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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 E-Zine- November 7, 2006
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Why You Absolutely Positively Need to
to Have a LEAN Technology Value Analysis Team at Your Healthcare Organization!
I was recently a presenter at the HIGPA conference (the GPO Association) in Orlando, Florida, when I decided to sit in on a breakout session on the financial implication of capital equipment. This session was presented by CFOs from three large IDNs. I was very impressed by the presentations made by these CFOs on the processes they employ to finance, approve, and track their capital expenditures.
However, when I asked these same CFOs what process they utilized to value justify the $100 million + in capital expenditures they said they were purchasing annually they mumbled, stumbled and couldn’t give me a straight answer.
This was a mind numbing discovery for me, but not as surprising as you might think!
Most healthcare organizations don’t realize that they can squeeze at least 18% more out of their capital expenditures every year by voting for having a LEAN Technology Value Analysis Team to prune their capital budget before they ever go to bid on these technology purchases. We have the empirical data to prove it.
So when you go to vote on today, don’t forget to also start a campaign at your healthcare organization too so you have enough votes to start your own LEAN Technology Value Analysis Team. This way you won’t waste and squander any of your hard earned capital dollars.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. If you don’t know where to get started in forming your own LEAN Technology Value Analysis Team you might want to review how we do it at our web page.
What Healthcare Organizations Have In Common With Daimler Chrysler (Mercedes)
“Cost Is Always Our Enemy! We Must Always Be On The Attack”
For 127-years Mercedes-Benz (or Daimler Chrysler as it is known today) had a reputation for quality and was always considered a good value. But over the last few years Daimler Chrysler has gotten comfortable with its leadership position as the #1 luxury brand until it fell three years ago to near the bottom of J.D. Power’s annual quality survey. And believe it or not, even after major restructuring Mercedes’ costs per vehicle they are as much as $3,800 higher than for comparable BMWs.
I just had a conversation with a CFO of a major teaching hospital whose organization is heading in the wrong direction as Mercedes was and still is and who told me that his organization’s fatal mistake over the last few years was “getting too comfortable” with the profits they were making yesteryear, without thinking about the future. He now is going full bore to right his ship, but he tells me that it is going to be a rocky ride – at best.
So what do healthcare organizations and Daimler Chrysler have in common? If you haven’t figured it out already. Getting comfortable with their past successes!
What Daimler Chrysler and this CFO had forgotten is that “Cost is our enemy and we must always be on the attack!” We must always be waging a war (yes I said a war) on our costs, defects and the old ways we do things. We must always be ready to radically restructure the things we do, the things we buy and the way we organize our workflows in order to avoid the painful experience that Daimler Chrysler and this CFO are now going through.
This is a never-ending war that never goes away and must be fought every day, every month and every year an organization is in business. The alternative is to fritter away this time by feeling good about our past successes, then be hit between the eyes with a shrinking bottom line that will never get better without major surgery and a lot of pain.
DID YOU KNOW…
That the “next big thing” is anything green or good for the environment! Anything green saves time, money and the biosphere we live on! For example, WalMart has asked its thousands of suppliers to cut their packaging to a bare minimum, which will save on product cost, shipping, storage and landfill expenses. You should think “green” too!
© 2006 - The Strategic Value Analysis in Healthcare, P.O. Box 939, 3887 Skippack, Pike, Skippack, PA 1-800-220-4271
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