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“Putting the Continuous Back in
                    Continuous Improvement”


                                                     Mark Graban
                                                      •  Chief Improvement Officer, KaiNexus
                                                      •  President, Constancy, Inc.
                                                      •  Faculty, Lean Enterprise Institute



                                                     Author, Lean Hospitals: Improving Quality,
                                                     Patient Safety, and Employee Engagement
                                                            (2nd edition, November 2011)
                                                     Co-Author, Healthcare Kaizen
                                                            (Coming April 2012)
© 2011, Constancy, Inc. & Mark Graban / Joe Swartz
Kaizen


 Kai = Change



 Zen = Good
Improvement Focus


               Eastern                 Western

  Staff morale &
   engagement
                                       “ROI”
                                       (Return on
                                      Investment)


Source: Masaaki Imai, KAIZEN (1986)
Dr. Berwick’s
                     Call for Kaizen (1989)
  •  ”Continuous Improvement as an Ideal in
       Health Care”
        –  Kaizen = “the continuous search for
           opportunities for all processes to get better”




  •    Dr. Donald Berwick
        –  Founder, Institute for Healthcare Improvement
        –  Former Administrator, Medicare and Medicaid (CMS)




Citation: Berwick, DM, “Continuous improvement as an ideal in health care,” New England Journal of
         Medicine, 1989 May 25;320(21):1424-5.
People Hate Change?

“People don’t resist
change, they resist
being changed.”
 –  Peter Scholtes (1938-2009)
Episodic Improvement Events

•  “Kaizen Blitz”
   –  An effort to fix a specific problem of limited scope
   –  Characteristics:
      Ø Typically a weeklong “Event”
      Ø Cross-functional teams
      Ø Define and fix the problem NOW (action oriented)


•  “Kaizen Event” or “Kaikaku Event”?
   –  Rapid Improvement Event (RIE)
   –  Rapid Process Improvement Workshop (RPIW)
Backsliding from Events

   •  “… we were only holding the gains on about 40 percent
      of those changes, partially because it is easy to slip
      back into old ways of doing things if there is a lack of
      accountability and follow through.”
       –  Christina St. Martin, Virginia Mason Medical Center


   •  Root cause of this?



Citation: St. Martin, Christina, “Seeking Perfection in Health Care: Applying the Toyota Production System
to Medicine,” Performance and Practices of Successful Medical Groups: 2006 Report Based on 2005 Data,
                                 Medical Group Management Association, 20.
Different Levels of Kaizen

Very few
Large issues                                                  System
                                                              Kaizen


                      Six
Few                 Sigma
Medium issues
                                                      Lean
                                                      Event

Many
Small issues
                                                                 Daily Kaizen

Adapted from: “The Toyota” Way Fieldbook, Liker and Meier
PDCA / PDSA


              • Plan
              • Do
              • Study
              • Adjust
Do Work   Improve Work
“What Sets Us Apart?”

    “Every Toyota team member is
    empowered with the ability to improve
    their work environment. This includes
    everything from quality and safety to
    the environment and productivity.
    Improvements and suggestions by
    team members are the cornerstone of
    Toyota's success.”
Citation: Toyota Corporate Website
Do Work   Improve Work
Kaizen ≠ Suggestion Box

                             Common Dysfunctions
•    Common Dysfunctions   •  Slow / No Response
•    Slow                  •  Yes / No
•    Yes / No              •  Not Collaborative
•    Not Collaborative     •  Not Transparent
•    Buy instead of Do?    •  Buy instead of Do?
Ideas vs. Suggestions

“ Suggestions are things
  I think you should do…

          Ideas are things
          that I can do.”

                      - Norman Bodek
QnEK Kaizen Report
Quick and Easy Kaizen
                      Find
1. Find
2. Discuss           Discuss


3. Implement
                    Implement
4. Document
5. Share            Document



                      Share
“Problem Awareness”

•  Being able to admit problems
  –  Mindset & culture


•  Being able to see problems
  –  Seeing waste, “lean thinking”
  –  From workarounds to kaizen
Start Small

•  “There are no big problems, there
   are just a lot of little problems.”
     –  Henry Ford


•    Make your job easier
•    Save a few seconds
•    Improve patient care or service
•    Improve safety
•    Reduce waiting
Learning to See Waste
Reducing Podiatrist Walking
                 Restocking Checklist
Quick and Easy Kaizen
                       Find
1. Find
2. Discuss            Discuss


3. Implement
                     Implement
4. Document
5. Share             Document



                       Share
Basic Idea Card
•  Standardized Card in Use
   –  Prompts staff through the problem solving process
Visual Idea Board
1     2
              3
                        4
Nursing Unit Cards
Completed Idea Card
Coaching on Idea Cards




Source: Healthcare Kaizen
Idea Board Progression




  Management must ensure
that ideas are followed up on
   and that new ideas are
      solicited over time.
Toyota Benchmark

                 Not
             Implemented




90%                        Implemented
Quick and Easy Kaizen
                       Find
1. Find
2. Discuss            Discuss


3. Implement
                     Implement
4. Document
5. Share             Document



                       Share
Documenting & Sharing
    Improvements

           •  What was the problem?

           •  What was changed,
              improved, or
              implemented?




           •  What were the benefits?

           •  Who was involved?
Kaizen “Wall of Fame”
“Creativity Before Capital”




Source: Healthcare Kaizen
Patient Focus (NICU)




Source: Healthcare Kaizen
Clinical Improvement




Source: Healthcare Kaizen            34
What Can We Do as Leaders?
•  Ask for Kaizens
  – Help create time
•  Lead by example – participate
  – Get involved – coach, mentor, lead
  – Go to the gemba
  – Teach root cause problem solving
  – Follow the PDCA / PDSA process
•  Recognize and celebrate kaizen
Quantifiable Results

•  Indiana University Health Goshen Hospital
  –  CEO Challenged staff to $3.5M savings in 2009
  –  They delivered double that
  –  $6.5M again in 2010
  –  $30M savings since 1998
  –  Modern Healthcare Best Workplaces
     •  No layoffs for 17 years
Quantifiable Results

•  Baptist Health Care (“Bright Ideas”)
  –  50,000 ideas since 2000
     •  14,000 ideas in 2008
  –  $50M in cost savings and avoidance
     •  $10.5M in savings, $5.5M in avoidance
  –  FORTUNE Magazine 100 Best Places to Work
     (7 years)
Franciscan Savings Impact




Source: Healthcare Kaizen
# of Recorded Kaizens




Source: Healthcare Kaizen
Franciscan Participation
                             % People Participating



      60%

      50%

      40%

      30%                                        53%

      20%                     36%

      10%

       0%
                            2010            Since 2007
Source: Healthcare Kaizen
Before / After Data from CMC Lab
                                             Before Lean   12 Months
                                                           After Starting
                                                           Lean
3. I have the opportunity to do what I do
best every day.
                                                3.11           3.92
8. I feel free to make suggestions for
improvement.
                                                2.84           3.48
10. I feel secure in my job.
                                                2.32           3.42
13. Stress at work is manageable.
                                                2.43           3.23
17. I am satisfied with the lab as a place
to work.
                                                2.51           3.43
18. I would recommend my work area as
a good place to work to others.
                                                2.38           3.46
Grand Average
                                                2.96           3.69
Employee Quote


“This is the best thing
 we’ve done in my 20
  years. We’re finally
     fixing things.”
Q&A / Contact Info
•    Email:      mark@constancy.us
•    Blog:       www.LeanBlog.org
•    Twitter:    www.twitter.com/LeanBlog
•    KaiNexus: www.KaiNexus.com
•    Books:
     – www.LeanHospitalsBook.com
     – www.HCkaizen.com (pre-launch)

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Healthcare Kaizen Webinar Mark Graban Gemba Academy Dec 2011

  • 1. “Putting the Continuous Back in Continuous Improvement” Mark Graban •  Chief Improvement Officer, KaiNexus •  President, Constancy, Inc. •  Faculty, Lean Enterprise Institute Author, Lean Hospitals: Improving Quality, Patient Safety, and Employee Engagement (2nd edition, November 2011) Co-Author, Healthcare Kaizen (Coming April 2012) © 2011, Constancy, Inc. & Mark Graban / Joe Swartz
  • 2. Kaizen Kai = Change Zen = Good
  • 3. Improvement Focus Eastern Western Staff morale & engagement “ROI” (Return on Investment) Source: Masaaki Imai, KAIZEN (1986)
  • 4. Dr. Berwick’s Call for Kaizen (1989) •  ”Continuous Improvement as an Ideal in Health Care” –  Kaizen = “the continuous search for opportunities for all processes to get better” •  Dr. Donald Berwick –  Founder, Institute for Healthcare Improvement –  Former Administrator, Medicare and Medicaid (CMS) Citation: Berwick, DM, “Continuous improvement as an ideal in health care,” New England Journal of Medicine, 1989 May 25;320(21):1424-5.
  • 5. People Hate Change? “People don’t resist change, they resist being changed.” –  Peter Scholtes (1938-2009)
  • 6. Episodic Improvement Events •  “Kaizen Blitz” –  An effort to fix a specific problem of limited scope –  Characteristics: Ø Typically a weeklong “Event” Ø Cross-functional teams Ø Define and fix the problem NOW (action oriented) •  “Kaizen Event” or “Kaikaku Event”? –  Rapid Improvement Event (RIE) –  Rapid Process Improvement Workshop (RPIW)
  • 7. Backsliding from Events •  “… we were only holding the gains on about 40 percent of those changes, partially because it is easy to slip back into old ways of doing things if there is a lack of accountability and follow through.” –  Christina St. Martin, Virginia Mason Medical Center •  Root cause of this? Citation: St. Martin, Christina, “Seeking Perfection in Health Care: Applying the Toyota Production System to Medicine,” Performance and Practices of Successful Medical Groups: 2006 Report Based on 2005 Data, Medical Group Management Association, 20.
  • 8. Different Levels of Kaizen Very few Large issues System Kaizen Six Few Sigma Medium issues Lean Event Many Small issues Daily Kaizen Adapted from: “The Toyota” Way Fieldbook, Liker and Meier
  • 9. PDCA / PDSA • Plan • Do • Study • Adjust
  • 10. Do Work Improve Work
  • 11. “What Sets Us Apart?” “Every Toyota team member is empowered with the ability to improve their work environment. This includes everything from quality and safety to the environment and productivity. Improvements and suggestions by team members are the cornerstone of Toyota's success.” Citation: Toyota Corporate Website
  • 12. Do Work Improve Work
  • 13. Kaizen ≠ Suggestion Box Common Dysfunctions •  Common Dysfunctions •  Slow / No Response •  Slow •  Yes / No •  Yes / No •  Not Collaborative •  Not Collaborative •  Not Transparent •  Buy instead of Do? •  Buy instead of Do?
  • 14. Ideas vs. Suggestions “ Suggestions are things I think you should do… Ideas are things that I can do.” - Norman Bodek
  • 16. Quick and Easy Kaizen Find 1. Find 2. Discuss Discuss 3. Implement Implement 4. Document 5. Share Document Share
  • 17. “Problem Awareness” •  Being able to admit problems –  Mindset & culture •  Being able to see problems –  Seeing waste, “lean thinking” –  From workarounds to kaizen
  • 18. Start Small •  “There are no big problems, there are just a lot of little problems.” –  Henry Ford •  Make your job easier •  Save a few seconds •  Improve patient care or service •  Improve safety •  Reduce waiting
  • 20. Reducing Podiatrist Walking Restocking Checklist
  • 21. Quick and Easy Kaizen Find 1. Find 2. Discuss Discuss 3. Implement Implement 4. Document 5. Share Document Share
  • 22. Basic Idea Card •  Standardized Card in Use –  Prompts staff through the problem solving process
  • 26. Coaching on Idea Cards Source: Healthcare Kaizen
  • 27. Idea Board Progression Management must ensure that ideas are followed up on and that new ideas are solicited over time.
  • 28. Toyota Benchmark Not Implemented 90% Implemented
  • 29. Quick and Easy Kaizen Find 1. Find 2. Discuss Discuss 3. Implement Implement 4. Document 5. Share Document Share
  • 30. Documenting & Sharing Improvements •  What was the problem? •  What was changed, improved, or implemented? •  What were the benefits? •  Who was involved?
  • 31. Kaizen “Wall of Fame”
  • 33. Patient Focus (NICU) Source: Healthcare Kaizen
  • 35. What Can We Do as Leaders? •  Ask for Kaizens – Help create time •  Lead by example – participate – Get involved – coach, mentor, lead – Go to the gemba – Teach root cause problem solving – Follow the PDCA / PDSA process •  Recognize and celebrate kaizen
  • 36. Quantifiable Results •  Indiana University Health Goshen Hospital –  CEO Challenged staff to $3.5M savings in 2009 –  They delivered double that –  $6.5M again in 2010 –  $30M savings since 1998 –  Modern Healthcare Best Workplaces •  No layoffs for 17 years
  • 37. Quantifiable Results •  Baptist Health Care (“Bright Ideas”) –  50,000 ideas since 2000 •  14,000 ideas in 2008 –  $50M in cost savings and avoidance •  $10.5M in savings, $5.5M in avoidance –  FORTUNE Magazine 100 Best Places to Work (7 years)
  • 39. # of Recorded Kaizens Source: Healthcare Kaizen
  • 40. Franciscan Participation % People Participating 60% 50% 40% 30% 53% 20% 36% 10% 0% 2010 Since 2007 Source: Healthcare Kaizen
  • 41. Before / After Data from CMC Lab Before Lean 12 Months After Starting Lean 3. I have the opportunity to do what I do best every day. 3.11 3.92 8. I feel free to make suggestions for improvement. 2.84 3.48 10. I feel secure in my job. 2.32 3.42 13. Stress at work is manageable. 2.43 3.23 17. I am satisfied with the lab as a place to work. 2.51 3.43 18. I would recommend my work area as a good place to work to others. 2.38 3.46 Grand Average 2.96 3.69
  • 42. Employee Quote “This is the best thing we’ve done in my 20 years. We’re finally fixing things.”
  • 43. Q&A / Contact Info •  Email: mark@constancy.us •  Blog: www.LeanBlog.org •  Twitter: www.twitter.com/LeanBlog •  KaiNexus: www.KaiNexus.com •  Books: – www.LeanHospitalsBook.com – www.HCkaizen.com (pre-launch)