Service Description Lean Transformation for Healthcare
1. Lean
Consulting
“Improving patient outcomes and
satisfaction while driving down the cost
of care!”
TPMG
Transformation
In Healthcare
Service Description: Excellence in Healthcare Delivery
2. TABLE OF CONTENTS
Introduction 3
Lean Transformation Excellence in Healthcare Delivery 4
Consulting Service Descriptions 5
Training Service Descriptions 8
Training Service Pricing 12
Consulting Service Pricing 13
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
3. The Performance Management Group LLC
An Arizona Limited Liability Company (established in 1998)
Our Mission:
Helping public and private sector organizations become more productive, efficient & cost effective.
Our Structure:
We are a closely held group of independent consultants who consistently employ the signature
TPMG performance improvement approach through specialized services including: Lean Six Sigma,
The Balanced Scorecard, Performance Analytics, Non-Value Added Analysis, Activity Based Costing
and Strategy Consulting. Our company details are as follows:
Introduction
Consultant
Locations
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Address: P.O. Box 44989
Phoenix, Arizona 85064
DBE Certification # AZ00161
Phone: 602.692.5073 DBE Certifying Agency: National Minority Supplier
Development Council (NMSD)
Email: info@helpingmakeithapppen.com NACIS Codes:
Type of Incorporation:
Arizona Limited Liability Company 5/1998
• 541611 Administrative Management & General
Management Consulting Services
DUNS Number: 144166969 • 541614 Process, Physical Distribution, and Logistics
Consulting Services
CAGE Code: 3SDW3 • 611430 Professional and Management
Development Training
4. What is Lean Management?
Lean management refers to a company’s style of
operational excellence. Made popular by the Toyota
method of production, also known as Total Productive
Maintenance (TPM); lean thinking was given life in
North America as a result of the work of MIT
researchers lead by James Womack, Daniel Jones and
Daniel Roos, “The Machine that Changed the
World.” The objective of lean management in
healthcare is to create value for a healthcare delivery
organization. Value in healthcare is “expressed in
terms of the quality of healthcare outcomes and
satisfaction of patients divided by the cost to produce
those outcomes – over the continuum of care.”
Lean Transformation for Healthcare
In our attempt to keep things simple, TPMG describes lean management as:
A “quality improvement business practice” that strives to produce perfection in the
delivery of products and services. “Process Perfect”
A “method of management” that uses facts, information and data to make decisions
and manage business performance.
A “problem solving method” that identifies root causes to problems and determines
permanent solutions.
From an operational perspective, the value proposition of lean transformation is to improve the
quality of work. Improving quality creates a “chain reaction”. When a provider organization
improves quality, their costs go down. Their costs go down to the tune of 20 – 40% of total
operating expenses. The cost reduction occurs because the expense of wasted effort, reworking
problems, correcting medical errors, re-admitting patients, and correcting invoices is
eliminated. As rework goes down, productivity naturally improves. Productivity improves because
of the more efficient use of human time & effort, technology and working capital in value added
care activities. Improved productivity creates of better patient outcomes. Better patient outcomes
and the elimination of non-value added cost leads to greater profit margins and enhanced
economic value. The additional economic value funds growth and innovation, which lead to
improved healthcare quality and high value jobs.
From a patient perspective, implementing lean management also creates a “chain reaction.” When
a provider organization implements lean management, they continuously adapt their services to
exceed patient needs, attitudes and perceptions. They accomplish this by translating the voice of
the patient into operational requirements and structure their systems and processes to
continuously exceed those requirements Over time, they capture the market with better
healthcare outcomes, greater patient satisfaction and a superior reputation as a healthcare
delivery organization.
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Healthcare Outcomes + Patient Satisfaction
Cost of Healthcare Delivery
Value =
Principles of Value Based Healthcare Delivery
5. Lean Management Service Descriptions
Organizational Readiness Analysis – Building a Culture of Continuous Improvement
Cultural Assessment
TPMG uses two methods to determine the cultural readiness level
of a healthcare organization to adopt a lean management system:
1) A Lean/Continuous Improvement Readiness Survey and 2)
Current State Level 1 Process Analysis.
The readiness survey is a tool used to assess a healthcare
organization’s pre-disposition towards lean management practices.
The instrument determines the “cultural systems” that may restrain
the adoption of a lean effort and those drivers that can promote an
effective lean program implementation.
Examining Organizational Structures and Incentives - Red Flagging
A current state level 1 process analysis is a high level process
evaluation where black belts (BB) and master black belts (MBB) take
a cursory walk through the “gemba.” As an organizational doctor
looking for symptoms which can potentially challenge a lean
management effort, the TPMG Consultant pinpoints and red flags
structures, traditions and incentives which may constrain the
effectiveness of a lean management deployment
Analysis and Conclusions - Baselining underlying cultural and
management challenges
Work products produced from the baselining effort include:
Compiled Survey Results
Completed Situational Analysis
Drawn Conclusions
Pinpointed Culturally Hostile Attitudes & Structures
Highlighted Culturally Friendly Rules & Incentives
Integrated Findings into Lean Adoption Strategy
The findings produced by both the cultural readiness survey and the
level 1 process analysis are integrated into the lean transformation
strategy. TPMG leverages its expertise in organizational behavior to
produce a “high performance culture” that will accommodate and
promote the successful implementation of a lean transformation.
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
6. Lean Management Service Descriptions
Kaizen Workshops – Adding bankable value to the organization!
Kaizen Workshop Description
Kaizen is a focused, high energy, high velocity cross-functional team
workshop event. A 1-week Kaizen Event, following a tightly scoped
3-day Define phase of the Lean Six Sigma DMAIC process, focuses
cross-functional teams on the Measure-Analyze-Improve-Control
phases of the DMAIC process. Teams define the reason for
improvement and a Kaizen’s potential value add using value stream
maps, process walkthroughs, and data. Teams analyze the process
and identify root causes. They generate an effective and feasible
solution, pilot and implement improvements, train affected
employees, and ensure new processes perform to expectation.
Results and remaining actions presented to management are
completed with facilitation following the event.
The total 1-3 week effort is typically divided into stages: Kaizen
Event Prep, Kaizen Event and Kaizen Close. Participants learn a
continuous improvement implementation strategy that is quick and
effective. They will also learn how to use a wide array of tools and
problem solving techniques as well as how to map, measure,
analyze, plan, implement and sustain significant process
improvements.
Kaizen Results
Typical Kaizen results are a 20-50% reduction in Lead Time, 5-20%
improvement in productivity, 20-50% reduction in
inventory, and significant improvements to quality, on-time
performance, and safety. Typical savings range from $10K-$250K in
hard dollar “bankable” savings per Kaizen event.
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
7. Lean Management Service Descriptions
Facilitated Professional Services – Breakthrough improvements and bankable savings!
Advisory Services
TPMG Consultants provide expert advice, assistance, and guidance in
support of organizational and business improvement efforts. Professional
services include:
1. Operational studies, analyses and reports
2. Project management of improvement initiatives
3. Strategic planning facilitation
4. Establishing enterprise performance measurement systems
5. Business improvements in cycle times; leadership systems; and
re-engineered processes
TPMG Consultants employ a variety of methodologies, including value
stream analysis, activity based costing, Six Sigma DMAIC, A3, and lean
methods such as theory of constraints, takt time analysis and 5S. Typical
TPMG Consulting projects yield an average of $259k in hard dollar
“bankable” cost savings along with 25-30 percent improvements in
productivity and efficiency.
Program Management
The program management skills of TPMG Consultants are used to:
1. Work with senior leaders to develop a long term performance
excellence vision.
2. Integrate lean transformation into a healthcare system’s
business strategy.
3. Develop lean management program infrastructure
4. Deploy the lean management system
Our lean management model is used for (1) evaluation to support analysis
of program effectiveness and (2) deploy studies to produce improved cost
efficiency, operational effectiveness and measurably improve overall
organizational performance. Our lean six sigma black belts facilitate:
1. The identification process improvement needs: prioritization
and execution of projects
2. Suggestion and implementation of best practices
3. Business process re-engineering initiatives
4. Kaizen Events
5. The establishment of performance analytics programs
6. The design of voice of the customer strategies
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
8. Lean Management Training Descriptions
Lean Excellence in Healthcare Delivery Training Programs – Educating the Enterprise
Lean Management Executive Champion Training
This 1- 2 day course is designed to prepare key directors and senior
leaders to perform their oversight roles during a Lean Healthcare
Transformation deployment. The course provides leaders with a working
knowledge of the Lean management program methodology and
processes. The course also provides guidelines for performing their lean
leadership roles. Course topics include:
1. Principles of Lean Management for Healthcare
2. How to make making lean management a way of life
3. How to provide ongoing direction and support
4. How to review progress of Lean Management initiatives
5. How to publicly recognize & reward initiative teams
6. Balanced scorecard approach, strategy sessions operations
reviews
7. Management by Fact – Structured Problem Solving
8. Review performance and create plans for improvement
9. How to set direction, create customer focus, clear values and
high expectations.
10. How to inspire, motivate, and empower a work force
Lean Management for Individual Contributors and Employees
This 3 day course is designed to prepare frontline employees and
functional leads to perform as members of healthcare improvement
initiatives. Course topics include but are not limited to:
1. Roots of Lean Management
2. Analyzing Performance
3. Value Stream Analysis
4. Traditional Flow Charting
5. The Voice of the Customer
6. Tools for Continuous Improvement
7. Management by Fact – Structured Problem Solving
8. Team Dynamics and People Skills
9. Lean Fundamentals Applied (VSM, A3, 5S, etc.,)
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Lean 6σ
Excellence
in
Healthcare
Delivery
9. Lean Management Training Descriptions
Lean Management Green Belt Certification Training
This 1 – 2 week course provides Green Belt candidates with the
understanding of Lean Management and Six Sigma improvement
tools for continuous improvement. They also learn project
management fundamentals for a Black Belt project or lead small
scale improvement projects. Topics addressed are healthcare
oriented and include but are not limited to:
1. Roots of Lean Management
2. Analyzing Performance
3. Value Stream Analysis
4. Traditional Flow Charting
5. The Voice of the Customer
6. Tools for Continuous Improvement
7. Management by Fact – Structured Problem Solving
8. Lean Fundamentals for Service Organizations
9. Team Dynamics and People Skills
10. Deploying the Lean Management System
11. Deploying the Balanced Scorecard
There is a certification exam where 80% is a passing score.
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Lean Excellence in Healthcare Delivery Training Programs – Green Belt Certification
Green Belt Certification
for Healthcare
10. Lean Management Training Descriptions
Lean Management Black Belt Certification Training
This 2 - 3 week course provides the Black Belt candidate with an
integrated Lean and Six Sigma curriculum enabling them to apply
the DMAIC methodology (Design— Measure—Analyze—Improve—
Control) with success. Topics are healthcare oriented and include
but not limited to:
1. The Roots and History of Lean Management
2. Analyzing Performance
3. Value Stream Analysis
4. SIPOC Process Mapping
5. Traditional Flowcharting
6. The Voice of the Customer
7. Tools for Continuous Improvement
8. Statistical Process Control for Service Organizations
9. Financial Impact Analysis
10. Activity Based Costing
11. Change Management
12. Team Dynamics
13. Data Collection Techniques
14. Management by Fact – DMAIC Approach
15. Lean Fundamentals for Service Organizations
16. Sources of Service Waste
17. A3, 5S, Theory of Constraints etc..
18. The Balanced Scorecard
This unique course is particularly applicable in complex processes
where quality improvement, speed and process cycle
time reduction are critical for organizational success. Successful
completion of the Black Belt course requires attendance
of all sessions of training and passing the certification exam with a
grade of 80% or higher.
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Black Belt Certification
for Healthcare
Lean Excellence in Healthcare Delivery Training Programs – Black Belt Certification
11. Lean Management Training Descriptions
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Lean Excellence in Healthcare Delivery Training Programs – Train the Trainer
Train the Trainer - Cultivating Internal Expertise
TPMG Consultants provide train-the-trainer certifications. In
this course, employees are certified to train others in lean
methods and continuous improvement. Client employees learn
how to conduct training sessions themselves so they can sustain
the program after TPMG leaves. This train the trainer approach
is essential to build capabilities and the capacity to maintain the
momentum and potency of the transformation in a large
organization. As TPMG’s role in the program deployment winds
down and lean management becomes the organizations way of
working, client employees become the skilled change agents
who become part of the client’s internal improvement group
that sustains the transformation.
12. Lean Management Training Descriptions
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Lean Excellence in Healthcare Delivery Training Programs – Online Training
Lean Six Sigma Excellence in Healthcare Delivery Programs Online
Designed for working professionals, TPMG’s online lean six sigma program
delivers comprehensive coursework in all facets of lean six sigma black belt
certification. The class is patterned after online Global MBA Management
Courses. A TPMG Lean Six Sigma Master Black Belt will be provided, once per
week for 6 weeks, to conduct 4 hour live instruction and review sessions.
To further cohort interaction, you will lock step with your classmates for the
duration of the program with opportunities to meet and study together
online. You will have:
Immediate access to coursework at anytime from anywhere
Engaging online lectures (live and self-paced)
Interactive chats/bulletin boards
Online collaboration with your Master Black Belt Instructor and
classmates using technology of modern global business
Online Certification Training Options
Lean Six Sigma Healthcare Black Belt Certification – Online Blended
Lean Six Sigma Healthcare Green Belt Certification - Online Self-Paced
13. Training Service Pricing
Training Service Per Session Rate* Maximum Number
of Participants
Lean Management
Executive
Champion Training
(1-2 Days)
$3,659.49 25
Lean Management
for Individual
Contributors and
Employees (3 days)
$15,637.95 25
Lean Management
Green Belt
Certification
Training (1-2
Weeks)
$23,214.11 25
Lean Management
Black Belt
Certification
Training (2-3
Weeks)
$46,428.21 25
Online Lean
Healthcare Black
Belt Certification
$1,500 per
candidate
N/A
Online Lean
Healthcare Green
Belt Certification
$500.00 per
candidate
N/A
*plus the cost of software and materials ~ $225 per candidate
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Lean Excellence in Healthcare Delivery Training Programs – Pricing Structures
14. Professional Service Pricing
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”
Lean Deployment – Effective, High Quality and Affordably Priced Deployment Package
Complete Lean Deployment, Including:
1. Program Development
2. Professional Services
3. Certification Education
4. Licensed Materials
Estimated Cost*: $60,000.00 to $80,000.00
Term: 6 - 8 months
* Dependent on travel expenses
Maturity Model: We Keep it Simple
Initiate
1. Create Strategy
2. Produce Objectives
3. Create Action Plans
Facilitate
1. Training & Certification
2. Project Selection
3. Mentoring & Coaching
4. Train the Trainer
5. KPI System Design
Transition
1. Award Certifications
2. Realize Outcomes
3. Strategy and Operations Reviews
3. Roadmap for the Future
Contact us today!
We will provide you
with a fully costed
preliminary lean
management
deployment plan.
15. Professional Service Pricing
Lean Management Professional Services – Pricing Structures
Title Role Qualifications &
Hourly Rate
Managing
Director
(MD)
MD works with client senior leadership team to plan a lean
transformation strategy and direct the completion of
activities and projects within estimated time frames and
budget constraints. MD also delivers, presents, and leads
strategic level client meetings. As needed, the MD delivers
Lean Six Sigma Black Belt training, Kaizen Events, Green Belt
training, Executive Sessions, Champion training and provides
coaching to organizational leaders during the Lean
transformation deployment. The MD may also leads larger,
more complex Lean Six Sigma program initiatives and
improvement projects. MD’s work at the client site.
Master’s Degree
Certified Master Black
Belt
18 + Years Experience
Rate: $170.00/hour
Managing
Consultant
(MC)
MCs actively facilitates lean transformation strategies and
executes the strategy’s action plan. The MCs deliver Lean
Six Sigma Black Belt training, and improvements projects,
workshops, Kaizen Events, Green Belt training, Executive
Sessions, Champion training and provides coaching to
organizational leaders during the Lean transformation
deployment. He/she also Leads larger, more complex Lean
Six Sigma program initiatives and improvement projects. SC’s
work remotely and at the client site.
Bachelors or Master’s
Degree Certified Lean
Six Sigma Master Black
Belt
10 – 15 Years
Experience
Rate: $160.00/hour
Sr. Consultant
(SC)
Senior Consultants provide technical knowledge of lean
management and six sigma and works individually and on
teams to support the completion of projects, workshops and
specific tasks within estimated time frames and budget
constraints. He/she interfaces with the client and teams on
a day-to-day basis. In addition, SC’s apply their specific
expertise to the practical issues they identify for Kaizen
events and workout sessions. They also help to formulate
solutions, prepare reports, studies, documentation, and
support presentations and client meetings. SC’s work
remotely and at the client site.
Bachelors Degree
Certified Lean Six Sigma
Black Belt
5-10 Years Experience
Rate: $100.00/hour
Lean
Transformation
Coach
(LTC)
Lean Transformation Coaches serve as technical experts and
process improvement advisors on an retained services basis.
LTC’s apply their specific expertise to the practical issues and
challenges their clients face. They also help conduct
workshops, formulate solutions, prepare reports, studies,
documentation, and support presentations in client
meetings. LTC’s work remotely or at a client’s site.
Bachelors or Master’s
Degree Certified Lean
Six Sigma Black Belt
5-10 Years Experience
Rate: $90.00/hour
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16. Contact Information
Lean Transformation for Healthcare
We provide resources:
To supplement your current talent pool as a contingent workforce
For healthcare improvement initiatives
For workshops and Kaizen events
For lean transformation coaching and advisory services
For dedicated consulting engagements and lean management adoption
Contact us today!
The Performance Management Group LLC
Professional Services Consulting
P.O. Box 44989
Phoenix, AZ 85064
Email: info@helpingmakeithappen.com
Phone: 1.601.692.5073
www.helpingmakeithappen.com
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“Improving patient outcomes and satisfaction
while driving down the cost of care!”