TPMG. Lean. Transformation In Healthcare. Consulting. Improving patient outcomes and satisfaction while driving down the cost of care!

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1 TPMG Consulting Lean Improving patient outcomes and satisfaction while driving down the cost of care! Transformation In Healthcare Service Description: Excellence in Healthcare Delivery

2 TABLE OF CONTENTS Introduction 3 Lean Transformation Excellence in Healthcare Delivery 4 Consulting Service Descriptions 5 Training Service Descriptions 8 Training Service Pricing 12 Consulting Service Pricing 13 2

3 Introduction The Performance Management Group LLC An Arizona Limited Liability Company (established in 1998) Our Mission: Helping public and private sector organizations become more productive, efficient & cost effective. Our Structure: We are a closely held group of independent consultants who consistently employ the signature TPMG performance improvement approach through specialized services including: Lean Six Sigma, The Balanced Scorecard, Performance Analytics, Non-Value Added Analysis, Activity Based Costing and Strategy Consulting. Our company details are as follows: Address: P.O. Box Phoenix, Arizona Phone: Type of Incorporation: Arizona Limited Liability Company 5/1998 DBE Certification # AZ00161 DBE Certifying Agency: National Minority Supplier Development Council (NMSD) NAICS Codes: Administrative Management & General Management Consulting Services DUNS Number: Process, Physical Distribution, and Logistics Consulting Services CAGE Code: 3SDW Professional and Management Development Training Consultant Locations 3

4 Lean Transformation for Healthcare What is Lean Management? Lean management refers to a company s style of operational excellence. Made popular by the Toyota Principles of Value Based Healthcare Delivery method of production, also known as Total Productive Maintenance (TPM); lean thinking was given life in Healthcare Outcomes + Patient Satisfaction North America as a result of the work of MIT Value = researchers lead by James Womack, Daniel Jones and Cost of Healthcare Delivery Daniel Roos, The Machine that Changed the World. The objective of lean management in healthcare is to create value for a healthcare delivery organization. Value in healthcare is expressed in terms of the quality of healthcare outcomes and satisfaction of patients divided by the cost to produce those outcomes over the continuum of care. In our attempt to keep things simple, TPMG describes lean management as: A quality improvement business practice that strives to produce perfection in the delivery of products and services. Process Perfect A method of management that uses facts, information and data to make decisions and manage business performance. A problem solving method that identifies root causes to problems and determines permanent solutions. From an operational perspective, the value proposition of lean transformation is to improve the quality of work. Improving quality creates a chain reaction. When a provider organization improves quality, their costs go down. Their costs go down to the tune of 20 40% of total operating expenses. The cost reduction occurs because the expense of wasted effort, reworking problems, correcting medical errors, re-admitting patients, and correcting invoices is eliminated. As rework goes down, productivity naturally improves. Productivity improves because of the more efficient use of human time & effort, technology and working capital in value added care activities. Improved productivity creates of better patient outcomes. Better patient outcomes and the elimination of non-value added cost leads to greater profit margins and enhanced economic value. The additional economic value funds growth and innovation, which lead to improved healthcare quality and high value jobs. From a patient perspective, implementing lean management also creates a chain reaction. When a provider organization implements lean management, they continuously adapt their services to exceed patient needs, attitudes and perceptions. They accomplish this by translating the voice of the patient into operational requirements and structure their systems and processes to continuously exceed those requirements Over time, they capture the market with better healthcare outcomes, greater patient satisfaction and a superior reputation as a healthcare delivery organization. 4

5 Lean Management Service Descriptions Organizational Readiness Analysis Building a Culture of Continuous Improvement Cultural Assessment TPMG uses two methods to determine the cultural readiness level of a healthcare organization to adopt a lean management system: 1) A Lean/Continuous Improvement Readiness Survey and 2) Current State Level 1 Process Analysis. The readiness survey is a tool used to assess a healthcare organization s pre-disposition towards lean management practices. The instrument determines the cultural systems that may restrain the adoption of a lean effort and those drivers that can promote an effective lean program implementation. Examining Organizational Structures and Incentives - Red Flagging A current state level 1 process analysis is a high level process evaluation where black belts (BB) and master black belts (MBB) take a cursory walk through the gemba. As an organizational doctor looking for symptoms which can potentially challenge a lean management effort, the TPMG Consultant pinpoints and red flags structures, traditions and incentives which may constrain the effectiveness of a lean management deployment Analysis and Conclusions - Baselining underlying cultural and management challenges Work products produced from the baselining effort include: Compiled Survey Results Completed Situational Analysis Drawn Conclusions Pinpointed Culturally Hostile Attitudes & Structures Highlighted Culturally Friendly Rules & Incentives Integrated Findings into Lean Adoption Strategy The findings produced by both the cultural readiness survey and the level 1 process analysis are integrated into the lean transformation strategy. TPMG leverages its expertise in organizational behavior to produce a high performance culture that will accommodate and promote the successful implementation of a lean transformation. 5

6 Lean Management Service Descriptions Kaizen Workshops Adding bankable value to the organization! Kaizen Workshop Description Kaizen is a focused, high energy, high velocity cross-functional team workshop event. A 1-week Kaizen Event, following a tightly scoped 3-day Define phase of the Lean Six Sigma DMAIC process, focuses cross-functional teams on the Measure-Analyze-Improve-Control phases of the DMAIC process. Teams define the reason for improvement and a Kaizen s potential value add using value stream maps, process walkthroughs, and data. Teams analyze the process and identify root causes. They generate an effective and feasible solution, pilot and implement improvements, train affected employees, and ensure new processes perform to expectation. Results and remaining actions presented to management are completed with facilitation following the event. The total 1-3 week effort is typically divided into stages: Kaizen Event Prep, Kaizen Event and Kaizen Close. Participants learn a continuous improvement implementation strategy that is quick and effective. They will also learn how to use a wide array of tools and problem solving techniques as well as how to map, measure, analyze, plan, implement and sustain significant process improvements. Kaizen Results Typical Kaizen results are a 20-50% reduction in Lead Time, 5-20% improvement in productivity, 20-50% reduction in inventory, and significant improvements to quality, on-time performance, and safety. Typical savings range from $10K-$250K in hard dollar bankable savings per Kaizen event. 6

7 Lean Management Service Descriptions Facilitated Professional Services Breakthrough improvements and bankable savings! Advisory Services TPMG Consultants provide expert advice, assistance, and guidance in support of organizational and business improvement efforts. Professional services include: 1. Operational studies, analyses and reports 2. Project management of improvement initiatives 3. Strategic planning facilitation 4. Establishing enterprise performance measurement systems 5. Business improvements in cycle times; leadership systems; and re-engineered processes TPMG Consultants employ a variety of methodologies, including value stream analysis, activity based costing, Six Sigma DMAIC, A3, and lean methods such as theory of constraints, takt time analysis and 5S. Typical TPMG Consulting projects yield an average of $259k in hard dollar bankable cost savings along with percent improvements in productivity and efficiency. Program Management The program management skills of TPMG Consultants are used to: 1. Work with senior leaders to develop a long term performance excellence vision. 2. Integrate lean transformation into a healthcare system s business strategy. 3. Develop lean management program infrastructure 4. Deploy the lean management system Contingent Work Force Our team can supplement your workforce and be used to improve cost efficiency, operational effectiveness and measurably improve overall organizational performance. Our lean six sigma black belts facilitate: 1. The identification of process improvement needs: prioritization and execution of projects 2. Suggestion and implementation of best practices 3. Business process re-engineering initiatives and Kaizen Events 4. The establishment of performance analytics programs 5. The design of voice of the customer strategies 7

8 Lean Management Training Descriptions Lean Excellence in Healthcare Delivery Training Programs Educating the Enterprise Lean Management Executive Champion Training This 1-2 day course is designed to prepare senior leaders and middle managers to perform their oversight roles during a Lean Healthcare Transformation deployment. The course provides leaders with a working knowledge of the Lean management program methodology and processes. The course also provides them with guidelines for performing their lean leadership roles. Course topics include: 1. Principles of Lean Management for Healthcare 2. How to make making lean management a way of life 3. How to provide ongoing direction and support 4. How to review progress of Lean Management initiatives 5. How to publicly recognize & reward initiative teams 6. Balanced scorecard approach, strategy sessions operations reviews 7. Management by Fact Structured Problem Solving 8. Review performance and create plans for improvement 9. How to set direction, create customer focus, clear values and high expectations. 10. How to inspire, motivate, and empower a work force Lean Management for Individual Contributors and Employees This 3 day course is designed to prepare frontline employees and functional leads to perform as members of healthcare improvement initiatives. Course topics include but are not limited to: Lean 6σ Excellence in Healthcare Delivery 1. Roots of Lean Management 2. Analyzing Performance 3. Value Stream Analysis 4. Traditional Flow Charting 5. The Voice of the Customer 6. Tools for Continuous Improvement 7. Management by Fact Structured Problem Solving 8. Team Dynamics and People Skills 9. Lean Fundamentals Applied (VSM, A3, 5S, etc.,) 8

9 Lean Management Training Descriptions Lean Excellence in Healthcare Delivery Training Programs Green Belt Certification Lean Management Green Belt Certification Training This 1 2 week course provides Green Belt candidates with the understanding of Lean Management and Six Sigma improvement tools for continuous improvement. They also learn project management fundamentals for Black Belt projects and how to lead small scale improvement projects. Topics addressed are healthcare oriented and include but are not limited to: 1. Roots of Lean Management 2. Analyzing Performance 3. Value Stream Analysis 4. Traditional Flow Charting 5. The Voice of the Customer 6. Tools for Continuous Improvement 7. Management by Fact Structured Problem Solving 8. Lean Fundamentals for Service Organizations 9. Team Dynamics and People Skills 10. Deploying the Lean Management System 11. Deploying the Balanced Scorecard Green Belt Certification for Healthcare There is a certification exam where 80% is a passing score. 9

10 Lean Management Training Descriptions Lean Excellence in Healthcare Delivery Training Programs Black Belt Certification Lean Management Black Belt Certification Training This 2-3 week course provides the Black Belt candidate with an integrated Lean and Six Sigma curriculum enabling them to apply the DMAIC methodology (Design Measure Analyze Improve Control) with success. Topics are healthcare oriented and include but not limited to: 1. The Roots and History of Lean Management 2. Analyzing Performance 3. Value Stream Analysis 4. SIPOC Process Mapping 5. Traditional Flowcharting 6. The Voice of the Customer 7. Tools for Continuous Improvement 8. Statistical Process Control for Service Organizations 9. Financial Impact Analysis 10. Activity Based Costing 11. Change Management 12. Team Dynamics 13. Data Collection Techniques 14. Management by Fact DMAIC Approach 15. Lean Fundamentals for Service Organizations 16. Sources of Service Waste 17. A3, 5S, Theory of Constraints etc The Balanced Scorecard This unique course is particularly applicable in complex processes where quality improvement, speed and process cycle time reduction are critical for organizational success. Successful completion of the Black Belt course requires attendance of all sessions of training and passing the certification exam with a grade of 80% or higher. Black Belt Certification for Healthcare 10

11 Lean Management Training Descriptions Lean Excellence in Healthcare Delivery Training Programs Train the Trainer Train the Trainer - Cultivating Internal Expertise TPMG Consultants provide train-the-trainer certifications. In this course, employees are trained in adult learning theory and certified to train others in lean methods and continuous improvement. Client employees learn how to conduct training sessions themselves so they can sustain the program after TPMG leaves. This train the trainer approach is essential to build capabilities and the capacity to maintain the momentum and potency of the transformation in a large organization. As TPMG s role in the program deployment winds down and lean management becomes the organizations way of working, client employees become the skilled change agents who become part of the client s internal improvement group that sustains the transformation. 11

12 Lean Management Training Descriptions Lean Excellence in Healthcare Delivery Training Programs Online Training Lean Six Sigma Excellence in Healthcare Delivery Programs Online Designed for working professionals, TPMG s online lean six sigma program delivers comprehensive coursework in all facets of lean six sigma certification. The class is patterned after online Global MBA Management Courses. A TPMG Lean Six Sigma Master Black Belt will be provided, once per week for 6 weeks, to conduct 4 hour live instruction and review sessions. To further cohort interaction, you will lock step with your classmates for the duration of the program with opportunities to meet and study together online. You will have: Immediate access to coursework at anytime from anywhere Engaging online lectures (live and self-paced) Interactive chats/bulletin boards Online collaboration with your Master Black Belt Instructor and classmates using technology of modern global business Online Certification Training Options Lean Six Sigma Healthcare Black Belt Certification Online Blended Lean Six Sigma Healthcare Green Belt Certification - Online Self-Paced 12

13 Training Service Pricing Lean Excellence in Healthcare Delivery Training Programs Pricing Structures Training Service Per Session Rate* Maximum Number of Participants Lean Management Executive Champion Training (1-2 Days) Lean Management for Individual Contributors and Employees (3 days) Lean Management Green Belt Certification Training (1-2 Weeks) Lean Management Black Belt Certification Training (2-3 Weeks) Online Lean Healthcare Black Belt Certification Online Lean Healthcare Green Belt Certification $3, $5, $15, $25, $1,500 per candidate $ per candidate N/A N/A *plus the cost of software and materials ~ $225 per candidate 13

14 Professional Service Pricing Lean Deployment Effective, High Quality and Affordably Priced Deployment Package Complete Lean Deployment, Including: 1. Program Development 2. Professional Services 3. Certification Education 4. Licensed Materials Estimated Cost*: $60, to $80, Contact us today! We will provide you with a fully costed preliminary lean management deployment plan. Term: 6-8 months * Dependent on travel expenses Lean Deployment Maturity Model: We Keep it Simple Initiate 1. Create Strategy 2. Produce Objectives 3. Create Action Plans Facilitate 1. Training & Certification 2. Project Selection 3. Mentoring & Coaching 4. Train the Trainer 5. KPI System Design Transition 1. Award Certifications 2. Realize Outcomes 3. Strategy and Operations Reviews 3. Roadmap for the Future 14

15 Contact Information Lean Transformation for Healthcare We provide resources: To supplement your current talent pool as a contingent workforce For healthcare improvement initiatives For workshops and Kaizen events For lean transformation coaching and advisory services For dedicated consulting engagements and lean management adoption Contact us today! The Performance Management Group LLC Professional Services Consulting P.O. Box Phoenix, AZ Phone:

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