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The Lean Transformation at Cardinal Health

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by Bill Owad of Cardinal Health shown at the 1st Global Healthcare Summit on 25th June 2007

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  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ,DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/yyxo9sk7 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
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The Lean Transformation at Cardinal Health

  1. 1. 1 Transforming Cardinal Health June 25, 2007 William Owad SVP, Operational Excellence Cardinal Health
  2. 2. 2 Who we are Cardinal Health is a global company dedicated to making healthcare safer and more productive
  3. 3. 3 Highlights • Headquartered in Dublin, Ohio • The leading provider of products, services and technologies supporting the health care industry: • Develops, manufactures, packages and markets products for patient care • Develops drug-delivery technologies • Distributes pharmaceuticals and medical, surgical and laboratory supplies • Offers consulting and other services that improve quality and efficiency in health care • Annual revenues of $81 billion • Ranked No. 19 on the Fortune 500
  4. 4. 4 Global presence
  5. 5. 5 How we support healthcare • Medical / surgical manufacturing and distribution – Gloves, surgical gowns, drapes, instruments • Pharmaceutical distribution – Safe, efficient delivery of pharmaceuticals from manufacturer to retail, independent and hospital pharmacies • Nuclear pharmacy services – Capable of delivering radiopharmaceuticals to 90% of U.S. hospitals within 3 hours • Medical and supply automation products – Aid doctors and nurses in ensuring patient safety, greater focus on patient care
  6. 6. 6 Healthcare Supply Chain Services Market leader in medical supply, pharmaceuticals and nuclear pharmacy services Medical Products Manufacturing Leading manufacturer of products used in 50% of U.S. surgeries Clinical Technologies and Services Market leader with Pyxis® and Alaris® products, and extensive clinical expertise Pharmaceutical Technologies and Services* Largest provider of contract services to pharma and biotech industry 93%revenue 2%revenue 3%revenue 2%revenue *Cardinal Health sold its Pharmaceutical Technologies and Services segment to the Blackstone Group Healthcare Supply Chain Services Revenue greater than $75B
  7. 7. 7 Three Cardinal Health Priorities • Organic growth through customer-driven innovation, expanding product offerings, and international expansion • Leveraging our scale and operational excellence to drive superior customer value and reduce non- value added costs • Unleashing the power of our employees to achieve their full potential through thoughtful career planning, skill and capability building, in an engaging and inclusive work environment
  8. 8. 8 Operational Excellence is about execution • A disciplined way of conducting business that consistently meets customer expectations at minimum cost and optimum speed • A sustainable competitive capability that differentiates on the ability to execute Source: SLT – October 2005
  9. 9. 9 Simple transforming idea • Engage people at every level • Teach them to see the value stream • Provide them with the knowledge to challenge and improve the value stream • Empower the people and managers close to the value stream with the imperative to improve
  10. 10. 10 Original vision of Operational Excellence was transformational • Not an event. This is the way we work, from now on • A capability that defines us and creates competitive advantage • A relentless pursuit of speed, efficiency, and effectiveness in everything we do • Drives loyalty by improving what we do for our customers and each other Source: Operational Excellence Executive Summit, December 2005
  11. 11. 11 Essential elements to an Operational Excellence enterprise • Clear understanding of the organization’s customer value proposition • Lean and consistent processes for delivering the value proposition • Culture of relentless improvement by the people closest to the value stream
  12. 12. 12 Cultural objective • Drive the business from the customers’ point of view • Align projects and resources to key strategic drivers • Drive continuous improvement methods broadly into all areas of the business (the way we work) • Embed common language / process thinking/skills / methodology throughout Cardinal Health • Require Lean Six Sigma as a leadership development tool • Achieve zealous leadership involvement and support Deployment principles
  13. 13. 13 Operational Excellence accomplishments • Created an Operational Excellence infrastructure – 29 Deployment Leaders and 18 Master Black Belts / Lean Masters – 149 LSS Black Belts and 840 Green Belts and Kaizen Leaders – 1600 Sponsors • Built a pipeline of 1400+ projects • Delivered over $130M in total benefit, $110M Type 1 benefit • Expanded Operational Excellence into all businesses and functions • Delivered projects that demonstrated the wide reach and power of Operational Excellence • Gained wide exposure and recognition of Operational Excellence – i.e., Town Hall meetings, Gallery walks, Innovation awards, GLT meeting, Budget and QBR proces
  14. 14. 14 Key challenges • We must achieve stability before we can achieve excellence • Stability means: – Product – Process – Information flow • We must become an operationally excellent company in order to become premier
  15. 15. 15 Enterprise transformational initiatives • Provisioning / supply processes • Order-to-case process • Development processes • Cultural/mindset transformation
  16. 16. 16 Imperatives for the Operational Excellence team • Pursue project portfolio that drives strategic value • Drive engagement and active participation by Sponsors and middle management • Ensure resources and commitment to chartered projects • Drive penetration in unproductive sites and organizations • Establish a continuous improvement mindset enterprise wide

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