Case Studies

Improving Project Portfolio Performance with Buffers

Improving Project Portfolio Performance with Buffers 150 150 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense

Click the link below to view the TOCICO 2015 presentation “Improving Project Portfolio Performance with Buffer-Type Flexibility and Task-level DBR”

TOCICO PPM Buffer-type Flexibility + Task-level DBR

Utah’s SUCCESS Framework on the Inside, for Success on the Outside

Utah’s SUCCESS Framework on the Inside, for Success on the Outside 150 150 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense
Submitted By: Brian MacClaren

Click the link below to view the “Working with the SUCCESS Framework on the Inside, for Success on the Outside” presentation at TOCICO 2015.

Link to presentation slides:

TOCICO_UCI 9-2-2015

Link to video:

Working with SUCCESS Framework

See a video clip of our presentation at TOCICO

See a video clip of our presentation at TOCICO 1512 616 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense
Submitted By: Brian MacClaren

NOVACES and its collaborators are excited to have been selected for several presentations at 2015 TOCICO in Cape Town. Below is information about one of our presentations or click here to watch a promo video.

Improving Project Portfolio Performance with Buffer-Type Flexibility and Task-level DBR
Bahadir Inozu, Ph.D., NOVACES, LLC
Mike Hannan, Fortezza Consulting
Hilbert Robinson, Delta Airlines

This presentation focuses on two emerging techniques to improve project portfolio performance within a CCPM framework:

1)   The addition of scope buffers and budget buffers to augment CCPM’s traditional emphasis on schedule buffers, boosting portfolio reliability while allowing harmonious integration of scope-buffered project methods (such as Agile) into CCPM.

2)   The addition of DBR, Lean, and Agile methods to augment CCPM’s traditional emphasis on single tasking, boosting the flow of task completions to improve portfolio throughput.

While these two techniques have demonstrated performance improvements in software-development project portfolios, we will also present how they can also be applied in other project-centric domains.

Our work in Utah was featured on the Governor’s blog!

Our work in Utah was featured on the Governor’s blog! 150 150 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense

Submitted By: Brian MacClaren

Recently our work with the State of Utah was highlighted on Governor Herbert’s blog. To read his post, check out this link:

http://blog.governor.utah.gov/2014/08/why-it-matters-the-effort-to-reduce-recidivism/

Improvements from State of Utah’s SUCCESS Program Adds Jobs for Inmates and Doubles Revenue at Utah Correctional Industries

Improvements from State of Utah’s SUCCESS Program Adds Jobs for Inmates and Doubles Revenue at Utah Correctional Industries 2560 996 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense

Submitted By: Robyn Burghard

Utah’s SUCCESS Program led by the Governor’s Office of Management and Budget (GOMB) has reported positive results on an initiative that supports of Governor Herbert’s mission to reduce recidivism (the relapse of criminal behavior) in the State. NOVACES, a management consulting firm that provides performance improvement solutions to the government, is teamed with Goldratt Research Labs to deliver operational excellence training and facilitation support to Utah Correctional Industries (UCI) as part of the initiative.

Studies show that 66% of inmates return to prison within three years of release, whereas inmates with UCI work experience return only 55% of the time. NOVACES is teaching new skills to the inmates and streamlining manufacturing processes in an effort to increase revenue and expand opportunities for inmates at UCI’s Furniture shop.

With the help of NOVACES and GOMB staff, UCI applied operational excellence methods to increase production capability in the furniture manufacturing process. As a result, the furniture shop was able to better manage production and could deliver more orders on time to its customers. The production capacity and revenue was more than doubled, and most importantly this has generated new job opportunities for inmates.

UCI expects to add between 21 and 26 new jobs for inmates as a result of the new manufacturing processes. Currently there are over 7,000 inmates in the Utah prison system at an average cost of $28,000 an inmate per year. Although 3,417 inmates are eligible to work, currently just 740, or 21%, are employed by UCI. Their goal is to be able to provide a job for every eligible inmate.

This initiative’s success will enable UCI staff to further expand process improvements to its 16 industries including construction, furniture, print shop, signs, and embroidery. Alan James, Director of UCI, thanked NOVACES for the excellent work on the initiative and expressed support of  replicating the outstanding success of the furniture shop in other UCI businesses.

Our work in Utah was featured on the Governor’s blog!

Our work in Utah was featured on the Governor’s blog! 2560 996 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense

Submitted By: Brian MacClaren

Recently our work with the State of Utah was highlighted on Governor Herbert’s blog. To read his post, check out this link:

http://blog.governor.utah.gov/2014/08/why-it-matters-the-effort-to-reduce-recidivism/

Using Current Reality Tree to Reduce Billing Errors for a Healthcare Client

Using Current Reality Tree to Reduce Billing Errors for a Healthcare Client 150 150 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense
Submitted By: Bob Sproull

In my last posting I told you I would take a look at some other performance metrics and see how they impact our improvement efforts. I’m going to delay that posting because I want to share an experience I had with one of my healthcare client’s teams. Although I won’t go into the details of the experience, I will tell you that they had proposed a change in the way a specific process is being run.

It has been said many times that the natural tendency of people is to resist change and in many ways I believe this premise. Assuming this resistance is real, why is it that people resist change? If you ask most people this question, you’ll probably get a response like, “it’s outside the comfort zone of the people being asked to change.” I know from my experiences that this is one of the most often heard responses to this question. There is an almost art to get people to change, but I’m here to tell you that it doesn’t have to be as difficult as some people make it.

When confronted with an opportunity to implement an improvement, many times we take the easy way out when we face this resistance by developing a compromise. A compromise is letting go of part of what we want and giving more of what the “changers” want. If we haven’t learned but one thing from the late Eli Goldratt it is that we should never compromise! A compromise is essentially a win-lose scenario when in fact we should only want to come away with a win-win one.

This team I mentioned earlier had a great idea about how to reduce the financial impact of missed billings. They had studied lost billings due to immunizations, but quickly realized that their solution would apply to other areas such as various medical tests and especially the more expensive tests like EKG’s, Point of Care Testing, etc.. In fact the amount of money lost due to immunization billing errors paled in comparison to these other tests.

So knowing that we have an excellent solution, the question becomes how do we present it without a compromise? From experience I know that as long as we think that the only way to handle a conflict is by compromising, such as trying to change a process, we won’t be successful in making the change. What needs to happen is that we must surface the assumptions on why we believe there will be resistance to the process change we are going to propose. And if we never think about the underlying assumptions and know how to remove at least one of them, we’ll never find the way to eliminate the conflict and “sell” our breakthrough solution. In fact, we’ll just simply lower our expectations and continue with business as usual.

The first and most profound obstacle to change is that people believe that reality is complex and sophisticated. And because we believe this, we have a tendency to believe that complex problems require complicated solutions. Goldratt introduced us to the concept of Inherent Simplicity which clearly states that complex problems require simple solutions. In other words, the more complicated the situation seems to be, the simpler the solution must be.

Earlier I mentioned that we need to develop a win-win solution, so how do we do this? The first place to start is by constructing a solution by seeking the other party’s win, but not the win that is in conflict. If we want our win to be bigger, we have to ensure that the other sides win will be bigger. In other words, we must demonstrate how by applying our solution, the side we are asking to change must see immediately that there is a win in the solution for them.

A good solution deals with the core conflict in that it changes an underlying assumption and therefore significantly changes the situation for the better. When you present your solution effectively, you immediately face a reality that is very different from the reality you’re currently in. We must first transfer ourselves into the future to realize the situation that will exist after the solution is implemented and then communicate that reality effectively. So back to our GB project.

The figure below in a simplified current reality tree that summarizes the most prominent Undesirable Effects (UDE’s) encountered by the team. In order to solve the billing error problem, the team had to identify a core problem that, if eliminated, would reduce the impact of many of these UDE’s.

The team concluded that by the MD’s not entering their immunization orders and instead gave verbal orders that the Medical Assistants (MA’s) made errors due to trying to translate what the MD had said. And if there were translation errors, then the charges would be incorrect. And when the front desk scanned the incorrect documents to the billing company, then the revenue from billing would be missing. The team then concluded that if the MD’s would simply enter their own orders (bottom entry on simplified CRT), then most of the UDE’s would disappear. The other problem stemmed from the problem that the billing documents were sometimes unreadable, so the team recommended that the billing document be redesigned to correct this problem.

So how could this simple solution (i.e. MD’s entering their own orders into the database) be a win-win. Quite simply, because of this simple change, there were other forms of paperwork that the MD would no longer have to fill out as they would now be completed by the MA’s. The result was, the MD could now see more patients. The MA’s liked this solution because they would know exactly what the MD’s orders were and they could prepare the immunizations, paperwork, etc. while the MD was still seeing the patient. The patients would like this, because their wait time would be reduced significantly. Just as soon as the MD opened the exam room door, the MA, having all that was needed to give the immunization, would simply walk in and administer the vaccine and the patient would leave. The organization would win by significantly reducing the lost revenue. So the team created a win-win-win solution that will be very simple to sell.

– Bob Sproull

Bob Sproull is the author of Epiphanized: Integrating Theory of Constraints, Lean and Six Sigma. The book is a business novel and is an attention-grabbing and fast-paced story of the transformation of Barton Enterprises, a manufacturer of fuel tanks for the aviation and defense industry. To learn more about the book, click here >>

Update #2 on Emergency Department “Door to Doc” Time

Update #2 on Emergency Department “Door to Doc” Time 150 150 Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense

Submitted By: Bob Sproull

The Emergency Department improvement team began developing their current state process map and found out very early on that imagining their process and getting it down on paper was not an easy task.  There were disagreements for sure on how the actual process looks, but the most difficult thing was deciding how to map out the five different scenarios that existed within their ED as follows:

Scenario 1:  Patient enters the ED and is moved directly to an ED bed.

Scenario 2:  Patient is triaged (Triage 1), moves to the patient waiting room, patient is triaged (Triage 2), and finally is moved to an ED bed.

Scenario 3:  Patient is triaged (Triage 1), then immediately triaged again (Triage 2), then moves to a waiting room and then is moved to an ED bed.

Scenario 4:  Patient is triaged (Triage 1), then moves to the waiting room, then is triaged again (Triage 2), then moves back to the waiting room, then finally is moved to an ED bed.

Scenario 5:  Patient is triaged (Triage 1), then immediately to Triage 2, then immediately to the ED bed.

The team was struggling on how best to map these individual processes and could not see an easy way to do so.  I asked them a series of questions as follows:

  1. Which scenario is the fastest?  They assured me that Scenario 1 was much faster than any of the others.
  2. Which scenario is the slowest?  They told me that Scenario 4 was by far and away the slowest.
  3. Which scenario is most commonly used for patients and they told me that Scenario 4 was used for about 80% of the patients.

The team asked me what they should do and I simply told them that since Scenario 4 applied to 80 % of the patients that they should focus their efforts on that one since it represents the largest opportunity to improve both the cycle time and patient satisfaction metrics.  This was a classic case of the infamous Pareto Principle meaning that 80% of their improvement will come from 20% of their scenarios (i.e. 1 of 5 scenarios).

I also explained that they should also review what things aren’t done in Scenario 1 that make it much faster than any of the others.  This could in fact become their Ideal State and help them create a future state that meets all of their performance objectives.

The team has completed their first draft of the current state process map and will complete it tomorrow.  They will also be completing their value stream analysis by categorizing each step as value-added (color-coded as Green), non-value-added (color-coded as Red) and non-value-added but necessary (color-coded as Yellow).  When this is completed the team will then create their ideal and future state maps.

One problem the team rightfully pointed out was that it is relatively easy to “speed-up” the front end of the process by reducing the time it takes to get the patient to the ED Exam Room, but getting the doctor to the exam sooner is going to be difficult.  We then created an Interference Diagram (ID) to better understand what gets in the way of reducing the time it takes for the doctor to see the patient.  Figure 1 is the ID the team created.

Figure 1

The team then began looking for potential solutions for each of the interferences listed in the ID which I will report on in my next posting.

Bob Sproull

Novaces | Lean Six Sigma Training | Process Improvement | Healthcare | Government | Defense