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 - April 22, 2010
Robert T. Yokl
President & Chief Value Strategist
Eliminating Waste by Keeping it Simple
Greetings,
When I talk to supply chain professionals about eliminating their waste and inefficiency in their value streams, they tell me that they love the idea, but they have nevertheless found it difficult to do so. That’s when I tell them to “keep it simple” by following the IOE3 Method for guaranteed success:
1. IDENTIFY your best “ABC” utilization opportunities
The easiest way I know of to identify your best utilization savings opportunities without software is to perform an “ABC Analysis” (categorize your annual dollar spend by commodity group from highest to lowest dollars) on everything you buy. You will then find that 80% of your dollars are being spent on 20% of your commodities. This 20% then becomes your target of opportunities to be investigated to uncover your utilization misalignments.
2. OBSERVE with “new eye’s” what is happening
The next step is to get out of your office or assign a VA project manager to observe with “new eye’s” how each and every one of these targeted commodity groups are being employed at your hospital. Are they being wasted due to defects in their design as I have often seen with electrodes? Are they too feature-rich for their intended purpose which is the case with most pacemakers? Or, are there lower cost alternative products available that would meet the functional requirements at a lower cost? Get the idea?
3. ELIMINATE anything that’s not needed or wanted
Once you have identified, observed and uncovered utilization misalignments in your value streams, you then can remove them easily by asking this question: “are they absolutely, positively needed or wanted by your customers to meet their required functions”? If not, ELIMINATE them!
This IOE3 Method, I just described, doesn’t need to consume a lot of yours or your VA team’s time to be productive either. I remember identifying a utilization savings opportunity of $195,322 on a printed form a few years back for one of my clients with just two-hours of investigation. You too can have these same results if your “keep it simple” with the IOE 3 Method for eliminating waste and inefficiency in your value streams.
Wouldn’t you agree?
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
1-800-220-4274
P.S. More and more healthcare organizations are reaping the benefits of “The Ultimate Value Analysis System” instead of WINGING IT with their value analysis program. This is a system that has been employed, and proven to work, at hundreds of hospitals in the USA who wanted to establish, reinvent or reenergize their VA programs. Isn’t it time for you too to recommit, reorganize and refresh your VA program for sustainable results?
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Read this book and in a few weeks save more money than you have in years. Sounds unbelievable? Robert T. Yokl and Robert W. Yokl, healthcare’s leading authorities in Supply Utilization Management, have helped hundreds of hospitals, healthcare systems and integrated delivery networks to saved close to a half billion dollars by employing the same utilization management strategies, tactics and techniques that they will teach you in this book.
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