New Rules, Systems, & Models For Long-Lasting Savings Performance!

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Lean Value Analysis Program

 

 

 

 

It's Time to Rethink, Renew, and Reinvent Your Value Analysis Model to Do the Hard Work That Is Required In The 21st Century!

It’s been 21 years since traditional value analysis emerged as a best practice in healthcare. This stratagem has led the way to some of the most important breakthroughs in supply chain cost management over the last decade. Nevertheless, if you are really honest with yourself, it isn’t getting the job done in the 21st century.  

In years past, just putting together a value analysis committee or team(s) assured you of generating a variety of savings (mostly GPO savings) that just happen – unimpeded and unrestricted. I hope you have realized by now that the time has passed when you could make these easy and effortless savings continue to flow without changing how your value analysis committees or teams are organized, structured, selected, trained, measured, motivated, and controlled.

In fact, to continue to make big savings happen for your healthcare organization you will need to optimize your value analysis process if you are serious about meeting the challenges you will be facing in the 21st century.

Can You Think of Anything You Were Doing 21 Years Ago that Has Not Been Upgraded, Automated, Refined, or Advanced?

Can you think of anything you were doing related to supply chain management 21 years ago that hasn’t been upgraded, automated, refined, or advanced to the next level of performance? With few exceptions, I think the answer you would give is NOTHING! Then why are you still employing the same value analysis model you have been utilizing for 6, 12, or even 21 years?

Isn’t it time you rethink, renew, and reinvent what you are doing related to value analysis to move your committees or team(s) to the next level of performance? By doing so, you will consistently grow your profits, cut costs, improve quality, and eliminate defects, waste, and variations in your supply chain.  This is what value analysis 2.0 is all about; deploying the next generation value analysis model to “wring the towel dry” on your supply chain savings.

 

“We have identified and implemented over $1 million in savings over the last 2 years. Beyond that, there is value in the (value analysis 2.0) process and the commitment it creates among organization leaders and staff. It also brings the importance of every purchase to top-of-mind awareness.” Jay Johnson, Vice President, Stillwater Medical Center, Stillwater, Oklahoma

 

What’s Different About LEAN Value Analysis?

What’s different about LEAN Value Analysis, and is missing in value analysis 1.0, is a framework of discipline, new rules, and a defined six-step system for your value analysis teams to religiously follow that can be measured, monitored, and controlled to identify, implement, and sustain your supply savings over the long term.

It’s time for all supply chain professionals to realize that if you are to attack your hard-to-get savings, you will need new strategies, tactics, techniques, and systems that you won’t find in traditional value analysis models that have become tired, worn-out, and obsolete in the 21st century.  

 

CASE STUDY: 400-Bed Community Medical Center Saves $4 Million and Wins GPO National Leadership Award!

CHALLENGE: A 400-bed California not-for-profit community medical center noticed that its costs of supplies, services, and technologies had been escalating in recent years and wanted to be more proactive in attacking these increases.

GOAL: To develop and sustain a data-driven process focused on their products, services, and technologies whereby purchasing and utilization decisions are based on meeting the functional requirements of their customers most efficiently, and employ Strategic Value Analysis® methods to systematically analyze all of the millions of dollars of products, services, and technologies that they purchase annually.

SOLUTION: Adopted SVAH's scientific, customer-driven, and function-oriented approach known as the LEAN Value Analysis System to plan, organize, train, monitor, and coach the hospital’s four value analysis teams (steering, surgical, med/surg, and support services) through a system-wide supply value analysis program.

RESULTS: In less than 18 months the medical center was able to exceed their $4 million savings goal and was also recognized by its National GPO as a Supply Chain Best Practice Leader with its successful LEAN Value Analysis Model.

 

Why Do We Need New Rules, Systems, & Models For New Long-Lasting Savings Performance?

Most healthcare organizations are “hitting the wall” on their supply chain savings because their value analysis committees and teams have been too informal and unstructured to get the job done. To move to the next level of savings performance your value analysis committees or teams will need to have new rules, systems, and operational models to generate new and long- lasting performance.

New Rules, Systems, Models

For example, your teams need to be heterogeneous (think and act differently) vs. homogenous (think and act alike) in design to produce what we call “creative friction” if you are looking for new and better savings outcomes and quality results. Otherwise, your committees or teams will continue to be resistant to change, fight new savings ideas, and hold on to their old ways of doing things. 

 

“The LEAN Value Analysis System created supply chain awareness throughout our hospital and got people to start talking about other ways to save money. In fact, we are now under budget in our supply expenses for the first time in years, which might not be a coincidence. I would say that the system was well worth our investment for the awareness it brought to our hospital." Bill Baecker, CFO, Clinton Memorial Hospital, Wilmington, Ohio

 

7 Benefits of the LEAN Value Analysis Model

The best argument we can make to convince you to upgrade to a LEAN Value Analysis Model is to inform you about the powerful benefits of doing so, such as:

  1. GROW PROFITS by as much as 1%, 2%, or even 3% by uncovering the unnecessary and unwanted costs in your supply chain.
  2. CUT COSTS by an additional 3%, 6%, or even 9% through a disciplined approach to supply chain savings.
  3. IMPROVE QUALITY by eliminating all waste and inefficiency in your supply chain.
  4. ELIMINATE DEFECTS in your supply chain.
  5. INCREASE YOUR CUSTOMERS’ satisfaction by proactively solving their bothersome supply chain problems.
  6. SPEED UP your savings yields and throughput by as much as 76% by transforming your value analysis teams into real life money-saving machines.
  7. MAKE YOUR JOB EASIER because all of your savings objectives will happen automatically for you.