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Improvement Cohort August 27, 2014 RHP 9 PI Cohort Agenda Agenda - PowerPoint PPT Presentation

RHP 9 Process Improvement Cohort August 27, 2014 RHP 9 PI Cohort Agenda Agenda Item Time Purpose and Objectives 9:00 AM Lean Methodology Overview 9:10 AM Lean Tools 9:35 AM Break 9:45 AM Lean Group Activity 9:55 AM Lean Project Case Study 10:15


  1. RHP 9 Process Improvement Cohort August 27, 2014

  2. RHP 9 PI Cohort Agenda Agenda Item Time Purpose and Objectives 9:00 AM Lean Methodology Overview 9:10 AM Lean Tools 9:35 AM Break 9:45 AM Lean Group Activity 9:55 AM Lean Project Case Study 10:15 AM Break 10:25 AM Six Sigma Methodology Overview 10:35 AM Six Sigma Tools 10:55 AM Six Sigma Group Activity 11:05 AM Break 11:20 AM Six Sigma Project Case Study 11:30 AM Group Discussion and Feedback 11:40 AM 2

  3. What’s the Difference? Relationship between Project Management, Lean and Six Sigma Project Lean Six Sigma Management • Lean and Six Sigma are problem solving methodologies that focus on eliminating waste, variation and adding value • Project management is the foundation used to execute Lean and Six Sigma projects 3

  4. What is Lean? Organizational Habits Consider the old adage: Sow a thought, reap an act. Sow an act, reap a habit. Sow a habit, reap a character. Sow a character, reap a destiny. 4

  5. What is Lean? The Toyota Triangle • Lean is an integrated system of human development, technical tools management approaches and philosophy that creates a lean organizational culture “In short, Lean thinking is Lean, because it provides a way to do more and more with less and less – less human effort, less equipment, less time, and less space – while coming closer and closer to providing customers with exactly what they want.” 1 5 Womack, James P., and Daniel T. Jones, Lean Thinking (New York: Free Press, 2003), 15.

  6. What is Lean? The Toyota Way “The most important objective of 1. Continuous improvement the Toyota system has been to – Kaizen (improvement) increase production efficiency by – Muda (waste) consistently and thoroughly 2. Respect for people eliminating waste. The concept – and the equally important respect Frequent verification on how for humanity that has passed work is being done down form the venerable Sakichi – Challenging people to Toyoda… are the foundation of perform better but not the Toyota production system.” overworking them - Taiichi Ohno 6

  7. What is Lean? Four Organizational Capabilities 1 Capability 1: Work is designed as a series of ongoing experiments that immediately reveal problems • Work is not supposed to take place is a random or inconsistent manner • Standardizing work should not mean that procedures are final • Work should be structured so problems are made readily apparent so they can be fixed as quickly as possible Capability 2: Problems are addressed immediately through rapid experimentation • When a problem is discovered, this focus should be on solving that problem immediately. • “No problems is a problem” • A healthy culture doesn’t expect success 100% of the time; high expectations can lead to a risk-averse culture 1 Spear, Steven J., The High-Velocity Edge: How Market Leaders Leverage Operational Excellence to Beat 7 the Competition (New York: McGraw-Hill, 2010), 22.

  8. What is Lean? Four Organizational Capabilities 1 Capability 3: Solutions are disseminated adaptively through collaborative experimentation • Local improvements made in one area need to be shared with other departments or areas • Improvements in other units should be considered a starting point for other units before implementation is decided Capability 4: People at all levels of the organization are taught to become experimentalists • Continued coaching, training, and mentoring are required • Internal and external groups are used to facilitate mentorship with a fresh pair of eyes 1 Spear, Steven J., The High-Velocity Edge: How Market Leaders Leverage Operational Excellence to Beat 8 the Competition (New York: McGraw-Hill, 2010), 22.

  9. What is Lean? Separate Motion From Value 1 Waste Value • Not the same as cost Start with the customer • Interruptions, 1. The customer must be willing miscommunications, wasted to pay for the activity motion and workarounds 2. The activity must transform the product or service in some way 3. The activity must be done correctly the first time 1 Sayer, Natalie J., and Bruce Williams, Lean for Dummies (Hoboken, NJ: Wiley, 2007), 51. 9

  10. What is Lean? Value vs. Waste 1 Examples for Different “Products” in Hospital Example for Different Roles in Hospital Departments Processes 1 Mark; Graban (2011-12-20). Lean Hospitals: Improving Quality, Patient Safety, and Employee 10 Engagement , Second Edition (Kindle Location 1702).

  11. What is Lean? The Eight Types of Waste 1 Defects Overproduction Transportation Waiting Inventory Motion Overprocessing Human Potential • Time spent • Doing more than • Unnecessary • Waiting for the • Excess • Unnecessary • Doing work that doing something what is needed movement of the next event to inventory cost movement by is not valued by • Waste and loss “product” incorrectly by the customer occur or next through financial employees in the customer or due to not • Example: or doing it (patients, work activity costs, storage the system caused by engaging sooner than specimens, • Example: and movement • Example: Lab definitions of Surgical case employees, needed materials) in a costs, spoilage, quality that are cart missing an Employees employees listening to their • Example: Doing system wastage not aligned with ideas, or item; wrong waiting because walking miles • Example: Poor • Example: patient needs medicine or unnecessary workloads are per day due to supporting their • Example: wrong dose diagnostic layout, such as not level; Expired supplies poor layout careers administered to procedures the catheter lab patients waiting that must be Time/date • Example: patient being located a for an disposed of, stamps put onto Employees get long distance appointment. such as out-of- forms, but the burned out and from the ED date data are never quit giving medications used suggestions for improvement 1 Mark; Graban (2011-12-20). Lean Hospitals: Improving Quality, Patient Safety, and Employee 11 Engagement , Second Edition (Kindle Location 1725).

  12. Implementing Lean Principles of Lean 1 1. Specify value from the standpoint of the end customer by product family. 2. Identify all the steps in the value stream for each product family, eliminating whenever possible 1. Identify Value those steps that do not create value. 3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward 2. Map the 5. Seek Value Perfection the customer. Stream 4. As flow is introduced, let customers pull value from the next upstream activity. 5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are 4. Establish 3. Create introduced, begin the process again and continue it Pull Flow until a state of perfection is reached in which perfect value is created with no waste. 1 Lean Enterprise Institute, Inc. (2009). Principles of Lean . Retrieved July 31, 2014, from Lean Enterprise 12 Institute: http://www.lean.org/WhatsLean/Principles.cfm

  13. Lean Tools Make Waste, Problems or Abnormal Conditions Visually Apparent Before After 13

  14. Lean Tools Kanban – “Sign” or “Signboard” How it Works Benefits • • A card (the kanban) Purchasing is based controls the movement on use - no guessing of materials between and no overstock production processes • Can eliminate rush • A kanban moves with the deliveries - Kanban same materials all the quantities are sized to way through the include lead time and production process • adequate safety stock When a process needs more materials, it sends • Takes the guesswork the corresponding out of what, when, kanban to the supplier and how much to order or re-supply 14

  15. Lean Tools 6S: Sort, Store, Shine, Standardize, Sustain and Safety 1. Sort - Keep only what is Guidelines for Storing Items 1 required Frequency of Use Storage Proximity 2. Store - Arrange and identify for ease of use, organize Within arm’s reach Hourly 3. Shine - Clean regularly Every Shift Within a short walk 4. Standardize - Eliminate causes Daily Further away to reduce variations, make standards obvious Monthly Department storage 5. Sustain - Set discipline, plan, Annually Hospital storage schedule, train 6. Safety - Maintain the highest standards of safety 1 Mark; Graban (2011-12-20). Lean Hospitals: Improving Quality, Patient Safety, and Employee 15 Engagement , Second Edition (Kindle Location 3233).

  16. 10 Minute Break 16

  17. Lean Group Activity 6S Numbers Game Start Finish • Don’t begin until you are told to • How many numbers have you begin crossed out? • • On your worksheet, cross out How do you feel about this the numbers 1 to 49 in the score? correct sequence • What impacted your score? • Complete this task in 30 seconds 17

  18. Lean Group Activity 6S Numbers Game Sort Team Score: • • There is too much clutter in our How do you feel about this worksheet score? • We don’t need the numbers 50 - • How might you improve your 90 so they have been removed score? • When told to begin, cross out numbers 1-49 in the correct sequence • Complete this task in 30 seconds 18

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