AME/APQC Benchmarking CoP Virtual Networking Event July 23, 2013

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AME/APQC Benchmarking CoP Virtual Networking Event July 23, 2013 The Importance and the Application of Lean in Healthcare: Safety, Quality, Access, Cost, and Morale Mark Graban, KaiNexus

Session Agenda 10:00 a.m. Welcome/Housekeeping 10:05 CoP Business 10:10 Benchmarking Presentation 10:45 Open Q&A 11:00 Adjourn 2013 APQC. ALL RIGHTS RESERVED. 2

2013 Benchmarking CoP Calendar Month Date Session Presenter February 2/19/2013 Real Time Case Studies in Benchmarking Travis Colton, APQC Don Davies, General Dynamics John Mellin, GlaxoSmithKline March 3/19/2013 The continuous improvement journey at UL UL May 5/31/2013 Vet STRONG Program Joe Barto June 6/18/2013 Innovating with Lean Tools Ken Rolfes July 7/16/2013 Lean Healthcare Mark Graban, KaiNexus August 8/20/2013 TBD TBD September 9/17/2013 TBD TBD October 10/22/2013 TBD TBD November 11/13/2013 Knowledge Management at Eaton Eaton December 12/17/2013 TBD TBD Send your topic or presenter recommendations via the Q&A tab or email at rwebb@apqc.org. 2013 APQC. ALL RIGHTS RESERVED. 3

AME Events (www.ame.org) August 8/1 8/2 Ft. Lauderdale, Florida Lean Bronze Certification Preparation Course & Exam 8/6 Eaton, Ohio Toyota Kata: 1 Day Workshop 8/8 Concordville, Pennsylvania 5S Organizing the Workplace to Work for You 8/12 8/15 Huntsville, Alabama Lean Healthcare Certificate Series 8/15 Champaign, Illinois 8/16 Lean Process Design Sustaining Continuous Improvement Adapting Lean for High Mix Low Volume 2013 APQC. ALL RIGHTS RESERVED. 4 August 8/20 Chicago, Illinois Lean Leadership...Are You Prepared to Lead? 8/21 Glastonbury, Connecticut 8/22 Roundtable: Habco Inc. Introduction to the Harada Method Webinar 8/26 8/29 Atlanta, Georgia AME Atlanta 2013: Lean Summit 8/27 8/28 Redmond, Washington Advanced Visual Management AME National Conference 10/21 10/25 Toronto Breakthrough to Your Leading Edge

APQC Events http://www.apqc.org/events 7/23 APQC Financial Management Webinar Enterprise Risk Management 7/23 APQC Supply Chain Webinar Now in the Knowledge Base: Supply Chain, Product Development and Innovation 7/25 Business Excellence Webinar Change Management 8/7 APQC Orientation 2013 APQC Process Conference 10/21 10/25 Houston, TX Connecting People, Process, and Technology for Results 2013 APQC. ALL RIGHTS RESERVED. 5

APQC Research Agenda http://www.apqc.org/research_agenda Active Research Transferring and Applying Critical Knowledge (24% complete) State of Benchmarking (26% complete) Practices in Master Data Management (28% complete) How Shingo Prize Winners Manage Their Supply Chains (48% complete) Recruiting and Developing Talent in the Supply Chain (83% complete) Upcoming Research Insights from Open Standards Benchmarking in Product Development and Innovation Case Studies in Latest Manufacturing Process Improvement Techniques Cliff Notes: Productivity Measures What does Getting "Buy in" Really Mean? 2013 APQC. ALL RIGHTS RESERVED. 6

Lean in Healthcare: Safety, Quality, Access, Cost, and Morale 2013, Constancy, Inc., All Rights Reserved Mark Graban President, Constancy, Inc. Chief Improvement Officer, KaiNexus Faculty, Lean Enterprise Institute & ThedaCare Center for Healthcare Valu

What is Lean Healthcare? Lean is built on three bedrock concepts: 1. respect for people 2. scientific method to seek perfection 3. clear purpose: to align systems, strategy, and performance to yield customer value as the result. Source: John Toussaint, MD

Not The Vision of Lean Healthcare 2013 Constancy, Inc. or Mark Graban. All rights reserved.

A Transferrable Philosophy This isn t about tools to us. This is a philosophy. We learned that from Toyota. Pat Hagan Former Chief Operating Officer Seattle Children's Hospital

5S Andon Kaizen Standard Work Metrics Kanban 11

Management System Philosophy Culture Thinking Mindsets 12

Equally Important Pillars Continuous Improvement Respect For People 13

Why Lean? Start from need. Taiichi Ohno, Toyota (1912-1990)

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

Institute of Medicine: http://bit.ly/iom-report

Lean = like a robot, layoffs, harming patients? hospitals don't need lean for that!! HHS Report: http://1.usa.gov/yisez5

http://www.guardian.co.uk/society/2006/nov/07/health.lifeandhealth

Why do clinicians not follow hand hygiene practices 100% of the time? 5 Whys Why do clinicians not follow hand hygiene practices 100% of the time? Emergency situation They think alcohol gel cracks their hands Lack of awareness on practices & requirements They forget because they are in a hurry Gel dispensers are not convenient Their hands are full when leaving a room Soap & water takes oil out of hands, making making skin crack Lack of training RN is often running in response to MD request Gel dispensers are not on the computer carts Too hard to find carts, so nurse and techs carry things in their arms The alcohol makes those cracks sting Lack of resources Culture of "jump when MD says jump" Carts are not always stored in the same place Not enough carts in the unit They are using a mix of soap & water and gel instead of just gel Lack of administration attention Lack of 5S organization Been told to keep hallways clear Lack of training Too many pressing issues Not enough storage space nearby Things we can fix today Source: Lean Hospitals, Graban

Source: Dr. Richard

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

What is Quality? Great service and patient satisfaction Lack of errors Right care, right place, right time

IOM Definition of Quality Safe Timely Effective Efficient Equitable Patient-Centered

HCAHPS Hospital Consumer Assessment of Healthcare Providers and Systems How often did RNs & MDs communicate well with patients? How often did patients receive help quickly from hospital staff? How often was patients' pain well controlled? How often did staff explain about medicines before giving them to patients? How often were patients' rooms and bathrooms kept clean? How often was the area around patients' rooms quiet at night? Were patients given information about what to do during their recovery at home?

Asking Why? Looking at the system, not blaming staff Do staff know what proper protocols are? Do they know why they should be followed? Have staff been properly trained? Has their training been confirmed? Do staff have enough time to do their work? Are they overburdened? Are there good systems in place? Do staff have effective supervision and leadership? Can they ask for help?

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

Improving Radiology /MRI Access Time 14 Outpatient Radiology Backlog Weeks Waiting Time 12 10 8 6 4 2 0 2013 Constancy, Inc. or Mark Graban. All rights reserved.

Emergency room nurses at UNM Hospital are sick of seeing patients stacked up in the hallways. Patients admitted and judged in need of serious medical care often wait days in the ER to be moved to a room. Nurses say they struggle to take care of their medical needs while constantly being ll d t t

100 90 ThedaCare Door to Balloon Time 91 80 70 65 60 50 40 52 37 37 42 45 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012

Standardized Work

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

$765,000,000,000 $2,500,000,000,000

Institute of Medicine Best Care at Lower Cost: The Path to Continuously Learning Health Care in America

ThedaCare Coronary Bypass Improvement 12 1

ThedaCare s Collaborative Care

The Need in Healthcare Safety Quality Delivery (Access) Cost Morale

Worldwide Morale Problems 20% of U.S. nurses quit in the first year The stress of trying to keep her patients from getting much worse as they waited, sometimes for 12 hours, in an overwhelmed Dallas emergency room was just too much. 44% of UK nurses would leave their job if they could 90% said one necessary activity was not done in their last shift

I I was looked creating told to all just this a negative do three my years job work and ago. environment. to I collected quit wasting It data. my said time I was that on branded in that my analysis performance a troublemaker. stuff. review. RN, 20 years experience 42

Visual Idea Board 1 2 3 4

Before / After Data from CMC Lab 3. I have the opportunity to do what I do best every day. 8. I feel free to make suggestions for improvement. Before Lean 12 Months After Starting Lean 3.11 3.92 2.84 3.48 10. I feel secure in my job. 2.32 3.42 13. Stress at work is manageable. 2.43 3.23 17. I am satisfied with the lab as a place to work. 18. I would recommend my work area as a good place to work to others. 2.51 3.43 2.38 3.46 Grand Average 2.96 3.69

Employee Quote This is the best thing we ve done in my 20 years. We re finally fixing things.

It s All Connected Employee Engagement Patient Satisfaction Patient Volume Financial Results Quality & Outcomes 2013 Constancy, Inc. or Mark Graban. All rights reserved.

Management System Philosophy Culture Thinking Mindsets 47

Straight from Toyota Manager s role is to: Develop people to 1. Surface problems 2. Solve problems Create an environment where this happens Jamie Bonini Toyota Production System Support Center

New Habits for Leaders White Coat Leadership All knowing In charge Autocratic Buck stops here Impatient Blaming Controlling Lean Improvement Leadership Patient Knowledgeable Facilitator Teacher Student Helper Communicator Guide Source: John Toussaint, M.D.

Toyota s Chairman Mr. Cho Three Keys to Lean Leadership Go See Senior Management must spend time on the front lines. Ask Why Use the Why? technique daily. Show Respect Respect your people.

Can You Say Yes to These Questions Every Day? 1. Are my staff and doctors treated with dignity and respect by everyone in our organization? 2. Do my staff and doctors have the training and encouragement to do work that gives their life meaning? 3. Have I recognized my staff and doctors for what they do? From Paul O Neill, adapted by John Toussaint

Q&A / Contact Info President, Constancy, Inc. www.constancy.us Chief Improvement Officer, KaiNexus www.kainexus.com Founder, LeanBlog.org mark@leanblog.org Twitter @MarkGraban