1. Purdue Research Foundation © 1 Where Does The Lean Revolution Start? Mark K. Clare, MS, MA, LSSMBB, LSC Principal, Strategic Initiatives Purdue University West Lafayette, Indiana Office (765) 496-694, Mobile (260) 433-7923 mclare@purdue.edu www.pha.purdue.edu

2. Purdue Research Foundation © 2 AGENDA  Your Lean Experience  Transformation Strategies  Building Blocks  Lean Daily Improvement  The Need for Frugal Engineering  Current Work at PHA Level Set How long have you been working with lean? What results and issues have you seen? Level Set How long have you been working with lean? What results and issues have you seen?

3. Purdue Research Foundation © 3 From Tools to Transformation Years Lean A management philosophy and improvement toolkit dedicated to creating customer value by continuously eliminating waste and enhancing flow. Lean A management philosophy and improvement toolkit dedicated to creating customer value by continuously eliminating waste and enhancing flow.

4. Purdue Research Foundation © 4

5. 5 Top Down Bottom Up Transformation Strategies Middle Out – Not Shown 1 Project 10 Rapid Events 1000 Daily Improvements

6. Purdue Research Foundation © 6 Lean Daily Improvement (LDI) Getting Started with LDI 1.Pick metric 2.Establish baseline and goal 3.Define data capture process 4.Create graphs and forms 5.Set up board 6.Brief/train team and hold initial huddle 7.Start data collection and daily huddles Getting Started with LDI 1.Pick metric 2.Establish baseline and goal 3.Define data capture process 4.Create graphs and forms 5.Set up board 6.Brief/train team and hold initial huddle 7.Start data collection and daily huddles PDCA 1 Project 10 Rapid Events 1000 Daily Improvements

7. Purdue Research Foundation © 7 LDI as Engine of Lean Revolution for CAHs LDI = Lean Daily Improvement  Using a Bottom Up approach is cheaper and faster but it can run into trouble as you scale  Middle managers are not comfortable with team problem solving  RIEs are hard to facilitate to closure because they don’t have the support of a value stream management model  Need to inject a lite version of key elements from the Top Down approach to help LDI scale “Lean healthcare will only come of age when we have a simple do-it-yourself method that smaller hospitals and clinics can follow on their own with minimal mentoring from experienced advisors.” http://www.planet-lean.com/ Dan Jones, global lean expert and author of The Machine that Changed the World “Lean healthcare will only come of age when we have a simple do-it-yourself method that smaller hospitals and clinics can follow on their own with minimal mentoring from experienced advisors.” http://www.planet-lean.com/ Dan Jones, global lean expert and author of The Machine that Changed the World

8. Purdue Research Foundation © 8 Frugal Engineering Less Please!! Products and Services in advanced economies are generally feature fat. (= waste) Give me the 20% of the features that deliver 80% of the value for a fraction of the cost. Less Please!! Products and Services in advanced economies are generally feature fat. (= waste) Give me the 20% of the features that deliver 80% of the value for a fraction of the cost.