Maximize your Lean ROI
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Transcript of Maximize your Lean ROI
Maximize Your Lean ROI
Brittany Hagedorn, CSSBB, US Healthcare Lead at SIMUL8
Claire Cordeaux, SIMUL8 Healthcare Director
SIMUL8 Corporation | SIMUL8.com | [email protected]
Presenters
Claire Cordeaux
Executive Director, Healthcare SIMUL8 SIMUL8 Corporation
Brittany Hagedorn
Healthcare Lead, North AmericaSIMUL8 Corporation
SIMUL8 Corporation | SIMUL8.com | [email protected]
Housekeeping
• Audio
• Q and A
• Recording available on SIMUL8healthcare.com
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Agenda
• Current State of Lean• Enhanced Lean Practice• Practitioner’s Guide to Simulation• Lessons from Loughborough Workshop
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Project: Double Radiology VolumesProject Background:
Outpatient Radiology for patients with a need for sedation prior to their exam. Patients were waiting up to 7 weeks for a Radiology test, which was causing delays in diagnosis and care, poor satisfaction, and lost revenue.
Questions: • How many bed spaces will be needed to handle additional patients? • Will the new staffing model actually work as planned?
Controls:• Number of beds• Number of nurses• Nurse assignments• Appointment schedule
Outputs:• Staff utilization• Space utilization• Patient waiting times
Inputs:• Patient arrival rates• Cancellation rate• Admission durations• Exam durations• Recovery durations
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Project: Double Radiology Volumes
6
Results:• 2 Admission beds and 4 Recovery beds
will be sufficient• Balancing workload among nursing staff
will allow for the handling of the additional patients without adding staff
• Recommendation – Move on to live trials. Jan Feb March April May
Time to Appointment (days)
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CURRENT STATE OF LEAN
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Widespread Adoption
Lean has been widely adopted as the industry standard across healthcare delivery systems.
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Widespread Adoption
Do Well Need MoreTraining Implementation……………………..………..
Excitement Culture Change……………………..………..
Strategy Management……………………..………..
Projects ROI…………………..…………..
Tools Measurement…………………..…………..
Within many Lean organizations, there have been a few key areas that could use additional attention.
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Healthcare Challenges
• Sustainment of change.• Lots of high priorities.• Adoption/stakeholder engagement.• Complex process interactions.• Interdependent changes/projects.
Healthcare faces unique challenges when it comes to implementing a culture of continuous improvement.
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ENHANCED LEAN PRACTICE
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Shared Philosophy
• Test before you implement.
• Measure process performance.
• Variability matters to your process.
• Consider everyone’s ideas.
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Benefits of Simulation
• Easily visualize complex processes.• Incorporate variability into process mapping.• Test over extended periods of time.• Quickly consider many scenarios.• Test non-existent processes and unlikely events.• Engage stakeholders
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Models of Integration
Independent Simulation
Small Model built during a Lean Project
Simulation Integrated into the Standard Lean Process
For free downloadable booklet and models from Warwick University, visit SimLean.org.
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When to use Simulation?
Additional factors may also affect the decision to use simulation: • High variability in how long activities take.• Resources constrain the process.• Need to test a range of time or conditions.• Have several scenarios to compare.
Great!
Change Already Happened
Consider using simulation to understand why results were not what you expected.
It worked. No success.
Use simulation to uncover unknown complications, test scenarios, and plan for known risks.
Change is Proposed
Use Lean to develop process, test, and implement.
Complex process. Simple process.
Knowing when simulation will have the greatest impact is critical to maximizing the return on your time investment.
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Example Applications
Examples Lean (Excel) Simulation
Staffing • Managing day-to-day schedules.• Understanding existing service
levels over time.
• How many do I need to ___?• Reaching a target service level.• Shift pattern optimization.
Scheduling • Historical lead time.• Measuring call drop rates, no-
shows, cancellations, etc.
• Lead time reduction.• Process bottleneck elimination.• Block schedule optimization.
Revenue Cycle • Financial projections. • Lead time reduction.
Safety • Tracking performance over time.• Dashboards & reporting.
• Hand-off elimination.• Pilot study risk reduction.
Regardless of the type of Lean project, there are opportunities to utilize simulation. A few examples are included below.
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Value Stream Mapping
Identify Improvement Opportunities
PrioritizeProjects
Develop Charters
Map Current State
Design Future State
PilotFuture State Implement Sustain
• Conduct observations.
• Collect data.• Document
value stream statistics.
• Document all barriers, rework, and wait times.
• Estimate the impact and effort for each improvement.
• Combine for prioritization.
• Define process and outcome metrics.
• Establish target (%) for improvement.
• Create a detailed process map.
• Identify potential interventions.
• Develop and document a future state process map.
• Implement the proposed future state on a small scale.
• Identify issues & unexpected effects.
• Modify the future state as needed.
• Conduct training.
• Go live.
• Document standard work and policies & procedures.
• Monitor and sustain improvements.
Many Opportunities
Incorporate & visualize variability.
Understand dependencies.
Set evidence-based targets.
Validate your current state.
Reduce risk.
Gain buy-in.
By integrating with the Lean Six Sigma approach, we can maximize the impact of our improvement efforts.
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VSM in SIMUL8
• During Event:– Document the VSM in SIMUL8.– Validate the process by checking
that wait times and inventory levels match observations.
– Quantify the impact of potential project ideas in real time.
• After Event:– Set the right performance target
level for each step / resource in order to achieve desired outcomes.
– Organize events (order, resources) based on their expected impact and interdependencies.
Integrating simulation provides quick insight and a validated VSM process map.
Modified VSM
Team deepens understanding of how process times and wait times/inventory are related. Validate that observations are not outliers.
Idea testing in real time lets you select those that will have the most impact in an objective way.
Set improvement goals for each action item based on evidence.
Prioritize improvement efforts to maximize limited resources.
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VSM in SIMUL8
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Project Prioritization
With a simulation-based VSM, the leadership team is able to quantify the operational, financial, and strategic impact of proposed Lean projects.
Step Standard Practice With Simulation Deliverable(s)
List Opportunities Examine VSM to identify bottlenecks, inventory, etc.
Visualize how variability affects key process measures.
List of potential projects.
Estimate Impact of Individual Projects
Use Excel to extrapolate based on historical data.
Simulate each change to quantify strategic, financial, and operational outcomes.
Project ROI.
Examine Interdependencies
Difficult. Simulate each combination to identify augmented outcomes.
Program Impacts.
Prioritize Pick the project(s) with the highest ROI.
Select the program with the best combined outcomes.
Action Plan.
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Setting The Right Target
What is the right target for improvement?
How do your operations impact the key outcome?
Improve throughput
by 50%.
Reduce cost by 30%.
Eliminate overtime.
Increase revenue by $1 M.
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Setting the Right TargetBy simulating potential targets, you ensure that projects have achievable goals,
that the target is high (or low) enough to impact the outcome metric, and that you do not waste effort improving a process more than necessary.
Current performance
Necessary performance
Target unnecessarily high
Target too low
Target unrealistic
Process Measure
Out
com
e M
easu
re
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Post-Kaizen Risk Reduction
Answer questions such as:• Do I have enough resources to handle the increased
throughput?• Is the new process robust enough to handle unusual or
unexpected situations?• What downstream effects have we forgotten to plan for?
After a Kaizen event, there is always some uncertainty about how the new process will work after “go live”. For processes that are critical to
the business, simulation can help mitigate implementation risk.
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Stakeholder Engagement
Results in Real Time
With simulation, you can visualize everyone’s suggestions and their impact on key outcome measures – for minimal time or cost.
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PRACTITIONER’S GUIDE TO SIMULATION
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Ideal Phases of Integration
Time
Adoption – Initial use of simulation as part of the Lean improvement process (ex. VSM).
Engagement – A critical component of the Lean process is to simulate potential new scenarios.
Integration – Simulation is fully integrated into the Lean improvement toolbox and used when appropriate.
Moving too fast through integration can confuse and overwhelm stakeholders.
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PDCA Approach to Simulation Building
Using a PDCA-style approach to simulation has many benefits and helps the team address / avoid the typical barriers that can be found in simulation projects.
Design (Plan)
Create (Do)
Validate & Evaluate (Check)
Revise (Act)
ADDRESS BARRIERS:• Create stakeholder buy-in along the way as
the model generates insights during every cycle.
• Identify gaps in data availability early on.
AVOID MISTAKES:• Mitigate the tendency to make the model
unnecessarily complex.• Escape “analysis paralysis” by developing
models that are representative, rather than perfect.
• Revise the model with additional detail only where necessary.
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Determine Need for Complexity
Once you have determined the type of question you need to answer, you can set stakeholder expectations and design in only the necessary details.
Time and Effort Investment
Mod
el C
ompl
exity I need to test
scenarios around my key
constraint.
I need to understand how the complexities
in my system interact.
I need a directional
answer on how a change will affect
the system.
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Choosing the Necessary Details
It is easy to add many details to a model in order to achieve “perfect” results, which leads to extensive data collection, complex models, and long lead times. Consider the following:
1. Is this something that my stakeholders frequently complain about?
2. Does this consume my attention and time every day?
3. Do changes affect how my process flows?
4. If there is maintenance/downtime/time off, would it
disrupt normal operations?
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Data Accuracy Requirements
How much data do you need in order to build a reasonable simulation?
Approximation is often beneficial for the first phase of a project:• Minimal need for data
collection and analysis.• Can be provided by
stakeholders.• Easy to understand and
communicate.• Represents a typical
day/patient/event, rather than uncommon events.
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LESSONS FROM LOUGHBOROUGH
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Improving Process Improvement: Utilizing both Lean and Simulation
Workshop at Loughborough University
June 6th, 2014
“Having demonstrated … the opportunities and benefits of using lean and simulation together for healthcare (www.simlean.org), the purpose of this workshop is to further open up the debate on why Lean and Simulation are not being used or researched together more.”
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Improving Process Improvement: Utilizing both Lean and Simulation
Special thanks to the many participants for the inspiration for the following ideas, especially:
• Professor Zoe Radnor• Professor Stewart Robinson• Mark Palmer, Managing Director of OEE• Center for Service Management at
Loughborough University
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Efficiency vs. Effectiveness
Lean’s principles combine both:– Eliminate waste – efficiency– Create value – effectiveness– Increase flow – efficiency
• Is there too much focus on efficiency? • To create truly patient-centered care, do we need to
spend more energy on creating value?• How does “lower utilization” provide better access,
outcomes, and costs?
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How simple is too simple?
Simple Complex
Validation
VisualsTrustUnderstanding
Time to Build
Engagement
There are a multitude of factors that determine how many simplifying assumptions can be made. How do you strike the right balance?
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Who holds the power?
Many stakeholders are needed in order to make a Lean project successful. The challenge is to make sure that each voice is heard, including the person who…
– Is “paying for” the time.– Decides what to include.– Is building the model.– Has the information/data.– Interprets the results.– Makes the decision.– Implements the change.– Receives the service (customer).
Should the project facilitator and
model builder be the same person?
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How are visuals useful?
Useful for validating :• Work is moving
through the system correctly.
• Queues are building up where you expect them.
Useful for communicating:• With a wider, non-
technical audience.• Demonstrating that the
model mimics reality.• With leadership who
want to see the big picture.
• Faster to review than a table of numbers.
Validation Interpretation Communication
Useful for interpreting:• How the system works.• Why one change is
better than another.• How complex process
flows interact.• Putting results into
context.
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Key Takeaways
1. Lean and Simulation share a common philosophy.
2. There are many opportunities to incorporate Simulation into standard Lean practice.
3. Lean ROI can be enhanced by integrating Simulation.
4. Careful deployment and strong advocacy will be required in order to fully integrate Lean and Simulation.
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References
If you are working in Lean, you may also find the following to be useful for your work as well:
• Webinar by John Boulton, IHI Fellow– Process Improvement Innovation: Lean and Simulation– December 2013
• Webinar by Todd Robert, Memorial Health System– Improving Planning in the O.R.– May 2013
• LeanSim Toolkit– Free downloadable Lean models– www.SIMUL8healthcare.com/LeanSimToolkit
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QUESTIONS
The scientist is not a person who gives the right answers, he's one who asks the right questions.
Claude Lévi-Strauss
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QUESTIONS
• Please forward any topics you would like to see covered to [email protected]
• Continue the discussion on SIMUL8 in Health – LinkedIn Group
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NEXT WORKSHOP
Simulating Care Outside of Hospital
Tuesday July 22, 11am (Eastern)
Further details & booking info will be emailed to attendees – watch this space!