Chapter 1
Introduction
This book is about people who have implemented dramatic change in their organizations by applying the principles and methods of the Toyota Production System (TPS) to healthcare. In this second edition there are new chapters by people who have adopted a Lean strategy since we last published, epilogues to first-edition chapters by people who have been on this journey for many years, as well as chapters that remain as written from the first edition. Each chapter tells how determined men and women have applied the principles of TPS to their work, innovating and leading their organizations forward. These people are improving the patient experience by reducing waste and thereby reducing costsāvitally important to all of us, given that our healthcare system currently consumes almost 20 percent of U.S. gross domestic product.
Each of these stories started with a healthcare leader who was curious enough to read about TPS (or āLeanā), participate in training, and visit manufacturing companies that have proven Lean track records. Curiosity and exposure to new ways of thinking helped these leaders understand that much of what we do in healthcare is waste ācleverly disguised as real work.ā Curiosity also led them to understand that quality, cost, patient access, and safety are not mutually exclusive trade-offs but intersecting aims that can be improved concurrently if we are willing to learn from the likes of Toyota.
In our first edition of this book, we described the approach and lessons learned from some of the earliest healthcare organizations to apply TPS to their operations. Our focus, and theirs, was primarily on the ābreakthroughā half of the Lean journey: the exciting initial forays in breakthrough improvements that often produce impressive results in waste reduction and staff engagement. However, we learned through experience that the gains that improvement teams struggle so hard to achieve can be easily lost. Five years later, chapters in this second edition address the need to couple breakthrough improvements with the other half of the Lean journey: the Lean management system (LMS). In 2010, we began organizing study trips to manufacturers steeped in LMS so that healthcare leaders could learn from the best. We observed leaders using LMS as a powerful means of focusing their organizations and achieving breakthrough levels of performance. We also observed a commitment to sustaining gains and ongoing, never-ending improvement through the rigor and discipline of LMS. These study trips made us realize that everyone in our organization, from executive leaders to those at the front lines of care, needed to embrace a new way of thinking and a new way of going about their work. No longer could Lean be a project-by-project activity with episodes of improvement. We had to all take on the responsibility for continuous, daily improvement, the cornerstone of LMS.
The stories that follow come from Seattle Childrenās Hospital (SCH) and other organizations that have engaged Joan Wellman & Associates (JWA Consulting) as consultants over the last 15 years: The Everett Clinic in Everett, Washington; Nemours Childrenās Health System in Florida and Delaware; and Seattle Cancer Care Alliance. These organizations vary widely in size and complexity from stand-alone hospitals (SCH) to multi-institutional systems (Nemours). These organizations also have very different physician models including a primarily academic model (Seattle Childrenās Hospital), an employed physician model (Nemours), and a physician-owned model (Everett Clinic).
The case studies demonstrate that organizations can effectively apply Lean principles regardless of their size, physician model, or structure. These organizations use different words to describe their version of the Lean approach, but their strategies are grounded in the same enduring philosophy around which everyone in the healthcare enterprise can rally: focus on the patient, support your people in their work, and take a strategic, long-term view. Lean is about reducing waste to achieve the goals that increase value for the patient. These goals, which we refer to in shorthand as QCDSE, are to improve quality, decrease cost, improve delivery (patient access), improve safety, and increase engagement of all organization members in continuous improvement. These stories demonstrate how Lean can drive and sustain improvement in QCDSE.
Furthermore, the variety of stories offered in the second edition demonstrate that Lean applies everywhere in the healthcare enterprise, with the engagement of everyone, every day. If the Lean effort in your organization has been pigeonholed to āonly operationsā or āonly patient flow,ā with your colleagues thinking that Lean has little to do with the business office, or the work of caregivers or executives, take heart. This edition provides evidence that Lean is relevant everywhere in your institution. Youāll learn, for example:
How a cancer clinic overcame problems with inconsistent and unsustained results and achieved 100-percent improvement in on-time performance and 28-percent improvement in new slot utilization
How a behavioral health clinic cut wait time for new appointments by almost 50 percent
How clinical standard work can become the focus of collaborative, cross-disciplinary work that is continuously improved, reducing length of stay while improving resident teaching and patient outcomes
How a health system improved productivity in its materials distribution process and improved productivity of materials management staff by 400 percent
How clinical standard work in an intensive care unit (ICU) greatly reduced use of opiates, patient time on ventilators, and length of stay, but when those gains eroded over time a new understanding of the role of continuous improvement emerged
How standard work for rounds resulted in higher patient satisfaction, less travel, fewer handoffs, and improved learning experience for residents
How safety was improved and cost reduced for total parenteral nutrition (TPN) and, through continuous improvement, greatly reduced utilization of TPN overall
How central line infection rates on a cancer unit were reduced after āplateauing outā for a number of years
How nonoperative time in the operating room (OR) was reduced by 50 percent and with sustained gains
How a business office saved millions of dollars by removing waste in the registration to cash value stream
How a complex inpatient lab went beyond improvements in the core lab to reduce turnaround times by more than 50 percent for microbiology, autopsy testing, and cytogenetics
How costs were reduced from $100 million to $70 million using Lean design and construction on an outpatient surgery and ambulatory center
Achieving outstanding results is anything but easy. You donāt have to read between the lines of these stories to realize how hard it is to change deeply ingrained behaviors that embed waste and thwart the delivery of compassionate, safe, patient-centered care. Youāll no doubt recognize the challenges as the authors describe their efforts to build and maintain a consensus for change in their organizations.
This book is not a āhow toā improve healthcare book, or a recipe on how to run an operating room or intensive care unit more efficiently. It is a book about curiosity, humility, and the tenacity to challenge deeply held assumptions about how we deliver healthcare. Implicitly, the most fundamental assumption that this book challenges is that our country needs more money to operate an effective healthcare system. What we need most is great leaders who, like the chapter authors in this book, have the skill and tenacity to look critically at what they are doing and find better, less wasteful ways to provide safe, high-quality care.
Patrick Hagan
Amelia Island, Florida
Joan Wellman
Seattle, Washington
Chapter 2
The Continuous Performance Improvement (CPI) Journey: A Long and Winding Road
Patrick Hagan
Our continuous performance improvement (CPI) journey has be...