1. Highlights from ExLPharma’s 3rd Lean Sigma & Kaizen for Life Sciences R&D March 23-24, 2010 Philadelphia, PA

2. Examining How Lean Concepts Help Create a Strong Company Culture: Examples from the Healthcare Sector

3. Lean Healthcare is a Global Movement Data source: visitors to www.leanhospitalsbook.com

4. Lean is Fundamentally About: People doing work People managing other people People facing problems

5. No waiting No waste Zero harm Why Lean for Healthcare? Source: an NHS hospital, UK

6. Improving Radiology /MRI Access Time Source: Children’s Medical Center, Dallas TX

7. The Iceberg of Lean 5S Kaizen A3 VSMs Heijunka Std Work Culture Management System Philosophy

8. “Equally Important Pillars” of The Toyota Way

9. Leader’s Job is to Develop People Source: John Shook and Toyota

10. Different Types of Kaizen Mgmt Kaizen Very few Large problems Six Sigma Few Medium problems Kaizen Event Many Small problems Daily Kaizen Adapted from: “The Toyota” Way Fieldbook, Liker and Meier

11. Top Down and Bottom Up Source: Lean Hospitals, Graban

12. Hoshin = “compass” Pointing the direction Kanri = “management” or “control” HoshinKanri A process for embedding strategy and aligning an organization toward common goals Developed by YojiAkao (non-Toyota) Using PDCA cycles to: Create goals Choose measurement points Link daily activities to high level goals Hoshin Kanri

13. Purpose: What’s True North? Quality Decrease Defects and Waiting Time by 50% each year Customer Business Engagement No. of Suggestions Implemented Increase Productivity 10% each year

14. Align Measures @ Each Level Patient & Employee Patient Falls Sprains & Strains

15. Mindset Extreme customer focus (patient) Striving for perfection, not just beating benchmarks Process focus, not just results Value Stream Map  Breaking down silos Focus on reducing batches & delay to improve flow, not on “working faster” Standardized Work  Consistent, but not constraining Lean as “way of being” not a project or event Management Leaders as mentors and coaches, not “bosses” Manager as process improver, not fire fighter Hoshin Kanri / Strategy Deployment  Alignment of work / goals at all levels For Real Lean Transformation

16. Staffing Leveling workloads, not just “dealing with it” Staffing based on workload & processes, not benchmarks (right staffing levels, not too many, not too few) Problem Solving “No problems is a problem” Root cause, not workarounds Suggestion System  True daily kaizen and employee engagement Everyone a problem solver every day using the scientific method (PCDA) A3 Structured problem solving Blame-free culture Mistake proofing Culture of prevention, not punishment For Real Lean Transformation

17. Identifying Non-Value and Strengthening Clinical Processes to Reduce Variability

18. What are the major challenges to the deploying Lean Sigma in clinical operations and what are effective strategies to address these challenges? Where are the prerequisites that need to be in place before Lean Sigma becomes established in clinical operations? 3 Key Questions for theAudience and Panel

19. A. What are the pre-requisites? Compelling Business Case “A Burning Platform” Leadership Support Support Organization Methodology to Assess Benefits 4 Response to Key Questions

20. The Burning Platform The pharmaceutical industry is faced with a number of significant challenges Increasing Cost Increasing Cycle Times Decreasing Probabilities of Success Nowhere is this more evident than in the clinical area 5 I. Compelling Business Case

21. The strong, unwavering support of senior leadership is an essential pre-requisite 6 II. Leadership Support

22. 7 III. Six Sigma Organizational Structures ManagersEmployees Business Function

23. Roles Project Sponsor / Process Owner Master Black Belt Six Sigma Champion Finance Representative 8 Six Sigma Roles and Responsibilities

24. In order to consistently evaluate the benefits of Six Sigma projects, you need Independent evaluators that have Appropriate training Finance/business basics Six Sigma methods A consistent set of rules Cost of running a project to measure rate of return on Six Sigma inestment 9 IV. Methodology to Assess Benefits

25. B. What are the major challenges? Organizational Bandwidth Resistance to change 10 Response to Key Questions

26. Most organizations are busy with the “real work” of drug development Difficult to find the time or energy to work on important projects 11 What are the major challenges?I. Organizational Bandwidth

27. 12 No time for Six Sigma?

28. Too busy to change We have always done it this way This is a regulated business - you can’t just change things 13 What are the major challenges?II. Resistance to Change

29. All Black Belts are trained in OCM methodology Use business sponsor to help remove these barriers 14 What are the major challenges?Resistance to Change

30. Right Message/Messenger Acceptance across the organization that Six Sigma will address critical parts of Lilly strategy Right People Staffing key roles with full-time, high potential leaders Right Infrastructure IT tracking system and guidelines for HR, Finance prior to launch Right Projects and Governance Project selection and execution aligned with company priorities and managed by accountable line organizations Right results Robust measurement and reporting that reinforces the message and supports appropriate project selection 15 Critical Success Factors

31. Still have any questions? For additional information on ExLPharma’s Lean Sigma & Kaizen for Life Sciences R&D Conferences, please visit www.exlpharma.com