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Gemba Walk:
Starting your Lean Journey


Brian Ramos, MBA
Director of Practice Operations
Plexus Management Group, Inc.




          © 2013
Abstract & Learning Objectives

Abstract:
Made famous by the Toyota Motor Corporation, Lean has been effectively used
in the healthcare industry for over a decade. However, most healthcare
professionals have not been exposed to the management philosophy. This
introductory presentation will help participants understand Lean’s applicability
and use in our field and learn how to identify and eliminate waste in each
process in their clinical or business unit.


Learning Objectives:
1.   Understand the core principles of Lean thinking.
2.   Understand the process of value stream mapping and its use in Lean.
3.   Learn how to identify and eliminate waste (“muda”) in your practice’s
     current processes.



            © 2013
Let’s start at the end . . .
•   What have you heard about Lean?
•   Is Lean mean?
•   Is it all about the bottom line? Reduce staffing?

       © 2013
Lean in Healthcare




      © 2013   N.B. List is not exhaustive
Reasons for Action
       •     Economic environment cannot sustain current
             health care cost structure.




Source: USA Inc.: Red, White, and Very Blue, Forbes Magazine, February 24, 2011



                     © 2013
Reasons for Action Continued

• Patients as Consumers
   – Choice
• Quality & Safety
   – Wide variation in quality measures and outcomes across
     institutions and patient populations.
   – Despite spending more than any other country (17.6%
     GDP), the US ranked:
      • 39th for infant mortality
      • 43rd for adult female mortality
      • 42nd for adult male mortality
      • 36th for life expectancy
       © 2013
Core Principles

1. Respect for People
    Employees know work best
    NOT top-down approach
2. Continuous Improvement
    Strive for zero defects
3. Customers (i.e. patients)
   define value
4. Based on the scientific
   method (e.g. experimentation)


       © 2013
Value Stream Mapping




     © 2013
Value Stream Mapping Identifies Waste

Value Added                           Non-Value Added
Any activity that directly            Any activity that consumes time or
contributes to satisfying the needs   resources but does not add value.
of a customer.




         © 2013
8 Wastes in Healthcare

TRANSPORTING                                       WAITING
Moving anything on wheels (e.g. patients,          Patients in a waiting room; waiting for lab
specimens, equipment or supplies)                  results

INVENTORY                                          OVERPROCESSING
Stock of medical or operational supplies,          Asking patients for their information more
patients in beds, specimens waiting for analysis   than once; ordering more labs than needed


MOTION                                             OVERPRODUCTION
People reaching, bending, or searching for         Creating forms “just in case” you need them;
supplies, patients, other staff                    producing more labs than needed


HUMAN TALENT                                       DEFECTS
Unused or untapped potential of staff              Wrong patient, wrong procedure, redraws


           What are some examples of waste in your practice?



            © 2013
Examples of Waste
•   Underutilized ORs                 •       Wrong-site surgery accounts
                                              for 13% of medical errors.
                            Waste
                        (excess capacity)




                                              Source: injuryboard.com

                                          •    Waiting for:
                                                 – Provider
                                                 – Patient
                                                 – Results

         © 2013
Everyday Lean

Tools you can use right now to do “Lean Lite”




       © 2013
Daily Huddle

•   Ensure team communications
•   Opportunity to prevent issues from developing
•   Focuses on small, incremental, change/improvements
•   Same time, every day, for NO MORE than 5 minutes
•   Everyone attends! That means doctors, mid-levels, nurses too!
•   Initiated by manager, eventually led by all team members.
•   Stand-up! (preferably at a visual management board)




          © 2013
Visual Management

 Balanced scorecard
  approach.
    People
    Quality/Safety
    Delivery
    Cost
    Growth
 Set goals by
  “doubling the good
  and halving the bad”


        © 2013
Visual Management Continued




     © 2013
Standard Work

 • current best known way to perform a task
 • Standard work secures improvement
 • Encourages root cause problem solving vs. firefighting
 • Do you use checklists? They’re a type of Standard Work


                                   Lean
                                Principles




                                               Performance
                     STD WORK




                                 Time




       © 2013
Pareto Analysis

 A means of focusing      “80/20 Rule”
  on areas that matter
  the most
 Bar chart showing the
  affect of different
  categories of a given
  problem
Benefits:
 Avoid working on the
  wrong or insignificant
  problem.
 Speaking with data



            © 2013
PICK Chart
 •   Identify actions then group into benefit and
     difficulty




                                                              High
 •   P    Plan to Do                                                   6           4       1
          • High benefit, Make a plan how to                           2
                                                                           I                   P9
            do it.




                                                    BENEFIT
                                                                               7

 •   I    Implement
          • High Benefit, Easy to Do.                                      C
            Implement Now                                                                      K5




                                                              Low
                                                                       3               8

 •   C    Choose (which if any) To Do
                                                                     Low                            High
          • Low benefit, but easy to do.                                       DIFFICULTY


 •   K    Kick Out
          • Low benefit and difficult to do.
            Don’t bother with these!
 Do the high benefit/low difficulty actions.

          © 2013
5 Whys

•   The easiest of all Lean “tools”
•   Ask “why?” five times to arrive at the root cause

         .
               • A patient broke his leg in our clinic today.

       Why?
               • Because he fell

       Why?
               • Because the floor was wet

       Why?
               • Because there was a leak from the water fountain

       Why?
               • Because the valve seal was broken

       Why?
               • Because the fountain had not been maintained.


             © 2013
Success Story
Ambulatory Endoscopy Suite

•   Staggered Patient Arrival Times        Wait Time
                                           RN Overtime Pay

•   Gastroenterologist dictated note in    Wait Time
    EMR in procedure room                  Motion

•   Increased through-put by 20% in each
    procedure room.                        Revenue


•   Maintained 99% patient satisfaction
    scores on Press Ganey survey.




          © 2013
Recommended Reading




                      Websites:

                         PBS Healthcare Cost Comparison
                          http://www.pbs.org/newshour/rundown/2012/10/health-costs-how-the-us-
                          compares-with-other-countries.html
                         Lean Enterprise Institute http://www.lean.org/
                         Virginia Mason Institute http://www.virginiamasoninstitute.org




    © 2013
Questions & Answers




© 2013
About the presenter
                                  Brian Ramos is an accomplished healthcare executive who is passionate
                                  about eliminating waste and lowering the cost of healthcare delivery
                                  systems. He has successfully created profitable clinical units in academic
                                  medical institutions, large private physician practices, and ambulatory
                                  surgical centers. Brian was formally trained in the Toyota Production
                                  System (Lean) and uses these tools to create cultures of continuous
                                  improvement.

                                  He serves as the Director of Practice Operations for Plexus Management
                                  Group, a healthcare management services organization and consulting
                                  firm in the greater Boston area. In his role, Brian provides chief operating
                                  officer functional responsibility to client ambulatory practices including
Brian Ramos, MBA
Director of Practice Operations   P&L oversight, leadership of office-based practice administrators, and
                                  development of client strategic plans and partnerships.
Plexus Management Group, Inc.
690 Canon Street | Suite 325      Brian earned a master's degree in Business Administration from
Westwood, MA 02090                Fitchburg State University and a bachelor’s degree in Mathematics &
                                  Computer Science from Boston College. He is a Certified Medical
bramos@plexusmg.com
ph. 781.407.7771                  Practice Executive (CMPE) nominee of the American College of Medical
                                  Practice Executives. Additionally, Brian holds Lean Silver Certification
                                  from Simpler® Healthcare.
         Follow me:
                                  Disclosure & Attestation
         @brianmramos             The speaker attests that he does not have any real or apparent financial relationships or
                                  commercial interests to disclose.




              © 2013

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Gemba walk: the start of your lean journey

  • 1. Gemba Walk: Starting your Lean Journey Brian Ramos, MBA Director of Practice Operations Plexus Management Group, Inc. © 2013
  • 2. Abstract & Learning Objectives Abstract: Made famous by the Toyota Motor Corporation, Lean has been effectively used in the healthcare industry for over a decade. However, most healthcare professionals have not been exposed to the management philosophy. This introductory presentation will help participants understand Lean’s applicability and use in our field and learn how to identify and eliminate waste in each process in their clinical or business unit. Learning Objectives: 1. Understand the core principles of Lean thinking. 2. Understand the process of value stream mapping and its use in Lean. 3. Learn how to identify and eliminate waste (“muda”) in your practice’s current processes. © 2013
  • 3. Let’s start at the end . . . • What have you heard about Lean? • Is Lean mean? • Is it all about the bottom line? Reduce staffing? © 2013
  • 4. Lean in Healthcare © 2013 N.B. List is not exhaustive
  • 5. Reasons for Action • Economic environment cannot sustain current health care cost structure. Source: USA Inc.: Red, White, and Very Blue, Forbes Magazine, February 24, 2011 © 2013
  • 6. Reasons for Action Continued • Patients as Consumers – Choice • Quality & Safety – Wide variation in quality measures and outcomes across institutions and patient populations. – Despite spending more than any other country (17.6% GDP), the US ranked: • 39th for infant mortality • 43rd for adult female mortality • 42nd for adult male mortality • 36th for life expectancy © 2013
  • 7. Core Principles 1. Respect for People  Employees know work best  NOT top-down approach 2. Continuous Improvement  Strive for zero defects 3. Customers (i.e. patients) define value 4. Based on the scientific method (e.g. experimentation) © 2013
  • 9. Value Stream Mapping Identifies Waste Value Added Non-Value Added Any activity that directly Any activity that consumes time or contributes to satisfying the needs resources but does not add value. of a customer. © 2013
  • 10. 8 Wastes in Healthcare TRANSPORTING WAITING Moving anything on wheels (e.g. patients, Patients in a waiting room; waiting for lab specimens, equipment or supplies) results INVENTORY OVERPROCESSING Stock of medical or operational supplies, Asking patients for their information more patients in beds, specimens waiting for analysis than once; ordering more labs than needed MOTION OVERPRODUCTION People reaching, bending, or searching for Creating forms “just in case” you need them; supplies, patients, other staff producing more labs than needed HUMAN TALENT DEFECTS Unused or untapped potential of staff Wrong patient, wrong procedure, redraws What are some examples of waste in your practice? © 2013
  • 11. Examples of Waste • Underutilized ORs • Wrong-site surgery accounts for 13% of medical errors. Waste (excess capacity) Source: injuryboard.com • Waiting for: – Provider – Patient – Results © 2013
  • 12. Everyday Lean Tools you can use right now to do “Lean Lite” © 2013
  • 13. Daily Huddle • Ensure team communications • Opportunity to prevent issues from developing • Focuses on small, incremental, change/improvements • Same time, every day, for NO MORE than 5 minutes • Everyone attends! That means doctors, mid-levels, nurses too! • Initiated by manager, eventually led by all team members. • Stand-up! (preferably at a visual management board) © 2013
  • 14. Visual Management  Balanced scorecard approach.  People  Quality/Safety  Delivery  Cost  Growth  Set goals by “doubling the good and halving the bad” © 2013
  • 16. Standard Work • current best known way to perform a task • Standard work secures improvement • Encourages root cause problem solving vs. firefighting • Do you use checklists? They’re a type of Standard Work Lean Principles Performance STD WORK Time © 2013
  • 17. Pareto Analysis  A means of focusing “80/20 Rule” on areas that matter the most  Bar chart showing the affect of different categories of a given problem Benefits:  Avoid working on the wrong or insignificant problem.  Speaking with data © 2013
  • 18. PICK Chart • Identify actions then group into benefit and difficulty High • P Plan to Do 6 4 1 • High benefit, Make a plan how to 2 I P9 do it. BENEFIT 7 • I Implement • High Benefit, Easy to Do. C Implement Now K5 Low 3 8 • C Choose (which if any) To Do Low High • Low benefit, but easy to do. DIFFICULTY • K Kick Out • Low benefit and difficult to do. Don’t bother with these! Do the high benefit/low difficulty actions. © 2013
  • 19. 5 Whys • The easiest of all Lean “tools” • Ask “why?” five times to arrive at the root cause . • A patient broke his leg in our clinic today. Why? • Because he fell Why? • Because the floor was wet Why? • Because there was a leak from the water fountain Why? • Because the valve seal was broken Why? • Because the fountain had not been maintained. © 2013
  • 20. Success Story Ambulatory Endoscopy Suite • Staggered Patient Arrival Times Wait Time RN Overtime Pay • Gastroenterologist dictated note in Wait Time EMR in procedure room Motion • Increased through-put by 20% in each procedure room. Revenue • Maintained 99% patient satisfaction scores on Press Ganey survey. © 2013
  • 21. Recommended Reading Websites:  PBS Healthcare Cost Comparison http://www.pbs.org/newshour/rundown/2012/10/health-costs-how-the-us- compares-with-other-countries.html  Lean Enterprise Institute http://www.lean.org/  Virginia Mason Institute http://www.virginiamasoninstitute.org © 2013
  • 23. About the presenter Brian Ramos is an accomplished healthcare executive who is passionate about eliminating waste and lowering the cost of healthcare delivery systems. He has successfully created profitable clinical units in academic medical institutions, large private physician practices, and ambulatory surgical centers. Brian was formally trained in the Toyota Production System (Lean) and uses these tools to create cultures of continuous improvement. He serves as the Director of Practice Operations for Plexus Management Group, a healthcare management services organization and consulting firm in the greater Boston area. In his role, Brian provides chief operating officer functional responsibility to client ambulatory practices including Brian Ramos, MBA Director of Practice Operations P&L oversight, leadership of office-based practice administrators, and development of client strategic plans and partnerships. Plexus Management Group, Inc. 690 Canon Street | Suite 325 Brian earned a master's degree in Business Administration from Westwood, MA 02090 Fitchburg State University and a bachelor’s degree in Mathematics & Computer Science from Boston College. He is a Certified Medical bramos@plexusmg.com ph. 781.407.7771 Practice Executive (CMPE) nominee of the American College of Medical Practice Executives. Additionally, Brian holds Lean Silver Certification from Simpler® Healthcare. Follow me: Disclosure & Attestation @brianmramos The speaker attests that he does not have any real or apparent financial relationships or commercial interests to disclose. © 2013