A LEAN Approach to Supply Chain Integration & Project ... · Evaluate new integrated contracts &...
Transcript of A LEAN Approach to Supply Chain Integration & Project ... · Evaluate new integrated contracts &...
A LEAN Approach to Supply Chain Integration & Project Management
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FACULTY
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Régine Villain, MPH | NYU Langone Health SystemVice President, Supply Chain
Ann Marie Ferguson, MPA | NYU Langone Health System Associate Director, Supply Chain
Kenneth Scher, CMRP | Nexera, Inc.Senior Manager, Consulting Services
Ritika Ghose | Nexera, Inc.Senior Consultant, Consulting Services
FACULTY DISCLOSURE
The faculty reported the following financial relationships or
relationships to products or devices they or their spouse/life
partner have with commercial interests related to the
content of this CE activity:
- Régine Villain, MPH – Nothing to Disclose
- Ann Marie Ferguson, MPA – Nothing to Disclose
- Kenneth Scher, CMRP – Nothing to Disclose
- Ritika Ghose – Nothing to Disclose
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Learning Objectives
Identify strategies to implement LEAN
approaches in order to reduce waste.
Analyze the benefits of a team-based
approach to supply chain integration.
Outline the methods to create LEAN
supplier networks.
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NYU Langone Health System
Founded in 1841
NYU School of Medicine + Four
Hospitals• Tisch Hospital
• Rusk Institute of Rehabilitation Medicine
• NYU Hospital for Joint Disease
• NYU Lutheran Medical Center
Over 150 Ambulatory Sites & 40
Practices
New Hospital Under Construction• Kimmel Pavilion
o 11 patient floors
o 374 single-bed rooms
New Affiliation in Progress • Winthrop University Hospital
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Nexera, Inc.
Leading performance and financial improvement consulting firm
with roots in strategic supply chain management
Partnered with over 120 healthcare organization to create
sustainable solutions for health system transformation
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Presentation Overview
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Integration Overview & Approach
Methodology & Project Management
Spend Merger
Operations Merger
Key Lessons
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INTEGRATION OVERVIEW & APPROACH
Nexera’s Supply Chain Operations Pie
Value Analysis
Contracting
Requisitioning
Purchasing
Receiving
Distribution
Inventory Management
Data
Management
& Technology
Infrastructure
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The Lean Approach
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Phase IVPhase I Phase II Phase III
Project Management and Communication
ImplementDesignAssessTrack &Improve
Project Management Structure
FIVE KEY AREAS
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Standardize business practices,
workflow/ consistency, update
policy & procedures
Transition main distributor,
inventory replenishment,
warehouse/ par locations
Align titles, roles, and
responsibilities
Improve analytics capabilities
combine spend & savings into
one reporting system
Systems & Technology
Process Warehouse & LogisticsPeople
Data Analytics & Reporting
Implementation of eProcurement
system = one ERP
Organizational Focus
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CostProcessPeople
Stakeholders &
Champions
Management,
Flexibility,
Adaptability
Technology
Improvement
Approach & Buy-In
Change
Management
End User
Education &
Training
Effective Practices
Process
Management
Policy & Procedure
Enhanced Flow &
Operations
Customer Service
One IMF
Streamline ERP
Price Parity
Optimize GPO
Penetration
Streamline
Align End-Users
Drive
Organizational
Savings
Reduce CostsRequisitioning
Purchasing
Inventory
Management &
Logistics
Analytics &
Reporting
Project Team: SYNERGY
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Executive Leadership
Steering Committee
Clinical
Project Managers
Project Management Leads
Data Management Leads
Corporate Services Inventory Management Value Analysis Legal
Complete On Track to Meet Target Will Not Meet TargetRisk of Not Meeting Target
Overall Status
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Example Status Report
NYU Lutheran Integration Status Report: April XX, 2017
Integration Team: Supply Chain Management
Integration Team Contacts Sign-OffSummary of Major
Accomplishments
Gaols and ScopeKey Milestones
(Achieved and Upcoming)
Target
DateStatus
Barriers & Areas for
Leadership InputSummary of Key Next Steps
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SPEND MERGER
Phase I: Assessment
Overall Matched Spend & Savings Analysis
Facility Matched Spend Savings Associated
NYU Langone Medical Center $27M $500K
NYU Lutheran $13M $1M
Grand Total $40M $1.5M
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# of Matched Unique Catalog #
with Unique UOM:
# of Matched Unique Catalog #:
2,500
1,500
Phase II: Implementation Design
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1. Identify matched items
2. Remove UOM duplication and identify any UOM inconsistencies
3. Quantify savings and spend figures
1. Review top categories with NYU team
2. Share the information with key stakeholders from both NYU and LMC
1. Establish work groups to review pricing of matched purchases
2. Review contracts and contact vendors
3. Quantify realized savings
Discuss next steps
Phase II: Implementation Design
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Identify key stakeholders from each facility for work groups
Review contract terms & commitments. Set up supplier timelines
Evaluate new integrated contracts & track savings
Further review matched purchases for additional savings opportunities
Phase III: Implementation
Category Annual Spend SavingsOrthopedic $20M + $350K +Spine $15M + $2.5M +Cardiac $15M + $250K +Vascular $2M + $100K +Grand Total $52M + $3.2M +
Non-Clinical Implementation
Clinical Implementation
Initiative Total Spend Evaluated
Total Savings
Furniture $15M + $500K +Office Supplies $10M + $350K +Translation & Interpretation $5M + $200K +Facilities - Security Personnel $1.5M + $40K +Grand Total $31.5M + $1M +
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Evaluate Service
Validate
Stakeholder Review
Implement
Phase IV: Tracking & Continuous Improvement
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VBM Taskforce
VBM – Surgical Committee
Orthopedics
Implementation Teams
Perioperative
Value Analysis
Interventional
Value Analysis
Medical/ Surgical
Value Analysis
Value Analysis
VBM – Clinical Oversight Group
Children s Services
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OPERATIONS MERGER
Phase I: Operations Assessment
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CostProcessPeople Technology
Technology
ERP transition
Data Management
IMF vs. IMF analysis
o Exact matches
o Conversion items
o Keep items
Inventory
Management
Perpetual Storeroom
Par Locations
Bulk LUM
Distributor
conversion
Requisition/
Replenishment
MMIS transition
Handhelds
Non-stock & special
orders
Logistics
Roles &
responsibilities
MMIS transition
Phase I: Operations Assessment
(Inventory Management)
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Current state metrics
Inventory turns
Value
Average daily usage
Max daily usage
Mean daily usage
Detailed PAR location analysis led to inventory right-sizing opportunity
Par location detailed analysis
Replenishment/ issue history
Purchase order history
Item conversions
Item adds/ replacements
Storage capacity
Replenishment cycles
Phase I: Operations Assessment
(Inventory Management)
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All location item levels finalized
Distributor conversion
Low unit of measure conversion
Validation
Implementation planning
Location by location par recommendations & stakeholder review
Previous analysis
Vendor/ manufacture lead times
Safety stock
Capacity
On-hand requirements
Detailed PAR location analysis led to inventory right-sizing opportunity
Phase II: System & Operations Design
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New main distributor
Item conversion
Low unit of measure program conversion
o Review updated par location info
• LUM UOM/QOE
Based on analysis:
o Exact match
o Conversions
o Keep
Cross walk identification
o MMIS item # switch
New MMIS par location upload
Item conversion
Approval process
Coordinate with transition teams
Contracting/ Value Analysis
Item Master File
Phase II: System & Operations Design
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New ERP
System and
operational
education
Inventory
Management
Coordination of all
conversion
components
Implementation
design
Final file approvalo System testing
Go-live readiness Bar code applications
Phase III: System Implementation
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Inventory
Tracking
Inventory Barcode
Labels
Phase IV: Continuous Process Improvement
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Ongoing
enhancement
Storeroom
inventory
reductionPar level review
Kimmel
Weighted bin system
Autonomous distribution
Perioperative supply chain inventory management
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KEY LESSONS
Lean Lessons
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Complete buy-in from both
entities is a prerequisite for
success
Full organization specific
current state assessment is
required
Organization collaboration &
change management is
essential
Continuous improvement must
be the mindset
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