...Virginia Mason Medical Center Mason Medical Center Did you know that "healthcare is close to a $3 trillion dollar industry and it is estimated that somewhere between 30 to 50 percent represents waste." (Erisman, 2011) This essay is a reflection of the Virginia Mason Medical Center article written by Richard Bohmer. Gary Kaplan Dr. Gary Kaplan assumed the role of Chief Executive Officer of Virginia Mason Medical Center (VMMC) in 2000. The center, that consisted of 336 inpatient beds, 5000 employees and 9 locations, was hemorrhaging millions of dollars in 1998-2000. Dr. Kaplan realized that the center needed to "change or die" (Bohmer, 2010) and a new strategic plan needed to be drafted that focused on the customer (patients) and emphasize quality and safety. I believe that Dr. Kaplan was trying to achieve a paradigm shift in the way healthcare was managed and led. His vision of a re-focus on the patient, implement tools and strategies to eliminate waste, improve quality and safety. Toyota Production System The essence of this system was exactly what Gary Kaplan and the VMMC strategic plan was trying to achieve. The Toyota Production System, a system that was proven to reduce cost by eliminating waste of time, material, space, excess movement and inventory. The tools of this system had applicability into the healthcare setting; "jidoka" (Bohmer, 2010) which refers to abnormalities in processes that can equate to quality control and risk management. The tools of...
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...Article Critique for: “Fixing Healthcare from the Inside, Today” by Steven J. Spear, Harvard Business Review In this article, Spear examines a big problem in healthcare - that of too many medical errors occurring in hospitals in the U.S. He believes that there are ways of improving the quality of healthcare and reducing costs, which do not rely on external policy changes. Current approach: Most hospitals are organized into functions where there are no reliable ways to integrate all the individual tasks that each person is required to do into a logical way that is necessary for safe, effective care. This results in ambiguities where it is difficult to find out who is responsible for doing what, when and how. This leads to breakdown situations that result in errors. Many times, the people involved with the error rush to improvise, work-around the problem and move on continuing to perform the task in the same manner. No one stops to analyze where the problem occurred, why it occurred and what steps should be taken to prevent it from happening in the future. Naturally, the problem continues to happen and it’s just a matter of time before it results in a catastrophic or fatal error. Unfortunately, it is not until this happens that management stops to examine the causes of the problem and scrutinize the situation. Recommended approach: To effectively eliminate medical errors, Spear recommends that hospitals and clinics focus on the Toyota operational excellence principles...
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...Toyota has a global geographic structure with subsidiaries and plants all over the world. Toyota's external environment relates to major forces outside the organization with potential to influence significantly their products and services. Toyota America will be analysed in terms of the opportunities and problems they are currently facing and their likely contributing factors. Under the general environment we will be discussing the six dimensions: demographics, economic, sociocultural, global, technological and political/legal dimensions respectively. The current demographic situation in the US is that baby boomers are retiring. This will not directly influence Toyotas sales, but will influence the future buyers and vehicles that will need to be produced. Toyota is currently the most profitable automobile company in the industry. The general industry that Toyota competes is with the big three's and Honda. Right now the U.S. economy is in turmoil. Profitability outlooks are almost out the door. The American public is simply not buying, thus making it tough for Toyota along with their competitors. Threw out the late 40's to the present Toyota's sales have steadily increased. The reason for this increase in sales was the negative reputation that American people had against the Japanese after WWII. This stigma has long been forgotten in the American society, thus accommodate Toyota factories in the US in the late 80's. Presently the Toyota Company is widely accepted by general society...
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...early 1900’s. With time VMMC started to face challenges, competition was fierce and VMMC soon began to experience financial troubles. In addition, its employees were unhappy and the staff morale around the hospital was declining. Kaplan noticed that change had to be made to the way VMMC ran its hospital. Kaplan proposed that VMMC follow Toyota Production System management method to restructure the way it ran its physicians, nurses and support staff. He felt that NMMC’s goals were similar to Toyota, especially putting the customer/patient first, focus on quality and safety, and a commitment to employees. Kaplan was trying to achieve this change while keeping the unique culture that VMMC began with so many years ago. 2. How does the Toyota Production System fit into his strategy? Dr. Kaplan and executives at VMMC had created a strategic plan focused on becoming the quality leader in healthcare; however he lacked a system to achieve this goal. Kaplan felt the Toyota Production System (TPS) was an appropriate match for the VMMC because of the similarities in goals that they both shared and desire to achieve them. VMMC’s new vision aligned with Toyota model including its priorities of putting the patient/customer first, along with satisfying quality, safety and its employees. Traditionally, VMMC had taken cost savings approaches by consolidated less profitable business lines (obstetrics, mental health) and reducing academic...
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...INSY 6808 – Lean Production – Auburn University | Kaizen | A Simple and Powerful Philosophy | Justin Willette 11/16/2012 | Table of Contents Introduction3 The Meaning of Kaizen3 History4 Goals of Kaizen4 Tools of Kaizen6 Implementing Kaizen7 An Example of Kaizen9 Other Applications11 Conclusion12 Bibliography13 INTRODUCTION Kaizen is an idea with humble beginnings that has taken hold of the manufacturing world and grown to become a powerful tool that can be harnessed to become a dominate player in the industrial world. The philosophy of Kaizen is a simple idea. It aims to continually make small changes anywhere it can in a process in order to improve the overall process. Kaizen focuses on a few key concepts to create a lean manufacturing system. The Kaizen system includes many components such as quality circles, just-in-time delivery, 5S, kanban, and many more. These tools are utilized to implement Kaizen. The Kaizen philosophy has been applied to many different industries all around the world. THE MEANING OF KAIZEN The Business Dictionary defines Kaizen as the “Japanese term for a gradual approach to ever higher standards in quality enhancement and waste reduction, through small but continual improvements involving everyone from the chief executive to the lowest level workers.” ("Kaizen") There are a few key phrases in this definition that truly illustrates the Kaizen way of thinking. First, this definition states that...
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...UNV-504 July 31, 2013 Annotated Reference List Kaplan, G. (2012). Waste not: The management imperative for healthcare. Journal of Healthcare Management/American College of Healthcare Executives, 57(3), 160-166. Retrieved from http://ehis.ebscohost.com.library.gcu.edu:2048/eds/pdfviewer/pdfviewer? sid=69dc6d91-8f7f-4151-b276-c2d279bedc61%40sessionmgr11&vid=3&hid=3 Efficiency is key. Working smarter not harder is one way to be efficient. The author of this peer reviewed article, an expert in the field based on his education, title and position, discusses not only the truth about healthcare and its revenue and spending, but brings to light a new outside-of-the-box idea for reducing waste. As a future nurse and healthcare administrator, I found this article intriguing and unique. Even though this article grew out of a turnaround for one healthcare system, others nationwide would be wise to adopt and follow its discoveries. First, Dr. Kaplan and his board identified their current management procedures benefited themselves, employees, vendors, rather than their patients. To resolve this, his board adopted the production and management methods of Toyota, the leading carmaker, in identifying their target consumer, their patients, and ways to identify, reduce if not eliminate waste. Following in Taiichi Ohno’s footsteps, the father of the Toyota production method, Dr. Kaplan and his board focused on reducing and potentially eliminating the seven identified wastes, as...
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...Ch. 8: Toyota's Production System: Life in the Fast Lane? Overview: The Toyota Production System has long been hailed and admired as the source of Toyota’s outstanding performance as a manufacturer. TPS aims to eliminate waste, reduce defects and maximize flow. TPS aims to increase efficiency and productivity by employing a unique production system that cuts costs through continuous improvement. Long term goal is to yield sharp reductions in product development and manufacturing lead times. Toyota want to be the industry best and they stand behind their culture to share the wealth of how they do it. 1. What is the relationship between Toyota’s organizational strategy and Toyota Production System? TPS is viewed as the benchmark, the top of the top in manufacturing and products development & Toyota’s strategy is to enhance its corporate value by maintaining its position as a market leader in the automotive industry. The strategy is to continuing its growth through global operations and through products. 2. What organizational and behavior factors need to be considered to effectively duplicate or imitate TPS? Job designing and approach ie job rotation, job enlargement, job enrichment, work teams, autonomous work groups & quality circles. As for behavior, factors would be training, technology, leadership, teamwork, and communication among the workers. 3. How does Toyota use the team approach? The team approach is through job rotation, cross training and assembly-line...
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...MGX 9660 - International Business Theory and Practice Case n°10: The Collapse of General Motors PHAM Trang (23283300) REBOURG Malcolm (23625678) YAO Aileen (20460996) 1 Table of Contents I - Introduction………..………...………………………………………….….….p 3 II - What are the internal and external factors that contributed to GM’s decline and eventual bankruptcy protection application?……………….....….p 4 Internal Factors...………….……..…………………………...……….……….…p 4 Extenal Factors……….…..…………………………..……….………………….p 5 III - Discuss the latest stage of the new (smaller) GM……………….………...p 6 What are the characterisics of the new GM?..………………………………...…p 6 Some encouraging signs of recovery………………………………………....….p 9 Threats regarding GM’s trials to regain its golden past………………………….p 11 Summary and Observations……………………………………………………...p 13 IV - With a majority government ownership, what operational and management challenges might GM’s management confront when trying to regain its golden past?…….………………………………….………..p 14 Operational Challenges..………………………………………………………….p 14 Management Challenges………………………………………………………….p 15 Summary and Observations………………………………………………………p 16 V - Critically Analyse Whether it was GM’s Failure or its Competitors’ enormous success in cost savings and innovation that brought about GM’s demise…………………………..…...….……………………..…….….….p 17 Cost Savings - a poorly designed cost structure……...………………………….p 17 Innovation Processes…………….…………..…………………………………..p 18...
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...moved the work-in-process to the signal card. Once the work-in-process was on the signal card, the worker at workstation two was then able to pick up the work-in-process and begin working on their folds. The work-in-process cycled in this manner through to the final signal card at workstation four and was then picked up by the material handler and delivered to the customer. The rules that governed run number two stated that only one work-in-process was allowed to be placed on a signal card at any time. This served to regulate the flow of inventory through the production line. The addition of signal cards into to the paper airplane factory simulation is a type of Kanban signaling system. Kanban signaling systems are an effective use of a pull-type manufacturing system, where “production is controlled by customer demand (orders). Orders trigger production from upstream processes to meet the demands of those downstream. (Pull system)” (Clements. Kanbans. N.d.). Kanban is a term used to describe a “stock point near a machine, workcell, or processing station” (Clements. Kanbans. N.d.) where “a maximum number of units (of product) would...
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...all across America as we learn to apply the Toyota Production System methodology to healthcare. This book lays out the nuts and bolts of the lean methodology and also describes the more difficult challenges, which have to do with managing change. Graban’s book is full of wins—these are the same type of wins that are happening at ThedaCare every day. I wish I could have read this book six years ago, as it might have prevented some of the mistakes we made in our lean transformation journey.” — John S. Toussaint, MD, President/CEO ThedaCare Center for Healthcare Value “Coupled with a foundation of alignment and accountability, the ideas in this book provide a powerful tool to help hospitals get closer to the goal we want – perfect care.” — Quint Studer, CEO, The Studer Group, author of Results that Last “Mark Graban is the consummate translator of the vernacular of the Toyota Production System into the everyday parlance of healthcare. With each concept and its application, the reader is challenged to consider what is truly possible in the delivery of healthcare if standardized systems borrowed from reliable industries were implemented. Graban provides those trade secrets in an understandable and transparent fashion.” — Richard P. Shannon, MD, Frank Wister Thomas Professor of Medicine, Chairman, Department of Medicine, University of Pennsylvania School of Medicine “There is an enormous shortfall between the healthcare we are promised and what we actually get. Mark...
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...Assignment 2: Toyota BUSI2701H Name: Ronnel Belda Student CUID: 100847861 Executive Summary: With thorough understanding of the benefits and cost involved in allowing Toyota to operate in the country, it is apparent that the company should be permitted to expand in the country. This proposal was based on the numerous benefits that exceed the risks associated with the operation. These benefits include the mass production that will upsurge the country’s export and employment, and help produce supporting industries. In 2012, Toyota manufactured 9.75 million vehicles1. In addition, Toyota’s large sales will generate high tax revenue. In 2012, Toyota’s net revenue was $226,106 million2. Moreover, Toyota provides training to individuals that will improve the country’s level of knowledge. Furthermore, Toyota’s competitiveness will influence its rivals to operate in the same country. In addition, Toyota also operates in non-automotive business. Lastly, Toyota can improve its products and services in the country. Company Description: Toyota Motor Corporation, established by Kiichiro Toyota in 1937, is a Japan-based automaker company headquartered in Toyota, Aichi, Japan3. The company offers various types of vehicles such as sedans, minivans, 2BOX cars, sport-utility vehicles, and trucks, as well as car related parts and accessories. Moreover, Toyota extends its corporation to non-automotive business, including housing, financial services, communications...
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...Research on Toyota CSR Toyota is one of the largest car manufacturing multinational corporations in the modern world, it is necessary to underline that in recent years, it has become the leading automaker replacing the original world leader General Motors which has stayed on the first position for several decades. According to Akio Toyoda, the president of Toyota Motor Corporation, “the success of Toyota is due to the unchanging mission, which is to contribute to society through the production of safe and reliable vehicles” (Sustainability report 2010. p.2), Toyota, has been regarded as one of the top 500 companies in the world for a long time, and it has developed a trusted brand based on quality, good performance and for being environmentally friendly. They are holding a firm faith of CSR policy, which is to contribute towards sustainable development. August 2008, Toyota revised its CSR POLICY: Contribution towards Sustainable Development that takes into consideration Toyota's relations with stakeholders. In addition to applying this policy to all of its consolidated subsidiaries throughout the world, Toyota expects its business partners to also support its principles. (Sustainability report 2010. p. 8) In order to contribute to sustainable development, they believe that management interacting with its stakeholders is considerable importance. Based on “Customer First” philosophy, Toyota localizes their products to fit particular market in different countries. They successfully...
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...Toyota Industries Corporation Company Profile Publication Date: 6 Mar 2009 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA t:+1 212 686 7400 f:+1 212 686 2626 e:usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t:+44 20 7675 7000 f:+44 20 7675 7500 e:eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t:+49 69 9754 4517 f:+49 69 9754 4900 e:deinfo@datamonitor.com Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t:+852 2520 1177 f:+852 2520 1165 e:hkinfo@datamonitor.com Toyota Industries Corporation ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and...
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...2011 Planning & Assessing RX 330 Productions for Toyota North America Team Charlie Oscar Oscar Lima AMBA 640, Section 9044 8/9/2011 Section I II III Executive summary Introduction Exercise 1: Toyota Production System (TPS) today TPS term definitions & practical examples IV Exercise 1: TPS as a total entity Advantages Limitations Evolution TPS use among other companies V Exercise 2: Grid analysis (Weighted scoring model) Exogenous factors & assumptions Endogenous factors & assumptions Constraints VI VII Exercise 2: Location recommendation Exercise 3: Decision tree analysis TMMC production capacity recommendation Limitations Past performance: RX 330/350 VIII Exercise 4: Current regional production strategy Assessment Change recommendations IX Summary Appendix A References Page 2 3 4 4 7 7 8 8 9 10 11 13 16 16 17 17 18 19 19 19 21 21 23 24 1 I. Executive Summary Toyota Motor Corporation is leading the way to future mobility through innovation, productivity, quality and efficiency. Toyota uses a self-developed strategy known as the Toyota Production System (TPS) to guide business process improvements. This strategy applies principles of “just-in-time” production, also called “lean”, to align supply closely with consumer demand while avoiding surplus inventory. The report defines eight TPS terms, i.e. jidoka, just-intime, hoshin, heijunka, muda, kaizen, standardized work, and pokayoke; and gives examples of how terms are applied in other industries...
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...There is considerable interest to apply the principles of Lean Manufacturing in the Service Industry – sometimes called Lean Services. The motivation comes from the fact that the Toyota Production System – also known as Lean Manufacturing – has been very successful in transforming manufacturing. The popular thought is that those same lean principles that has transformed manufacturing could do the same for services. I have applied the principles of Lean Manufacturing in both services and manufacturing and I’ve learned the subtle difference in both contexts and also how one might apply lean to one versus the other. What is unwise is the blind copying of the tools of lean manufacturing, thinking that they will work in services. The fact is that manufacturing and services are very different. Let me attempt to highlight how a service business is different from a manufacturing business. Service Business Manufacturing Business simultaneous production and consumption (co-creation between producer and consumer) consumption and production at different stages many critical aspects are intangible many critical aspects are tangible concept of inventory may not be material, but can be virtual such as requests and, in healthcare, patients waiting for service can be considered a type of inventory usually has inventory and buffers considerable variability in service delivery some variation open universe in variety of service cases closed set in variety in product manufacturing ...
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