connecting your executive board with your lean six sigma implementation l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Connecting your Executive Board with your Lean Six Sigma Implementation PowerPoint Presentation
Download Presentation
Connecting your Executive Board with your Lean Six Sigma Implementation

Loading in 2 Seconds...

play fullscreen
1 / 50

Connecting your Executive Board with your Lean Six Sigma Implementation - PowerPoint PPT Presentation


  • 513 Views
  • Uploaded on

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 Connecting your Executive Board with your Lean Six Sigma Implementation After this session you will:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Connecting your Executive Board with your Lean Six Sigma Implementation' - jacob


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
connecting your executive board with your lean six sigma implementation

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

connecting your executive board with your lean six sigma implementation2
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
why do we want to connect our executives with our lss implementation
Why do we want to connect our executives with our LSS Implementation?

Executives

Leadership

Customers

Employees

LSS Implementation Plan

slide4

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?
why do we want to connect our executives with our lss implementation5
Why do we want to connect our executives with our LSS Implementation?

Customers

Executives

Leadership

Suppliers

Employees

Implementation Plan

why do we want to connect our executives with our lss implementation6
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?

lean six sigma as a strategic driver
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 alignmentacross the business leadership team
      • Mobilizeteams 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

compelling case for change
Economic Conditions

Greater World Competition

Slowing Improvements

Need to add value

for the customer

Employee turnover

Compelling Case for Change
lean six sigma as a strategic driver9

Performance and Quality Improvement

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

lean six sigma as a strategic driver10
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 organization’s strategic drivers—these could include:
    • Quality of Care
    • Patient Satisfaction
    • Operational Efficiency
  • Leadership can measure success by establishing stretch goals in these categories
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

Traditional View of the Executive Board
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

The Benefits of Lean Six Sigma
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

Lean Six Sigma Client Case Study
linking 3 key items
Linking 3 Key Items

Executive

Team

Corporate

Strategy

Management

Team

Lean Six Sigma Implementation

Daily

Management

Front Line

Leaders

Stakeholders

All are controlled by process control systems

and measured frequently

align your executive board
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
alignment with implementation
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
hoshin planning matrix

HOW

HOWFAR

HOW MUCH

All itemsare listedin priority order

Top Level

Improvement

Priorities

Annual

Breakthrough

Objectives

Targets

to Improve

3-5 Year Breakthrough Objectives

WHAT

Hoshin Planning Matrix

WHO

Annual Metrics

RESOURCES

= Primary Responsibility

= Secondary Responsibility

OWNER

slide20

Linking Key Projects

Whole

System

Measures

Value Stream

Contacts

Commercial

Records

Ins.

Submitted

Ins.

Approved

Appt.

Made

Appt.

Kept

Tx.

% Qualified

Calls

OIS

Quality

Response

Time

% pt.

Preferred

% Apt

Kept

Time to

Tx.

Quality

Call Volume

Appts made

To Plan

Growth

Productivity

Canceled

Appts

Profit

Accessibility

project selection
Canceled AppointmentsProject Selection

Kaizen

Direct Scheduling

Handoff

Time to

Appointment

Six Sigma

Pre-Op

Instructions

A3

lean six sigma as a strategic driver23
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
mobilize executive board
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
the new role of the lss leader
The roles of leaders are changing to drive continuous improvement

Leadership’s sole purpose is to drive continuous improvements to improve the patient experience.

Leaders Coach and Mentor

Leaders ask probing questions.

The New Role of the LSS Leader
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

Lean Six Sigma: The Role of the Board of Directors

*Adapted from The Leadership Challenge by Kouzes and Posner (1995)

lean six sigma the new role of the executive suite
Personal understanding and commitment to deployment—send 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 improvement—but know and understand that not every idea will be successful

Expect transparency—and celebrate when teams air their “dirty laundry”

Remove barriers

Personal engagement (including attendance at project kick off meetings, tollgates, graduations, etc)

Lean Six Sigma: The New Role of the Executive Suite
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

Accountability—audit 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

Lean Six Sigma: The New Role of the Vice Presidents
lean six sigma the new role of leadership
Here are some example Lean Six Sigma questions

These questions follow the DMAIC problem solving methodology

Lean Six Sigma: The New Role of Leadership
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?

Define Tollgate Questions
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?

Measure Tollgate Questions
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?

Analyze Tollgate Questions
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”?

Improve Tollgate Questions
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?

Control Tollgate Questions
lean six sigma as a strategic driver35
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 doing—with 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)
slide36

Breakthroughs lead to competitive advantage

Extinction

Survival

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

accelerate executive board
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
understand lss curriculum
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
  • Kaizen—Lean Training
  • Lean Six Sigma Green Belt Project Management
  • Lean Six Sigma Black Belt Project Management
lean six sigma journey
Lean Six Sigma Journey
  • Deployment Tactics
    • E3 Performance ImprovementSM Program
    • Six Sigma Green Belt Training and Projects
    • Kaizen Events
slide40

Lean Six Sigma E3 Program

Methodology

  • 8 week course
  • 2 hours per class
  • 1 hour “homework”
  • 15-30 students
  • Offered twice per week
  • Complete one project
  • Graduation ceremony

Description

  • “Essence of Lean”
    • Staff driven
    • Bottom up
    • Enabling process
    • Numerous but small projects
e3 project examples
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.
slide42

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
slide43

Lean Six Sigma Belt Examples

  • Managed Care Improvement
  • Antibiotics prior to surgery
  • Nurse Retention Rate
  • Tool Cost Reduction
  • Resident Rounding
  • Cytogenetics
  • MRI Utilization
slide44

Lean Six Sigma Kaizens

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

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
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.

Sustaining LSS Results
executive board connection to the lss implementation
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!
slide47

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?
slide48

ICMC Lean Six Sigma Consulting Group

Doug Dulin – Director Lean Six Sigma, LM / MBB

Email: dulind@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.

slide49

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.