Lean

Consulting“Improving patient outcomes and

satisfaction while driving down the cost of care!”

TPMG

Transformation In Healthcare

Service Description: Excellence in Healthcare Delivery

TABLE OF CONTENTS

Introduction 3Lean Transformation Excellence in Healthcare Delivery 4Consulting Service Descriptions 5Training Service Descriptions 8Training Service Pricing 12Consulting Service Pricing 13

2“Improving patient outcomes and satisfaction

while driving down the cost of care!”

The Performance Management Group LLC

An Arizona Limited Liability Company (established in 1998)

Our Mission:

Helping public and private sector organizations become more productive, efficient & cost effective.

Our Structure:

We are a closely held group of independent consultants who consistently employ the signature TPMG performance improvement approach through specialized services including: Lean Six Sigma, The Balanced Scorecard, Performance Analytics, Non-Value Added Analysis, Activity Based Costing and Strategy Consulting. Our company details are as follows:

Introduction

Consultant Locations

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Address: P.O. Box 44989Phoenix, Arizona 85064

DBE Certification # AZ00161

Phone: 602.692.5073 DBE Certifying Agency: National Minority Supplier Development Council (NMSD)

Email: info@helpingmakeithapppen.com NACIS Codes:

Type of Incorporation: Arizona Limited Liability Company 5/1998

• 541611 Administrative Management & General Management Consulting Services

DUNS Number: 144166969 • 541614 Process, Physical Distribution, and Logistics Consulting Services

CAGE Code: 3SDW3 • 611430 Professional and Management Development Training

What is Lean Management?

Lean management refers to a company’s style of operational excellence. Made popular by the Toyota method of production, also known as Total Productive Maintenance (TPM); lean thinking was given life in North America as a result of the work of MIT researchers lead by James Womack, Daniel Jones and Daniel Roos, “The Machine that Changed the World.” The objective of lean management in healthcare is to create value for a healthcare delivery organization. Value in healthcare is “expressed in terms of the quality of healthcare outcomes and satisfaction of patients divided by the cost to produce those outcomes – over the continuum of care.”

Lean Transformation for Healthcare

In our attempt to keep things simple, TPMG describes lean management as:

A “quality improvement business practice” that strives to produce perfection in the delivery of products and services. “Process Perfect”

A “method of management” that uses facts, information and data to make decisions and manage business performance.

A “problem solving method” that identifies root causes to problems and determines permanent solutions.

From an operational perspective, the value proposition of lean transformation is to improve the quality of work. Improving quality creates a “chain reaction”. When a provider organization improves quality, their costs go down. Their costs go down to the tune of 20 – 40% of total operating expenses. The cost reduction occurs because the expense of wasted effort, reworking problems, correcting medical errors, re-admitting patients, and correcting invoices is eliminated. As rework goes down, productivity naturally improves. Productivity improves because of the more efficient use of human time & effort, technology and working capital in value added care activities. Improved productivity creates of better patient outcomes. Better patient outcomes and the elimination of non-value added cost leads to greater profit margins and enhanced economic value. The additional economic value funds growth and innovation, which lead to improved healthcare quality and high value jobs.

From a patient perspective, implementing lean management also creates a “chain reaction.” When a provider organization implements lean management, they continuously adapt their services to exceed patient needs, attitudes and perceptions. They accomplish this by translating the voice of the patient into operational requirements and structure their systems and processes to continuously exceed those requirements Over time, they capture the market with better healthcare outcomes, greater patient satisfaction and a superior reputation as a healthcare delivery organization.

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Healthcare Outcomes + Patient Satisfaction

Cost of Healthcare DeliveryValue =

Principles of Value Based Healthcare Delivery

Lean Management Service Descriptions

Organizational Readiness Analysis – Building a Culture of Continuous Improvement

Cultural AssessmentTPMG uses two methods to determine the cultural readiness level of a healthcare organization to adopt a lean management system: 1) A Lean/Continuous Improvement Readiness Survey and 2) Current State Level 1 Process Analysis.

The readiness survey is a tool used to assess a healthcare organization’s pre-disposition towards lean management practices. The instrument determines the “cultural systems” that may restrain the adoption of a lean effort and those drivers that can promote an effective lean program implementation.

Examining Organizational Structures and Incentives - Red Flagging

A current state level 1 process analysis is a high level process evaluation where black belts (BB) and master black belts (MBB) take a cursory walk through the “gemba.” As an organizational doctor looking for symptoms which can potentially challenge a lean management effort, the TPMG Consultant pinpoints and red flags structures, traditions and incentives which may constrain the effectiveness of a lean management deployment

Analysis and Conclusions - Baselining underlying cultural and management challenges

Work products produced from the baselining effort include:

Compiled Survey Results Completed Situational Analysis Drawn Conclusions Pinpointed Culturally Hostile Attitudes & Structures Highlighted Culturally Friendly Rules & Incentives Integrated Findings into Lean Adoption Strategy

The findings produced by both the cultural readiness survey and the level 1 process analysis are integrated into the lean transformation strategy. TPMG leverages its expertise in organizational behavior to produce a “high performance culture” that will accommodate and promote the successful implementation of a lean transformation.

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Lean Management Service Descriptions

Kaizen Workshops – Adding bankable value to the organization!

Kaizen Workshop DescriptionKaizen is a focused, high energy, high velocity cross-functional team workshop event. A 1-week Kaizen Event, following a tightly scoped 3-day Define phase of the Lean Six Sigma DMAIC process, focuses cross-functional teams on the Measure-Analyze-Improve-Control phases of the DMAIC process. Teams define the reason for improvement and a Kaizen’s potential value add using value stream maps, process walkthroughs, and data. Teams analyze the process and identify root causes. They generate an effective and feasible solution, pilot and implement improvements, train affected employees, and ensure new processes perform to expectation. Results and remaining actions presented to management are completed with facilitation following the event. The total 1-3 week effort is typically divided into stages: Kaizen Event Prep, Kaizen Event and Kaizen Close. Participants learn a continuous improvement implementation strategy that is quick and effective. They will also learn how to use a wide array of tools andproblem solving techniques as well as how to map, measure, analyze, plan, implement and sustain significant processimprovements.

Kaizen ResultsTypical Kaizen results are a 20-50% reduction in Lead Time, 5-20% improvement in productivity, 20-50% reduction ininventory, and significant improvements to quality, on-time performance, and safety. Typical savings range from $10K-$250K in hard dollar “bankable” savings per Kaizen event.

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Lean Management Service Descriptions

Facilitated Professional Services – Breakthrough improvements and bankable savings!

Advisory Services

TPMG Consultants provide expert advice, assistance, and guidance in support of organizational and business improvement efforts. Professional services include:

1. Operational studies, analyses and reports 2. Project management of improvement initiatives 3. Strategic planning facilitation4. Establishing enterprise performance measurement systems5. Business improvements in cycle times; leadership systems; and

re-engineered processes

TPMG Consultants employ a variety of methodologies, including value stream analysis, activity based costing, Six Sigma DMAIC, A3, and lean methods such as theory of constraints, takt time analysis and 5S. Typical TPMG Consulting projects yield an average of $259k in hard dollar “bankable” cost savings along with 25-30 percent improvements in productivity and efficiency.

Program Management

The program management skills of TPMG Consultants are used to:

1. Work with senior leaders to develop a long term performance excellence vision.

2. Integrate lean transformation into a healthcare system’s business strategy.

3. Develop lean management program infrastructure

4. Deploy the lean management system

Our lean management model is used for (1) evaluation to support analysis of program effectiveness and (2) deploy studies to produce improved cost efficiency, operational effectiveness and measurably improve overall organizational performance. Our lean six sigma black belts facilitate:

1. The identification process improvement needs: prioritization and execution of projects

2. Suggestion and implementation of best practices

3. Business process re-engineering initiatives

4. Kaizen Events

5. The establishment of performance analytics programs

6. The design of voice of the customer strategies7

“Improving patient outcomes and satisfaction while driving down the cost of care!”

Lean Management Training Descriptions

Lean Excellence in Healthcare Delivery Training Programs – Educating the Enterprise

Lean Management Executive Champion Training

This 1- 2 day course is designed to prepare key directors and senior leaders to perform their oversight roles during a Lean Healthcare Transformation deployment. The course provides leaders with a working knowledge of the Lean management program methodology and processes. The course also provides guidelines for performing their lean leadership roles. Course topics include:

1. Principles of Lean Management for Healthcare2. How to make making lean management a way of life3. How to provide ongoing direction and support4. How to review progress of Lean Management initiatives5. How to publicly recognize & reward initiative teams6. Balanced scorecard approach, strategy sessions operations

reviews7. Management by Fact – Structured Problem Solving8. Review performance and create plans for improvement9. How to set direction, create customer focus, clear values and

high expectations.10. How to inspire, motivate, and empower a work force

Lean Management for Individual Contributors and EmployeesThis 3 day course is designed to prepare frontline employees and functional leads to perform as members of healthcare improvement initiatives. Course topics include but are not limited to:

1. Roots of Lean Management2. Analyzing Performance 3. Value Stream Analysis4. Traditional Flow Charting5. The Voice of the Customer6. Tools for Continuous Improvement7. Management by Fact – Structured Problem Solving8. Team Dynamics and People Skills9. Lean Fundamentals Applied (VSM, A3, 5S, etc.,)

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Lean 6σExcellence in Healthcare Delivery

Lean Management Training Descriptions

Lean Management Green Belt Certification Training

This 1 – 2 week course provides Green Belt candidates with the understanding of Lean Management and Six Sigma improvement tools for continuous improvement. They also learn project management fundamentals for a Black Belt project or lead small scale improvement projects. Topics addressed are healthcare oriented and include but are not limited to:

1. Roots of Lean Management2. Analyzing Performance 3. Value Stream Analysis4. Traditional Flow Charting5. The Voice of the Customer6. Tools for Continuous Improvement7. Management by Fact – Structured Problem Solving 8. Lean Fundamentals for Service Organizations9. Team Dynamics and People Skills10. Deploying the Lean Management System11. Deploying the Balanced Scorecard

There is a certification exam where 80% is a passing score.

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Lean Excellence in Healthcare Delivery Training Programs – Green Belt Certification

Green Belt Certification for Healthcare

Lean Management Training Descriptions

Lean Management Black Belt Certification Training

This 2 - 3 week course provides the Black Belt candidate with an integrated Lean and Six Sigma curriculum enabling them to apply the DMAIC methodology (Design— Measure—Analyze—Improve—Control) with success. Topics are healthcare oriented and include but not limited to:

1. The Roots and History of Lean Management2. Analyzing Performance 3. Value Stream Analysis4. SIPOC Process Mapping5. Traditional Flowcharting6. The Voice of the Customer7. Tools for Continuous Improvement8. Statistical Process Control for Service Organizations9. Financial Impact Analysis10. Activity Based Costing11. Change Management12. Team Dynamics13. Data Collection Techniques14. Management by Fact – DMAIC Approach15. Lean Fundamentals for Service Organizations16. Sources of Service Waste17. A3, 5S, Theory of Constraints etc..18. The Balanced Scorecard

This unique course is particularly applicable in complex processes where quality improvement, speed and process cycletime reduction are critical for organizational success. Successful completion of the Black Belt course requires attendanceof all sessions of training and passing the certification exam with a grade of 80% or higher.

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Black Belt Certification for Healthcare

Lean Excellence in Healthcare Delivery Training Programs – Black Belt Certification

Lean Management Training Descriptions

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Lean Excellence in Healthcare Delivery Training Programs – Train the Trainer

Train the Trainer - Cultivating Internal Expertise

TPMG Consultants provide train-the-trainer certifications. In this course, employees are certified to train others in lean methods and continuous improvement. Client employees learn how to conduct training sessions themselves so they can sustain the program after TPMG leaves. This train the trainer approach is essential to build capabilities and the capacity to maintain the momentum and potency of the transformation in a large organization. As TPMG’s role in the program deployment winds down and lean management becomes the organizations way of working, client employees become the skilled change agents who become part of the client’s internal improvement group that sustains the transformation.

Lean Management Training Descriptions

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Lean Excellence in Healthcare Delivery Training Programs – Online Training

Lean Six Sigma Excellence in Healthcare Delivery Programs Online

Designed for working professionals, TPMG’s online lean six sigma program delivers comprehensive coursework in all facets of lean six sigma black belt certification. The class is patterned after online Global MBA Management Courses. A TPMG Lean Six Sigma Master Black Belt will be provided, once per week for 6 weeks, to conduct 4 hour live instruction and review sessions.

To further cohort interaction, you will lock step with your classmates for the duration of the program with opportunities to meet and study together online. You will have:

Immediate access to coursework at anytime from anywhere Engaging online lectures (live and self-paced) Interactive chats/bulletin boards Online collaboration with your Master Black Belt Instructor and

classmates using technology of modern global business

Online Certification Training Options

Lean Six Sigma Healthcare Black Belt Certification – Online BlendedLean Six Sigma Healthcare Green Belt Certification - Online Self-Paced

Training Service Pricing

Training Service Per Session Rate* Maximum Number of Participants

Lean Management Executive Champion Training (1-2 Days)

$3,659.49 25

Lean Management for Individual Contributors and Employees (3 days)

$15,637.95 25

Lean Management Green Belt Certification Training (1-2 Weeks)

$23,214.11 25

Lean Management Black Belt Certification Training (2-3 Weeks)

$46,428.21 25

Online Lean Healthcare Black Belt Certification

$1,500 per candidate

N/A

Online Lean Healthcare Green Belt Certification

$500.00 percandidate

N/A

*plus the cost of software and materials ~ $225 per candidate

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Lean Excellence in Healthcare Delivery Training Programs – Pricing Structures

Professional Service Pricing

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Lean Deployment – Effective, High Quality and Affordably Priced Deployment Package

Complete Lean Deployment, Including:

1. Program Development

2. Professional Services

3. Certification Education

4. Licensed Materials

Estimated Cost*: $60,000.00 to $80,000.00

Term: 6 - 8 months

* Dependent on travel expenses

Maturity Model: We Keep it Simple

Initiate

1. Create Strategy

2. Produce Objectives

3. Create Action Plans

Facilitate

1. Training & Certification

2. Project Selection

3. Mentoring & Coaching

4. Train the Trainer

5. KPI System Design

Transition

1. Award Certifications

2. Realize Outcomes

3. Strategy and Operations Reviews

3. Roadmap for the Future

Contact us today!We will provide you with a fully costed preliminary lean management deployment plan.

Professional Service Pricing

Lean Management Professional Services – Pricing Structures

Title Role Qualifications & Hourly Rate

Managing Director (MD)

MD works with client senior leadership team to plan a lean transformation strategy and direct the completion of activities and projects within estimated time frames and budget constraints. MD also delivers, presents, and leads strategic level client meetings. As needed, the MD delivers Lean Six Sigma Black Belt training, Kaizen Events, Green Belt training, Executive Sessions, Champion training and provides coaching to organizational leaders during the Lean transformation deployment. The MD may also leads larger, more complex Lean Six Sigma program initiatives and improvement projects. MD’s work at the client site.

Master’s DegreeCertified Master Black Belt18 + Years Experience

Rate: $170.00/hour

Managing Consultant (MC)

MCs actively facilitates lean transformation strategies and executes the strategy’s action plan. The MCs deliver Lean Six Sigma Black Belt training, and improvements projects, workshops, Kaizen Events, Green Belt training, Executive Sessions, Champion training and provides coaching to organizational leaders during the Lean transformation deployment. He/she also Leads larger, more complex Lean Six Sigma program initiatives and improvement projects. SC’s work remotely and at the client site.

Bachelors or Master’s Degree Certified Lean Six Sigma Master Black Belt10 – 15 YearsExperience

Rate: $160.00/hour

Sr. Consultant (SC)

Senior Consultants provide technical knowledge of lean management and six sigma and works individually and on teams to support the completion of projects, workshops and specific tasks within estimated time frames and budget constraints. He/she interfaces with the client and teams on a day-to-day basis. In addition, SC’s apply their specific expertise to the practical issues they identify for Kaizen events and workout sessions. They also help to formulate solutions, prepare reports, studies, documentation, and support presentations and client meetings. SC’s work remotely and at the client site.

Bachelors DegreeCertified Lean Six Sigma Black Belt5-10 Years Experience

Rate: $100.00/hour

Lean Transformation Coach (LTC)

Lean Transformation Coaches serve as technical experts and process improvement advisors on an retained services basis. LTC’s apply their specific expertise to the practical issues and challenges their clients face. They also help conduct workshops, formulate solutions, prepare reports, studies, documentation, and support presentations in client meetings. LTC’s work remotely or at a client’s site.

Bachelors or Master’s Degree Certified Lean Six Sigma Black Belt5-10 Years Experience

Rate: $90.00/hour15

Contact Information

Lean Transformation for Healthcare

We provide resources:

To supplement your current talent pool as a contingent workforce For healthcare improvement initiatives For workshops and Kaizen events For lean transformation coaching and advisory services For dedicated consulting engagements and lean management adoption

Contact us today!The Performance Management Group LLCProfessional Services ConsultingP.O. Box 44989Phoenix, AZ 85064Email: info@helpingmakeithappen.comPhone: 1.601.692.5073 www.helpingmakeithappen.com

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