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Lean Principles and Continuous
Improvement in Health Industry
By : Ir. Arya Wirabhuana, M.Sc, CMPM
Session – 10 :
Pendahuluan
Pendahuluan
Pendahuluan
Latar Belakang
 Toyota saat ini
merupakan perusahaan
manufaktur terbesar di
dunia dalam bidang
otomotif
 1 Mobil tiap enam detik
 5,5 juta mobil dalam
tahun 2009
Sekilas mengenai Toyota
 Berdiri tahun 1933
 Bermula dari industri tekstil
 Tahun 2003 menjadi
perusahaan automotif no 3 di
dunia
 Tahun 2009 menjadi produsen
terbesar di dunis
Sekilas mengenai Toyota
Sekilas mengenai Toyota
Sekilas mengenai Toyota
Sekilas mengenai Toyota
Sekilas mengenai Toyota
Sekilas mengenai Toyota
What is Lean?
 Definition-”The endless
transformation of waste into value
from the customer’s perspective.”
IT is a System Thinking Concept.
 A little History
The “4P” modelProblem
Solving
(Continuous
Improvement
And
Learning)
Process
(Eliminate Waste)
People and Partners
(Respect, Challenge, and Grow
Them)
Philosophy
(Long-Term Thinking)
Impact of Lean in the Industry
Direct Labor/productivity improved 45-75%
Cost Reduced 25-55%
Throughput/Flow Increased 60-90%
Quality (Defects/Scrap) Reduced 50-90%
Inventory Reduced 60-90%
Space Reduced 35-50%
Lead Time Reduced 50-90%
Source: Virginia Mason Medical Center
Examples of Lean in Healthcare
 Adding greater “value-added”
services
 Same day office visits
 Next day outpatient surgery
 Next day mammogram
 Quick & errorless billing
 No wait emergency room
TRADITIONAL CULTURE VS. LEAN CULTURE
TRADITIONAL LEAN
Functional Silos Interdisciplinary teams
Managers direct Managers teach/enable
Benchmark to justify not
improving; “just as good”
Seek the ultimate
performance, the absence
of waste
Blame people Root cause analysis
Rewards: individual Rewards: group sharing
Supplier is enemy Supplier is ally
Guard Information Share information
Volume lowers cost Removing waste lowers cost
Internal focus Customer focus
Expert driven Process driven
Examples of process
improvement tools
A3 reporting
Clean it up, Make it Visual
What is Waste in Healthcare?
Eliminating Waste
 Overproduction
 Pills given out early
 Treatments done to
balance staff
 Duplication of test
Eliminating Waste
 Transportation
Moving same
patient,
specimens, or
supplies,
workers
Eliminating Waste
 Motion
Searching for patients,
needed meds,
right charts,
supplies
Eliminating Waste
 Waiting
for bed assignments
or
discharge,
or
testing results
Eliminating Waste
 Processing
 Retesting
 More paperwork
 Duplicate procedures
Eliminating Waste
 Inventory
Linen (laundry)
 Pharmacy stock
 Supplies
 Specimens waiting for
analysis
Eliminating Waste
 Defects
 Medication error
 Wrong procedure
 Wrong patient
 Missing information
The Toyota Way
14 Management Principles
to LEAN Development Process
LEAN Development Process
1. Establish the vision for the future
 Focus the organization on the PATIENTS
 Align Performance Measurements
 Set high expectations for success and low
tolerance for failure
Method:
 Establish a core team of implementers
 Focused training, reading, and benchmarking
 Standardized, systematic, methodical
approach
 Clearly define objectives and time table
 Create success through pilots and spread
Mission Statement
Develop the ability:
To recognize and identify waste
To have the courage to call it waste
To have the desire to eliminate it
Eliminate the waste
Understand that waste simply
Raises costs
Produces no corresponding benefit
Threatens all of our jobs
You get what you expect and you
deserve what you tolerate.
LEAN Development Process
2. Develop your objectives
 Look at your key processes or VALUE
STREAMS
 Patient Journey (ERRadiologyClinicORBilling)
 Charge capture (Clinical ServiceBilling Insurance)
 Operating Room flow (Scheduling, consent, pre-op
visit, prep,….)
 These support your “Products” which might be
 Office visit
 Inpatient stay
 Visit to the ED
 How do your Internal and External Customers
define Value
LEAN Development Process
3. Selection of Team Members
Characteristics:
Technology curiosity
Common sense
Inner confidence
(create structure, Win allegiance, instinctive
reactions)
Cross Functional Team:
Manager/Supervisor from the area
Operators from area
Functional departments
(HR, Lab, Pharmacy, Admitting, Surgery,
Materials Management,etc.)
RESOURCE MATRIX
NAME TITLE SKILL
1
SKILL
2
SKILL
3
SKILL
4
Larry
Moe
Curly
LEAN Development Process
4. Initiate Team
Training:
Read required literature
Attend team and leadership training, lean
overview
Tools:
Standardized analysis and simulation tools
Video cameras, TVs, and VCR’s
Computers, Printer, and Projector
Facilities:
Lean War Room located in the operational area
Office area appropriately furnished and supplied
Resource and Innovation
Center
LEAN Development Process
5. Select Pilot Area
Selection Criteria:
Contributes to key competitive strengths of
business
Innovation has a good chance of success
Significantly tests the innovation
Solutions are transferable to other areas
Baseline the current process
Do an initial walkthrough
Baseline Analysis
1. # patients transferred from ED to
inpatient bed within 1 hour of
decision to admit
2. Time to third next available appt
3. # tests/day or # tests/week
Keep it simple - look at 25 patients/wk
collected over some time period
including weekends and at night
LEAN Development Process
6. Activity of Product
Videotape: selected products
Analyze videotape and segregate:
travel time and distance
storage time and type
inspection time
non-value added processing time
value added processing time
Map the flow of the product:
Process Charts
Process: Emergency room admission
Subject: Ankle injury patient
Beginning: Enter emergency room
Ending: Leave hospital
Step
no.
Time
(min)
Distance
(ft)
Summary
Number
of stepsActivity
Time
(min)
Distance
(ft)
Step description
Insert Step
Append Step
Remove Step
1 X Enter emergency room, approach patient window
2 X Sit down and fill out patient history
3 X Nurse escorts patient to ER triage room
4 X Nurse inspects injury
5 X Return to waiting room
6 X Wait for available bed
7 X Go to ER bed
8 X Wait for doctor
9 X Doctor inspects injury and questions patient
10 X Nurse takes patient to radiology
11 X Technician x-rays patient
12 X Return to bed in ER
13 X Wait for doctor to return
14 X Doctor provides diagnosis and advice
15 X Return to emergency entrance area
16 X Check out
17 X Walk to pharmacy
18 X Pick up prescription
19 X Leave the building
0.50 15
10.0 -
0.75 40
3.00 -
0.75 40
1.00 -
1.00 60
4.00 -
5.00 -
2.00 200
3.00 -
2.00 200
3.00 -
2.00 -
1.00 60
4.00 -
2.00 180
4.00 -
1.00 20
Transport 9 11 815
Operation 5 23 —
Inspect 2 8 —
Store — — —
Delay 3 8 —
LEAN Development Process
7. Group Technology Analysis
 Process sequence
 Pre- Post data collection
 Identify number of possibilities and
combinations
 Identify commonality within each
product family
 Plan analysis phase
A3 reporting
LEAN Development Process
8. Line/Cell vision
 Product flow
 Operator activity
 Flexibility
 Zero defect production
Group Technology
Machine
1
Machine
2
Machine
3
Machine
4Machine
5
Materials in
Finished
goods out
One Worker, Multiple Machines
LEAN Development Process
9. Activity of Operator
 Map work pattern
Videotape
Analyze what is value added, required waste,
and pure waste
Point to Point diagram representing movement
of operator in work area
 Time studies analysis
 Document new process
Point to Point
LEAN Development Process
10. Develop Standard Work
Define job steps, standard times, and
material location within each order
of process
Define takt time
Establish Line Balance
LEAN Development Process
11. Improve Line flexibility
 Videotape – selected setups and
operators
 Document improvement suggestions
related to – preparation, organization
 “Milk runs”
 Document new process
LEAN Development Process
12. Design and approve Line Layout
 Design Considerations
 Steps to approve new Layout
LEAN Development Process
13. Performance Measurements
 ID standard work, source quality
control
 Monitor performance and Post results
 ID ‘hit list’ and resolve identified
problems on a 90 day cycle
 Monitor changes on 30/60/90 days
cycle
LEAN Development Process
14. Develop a business case
 Compare base conditions with projected lean
conditions (benchmark or audit)
 Output rates
 Floor space
 Inventory
 Labor
 Document cost of implementation
 Present findings to senior management
 Include all stakeholders and decision makers
 Let the facts speak loudly
Part 10   lean operation in health industry

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Part 10 lean operation in health industry

  • 1. Lean Principles and Continuous Improvement in Health Industry By : Ir. Arya Wirabhuana, M.Sc, CMPM Session – 10 :
  • 5. Latar Belakang  Toyota saat ini merupakan perusahaan manufaktur terbesar di dunia dalam bidang otomotif  1 Mobil tiap enam detik  5,5 juta mobil dalam tahun 2009
  • 6. Sekilas mengenai Toyota  Berdiri tahun 1933  Bermula dari industri tekstil  Tahun 2003 menjadi perusahaan automotif no 3 di dunia  Tahun 2009 menjadi produsen terbesar di dunis
  • 13.
  • 14. What is Lean?  Definition-”The endless transformation of waste into value from the customer’s perspective.” IT is a System Thinking Concept.  A little History
  • 15. The “4P” modelProblem Solving (Continuous Improvement And Learning) Process (Eliminate Waste) People and Partners (Respect, Challenge, and Grow Them) Philosophy (Long-Term Thinking)
  • 16. Impact of Lean in the Industry Direct Labor/productivity improved 45-75% Cost Reduced 25-55% Throughput/Flow Increased 60-90% Quality (Defects/Scrap) Reduced 50-90% Inventory Reduced 60-90% Space Reduced 35-50% Lead Time Reduced 50-90% Source: Virginia Mason Medical Center
  • 17. Examples of Lean in Healthcare  Adding greater “value-added” services  Same day office visits  Next day outpatient surgery  Next day mammogram  Quick & errorless billing  No wait emergency room
  • 18. TRADITIONAL CULTURE VS. LEAN CULTURE TRADITIONAL LEAN Functional Silos Interdisciplinary teams Managers direct Managers teach/enable Benchmark to justify not improving; “just as good” Seek the ultimate performance, the absence of waste Blame people Root cause analysis Rewards: individual Rewards: group sharing Supplier is enemy Supplier is ally Guard Information Share information Volume lowers cost Removing waste lowers cost Internal focus Customer focus Expert driven Process driven
  • 20.
  • 22. Clean it up, Make it Visual
  • 23. What is Waste in Healthcare?
  • 24. Eliminating Waste  Overproduction  Pills given out early  Treatments done to balance staff  Duplication of test
  • 25. Eliminating Waste  Transportation Moving same patient, specimens, or supplies, workers
  • 26. Eliminating Waste  Motion Searching for patients, needed meds, right charts, supplies
  • 27. Eliminating Waste  Waiting for bed assignments or discharge, or testing results
  • 28. Eliminating Waste  Processing  Retesting  More paperwork  Duplicate procedures
  • 29. Eliminating Waste  Inventory Linen (laundry)  Pharmacy stock  Supplies  Specimens waiting for analysis
  • 30. Eliminating Waste  Defects  Medication error  Wrong procedure  Wrong patient  Missing information
  • 31. The Toyota Way 14 Management Principles to LEAN Development Process
  • 32. LEAN Development Process 1. Establish the vision for the future  Focus the organization on the PATIENTS  Align Performance Measurements  Set high expectations for success and low tolerance for failure Method:  Establish a core team of implementers  Focused training, reading, and benchmarking  Standardized, systematic, methodical approach  Clearly define objectives and time table  Create success through pilots and spread
  • 33. Mission Statement Develop the ability: To recognize and identify waste To have the courage to call it waste To have the desire to eliminate it Eliminate the waste Understand that waste simply Raises costs Produces no corresponding benefit Threatens all of our jobs You get what you expect and you deserve what you tolerate.
  • 34. LEAN Development Process 2. Develop your objectives  Look at your key processes or VALUE STREAMS  Patient Journey (ERRadiologyClinicORBilling)  Charge capture (Clinical ServiceBilling Insurance)  Operating Room flow (Scheduling, consent, pre-op visit, prep,….)  These support your “Products” which might be  Office visit  Inpatient stay  Visit to the ED  How do your Internal and External Customers define Value
  • 35. LEAN Development Process 3. Selection of Team Members Characteristics: Technology curiosity Common sense Inner confidence (create structure, Win allegiance, instinctive reactions) Cross Functional Team: Manager/Supervisor from the area Operators from area Functional departments (HR, Lab, Pharmacy, Admitting, Surgery, Materials Management,etc.)
  • 36. RESOURCE MATRIX NAME TITLE SKILL 1 SKILL 2 SKILL 3 SKILL 4 Larry Moe Curly
  • 37. LEAN Development Process 4. Initiate Team Training: Read required literature Attend team and leadership training, lean overview Tools: Standardized analysis and simulation tools Video cameras, TVs, and VCR’s Computers, Printer, and Projector Facilities: Lean War Room located in the operational area Office area appropriately furnished and supplied
  • 39. LEAN Development Process 5. Select Pilot Area Selection Criteria: Contributes to key competitive strengths of business Innovation has a good chance of success Significantly tests the innovation Solutions are transferable to other areas Baseline the current process Do an initial walkthrough
  • 40. Baseline Analysis 1. # patients transferred from ED to inpatient bed within 1 hour of decision to admit 2. Time to third next available appt 3. # tests/day or # tests/week Keep it simple - look at 25 patients/wk collected over some time period including weekends and at night
  • 41. LEAN Development Process 6. Activity of Product Videotape: selected products Analyze videotape and segregate: travel time and distance storage time and type inspection time non-value added processing time value added processing time Map the flow of the product:
  • 42. Process Charts Process: Emergency room admission Subject: Ankle injury patient Beginning: Enter emergency room Ending: Leave hospital Step no. Time (min) Distance (ft) Summary Number of stepsActivity Time (min) Distance (ft) Step description Insert Step Append Step Remove Step 1 X Enter emergency room, approach patient window 2 X Sit down and fill out patient history 3 X Nurse escorts patient to ER triage room 4 X Nurse inspects injury 5 X Return to waiting room 6 X Wait for available bed 7 X Go to ER bed 8 X Wait for doctor 9 X Doctor inspects injury and questions patient 10 X Nurse takes patient to radiology 11 X Technician x-rays patient 12 X Return to bed in ER 13 X Wait for doctor to return 14 X Doctor provides diagnosis and advice 15 X Return to emergency entrance area 16 X Check out 17 X Walk to pharmacy 18 X Pick up prescription 19 X Leave the building 0.50 15 10.0 - 0.75 40 3.00 - 0.75 40 1.00 - 1.00 60 4.00 - 5.00 - 2.00 200 3.00 - 2.00 200 3.00 - 2.00 - 1.00 60 4.00 - 2.00 180 4.00 - 1.00 20 Transport 9 11 815 Operation 5 23 — Inspect 2 8 — Store — — — Delay 3 8 —
  • 43.
  • 44. LEAN Development Process 7. Group Technology Analysis  Process sequence  Pre- Post data collection  Identify number of possibilities and combinations  Identify commonality within each product family  Plan analysis phase
  • 46. LEAN Development Process 8. Line/Cell vision  Product flow  Operator activity  Flexibility  Zero defect production
  • 48. LEAN Development Process 9. Activity of Operator  Map work pattern Videotape Analyze what is value added, required waste, and pure waste Point to Point diagram representing movement of operator in work area  Time studies analysis  Document new process
  • 50. LEAN Development Process 10. Develop Standard Work Define job steps, standard times, and material location within each order of process Define takt time Establish Line Balance
  • 51. LEAN Development Process 11. Improve Line flexibility  Videotape – selected setups and operators  Document improvement suggestions related to – preparation, organization  “Milk runs”  Document new process
  • 52. LEAN Development Process 12. Design and approve Line Layout  Design Considerations  Steps to approve new Layout
  • 53. LEAN Development Process 13. Performance Measurements  ID standard work, source quality control  Monitor performance and Post results  ID ‘hit list’ and resolve identified problems on a 90 day cycle  Monitor changes on 30/60/90 days cycle
  • 54. LEAN Development Process 14. Develop a business case  Compare base conditions with projected lean conditions (benchmark or audit)  Output rates  Floor space  Inventory  Labor  Document cost of implementation  Present findings to senior management  Include all stakeholders and decision makers  Let the facts speak loudly