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A comparison between Health Care and Manufacturing

 

 

Lean

Lean has it origins in the teaching and writings of Total Quality Management (TQM) and Just-in-time (JIT), which espouse the idea of "delighting the customer through a continuous stream of value adding activities." Specifically, it is an extension of the phrase "world class" as define by Dr. Richard Schonberger as "… adhering to the highest standards of business performance as measured by the customer.  In other words, value is always defined from the customer's perspective. Understanding your customer's needs is a prerequisite for driving Lean principles and methodologies.  

 

The lean objective is a continuous rapid flow of value-adding activities. The first principle of Lean is to satisfy the needs of the customer by performing only those activities that add value in the eyes of the customer. Put yourself in your customer's shoes, peer into your organization and look around. You will find many activities occurring which add no value and often times prevent you from meeting customer demands. Identifying both value added and non-value added activities provide you with a visual map of your processes.  

 

The second principle is to define the value stream. The goal is to identify material and information flows currently required to deliver a product or service. This activity will highlight bottlenecks, handoffs, lead-time and where inventory. The result is a pictorial of your current processes from start to finish and all parts in-between. The key is to focus on the 65-95% of non-value added actions occurring.  

 

The third principle of lean is to eliminate waste. Waste in the value stream is any activity, which the customer is not willing to pay for since it adds no value to the product or service and often times, is consuming resources. Waste exists in all parts of the business – front office to the factory. This effort results in redefining the current value stream to one of value adding activities and what we call "Sustaining" (SNVA) activities. Sustaining steps are defined as, non-value-added activities performed for one of two reasons, required by law or regulation or because it contributes to business effectiveness. This provides an outward focus and responsiveness to ever-changing customer needs as opposed to traditional redesigns which are outward focused as they relate to your inward focused needs.

 

Lean Enterprise is comprised of the integration and inter-dependence of 5 key elements:

Flow: Physical layout changes and process design standards

Organization: Identifying new roles/responsibilities, training and communication

Process Control: Monitoring, controlling, stabilizing and improving processes

Metrics: Visible, results-based performance measures with targeted improvements

Logistics: Operating rules and methods for planning and controlling the flow of material