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Connecting your Executive Board with your Lean Six Sigma Implementation

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Title: Connecting your Executive Board with your Lean Six Sigma Implementation


1
Connecting your Executive Board with your Lean
Six Sigma Implementation
  • Presented to Lean, Six Sigma Business
    Improvement Summit
  • Presented by Doug Dulin, LM, MBB
  • Date June 24, 2009

2
Connecting your Executive Board with your Lean
Six Sigma Implementation
  • After this session you will
  • Understand why the connection is important
  • Understand the changing roles and
    responsibilities of your executive board within a
    Lean Six Sigma Environment
  • Understand how you can engage your executive
    board for greater implementation success

3
Why do we want to connect our executives with our
LSS Implementation?
Executives
Leadership
Customers
Employees
LSS Implementation Plan
4
What does this mean without connection?
  • What if 1 class of 30 students in your A3 or
    Green Belt Training could deliver 700,000 to the
    bottom line within 10 weeks?
  • What if you held a 5-day kaizen event that
    resulted in a 3.5 million cost avoidance to the
    capital budget?
  • What if you held a 10-day Black Belt course over
    4 months and were able to solve strategic issues
    and impact your organization with more than 1.4
    million?

5
Why do we want to connect our executives with our
LSS Implementation?
Customers
Executives
Leadership
Employees
Suppliers
Implementation Plan
6
Why do we want to connect our executives with our
LSS Implementation?
Executives
Customers
Executives
Leadership
Leadership
Customers
LSS Plan
LSS Plan
Employees
Employees
Which Company are You?
7
Lean Six Sigma as a Strategic Driver
  • The Lean Six Sigma program enables your company
    to drive results and can be further developed
    with a 3-part framework driven by your executive
    group
  • This is a key area where executive leadership is
    needed
  • Achieve alignment across the business leadership
    team
  • Mobilize teams to take focused action
  • Accelerate teams to accomplish the desired results

Adapted from The Corporate University Handbook
by Mark Allen, Ph.D. The Corporate University
as a Strategic Lever by Tom McCarty
8
Compelling Case for Change
  • Economic Conditions
  • Greater World Competition
  • Slowing Improvements
  • Need to add value
  • for the customer
  • Employee turnover

9
Lean Six Sigma as a Strategic Driver
Learning is most effective when it has executive
support, is linked directly to a key business
problem or strategic initiative and is active.
Adapted from The Corporate University Handbook
by Mark Allen, Ph.D. The Corporate University
as a Strategic Lever by Tom McCarty
10
Lean Six Sigma as a Strategic Driver
  • Align (Hoshin Planning)
  • Success is not measured in terms of hours of
    coursework completed, but rather in terms of
    achievement of results
  • These results should be driven by and aligned
    with your organizations strategic driversthese
    could include
  • Quality of Care
  • Patient Satisfaction
  • Operational Efficiency
  • Leadership can measure success by establishing
    stretch goals in these categories

11
Traditional View of the Executive Board
  • Executive Boards view Value
  • View Value in terms of dividends and share price
    appreciation
  • Value is defined in terms of the return a
    shareholder receives as a result of owning shares
    in a company
  • Views values as the present value of all future
    Free Cash Flow

12
The Benefits of Lean Six Sigma
  • What is the Executive Board looking for in the
    Lean Six Sigma Implementation?
  • Improved Customer Satisfaction
  • Improved Financial Results
  • Improved Return on Investment
  • The Key Advantage within the Market Place

13
Lean Six Sigma Client Case Study
  • Lean Six Sigma Key Improvements
  • Touching every department of the organization
  • A3 Implementation Graduation over 50 Candidates
  • Green Belt Program with certifying key leaders
  • Kaizen events for quick, good change
  • Leadership that drives the implementation

14
LSS Implementation Benefit Analysis
10 Month Period
15
Competitive Analysis
16
Linking 3 Key Items
Corporate Strategy
Executive Team
Management Team
Lean Six Sigma Implementation
Daily Management
Front Line Leaders
Stakeholders
All are controlled by process control systems and
measured frequently
17
Align Your Executive Board
  • What can your Executive Team Do?
  • Start with the key drivers (pull from the
    strategic plan)
  • Support to define key goals and objectives of the
    organization.
  • Support in the Hoshin Planning Session.
  • Make available any needed resources that will
    support in becoming successful in the Lean Six
    Sigma Implementation
  • Assure that all barriers are removed

18
Alignment with Implementation
  • Hoshin Planning (Strategy Deployment, Policy
    Deployment)
  • Alignment requires something beyond independent
    creation of strategies
  • Linking the Corporate Strategy and Lean Six Sigma
    Transformation
  • Two Key Processes
  • Annual Planning Process (Key summit where the
    executive team can support by taking an active
    role)
  • Monthly Hoshin deployment meeting

19
Hoshin Planning Matrix
WHO
Annual Metrics
RESOURCES
Primary Responsibility
Secondary Responsibility
OWNER
20
Linking Key Projects
Whole System Measures
Value Stream
Contacts
Commercial Records
Ins. Submitted
Ins. Approved
Appt. Made
Appt. Kept
Tx.
Time to Tx.
pt. Preferred
Apt Kept
Qualified Calls
OIS Quality
Response Time
Quality
Call Volume
Appts made To Plan
Growth
Canceled Appts
Productivity
Accessibility
Profit
21
Project Filter
22
Project Selection
Kaizen
Direct Scheduling Handoff
  • Canceled Appointments

Time to Appointment
Six Sigma
Pre-Op Instructions
A3
23
Lean Six Sigma as a Strategic Driver
  • Mobilize
  • Ensure that LSS projects and initiatives have
    leadership buy-in and support. Project Champions
    are critical to mobilize and enable project
    teams.
  • LSS students are working on specific projects
    during training sessions.
  • These projects are directly tied to the aligned
    strategic drivers
  • Individuals with critical leadership roles in the
    implementation must also receive focused support

24
Mobilize Executive Board
  • Mobilize
  • Practice the new standard work of an executive
    leader in the Lean Six Sigma Environment
  • Take part in Gemba Walks with the leadership team
  • Attend Lean Six Sigma reviews and ask questions
  • Attend Kaizen Report out sessions and thank the
    Kaizen Team

25
The New Role of the LSS Leader
  • The roles of leaders are changing to drive
    continuous improvement
  • Leaderships sole purpose is to drive continuous
    improvements to improve the patient experience.
  • Leaders Coach and Mentor
  • Leaders ask probing questions.

26
Lean Six Sigma The Role of the Board of Directors
  • Challenge the process
  • Inspire a clear, shared vision
  • Enable others to act
  • Model the way
  • Encourage the heart

Adapted from The Leadership Challenge by Kouzes
and Posner (1995)
27
Lean Six Sigma The New Role of the Executive
Suite
  • Personal understanding and commitment to
    deploymentsend a clear message everyone is
    responsible for quality and safety
  • Integration of Lean Six Sigma into other programs
    and initiatives
  • Create a sense of urgency
  • Lean Six Sigma program integrity (including
    people selection, credibility of results,
    institutionalization of methods, and reviews)
  • Demand performance improvementbut know and
    understand that not every idea will be successful
  • Expect transparencyand celebrate when teams air
    their dirty laundry
  • Remove barriers
  • Personal engagement (including attendance at
    project kick off meetings, tollgates,
    graduations, etc)

28
Lean Six Sigma The New Role of the Vice
Presidents
  • Understand methods and tools enough to ask
    questions
  • Linkage of operational performance metrics to
    business metrics
  • Accountabilityaudit standard work, project
    metrics, etc
  • Expect and demand use of Lean Six Sigma tools
  • Project identification process
  • Dedication of staff time for training and project
    completion
  • Personal engagement (including attendance at
    project kick off meetings, tollgates,
    graduations, etc)
  • Remove barriers
  • Recognize project leaders and publicize success

29
Lean Six Sigma The New Role of Leadership
  • Here are some example Lean Six Sigma questions
  • These questions follow the DMAIC problem solving
    methodology

30
Define Tollgate Questions
  • Is the project important to our customers?
  • What is the problem statement? When was the
    problem first seen, where was it seen, and what
    is the magnitude?
  • Is the problem measured in terms of Quality,
    Safety, Cost Efficiency, Patient Experience, or
    Employee Experience?
  • Does a goal statement exist that defines the
    results expected to be achieve by the process?
    Is the goal a SMART goal?
  • Does a financial business case exist, explaining
    the potential impact in measured in dollars of
    the project on the business?
  • Is the project? Have constraints been
    identified?
  • Who are the customers of the project?
  • How will they be involved in the project? How
    will progress be communicated to them?
  • What kinds of barriers / obstacles will need
    assistance to be removed?

31
Measure Tollgate Questions
  • Has the team conducted a value-added and or cycle
    time analysis, identifying area where time and
    resources are devoted to tasks not critical to
    the customer?
  • Has the team identified the specific inputs (x),
    process (x) and output (Y) measures needing to
    be?
  • Has the team developed clear definitions for each
    measurement and tested them with others to ensure
    clarity and consistent interpretation?
  • Has a clear, reasonable choice been made between
    gathering new data and taking advantage of
    existing data?
  • Has baseline performance and process capability
    been established?

32
Analyze Tollgate Questions
  • Has the team examined the process and identified
    potential bottlenecks, disconnects and
    redundancies that could contribute to the problem
    statement?
  • Has the team analyzed data about the process and
    its performance to help stratify the problem,
    understand reasons for variation in the process
    and generate hypothesis as to the root causes of
    the current process?
  • Has an evaluation been done to determine whether
    the problem can be solved without a fundamental
    recreation of the process?
  • Have any new risks to project success been
    identified?

33
Improve Tollgate Questions
  • What lean or six sigma techniques were used to
    generate ideas?
  • What screening techniques were used to develop
    potential solutions?
  • What criteria were used to select a recommended
    solution or solutions?
  • Do the proposed solutions address all of the
    identified root causes, or at least the most
    critical?
  • Were the solutions verified with the Project
    Sponsor and staff members?
  • Has the proposed solution been documented,
    including process participants, job descriptions
    and if applicable, their estimated time
    commitment to support the process?
  • Has the team been able to identify any additional
    Quick Wins?

34
Control Tollgate Questions
  • Has the team prepared all essential documentation
    including the Standard Work Instructions,
    training plan, training matrix, and a control
    plan?
  • Has the necessary training for process owners /
    staff members been performed? If not, when will
    it?
  • Has the solution being effectively implemented?
    How do we know?
  • Has the financial benefit been approved by the
    finance team?
  • Has the process been transitioned to the process
    owner?
  • Has a final storyboard documenting the project
    work been developed?
  • Is there a best case (best practice) from the
    project be used by other areas or departments?

35
Lean Six Sigma as a Strategic Driver
  • Accelerate
  • LSS stands apart from other project management
    techniques in part due to the accelerated time
    frame that is built into the process improvement
    initiative.
  • Kaizen (Rapid Improvement Week) 5 days
  • Green Belt Training 10 days (over the course
    of 4 months)
  • E3 Training 16 hours (over the course of 8
    weeks)
  • Success in an accelerated time frame requires
    that the team members learn while doingwith
    enough support so that they can reach
    breakthrough improvements
  • In addition, LSS builds in systematic and clear
    objectives that are due at each phase of the
    process.
  • Tollgate Sessions (at Define, Measure, Analyze,
    Improve and Control)
  • A3 coaching (weekly sessions)

36
Breakthroughs lead to competitive advantage
Survival
Extinction
Industry Excellence
Continuous Improvement
Lean Six Sigma Breakthrough
Process Knowledge
Goal
Goal
Goal
Actual
Actual
Actual
Output
Output
Output
Baseline
Baseline
Baseline
Time
Time
Time
Breakthrough improvement with long term
sustainability
Initial improvement typically not sustainable
Steady improvement very slow pace
37
Accelerate Executive Board
  • Accelerate
  • Get the Executive Board to understand your Lean
    Six Sigma Implementation Tools
  • Get the Executive Board to conduct Process Owner
    Training
  • Get the Executive Board to attend Belt Toll Gates
  • Get the Executive Board to attend kaizen final
    presentations

38
Understand LSS Curriculum
The Lean Six Sigma organization currently
supports the following Lean Six Sigma Elements
  • E3 Performance Improvement Program
  • E3 Process Owner Training
  • Lean Six Sigma Champion Training
  • KaizenLean Training
  • Lean Six Sigma Green Belt Project Management
  • Lean Six Sigma Black Belt Project Management

39
Lean Six Sigma Journey
  • Deployment Tactics
  • E3 Performance ImprovementSM Program
  • Six Sigma Green Belt Training and Projects
  • Kaizen Events

40
Lean Six Sigma E3 Program
  • Description
  • Essence of Lean
  • Staff driven
  • Bottom up
  • Enabling process
  • Numerous but small projects
  • Methodology
  • 8 week course
  • 2 hours per class
  • 1 hour homework
  • 15-30 students
  • Offered twice per week
  • Complete one project
  • Graduation ceremony

41
E3 Project Examples
  • Reduced patient wait time for DMSA Radiology
    procedures from 17 minutes to 0 minutes.
  • Improved flow of Clinic by reducing Patient Non
    Value Added Time by more than 30, while
    Increasing Appointment Capacity by 2 appointments
    per month.
  • Improved Compliance of Medication Reconciliation
    Documentation from 10 to 100.
  • Reduced Charge Errors in an Emergency Room Supply
    Tower from 19 to 6--resulting in more than
    25,000 in increased net revenue
  • Reduced the time spent searching for charts in
    pediatric clinic from an average of 14.3 minutes
    to an average of 3.8 minutes per chart, resulting
    in NVAT reduction of 4.2 hours per day.
  • Reduced excess inventory in key storage areas
    from 178 cubic feet to 17 cubic feet.

42
Lean Six Sigma Process Owner Training
  • E3 Process Owner Training Developing Lean
    Leaders and your business organization
  • 3 Sessions
  • Prior to start of E3 Class
  • Mid-session
  • Prior to Graduation
  • Designed to help middle-management understand
  • What is Lean?
  • What is E3?
  • Understanding and Managing Lean Projects
  • Challenges of Managing Change

43
Lean Six Sigma Belt Examples
  • Managed Care Improvement
  • Antibiotics prior to surgery
  • Nurse Retention Rate
  • Tool Cost Reduction
  • Resident Rounding
  • Cytogenetics
  • MRI Utilization

44
Lean Six Sigma Kaizens
  • Description
  • Business strategic plan
  • Top down
  • Significant and rapid change (rapid improvement
    week)
  • Short term intensive concentrated effort by lots
    of employees
  • 24 to 36 per year
  • Examples
  • CCL Baseline Kaizen generating 312 UDOs
  • Increased capacity of Sterile Processing
    Department from 13,000 to 16,000 cases annually
  • Reduce Inventory by 3.6 Million

45
Sustaining LSS Results
  • Drive toward standardized work in all areas.
  • Embrace constant, rapid continuous improvement in
    all departments.
  • Design the organization for success and change
    the way we lead by the way we lead.
  • Support, sustain and share the learning
    throughout the organization.
  • Drive the organization toward perfection.

46
Executive Board Connection to the LSS
Implementation
  • Conclusions
  • Their support is key to the LSS implementation
    success
  • Engage them through Align, Mobilize and
    Accelerate
  • Have them to go to the Gemba and ask questions
  • Attend an E3 Graduations, Green Belt Toll Gates,
    Black Belt Toll Gates, Master Black Belt Boards
    and or a Kaizen Events and ask questions.
  • Now is the time for change!

47
What does this mean with a total team connection?
  • What if 1 class of 30 students in your E3 or
    Green Belt Training could deliver 700,000 to the
    bottom line within 10 weeks?
  • What if you held a 5-day kaizen event that
    resulted in a 3.5 million cost avoidance to the
    capital budget?
  • What if you held a 10-day Black Belt course over
    4 months and were able to solve strategic issues
    and impact your organization with more than 1.4
    million?

48
ICMC Lean Six Sigma Consulting Group
Doug Dulin Director Lean Six Sigma, LM /
MBB Email dulind_at_icmcvi.com Web Site
www.icmcleansixsigma.com
ICMC Lean Six Sigma Consulting Group is the
leading Lean Six Sigma (LSS) implementation
consultant in the U.S. healthcare industry, with
more than 75 years combined experience in LSS
strategies. Our experienced team aligns its LSS
solutions with your strategic business objectives
and performance improvement goals.
49
Works Cited
  • Allen, Mark, Ph.D. The Corporate University
    Handbook The Corporate University as a Strategic
    Lever by Tom McCarty
  • Hall, Melvin. Looking to Improve Financial
    Results? Start by Listening to the Patients
    Healthcare Financial Management Magazine, October
    2008. www.hfma.org
  • Wheeler, Kevin. The Corporate University
    Workbook Launching a 21st Century Learning
    Organization. 2004.

50
Thank You.
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