Lean Healthcare -The Values Driven Approach

There's a lot of excitement today in the health careThese participants were more than willing to listen and
field about the benefits that Lean practice can bring.learn about something new that could make patient
This is especially critical in an environment wherecare even better in a world of shrinking resources.The
patient care needs are climbing while the pool of skilledpassion we saw in how they dealt with patients
resources and reimbursement for services shrink. Leantransferred to the application of Lean in the same way
Advisors Inc. is working in the healthcare industry tothey approached every other aspect of their jobs.
help them implement Lean in order to be able to doThey used what they learned as they learned it and
more with less while doing it better. The key is to applyquickly became totally committed to Lean. Our
Lean methods in an environment driven by the uniquechallenge was, and is, keeping them on Plan and
values that surround patient care.As in other industries,completing their projects in the correct order so as not
the customer should come first. In healthcare thatto create 'exciting chaos', all too easy under the
customer is the patient and the patient drives thepressures of day-to-day emergencies and deadlines.
definition of value. The product (test results in the'Exciting Chaos' happens when you apply tools in the
laboratory) or service (patient care) can make thewrong sequence and fail to improve the system as a
difference between life and death. That one elementwhole. Incremental or 'point' improvements are, as we
takes Lean to another level of importance in thisknow, a recipe for disaster.In healthcare, cost
industry.The needs of the patient are paramount andcontainment can be critical, but patient quality, care, and
give new meaning to Lean focus on the customer.service have to be a priority. The industry faces
The working environment is one driven by sharedgrowing financial constraints. The number of patients is
values and passion in delivering top quality productsdramatically increasing and the cost of the improved
and services to the patient. Without Lean, healthcaretechnology is rapidly going up. Administrators of
will continue to have difficulty meeting the pressure tofacilities are being asked to accomplish much more
serve an increasing number of individuals at lesswith less and less. Lean methods are critical in bringing
cost.As the population ages, healthcare must find newneeded cost savings.What we often see in health
ways to meet the demand for their services.care are the same short-term, knee-jerk responses to
Turnaround time becomes a primary measurementreduce costs that we have seen in the traditional
that must improve whether it is in the hospital facilitiesindustries such as manufacturing. There is an
or their testing laboratories. Further, space is at a criticalimmediate impulse to cut assets and labor resources.
premium in running all the functions within a hospitalWhile these shortsighted responses may allow them
facility. Only Lean can provide a solution to spaceto meet an annual budget, they certainly don't create
issues without either downsizing staff or incurring largebetter service or long-term solutions.
scale capital building costs.Lean PrinciplesOf course, allLean ResultsLean doesn't focus on cutting people or
of these improvements can't compromise the quality -assets; it focuses on improving activities and
in fact, the quality must improve while working to serveprocesses in the system as a whole. In order for any
patients faster. This is the real challenge - and, asbusiness or organization to get better, they must learn
noted, it can be a matter of life and death.The Leanhow to remove the 'waste' in their system and create
principles of customer focus, speed of delivery,value without adding staff or resorting to large capital
increased quality, and flexibility in meetingoutlays.When done properly, Lean removes 'wasteful'
ever-changing demands fits 'perfectly'. Hospital andactivities and allows the professionals and staff of
technical laboratory professionals are surprised to seehospitals, labs, and clinics to focus on more patient
similarities with other industries when they sit down andvalue-based activities. The result is doing more with
look at the benefits of applying Lean methods in theirless - more people can be assisted with the same
environment. Once they have the 'right' Leannumber of people, the same (or less) space, and
knowledge, and know how to apply the tools properly,reduced costs of providing services. Lean methods
they are able to see that Lean implementation isare indeed the answer to the challenges facing
imperative in order to meet the needs of patients inhealthcare organizations and their staff.The Clinic we
coming years.Lean Advisors Inc. has recently beguntalked about in this document has proven that it can be
work with the laboratory service division of adone. They are now expanding it to all their labs. They
world-renowned Clinic. We have seen the power ofare engaging their physicians, administrators, scientists,
adapting Lean to the health care environment and itslab professionals, and technicians. The people in this
values driven processes. The results in only a coupleClinic are pioneers and have paved the way for others
of months have been phenomenal. They have beenin healthcare to follow. They have proven that with a
able to reduce lead times so Doctors can receivepassion driven by patient-focused values, the 'right'
critical test information even more quickly than theknowledge, and a proper plan, the tremendous
organization's previous world leading delivery pace.challenge facing them can be more than met today
These health care professionals accomplished thisand well into the future.Larry Coté is well known
without adding more staff and without any large capitalfor his penetrating analysis and creative energy. He
outlay or increase in space. The impact has beenwas with the Lean Enterprise Institute in Boston for
immediate and patients are being serviced faster andalmost two years as C.O.O./E.V.P. He was the
better. And there is every indication that the change isFounder and President of the Lean Enterprise Institute
sustainable over the long term.You need passion forCanada.Over the years, Larry has worked with 100's
improvement to be successful when transforming yourof companies at various stages of their Lean journey
organization to a Lean Enterprise. Dedicatedin many different business sectors. Larry has expertise
healthcare staff has plenty of that passion and thisin Toyota Production System concepts, diagnostics
facility was no exception. They are passionate aboutand assessment of Lean readiness. He works with the
their work and they, more than anyone, know thecorporate leaders to develop effective plans for
importance of speed and quality in meeting patient'stransforming organizations using Lean and adapting it
needs. The missing ingredient was learning the 'right'to their particular culture.Larry Cote
way that Lean could be applied to make thePresident
transformation in a hospital environment.Lean Advisors Inc.Lean Advisors Inc. (LEAD) provides
Lean MethodsThe healthcare workers in this facilityLean Training And Lean Implementation support to
are used to change. Their profession is constantlyorganizations of all sizes and sectors including
adapting to new technologies, processes, regulations,healthcare, office, service, manufacturing, mining,
and tools - they have learned to expect rapid change.aerospace, food processing, high tech.