Going LeanCan it work for the

Medical University?

Jennifer Hooks MBAManager, Performance Improvement

Six Sigma Master Black BeltLean Sensei

What we hope to accomplish

• Acquaint you with the concepts of Lean

• Introduce some of the language

• Answer the questions, “What is it? What’s in it for me?”

What is Lean?

• Narrow Definition– Tools– Cost Cutting

• Broader Definition– A management approach that seeks to

maximize value to customers, both internal and external, while simultaneously removing wasteful activities and practices

What Lean is not

• Layoffs

• Customers = widgets

• Making people work faster

• Short term cost reduction program

Origins of Lean

• Benjamin Franklin,1700s

• Coined the phrases– “Time is money” – “A penny saved is a

penny earned”

Origins of Lean

• Henry Ford, 1920s

• Continuous Flow Assembly

• Reduce wasted time– 1913-1914: doubled

production with no increase in workforce

– 1920-1926: Cycle time from 21 days to 2 days

Origins of Lean

• Taiichi Ohno (1912-1990)

• 1950’s: Toyota Production System – Continuous Flow Production– Just-in-Time (JIT)– Eliminate defects– Top management commitment– Employee participation

• 1969: Established the Operations Management Consulting Group– “Trainers” commissioned to

promote Lean thinking within Toyota and the firms in its supplier group

The 5 steps to Lean Thinking …

The continuous movement of products, services and information from end to end through the process

Specify value from the customer’s perspective and express value in terms of a specific product

Nothing is done by the upstream process until the downstream customer signals the need

The complete elimination of waste so all activities create value for the customer

2 Map the

Value Stream

3Establish

Flow

4Implement

Pull

5Work to

Perfection

1Specify Value

Map all of the steps…value added, non-value added and…non-value added required that bring a product of service to the customer

What are your customers willing to pay for?

Lean Thinking Process

Specify Value

• Value is determined by the customer– The customer must be willing to pay for the

activity

– The activity must change the form, fit or function of the service or product

– The activity must be done right the first time

Map the Value Stream

• Identify the stream of processes used to provide value

• Obtain clear understanding of how the process currently operates

• “Learn to see” and “Develop eyes for waste”

Process Mapping

5S Philosophy: Organize the Workplace

Step 1: Sort

Separate the needed from the not needed

Before After

Step 2: Set

A place for everything & everything in its place!

BEFORE AFTER

Step 3: Shine

Regularly “shine” to ensure everything is in perfect working condition and clean

“Shine” and inspect equipment to ensure it is in perfect working condition...

Add inspecting equipment into your work routine.

Daily housekeeping is important.

Step 4: Standardize

Standard Work requires determining the best method then following that method every time.

Note: Blue taped outlines and labels ensure equipment is quickly found and returned to the same spot every time.

Step 5: Sustain

Develop a method for sustaining your gains

Implement Pull

• Produce work when initiated by customer demand

• Smooth communication between process steps

Establish Flow

• Remove non-value-added activities (wastes) from the process

• Keep work moving at all times

• Eliminate congestion

Work to Perfection

• A continual, never-ending journey

• Constantly work on shortening work cycle

• Quality and Quantity

• Focus on what the customer values

Lean Goals

• Use a structured, consistent, and robust model of Performance Improvement

Identify the problemMeasure the impactProblem analysisRemedy the critical issuesOperationalize the solutionsValidate the improvementEvaluate over time

Lean Goals

• Build trust by removing fear

• Initiate long-term cultural change

• Communicate the vision to all staff

• Active commitment of leadership is a must, in both words and action

Conclusion

• We do not have a choice but to change.• Our goal is to move towards perfection,

knowing there is a cost to all errors.• Understand the details of the processes

in your area to identify waste.• Use a structured approach to IMPROVE

your performance.• Involve all staff and your customers

every step of the way.