BA341 11th Edition Lecture 11 Outline of Last Lecture I. Emphasize JIT productionII. One-Piece FlowIII. Kanban ProductionIV. Level SchedulingV. JIT LayoutVI. Other Elements of Lean Production Outline of Current Lecture VII. Lean PrinciplesVIII. Service BlueprintIX. The Case for Lean in HealthcareX. Various success stories Current LectureLean in ServicesLean principles- Successfully applied in various service settings, such as fast-food, retail, transportation, banking, insurance, legal services, etc. o Focus on improved process standardization, lower inventory, better quality, shorter turn-around times, improved scheduling (capacity buffering)- Making inroads in other services such as healthcare and administration Service BlueprintThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The “F” is a reminder to not forget something in the systemService is broken into 3 levelsLevel 1 – only has to do with the customerLevel 2 – Customer and service provider interact Level 3 – the service is performed The Case for Lean in Healthcare - Healthcare costs in the U.S. keep rising: 18% of GDP in 2011o Largest expenditure/per capita in the worldo Yet, U.S. ranks low in health system performanceo Canada, France, Germany, the Netherlands have more efficient systemso 31% of all expenditures are administrative costso Hospital and pharma. charges are growing fast- Up to 98,000 people die in U.S. hospitals yearly, due to preventable medical errorso Errors are 7th leading cause of death in the U.S.o Drug misuse frequent, with serious effectso Failure to administer tests and treatments to patients on time o Adverse effects occur in 3% of hospitalizations- Various tests, procedures, treatments are overused- Confusing, non-standardized processesVarious Success Stories - West Penn hospital in Pittsburgh, PAo Problem: Patients scheduled for OR would not have blood tests performed before surgeryo Approach: Redesign the process by Appointing a nurse responsible for drawing blood Converting a storage closet to a room for drawing blood Use of visual signals to indicate that (i) a new patient needs blood tests (a card placed on a rack) and (ii) which patients had the tests (stickers and signs) Named clinical coordinator in charge of process improvement initiativesconsistency, standardization, best practices Element of Lean operations is having a clear understanding of who is responsible for what- Pittsburgh Regional Healthcare Initiativeo Problem: central line–associated bloodstream (CLAB) infectionso Approach: process redesign focusing on: Who was responsible for what procedure Who was responsible with placing and maintaining the lines What signals would be used to trigger work and next steps How each step in the process would be precisely carried
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