Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
by Strategic Value Analysis® in Healthcare
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly eNewsletter - Feb. 26, 2008
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Leaving The Back Door Open!
We had a discussion last week with one of our new partners about our Utilizer™ Dashboard version 2.0 when our partner caught me by surprise with this comment, “Now that most hospitals are closing the front door on their price savings, they are still leaving the back door open on their utilization misalignments where their greatest savings can be achieved.” Wow, isn’t that a great way to explain why we can’t ignore our utilization savings any longer.
For you see, we have documented that 76% of all new supply chain savings in the future will be generated by driving out all of the waste and inefficiency in your supply chain’s value stream. To put it another way, we need to identify and eliminate all waste that exists between our suppliers and the owners of our products, services, technologies that we are buying.
It’s not enough to save 1%, 2% or even 3% annually on price when, on average, there is 26% savings beyond price on each and every one of the commodities that you are buying. This is because of your department heads and manager’s wasteful and inefficient consumption, misuse and misapplications of these same commodities that are now hidden from your view.
In concrete terms, these utilization savings represent 1, 2 or even 3 million dollars per 100 occupied beds. You do the math and I’m sure you will find that you are not achieving these kinds of savings on price alone. Now is the time to “close the back door” on all of your utilization savings because your price savings aren’t really relevant or significant any more.
Your Partner In Savings Beyond Price™
Robert T. Yokl
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
P.S. This is just one of the hundreds of big ideas that I will be teaching you at our “Integrating Supply Six Sigma™ into Material Management 2-Day Workshop” on May 6th and 7th. So if you have been looking to move your team(s) up to the next level of savings and quality performance this is the workshop for you.
Design for Supply Six Sigma™ is Just What the Doctor Ordered
“Re-Invigorate and Strengthen your Value Analysis Program with DFSSS”
Of all the questions that I’m asked at seminars, workshops or training programs that I’m conducting, the most frequently asked question is “How do we get our docs to change their practices?” My answer is always is the same. You don’t want your docs to change their practices. You want them to understand their practices – then and only then – will they change them if it is appropriate to do so.
To do so, you will need to re-invigorate and strengthen your supply value analysis program with new and improved concepts akin to “Design for Supply Six Sigma™ (DFSSS)”. This will enable you to achieve an even stronger foothold in creating positive change at your healthcare organization.
The goal of DFSSS is to determine your customer’s exact requirements vs. what they tell you they need. Much too often these two objectives are at cross purposes and then the optimum specifications must be negotiated with your customers to meet both your needs and their needs.
The DFSSS 5-step process is the ultimate product, service or technology development system that has as its purpose to:
1. DEFINE the project goal and customer deliverables
2. MEASURE in order to determine customers exact needs and specifications
3. ANALYZE the options to meet the customer needs
4. DESIGN the product to meet the customer needs
5. VERIFY the design performance and ability to meet customer needs.
The process is employed when a product, service or technology is not in existence and one needs to be specified, or the product, service or technology exists and needs to be value justified to ensure that it is appropriate.
A good example of how this process can get your docs to understand their practices is to measure and analyze what they are doing now. In most situations you will find that your docs are not aware of how their practices impact their hospitals cost or quality, since they have been doing the same things in the same way since medical school.
Just recently we measured and analyzed how one of our client’s docs were implanting their ICDs, only to find that 94% of their implants were at the high end. This is statistically impossible! We then deduced that our client had standardized on one ICD which their docs used almost 100% of the time, instead of implanting a variety of ICDs that in fact met their patients medical requirements. This anomaly was costing our client over $250,000 annually in ICD value mismatches.
What an opportunity! This ICD savings opportunity, that I just mentioned, is representative of what we find when we measure and analyze our client’s docs’ practice patterns. It’s not the exception! You can have the same amazing results by employing the DFSSS process with your supply value analysis program to get your docs to understand their practices – then and only then – will they change them.
Healthcare Lean Value AnalysisTM
March 19, 2008 - 1:00pm to 2:00pm EST
Energize and grow your value analysis programs while increasing your savings yields and dramatically improving your quality.
What You Will Learn:
Learn the difference between Lean Value Analysis and traditional value analysis and product evaluation techniques.
Learn the new skills that are required to be successful with Lean Value AnalysisTM in the years to come.
How to step up your quality processes inside your value analysis program while saving more in the long run.
How Lean and Six Sigma are perfect tools for the value analysis and supply chain practitioners to gain faster and better results.
How to develop your Lean Value Analysis ToolboxTM to pack more power into your value analysis teams and methods.
How to gain your managements' buy-in to the new Lean Value AnalysisTM concepts and practices to insure long term savings and quality improvement success.
March 19, 2008 - 1:00pm to 2:00pm EST
Webinar Leader - Robert T. Yokl, President/Chief Value Strategist Strategic Value Analysis in Healthcare
Sign Up Here click here
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3-Days to Achieve the Highest Level of Supply Savings and Value Analysis Leadership and Performance!
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PLUS as an added Bonus, we'll also send you our SPECIAL REPORT "Your Targeted Blueprint for Supply Savings Success!"
Subscribe Today!
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