Lean Value Analysis
New Rules, Systems & Models for Long-Lasting Savings Performance!
LEAN
VALUE
ANALYSIS
PROGRAM
Isn’t About Time You Re-Think, Re-New And Re-Invent Your Value Analysis Model To Do The Hard Work That Is Required In The 21st Century!
It’s been 21 years since traditional Value Analysis emerged as a best practice in healthcare. This stratagem has led the way to some of the most important breakthroughs in supply chain cost management in the last decade. Nevertheless, if you are really honest with yourself, it isn’t getting the job done in the 21stcentury.
In years past, just putting together a value analysis committee or team(s) assured you of generating a variety of savings (mostly GPO savings) that just happen unimpeded and unrestricted. I hope you have realized by now that the time has passed when you can make these easy and effortless savings continue to flow, surge and gush without changing how your value analysis committee or team(s) is organized, structured, selected, trained, measured, motivated and controlled.
In fact, to continue to make big savings happen for your healthcare organization you will need to optimize your supply value analysis process if you are serious about meeting the challenges you will be facing in the 21st century.
Can You Think of Anything That You Were Doing 21 Years Ago that Has Not Been Upgraded, Automated, Refined or Advanced?
Can you think of anything that you were doing related to supply chain management 21 years ago that hasn’t been upgraded, automated, refined, or advanced to the next level of performance? With few exceptions, I think that the answer would give is NOTHING! Then why are you still employing the same value analysis model you have been utilizing for 6, 12 or even 21 years?
Isn’t it about time you re-think, re-new and re-invent what you are doing related to value analysis to move your committees or team(s) to the next level of performance too? By doing so, you will consistently grow your profits, cut cost, improve quality, eliminate all defects, waste and variations, etc. in your supply chain. This is what Value Analysis 2.0 is all about; deploying the new next generation value analysis model to “wing the towel dry” on your supply chain savings.
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“We have identified (and implemented) over $1 million in savings the last 2 years. Beyond that, there is value in the (Value Analysis 2.0) process and the commitment it creates among organization leaders and staff. It also brings the importance of every purchase to “top of mind awareness.” Jay Johnson, Vice President, Stillwater Medical Center, Stillwater, Oklahoma |
What’s Different about LEAN Value Analysis?
What’s different about LEAN Value Analysis, and is missing in value analysis 1.0, is a framework of discipline, new rules and a defined six-step system for your value teams to religiously follow that can be measure, monitored and controlled to identify, implement and sustain your supply savings – over the long term.
Wouldn’t you agree it’s time for all supply chain professionals to realize that if you are to attack your hard to get at savings – but robust savings opportunities in the future – you will need new strategies, tactics, techniques and systems that they you won’t find in traditional value analysis models that are now tired, worn-out and obsolete in the 21st century.
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CASE STUDY: 400 Bed Community Medical Center Saves $4 Million and Wins GPO National Leadership Award Too! CHALLENGE - 400-bed California not-for-profit community medical center, noticed that its supply, services and technologies cost had been escalating in recent years and wanted to be more proactive in attacking these increases. GOAL- To develop and sustain a data driven process focused on their products, services and technology whereby purchasing and utilization decisions are based on meeting the functional requirements of their customers most efficiently. And employ Strategic Value Analysis® methods to systematically analyze all of the millions of dollars of products services and technologies that they purchase on an annually. SOLUTION - Adopted SVAH's scientific, customer driven and function-oriented approach known as the LEAN Value Analysis System. Thereby, plan, organize, train, monitor and coach the hospital’s four value analysis teams (Steering, Surgical, Med/Surg and Support Services) through a system wide supply value analysis program. RESULTS - In less that 18-Months the medical center was able to exceed their $4 million dollar savings goal and also were recognized by their National GPO as a Supply Chain Best Practice Leader in 2003 with their successful LEAN Value Analysis Model. |
Why Do We Need New Rules, Systems & Models For New Long-Lasting Savings Performance?
Most healthcare organizations are “hitting the wall” on their supply chain savings because their value analysis committees and teams have been too informal, unstructured and free form to get the job done. To move to the next level of savings performance your value analysis committee or team(s) will need to have new rules, systems and operational models to generate new and long- lasting performance.
For example, your teams need to be heterogeneous (think and act differently) vs. homogenous (think and act alike) in design to create what we call “Creative Friction” if you are looking for new and better savings outcomes and quality results. Otherwise, your committee or team members will continue to be resistant to change, fight new savings ideas and hold on to their old ways of doing things.
“The LEAN Value Analysis System created supply chain awareness throughout our hospital and got people to start taking about other ways to save money. In fact, we are now under budget in our supplies expenses for the first time in years, which might not be a coincidence. I would say that the system was well worth our investment for the awareness it brought to our hospital."
Bill Baecker, CFO, Clinton Memorial Hospital, Wilmington, Ohio
7 Benefits of the LEAN Value Analysis Model
The best argument we can make to convince you to upgrade to a LEAN Value Analysis Model is the powerful benefits that would accrue to you by doing so, such as:
1. GROWING YOUR PROFITS by as much as 1% 2% or even 3% by uncovering the unnecessary and unwanted cost in your supply chain.
2. CUTTING YOUR COST by an additional 3%, 6% or even 9% through a disciplined approach to supply chain savings.
3. IMPROVING YOUR QUALITY by eliminating all waste and inefficiency in your value chain.
4. ELIMINATING ALL DEFECTS that your customers don’t want or need in your supply chain.
5. INCREASING YOUR CUSTOMER’S satisfaction by proactively solving their bothersome supply chain problems.
6. SPEEDING UP your savings yield and throughput by as much as 76% by transforming your value analysis teams into real life money-saving machines.
7. MAKING YOUR JOB EASIER because all of your savings objectives will just happen automatically for you.
These huge benefits can be yours today if you take the first step by filling out the “no cost” – no obligation” Supply Savings Scorecard you will find below. You have nothing to lose and everything to savings by doing so!
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