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NOVEMBER 13, 2002

PART III: How to Build Blockbuster Value Teams

“ Data Analytics Is At The Core of the Value Methodology, But Most Value Practitioners Ignore This Fact”

Robert T. Yokl - President - The HCP Group, Ltd.

Data Analytics or an investigation based on numbers and data is at the core of the value methodology and is the #3 ingredient that is required to build “blockbuster” value teams, but most value practitioners ignore this fact. Edward Deming once remarked that, “views not backed by (numbers and) data are more likely to include personal opinions, exaggeration and mistaken impressions.  This is the reason why most evaluation/selection processes fail to drive out non-conforming products, services and technologies and all waste and inefficiencies in a healthcare organization’s supply/value chain.

Doing it with Data

Value analysis as the name implies, is a process or method of studying the functions of a product, service or technology to determine their essential functions and relationships to each other.  Value teams can only perform proper and accurate value studies if and when they develop the necessary analytical skills, and then habitually use data for the purpose of analysis.

One hospital value team we worked with found the axiom “doing it with data” to be true when they studied their point of service diabetes test strip system they were purchasing at $100,000 annually. First they found by using data, that this system that was costing them $1.20 per test vs. 24 cents per test at benchmarked hospitals. Secondly, they found that they were using twice as many strips as their benchmarked hospitals.  With this data in hand, not opinions, exaggerations or mistaken impressions, they discovered that their point of service diabetes testing equipment required two strips to be used to get one good test result because the testing equipment was designed improperly.  This then save their hospital $68,000 annually once the faulty equipment was replaced with a new diabetes point of service system.

Seven Critical Data Collection/Analysis Tools

You don’t need a masters’ degree or doctorate in mathematics or statistics to become proficient in data analytics.  All you need is to teach your value team leaders and team members how to use seven basic, but critical data collection/analysis tools: Flow Chart, Run (trend) Chart, Control Chart, Cause-and-Effect diagram, Pareto Chart, Histogram and Scatter Diagram. An easy way for your value teams to become proficient in data analytics is to order “The Memory Jogger: A Pocket Guide of Tools for Continuous Improvement and Effective Planning”, from GOAL/QPC* (800) 643-4316 for each of your team leaders and team members.  This little 51/2” x 31/2” 162 page book is a convenient and quick reference guide that will show your team members what tools they need for each of their projects and how to use these data collection, classifications and analysis tools without getting a degree in mathematics. Now that you know the #3 ingredient for a building a blockbuster value team – go do it with data!

Robert T. Yokl, President, The HCP Group, Ltd., has over 35 years of experience as a consultant and manager in the field of Supply/Value Chain Management and is one of the country's leading healthcare experts in value analysis, value engineering and materials management. He is the developer and program leader of the award winning Certified Value Analysis Practitioner Training Program™. Mr. Yokl is also the developer of the healthcare industry's leading ValueNetCentral™ Value Analysis Software. Over the past two decades he has trained thousands of healthcare managers in his patented Strategic Value Analysis™ and Team-Based Project Management™ processes and has assisted scores of organizations in developing their own value management programs. He has published six books, videos and audios on supply/value chain management. His latest book being, “ Strategic Value Analysis™: The #1 Smart Strategy for Taking Cost Out of a Healthcare Organizations’ Supply/Value Chain”.