1. Value Stream Management for Lean Healthcare ISE 491 Fall 2009 Process Improvement in Healthcare - Lecture 3

2. Contemporary Quality Movements Six Sigma  Customer-focused statistically-based methodology for reducing defects  Voice of the Customer, designed experimentation to minimize variation and root-cause analysis Lean  Philosophical approach that works to eliminate waste or non-value added activities while improving process flow  5 S, visual controls, mistake proofing, kanbans Lean Six Sigma – combination of both methodologies with an emphasis on identifying waste and reducing defects Fall 2009 Lecture 3 Slide 2 ISE 491 Dr. Burtner

3. Lean Healthcare Pressure on the Healthcare to Become Leaner  Consumers’ increasing awareness of the inefficiencies in healthcare  Changing practices of payers (federal government, private insurance, individuals)  HHS (hospital compare) CMS policy toward never events Healthcare Customers  The ultimate customer in healthcare is the patient  The healthcare system is comprised of multiple internal customers and suppliers  Customers are also stakeholders Implementation in Healthcare  Applied throughout a complex system (Broad application)  Adopted quickly by various departments with minimal training  Results seen “immediately” by internal and external customers The Right Methods at the Right Time??? Fall 2009 Lecture 3 Slide 3 ISE 491 Dr. Burtner

4. Potential Obstacles to Lean Healthcare 1 Culture of organization or department “It’s not my job” attitude Lack of vision or purpose from upper management Lack of capable processes and standards Fear of change Inadequate training Fall 2009 Lecture 3 Slide 4 ISE 491 Dr. Burtner

5. Potential Obstacles to Lean Healthcare 2 Financial constraints Departmental silos  Lack of departmental communication and co- ordination of care or information Governmental regulations Legal constraints Safety concerns Certification/licensing requirements Fall 2009 Lecture 3 Slide 5 ISE 491 Dr. Burtner

6. Benefits of Value Stream Management as described by Tapping et al Focus improvement efforts toward a single customer or patient process Prevent scope creep Allow for departmental areas to be improved with minimal resource allocation Allow resource coordination/allocation across the organization Allow for a means of moving from the current state to the future state Provide a structure for the process owner with the necessary skills to initiate projects more frequently Allow Lean to be understood in everyday terminology Fall 2009 Lecture 3 Slide 6 ISE 491 Dr. Burtner