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THE POTENTIAL OF LEAN
THINKING IN HEALTHCARE

   Daniel T Jones

       Chairman
    Lean Enterprise
       Academy
          UK
Background

• LEA has helped many organisations get big benefits
  from following Toyota in using Lean thinking
• Consumer goods, construction and the public sector
• I brought the global lean healthcare pioneers together to
  encourage others to follow them
• We conducted our own action learning experiments to
  learn how lean works in healthcare
• We published our results so far in Making Hospitals
  Work so others can do it themselves
• Now we are learning how to build the right management
  systems to sustain lean
The Healthcare Challenge

• The healthcare industry was shocked to discover how far
  behind they had fallen on quality and safety
• Used evidence based medicine to define best practice
  interventions to eliminate variation and errors
• But these improvements are difficult to sustain in isolation

• Meanwhile containing healthcare costs is a growing issue
• Lean uses evidence based management to improve the
  flow of work to eliminate delays for patients, wasted effort
  for staff and unnecessary costs for hospitals
• If we can go beyond point improvements and lean pilots
Coming Together

• Quality and Lean are two sides of a coin – together they:
   – Use the scientific method for prioritizing, planning
     and problem solving
   – Use lean principles and tools to turn activities into
     value streams (integrated patient journeys)
   – Manage visually to establish stability, see variances
     and reveal problems
   – Develop problem solving skills through learning by
     doing
• But the end-to-end perspective challenges traditional
  ways of managing
Understanding the Context
                             PATHOLOGY               THERAPIES




              EMERGENCY          MAU
 HOME
              DEPARTMENT                                         MEDICAL         HOME
                                SAU                              WARDS
NURSING                                                                     D
 HOME                                                                       I   NURSING
                                                                            S    HOME
                  IMAGING
                                                                            C
                                                                            H
                                                                 SURGUCAL   A
                                         OPERATING               WARDS      R
                                         ROOM
                                                                            G
  GP                                                                        E   REHAB
                                                                 OTHER           UNIT
                                                                 WARDS
              CLINIC
               CLINIC
                  CLINIC
                    CLINIC




                             PHARMACY                  SUPPLIES




           What are the patient journeys through
              the District General Hospital?
Using the A3 Method




Evidence based management
Defining the Problem




  What is the underlying problem?
Understanding Demand
Which patients to follow?

                      How many and where do they go?




                            What is the rate of demand?
Mapping the Value Stream




6.5 days waiting for 3 hours of work!
Four Questions 1
1. What is the rate of demand?

 What is the planed work?
 Do we have the staff?



2. How to create flow within departments?

                                 Synchronise actions on the Wards




 Cells
 in ED
Four Questions 2
3. How to create flow
   between departments?

           Use buffers to signal
           the need for a bed



4. Where to schedule this flow?




                                   Can we level discharge?
Developing the Action Plan
Line Management
• Create Plan for Every Patient boards everywhere to
  see progress, variances and problems quickly
• Enable staff and line management to respond quickly to
  variances
• Show line management how to teach staff to analyse the
  root causes of persistent problems




       By the Hour in ED

                           By the Day
                            on Wards
Value Stream Management

• Create a coordination mechanism
      - a visual hub plus status boards
      - and an escalation management system
• Give someone responsibility for the whole Value Stream
      - to gain agreement to do the right things
      - with the backing to resolve conflicts
      - and deliver results          A&E
                                                        SYMPHONY          WAST                    CWS



                             MAU
                                            E-mail x3


                                      E-mail x3                                              Ops Hub
                                                                                                               Dashboard
                                                                                                                Metrics
                                                                          Visual Hospital




                             SAU

                                              x3
                                                                      Staffing       Ward Round
                                                                   Plan vs Actual       OTIF                          Action Cards


                             Wards                 x3




                                                                                                        A&E   MAU          SAU       Wards
Leadership from the Top
• Understand the scale of the lean opportunity
      and how to translate this into money
• Use Strategy Deployment to focus on the Vital Few
• Deselect activities to free up the capacity to act
• Appoint and support a Value Stream Manager and
      Clinical Value Stream leader
• Resolve conflicts between Departmental objectives
      and the needs of the Value Stream
• Go to Review Progress regularly
Lean Management

               Establish         Respond to    Design
               Stability         Variances     Experiments

Top                                                                   “Voice of the
Management                                                              Provider”
                      e             Deselect   Value Stream Manager




Value Stream                                                          “Voice of the
Management                                                              Patient”
                    Hub                               Plan



                                                      A P
Line                                                  C D             “Voice of the
Management                                                              Staff”
                Patient Boards     Responses      Problem Solving
The Elective Surgical A3 Plan
The Potential Results

• From redesigning the emergency and elective journeys:
   – For Patients – seen quickly, no waits, no errors
   – For Staff – more care time, less frustration
   – For the Hospital – meet access targets, free up 30%
     of capacity, do more elective work, reduce Bank and
     Agency spending and meet budget targets
• But this is just the start – spread to support functions
   – HR Recruitment – new staff in post quicker
   – Finance and Admin – streamline office processes
   – Procurement – 30% savings in stock and wastage
• Then spread lean across the whole healthcare system
The Healthcare System
                                   PRIMARY CARE UNIT                                        SOCIAL
                                                                                           SERVICES
                                       PATHOLOGY        THERAPIES


                                    INJURY
                                      UNIT

                                                          ASSESSMENT
                                      IMAGING                UNIT



                                   CLINIC
                                    CLINIC
                                      CLINIC



                                       PHARMACY           SUPPLIES

 HOME                                                                                                  HOME
          GP                                                                      REHAB
NURSING                                                                            UNIT               NURSING
 HOME                           PATHOLOGY               THERAPIES                                      HOME


                   EMERGENCY                 MAU
                   DEPARTMENT
                                         SAU                         MEDICAL
                                                                     WARDS    D
                                                                              I
                                                                              S
                       IMAGING                                                C
                                                                              H
                                                                     SURGUCAL A
                                                   OPERATING         WARDS    R
                                                   ROOM
                                                                              G
                                                                              E
                                                                     OTHER
                                                                     WARDS
                     CLINIC
                      CLINIC
                        CLINIC
                          CLINIC



                                 PHARMACY               SUPPLIES
                                                                                           SUPPLIES
                                                                                          WAREHOUSE
                        DISTRICT GENERAL HOSPITAL
In Conclusion


• Lean is the journey for this next decade

• It will have a profound impact on healthcare

• It will also change the way we manage
  organisations

• And become the “ New Common Sense”
REALIZING THE
  POTENTIAL OF LEAN
THINKING IN HEALTHCARE

   Daniel T Jones

   www.leanuk.org

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Lto2009 Jones

  • 1. THE POTENTIAL OF LEAN THINKING IN HEALTHCARE Daniel T Jones Chairman Lean Enterprise Academy UK
  • 2. Background • LEA has helped many organisations get big benefits from following Toyota in using Lean thinking • Consumer goods, construction and the public sector • I brought the global lean healthcare pioneers together to encourage others to follow them • We conducted our own action learning experiments to learn how lean works in healthcare • We published our results so far in Making Hospitals Work so others can do it themselves • Now we are learning how to build the right management systems to sustain lean
  • 3. The Healthcare Challenge • The healthcare industry was shocked to discover how far behind they had fallen on quality and safety • Used evidence based medicine to define best practice interventions to eliminate variation and errors • But these improvements are difficult to sustain in isolation • Meanwhile containing healthcare costs is a growing issue • Lean uses evidence based management to improve the flow of work to eliminate delays for patients, wasted effort for staff and unnecessary costs for hospitals • If we can go beyond point improvements and lean pilots
  • 4. Coming Together • Quality and Lean are two sides of a coin – together they: – Use the scientific method for prioritizing, planning and problem solving – Use lean principles and tools to turn activities into value streams (integrated patient journeys) – Manage visually to establish stability, see variances and reveal problems – Develop problem solving skills through learning by doing • But the end-to-end perspective challenges traditional ways of managing
  • 5. Understanding the Context PATHOLOGY THERAPIES EMERGENCY MAU HOME DEPARTMENT MEDICAL HOME SAU WARDS NURSING D HOME I NURSING S HOME IMAGING C H SURGUCAL A OPERATING WARDS R ROOM G GP E REHAB OTHER UNIT WARDS CLINIC CLINIC CLINIC CLINIC PHARMACY SUPPLIES What are the patient journeys through the District General Hospital?
  • 6. Using the A3 Method Evidence based management
  • 7. Defining the Problem What is the underlying problem?
  • 8. Understanding Demand Which patients to follow? How many and where do they go? What is the rate of demand?
  • 9. Mapping the Value Stream 6.5 days waiting for 3 hours of work!
  • 10. Four Questions 1 1. What is the rate of demand? What is the planed work? Do we have the staff? 2. How to create flow within departments? Synchronise actions on the Wards Cells in ED
  • 11. Four Questions 2 3. How to create flow between departments? Use buffers to signal the need for a bed 4. Where to schedule this flow? Can we level discharge?
  • 13. Line Management • Create Plan for Every Patient boards everywhere to see progress, variances and problems quickly • Enable staff and line management to respond quickly to variances • Show line management how to teach staff to analyse the root causes of persistent problems By the Hour in ED By the Day on Wards
  • 14. Value Stream Management • Create a coordination mechanism - a visual hub plus status boards - and an escalation management system • Give someone responsibility for the whole Value Stream - to gain agreement to do the right things - with the backing to resolve conflicts - and deliver results A&E SYMPHONY WAST CWS MAU E-mail x3 E-mail x3 Ops Hub Dashboard Metrics Visual Hospital SAU x3 Staffing Ward Round Plan vs Actual OTIF Action Cards Wards x3 A&E MAU SAU Wards
  • 15. Leadership from the Top • Understand the scale of the lean opportunity and how to translate this into money • Use Strategy Deployment to focus on the Vital Few • Deselect activities to free up the capacity to act • Appoint and support a Value Stream Manager and Clinical Value Stream leader • Resolve conflicts between Departmental objectives and the needs of the Value Stream • Go to Review Progress regularly
  • 16. Lean Management Establish Respond to Design Stability Variances Experiments Top “Voice of the Management Provider” e Deselect Value Stream Manager Value Stream “Voice of the Management Patient” Hub Plan A P Line C D “Voice of the Management Staff” Patient Boards Responses Problem Solving
  • 18. The Potential Results • From redesigning the emergency and elective journeys: – For Patients – seen quickly, no waits, no errors – For Staff – more care time, less frustration – For the Hospital – meet access targets, free up 30% of capacity, do more elective work, reduce Bank and Agency spending and meet budget targets • But this is just the start – spread to support functions – HR Recruitment – new staff in post quicker – Finance and Admin – streamline office processes – Procurement – 30% savings in stock and wastage • Then spread lean across the whole healthcare system
  • 19. The Healthcare System PRIMARY CARE UNIT SOCIAL SERVICES PATHOLOGY THERAPIES INJURY UNIT ASSESSMENT IMAGING UNIT CLINIC CLINIC CLINIC PHARMACY SUPPLIES HOME HOME GP REHAB NURSING UNIT NURSING HOME PATHOLOGY THERAPIES HOME EMERGENCY MAU DEPARTMENT SAU MEDICAL WARDS D I S IMAGING C H SURGUCAL A OPERATING WARDS R ROOM G E OTHER WARDS CLINIC CLINIC CLINIC CLINIC PHARMACY SUPPLIES SUPPLIES WAREHOUSE DISTRICT GENERAL HOSPITAL
  • 20. In Conclusion • Lean is the journey for this next decade • It will have a profound impact on healthcare • It will also change the way we manage organisations • And become the “ New Common Sense”
  • 21. REALIZING THE POTENTIAL OF LEAN THINKING IN HEALTHCARE Daniel T Jones www.leanuk.org