LEAN HOSPITALS MARK GRABAN PDF

He builds upon a deep education in engineering and management with practical experience working with executives and frontline employees in multiple industries to synthesize and practice methods including Lean management, continuous improvement, statistical methods, and people-centered leadership approaches. In his healthcare work, this means improving the quality of care and patient safety, while also reducing cost and improving the workplace experience. Across multiple sectors, goals also include improving the customer or patient experience, to help the development of leaders and employees, and to build stronger, more adaptive organizations for the long term. He has learned, practiced, and taught these methodologies in settings including manufacturing, healthcare, and technology startups. Working independently since , and in partnership with other consulting groups, Mark enjoys working with organizations that are looking for better ways to improve, with leaders who are willing to lead that charge. Mark also consults part time as a Senior Advisor for healthcare clients with the firm Value Capture.

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This is from the 3rd edition of my book Lean Hospitals. I also posted this on LinkedIn and there was a little bit of discussion generated if you want to check it out. See Figures 6. Kanban systems typically have fewer stockouts and better availability of materials than traditional materials management methods. Trade-Offs with Inventory In any system, there are trade-offs between high availability of materials and increased inventory costs, especially when the use of supplies is not perfectly predictable or steady.

This is certainly the case in hospitals. Generally speaking, the cost of inventory rises as we want to be more certain that we never run out. While our primary goal is to keep patient care flowing and ensure staff have the supplies they need, we sometimes have to look at the trade-offs and costs involved.

This trade-off can be seen with expired or obsolete inventory. We cannot expect constant availability yet also insist there be zero wasted inventory. Other industries, such as manufacturing, might not want to run out of a particular item because the cost of shutting down an automotive assembly line for an hour is very high. That, however, does not compare to the cost of a life lost because a critical blood component, medication, or supply was not available.

When the cost of stockouts is high, we have to err on the side of excess inventory. For items that are less critical, or have a close substitute, we can more easily allow some risk of stockouts. Another trade-off to consider is the frequency of ordering from outside vendors. If we order less often, we can order in larger quantities. The downside with ordering less frequently is that we have higher inventory management costs, which include Cash tied up in inventory Space required for storage Labor required to move, count, and maintain inventory Risk of damage, obsolescence, or expiration Ordering more frequently also reduces the overall risk of stockouts because we can reevaluate actual usage and respond more quickly if we are ordering small amounts weekly instead of large amounts quarterly.

The kanban method allows us to quantify an optimal reorder point for supplies. As many organizations do in conjunction with their supply chain redesign efforts, HHC rationalized the variety of rubber gloves that are available.

Instead of 20 different colors and thicknesses, there are now just two options available in different sizes, of course.

These shortages might also, sadly, be coming to your town. So are the hospitals that were NOT using Lean to any extent.

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Mark Graban

This is from the 3rd edition of my book Lean Hospitals. I also posted this on LinkedIn and there was a little bit of discussion generated if you want to check it out. See Figures 6. Kanban systems typically have fewer stockouts and better availability of materials than traditional materials management methods. Trade-Offs with Inventory In any system, there are trade-offs between high availability of materials and increased inventory costs, especially when the use of supplies is not perfectly predictable or steady.

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