July 30, 2010
Lean Thinking & Innovation

“gemba walk” (lean thinking term) to go to the actual place where value is added + “walkabout” (Australian aborigine) a short period of wandering bush life engaged as an occasional interruption of regular work

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I had the opportunity to visit a hospital that seems to be doing some very interesting things in the area of innovation.  They also say they are focusing work on lean (and six sigma) as well.  They used this grid to explain this approach:

Getting better (horizontal axis) means application of lean and six sigma.  They have a system and process for this, but I don’t know the details.  I also don’t know if it’s what Bob Emiliani refers to as REAL LEAN.  The vertical axis (different) seems to be done primarily through their innovation model.  They use something called 1-2-3-4-5 SPEED.  (I wrote about this in a previous post).  This method is taught to all employees.

The word “value” is in the upper right-hand corner.  This is one concept that has me thinking.  My understanding of “value” from my study of lean thinking is that value is defined by the (end) customer.  An activity adds value if it: a) transforms the product/service, b) is done right the first time, c) is something that the customer would pay for.

I’ve also seen the equation of quality/cost to define “value” where quality needs to be increasing and cost (affordability) needs to be decreasing.  If quality is defined according the the IOM model (Safe, Patient-Centered, Effective, Efficient, Equitable, Timely), it seems that two definition of “value” could be one and the same, or they might be different.  In the model from the organization using the better/different grid, it is possible that an organization might create differences (from their competitors) that could add value, but they could also add cost (providing services that many not be needed).

Something to think (and learn) about.