. 10. Lean Enterprise Academy Activity Daily Bed Meetings (x3 daily) 2.25 Morning Handover 0.5 08:15 - 08:30 (x2 weekly) 0.2 ECIP 0.3 Facilitators 1:1 (x1 fortnight) 0.35 DHM 1:1 0.35 Emergency Pathway 0.2 Facilitators Meeting 0.3 Corridor Meeting 0.25 Hants Conf Call 0.5 PAU 1:1 0.25 MAU meet 0.2 Op Commisioning Meeting 0.4 1:1 with Ed 0.05 DGM DSN Meet (x1 fortnight) 0.15 HMC 0.15 COO Meet 0.15 St Mary's transitional grop 0.075 Nursing Workforce Committee 0.075 Duty Managers Update 0.5 DMOP Meeting 0.2 Seeing Facilitators 1 Duty Manager 1.6 LEA 0.4 Contract Review 0.05 Bleep Holder 2 30 day review meetings 0.5 Actions from Bed Meetings 1 Ad Hoc Meetings 1 Appraisals 1.1 1:1 with Mary 1 Hospital Walkabout 1 Discharge Lounge 0.25 Update for DMTs 0.375 E-Mails 100/Day 2 Report Writing 0.6 Budget Management 0.1 Performance Managing 0.2 DHM Induction 3 24.575 The Diary Exercise – Daily Personal Capacity V’s Daily Organisational Demand……. This is real data and absolutely typical. But What’s causing this? Copyright Lean Enterprise Academy 2010
  11. 11. Lean Enterprise Academy The Five Point Checklist •Simple? Can we explain it, so it is easily understood? •Measurable? Can we measure it? •Agreed? Who will be responsible and do they accept this responsibility? •Relevant? What is its contribution? •Trackable? Can we see the status at a glance whenever we want to? Copyright Lean Enterprise Academy 2010
  12. 12. Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 Target Focus No. Projects Cost Improvement 300 4hr Performance Improvement 132 Safety & Quality 44 18 Week Access 39 TOTAL 515 •Simple? •Measurable? •Agreed? •Relevant? •Trackable
  13. 13. Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 SCORECARD Stakeholders Resource Utilisation Management Processes Innovation & Learning A B C A B A B A B C D 15 15 3 4 11 9 23 1 3 2 1 20 21 9 14 36 22 92 11 11 7 9 Scorecard – Descriptive Stats Categories Strategic Objectives Specific Goals Measures Categories = 4 Strategic Objectives = 11 Specific Goals = 87 Measures = 252 •Simple? •Measurable? •Agreed? •Relevant? •Trackable
  14. 14. THE SUM OF FORCE APPLIED: 1+1+1-1 = 2 50% LABOUR EFFICIENCY B A 1 Tonne Little Alignment of Goals, Roles & Responsibilities Lean Enterprise Academy Copyright Lean Enterprise Academy 2010
  15. 15. The sum of the force applied 1+1+1+1 = 4 100% LABOUR EFFICIENCY B A 1 Tonne Alignment of Goals, Roles & Responsibilities Lean Enterprise Academy Copyright Lean Enterprise Academy 2010
  16. 16. Lean Enterprise Academy Activity Daily Bed Meetings (x3 daily) 2.25 Morning Handover 0.5 08:15 - 08:30 (x2 weekly) 0.2 ECIP 0.3 Facilitators 1:1 (x1 fortnight) 0.35 DHM 1:1 0.35 Emergency Pathway 0.2 Facilitators Meeting 0.3 Corridor Meeting 0.25 Hants Conf Call 0.5 PAU 1:1 0.25 MAU meet 0.2 Op Commisioning Meeting 0.4 1:1 with Ed 0.05 DGM DSN Meet (x1 fortnight) 0.15 HMC 0.15 COO Meet 0.15 St Mary's transitional grop 0.075 Nursing Workforce Committee 0.075 Duty Managers Update 0.5 DMOP Meeting 0.2 Seeing Facilitators 1 Duty Manager 1.6 LEA 0.4 Contract Review 0.05 Bleep Holder 2 30 day review meetings 0.5 Actions from Bed Meetings 1 Ad Hoc Meetings 1 Appraisals 1.1 1:1 with Mary 1 Hospital Walkabout 1 Discharge Lounge 0.25 Update for DMTs 0.375 E-Mails 100/Day 2 Report Writing 0.6 Budget Management 0.1 Performance Managing 0.2 DHM Induction 3 24.575 The Diary Exercise – Daily Personal Capacity V’s Daily Organisational Demand……. This is real data and absolutely typical Copyright Lean Enterprise Academy 2010
  17. 17. Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 It’s not just lean!!!!
  18. 18. The Big Gap Lean Enterprise Academy Performance •Quality •Cost •Delivery •Morale •Safety Organisational Perspective Value Stream Perspective Performance •Quality •Cost •Delivery •Morale •Safety Copyright Lean Enterprise Academy 2010
  19. 19. The Bermuda Triangle Lean Enterprise Academy Copyright Lean Enterprise Academy 2010
  20. 20. What happens within The Bermuda Triangle: Initiative ‘Pinball’
  21. 21. Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 So what’s the answer
  22. 22. The Future State Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 The Missing Ingredient
  23. 23. P lan D o A ct C heck Now Grasp the Current State The Abnormality is Obvious Gap EffectCauses The Possible Causes EffectCauses The Possible Causes EffectCauses The Possible Causes for Gap Pareto Graph Highest Priority Pareto Graph Highest Priority Pareto Graph Highest Priority Action Plan No. WhoAction Action Plan No. WhoAction Plan Target Scientific Management Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 • Plan v Actual checking surfaces variances • Managing individual patients • Pace determined by takt
  24. 24. Scientific Management Our Definition: Scientific management is a closed loop system that provides the Measures & Stability required to enable Safe Experimentation (Re-design) : It is Lean within the Day job!!! Very important but omitted by many! Closed Loop employs strict PDCA whereby the Check frequency is at the appropriate pitch to enable the required adjustment to minimise variation in the process The scientific setting of warning and action limits and the standardisation of the actions required to return to the desired condition – “I will not fail” Copyright Lean Enterprise Academy 2009 Lean Enterprise Academy It IS a Science…… BUT it’s NOT Rocket Science
  25. 25. Scientific Management – Contrast/Compare CURRENT STATE HEALTHCARE OPs MANAGEMENT REAL OPs MANAGEMENT Part Time Day Job Heroic Humble High Level Detailed Remote At the Workplace Smoke & Mirrors Absolute Transparency After the Event Just as the event occurs Chaotic Scientific Opinion based Factual Dip in (& out) whenever possible Frequent Routine Mgmt Timeframes In-formal Formal Vague SMART Random Well Planned Take on more De-select Multi-Task One Piece Interested Obsessive Craves Chaos Craves Stability Abnormalities normal Abnormalities made obvious Open Ended Closed Loop Anarchy Rules Ill disciplined Disciplined Tolerate what you deserve Deserve what you tolerate High variation Low variation Lean Enterprise Academy Copyright Lean Enterprise Academy 2010
  26. 26. CURRENT STATE HEALTHCARE OPs MANAGEMENT REAL OPs MANAGEMENT Jump to solutions Get to root cause Knowledge Skills Knows it all Always learning Literate Numeric Lose Win Manage Coach Multi-Task One Piece Open Ended Closed Loop Opinion based Factual Part Time Day Job Popular? Respected Preoccupied Listens Random Well Planned Remote At the Workplace Sexy Wise Smoke & Mirrors Absolute Transparency Take on more De-select Tell Ask Tolerant of abnormalities Intolerant of abnormalities Tolerate what you deserve Deserve what you tolerate Undisciplined Disciplined Vague SMART Write lengthy reports (in isolation) Construct A3s (in collaboration) Lean Enterprise Academy Copyright Lean Enterprise Academy 2010 Scientific Management – Contrast/Compare…. Cont’d

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