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Lean healthcare rev01


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Presentation in Healthcare Summit 2010 Bangkok Thailand

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Lean healthcare rev01

  1. 1. Breakthroughs In Patient Flow: Truly Lean Thinking in Healthcare STRATEGIC HEALTHCARE MANAGEMENT & INFORMATICS 21-23 July 2010, @ Pullman Hotel Bangkok by Anawat Jorapunyanont – B-Excellence Co., Ltd.
  2. 2. <ul><li>We don’t know what we don’t know </li></ul><ul><li>We can’t act what we don’t know </li></ul><ul><li>We won’t know until we search </li></ul><ul><li>We won’t search what we don’t question </li></ul><ul><li>We don’t question what we don’t measure </li></ul><ul><li>Hence, We just don’t know </li></ul><ul><li>Vision of Six Sigma - Anonymous </li></ul>
  3. 3. Lean vs ???
  4. 4. Warren Buffett
  5. 5. Andrew Carnegie
  6. 6. Carnegie’s Approach to ROIC
  7. 7. Carnegie Steel Capital
  8. 8. Henry Ford : ROIC Driven by Capital Turnover and Cost
  9. 9. Ford’s Approach to ROIC
  10. 10. Ford Motor Company Financials
  11. 11. Source of Ford’s Success
  12. 12. Alfred Sloan : ROIC Driven by EBIT Margin
  13. 13. Alfred Sloan, General Motors (1920-1964)
  14. 14. Sloan’s Approach to ROIC
  15. 15. General Motor Market Share
  16. 16. Kiichiro Toyoda : ROIC driven by EBIT Margin and Capital Turnover
  17. 17. Kiichiro Toyoda , Shigeo Shingo, Taiichi Ohno (Toyota 1960-1990)
  18. 18. Toyota’s Approach to ROIC
  19. 19. Toyota Inventory Turns
  20. 20. Lean Production Strategy
  21. 21. Lean Thinking <ul><li>Specify value </li></ul><ul><ul><li>can only be defined by the ultimate customer </li></ul></ul><ul><li>Identify the value stream </li></ul><ul><ul><li>exposes the enormous amounts of waste </li></ul></ul><ul><li>Create flow </li></ul><ul><ul><li>reduce batch size and WIP </li></ul></ul><ul><li>Let the customer pull product through the value stream </li></ul><ul><ul><li>make only what the customer has ordered </li></ul></ul><ul><li>Seek perfection </li></ul><ul><ul><li>continuously improve quality and eliminate waste </li></ul></ul><ul><li>From Lean Thinking by Womack and Jones </li></ul>
  22. 22. Benefits <ul><li>Lean provides tangible benefits </li></ul><ul><li>Reduces costs not just selling price </li></ul><ul><ul><li>Reduces delivery time, cycle time, set-up time </li></ul></ul><ul><ul><li>Eliminates waste </li></ul></ul><ul><ul><li>Seeks continuous improvement </li></ul></ul><ul><li>Improves quality </li></ul><ul><li>Improves customer ratings and perceptions </li></ul><ul><li>Increases overall customer satisfaction </li></ul><ul><li>Improves employee involvement, morale, and company culture </li></ul><ul><li>Helps “transform” businesses </li></ul>
  23. 23. The Power of Lean in HealthCare <ul><li>Virginia Mason Medical Center in Seattle, Washington, has been using lean management principles since 2002. </li></ul><ul><li>By working to eliminate waste. </li></ul><ul><li>Created more capacity in existing programs and practices so that planned expansions were scrapped, saving significant capital expenses: $1 million. </li></ul>
  24. 24. The Virginia Mason Medical Center Strategic Plan
  25. 25. Areas of Focus <ul><li>1.“ Patient First ” as the driver for all processes </li></ul><ul><li>2. The creation of an environment in which people feel safe and free to engage in improvement including the adoption of a “ No-Layoff Policy ” </li></ul><ul><li>3. Implementation of a company-wide defect alert system called “ The Patient Safety Alert System ” </li></ul>
  26. 26. Areas of Focus <ul><li>4. Encouragement of innovation and “ trystorming ” (beyond brainstorming, trystorming involves quickly trying new ideas or models of new ideas) </li></ul><ul><li>5. Creating a prosperous economic organization primarily by eliminating waste </li></ul><ul><li>6.Accountable leadership </li></ul>
  27. 27. The Results
  28. 28. Patient Flow Improvement Project
  29. 29. Value Stream Mapping
  31. 31. Business Transformation – Financial Perspective SG&A Market Value Growth G&A Sales/Mktg R&D Material Labor Mix Volume Revenue Profit COGS Price Overhead Economic Profit (EVA)
  32. 32. Profitable Analysis
  33. 33. Patients Flow Simulation
  34. 34. About Instructor <ul><li>Anawat Jorapunyanont </li></ul><ul><li>  </li></ul><ul><li>Key Professional </li></ul><ul><li>Achievements </li></ul><ul><li>Certified Manger of Quality/Organizational Excellence ASQ </li></ul><ul><li>Certified Six Sigma Master Black belt by BMG USA </li></ul><ul><li>Lean Master </li></ul><ul><li>Change Leadership by BMG USA </li></ul><ul><li>Design for Six Sigma by Motorola University </li></ul><ul><li>TRIZ Theory of Inventive Problem Solving by Creax-UK </li></ul><ul><li>  </li></ul><ul><li>Education / Qualification </li></ul><ul><li>Master degree of Financial and Banking Chulalongkorn University </li></ul><ul><li>Mini MBA Essec University France </li></ul><ul><li>Master degree of Industrial Engineering Chulalongkorn University </li></ul><ul><li>Production Technology King Mongkut ’s Institute of Technology North Bangkok </li></ul>
  35. 35. About Us
  36. 36. Some of Our Experiences
  37. 37. <ul><li>Thank you for your attention. </li></ul><ul><li>Lean Thinking </li></ul><ul><li>“ Do More with Less ” </li></ul><ul><li>Visit us at </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>087 005 0052 </li></ul>
  38. 38. The Lean Train