Analysis of Lean Management System in Hull and East Yorkshire Hospital NHS Trust

The assessment analyses the application of lean management system in healthcare industry with a case study of Hull and East Yorkshire Hospital NHS trust and discusses the core principles and benefits of lean management system.

Running head: BUSINESS FUNCTIONS
Business Functions
Name of the Student:
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Lean Management System and its Core Principles.....................................................................3
Analysis of the Work Processes of Hull and East Yorkshire Hospital NHS trust.......................8
Recommendations......................................................................................................................11
Critical Reflection......................................................................................................................12
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................15

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Introduction
The main purpose of this assessment is to analyse the business of Hull and East
Yorkshire Hospital NHS trust which is engaged in the operations of providing acute care for
people in United Kingdom. The assessment aims to look into the management system which is
applied by the business for day to day operations of the business. The assessment would be
analysing the management system which is applied to the company and also analyse the overall
efficiency of the system. The assessment would also be putting forward certain recommendations
so that the management of the company can make improvements in the business structure and
thereby improve the performance of the business (Goetsch and Davis 2014). The assessment
would be analysing different viewpoints regarding the lean management system and how the
same is beneficial for businesses (Bhasin 2015). The applicability of the lean management
system would also be applied to healthcare industry and analyse whether the same would be
beneficial in that particular sector or not. The assessment considers the business of Hull and East
Yorkshire Hospital NHS trust which is healthcare business and consider the business practices
which is followed in the company. The main motive of the assessment to identify the
management system which is applied and also make the best improvements in the system.
Discussion
In any businesses, nowadays management system and processes which are applied can be
make significant difference in the overall operations and revenue generation by the business.
There is desire for most of the businesses that the management system should be such that the
costs of the business is reduced significantly and overall efficiency of the business is enhanced.

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The assessment would be discussing regarding the lean management system and the application
of the same on the business of Hull and East Yorkshire Hospital NHS trust.
Lean Management System and its Core Principles
Lean management system is an approach which is adopted by most of the organization
for the purpose of efficiently running the operations of the business. The approaches require the
management to make continuous improvements in the operational structure of the business and
thereby bring about improvement in quality and efficiency in the operations of the business. This
approach is growing in popularity in the business world and are being adopted by most of the
business organization (Martínez-Jurado and Moyano-Fuentes 2014). Lean management is
philosophy which most of the businesses follows and the same intends to continuously eliminate
the waste, in all the courses, through small and incremental improvement (Gnoni et al. 2013). It
significantly improves quality of the products or services and reduces defects, as well as
enhances the overall manufacturing flexibility.
The main problem which was associated with the traditional method of management was
related to fact that the managers were unable to identify the problem which was lowering the
overall efficiency of the business and in addition to this, the technique was an outdated one
(Tenera and Pinto 2014). The new lean management system is designed specially for businesses
who are looking for expansion and proper utilization of resources of the business (Teich and
Faddoul 2013). The lean management system is developed with an objective to put forth more
emphasis on quality of services which is provided and overall reductions of costs of the business.
The system of lean management is based on the Toyota Production system and has been
adopted by different businesses after the success of Toyota. In case of Toyota production system,

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the approach was implemented in the business to effectively reduce the costs of the business and
follow a low-cost model for the business. The system also aimed to reduce the wastes of the
business and thereby also reduce the costs of production of the business. The system which was
initially introduced by Toyota production system is being widely used by maximum businesses
for better results (Sisson and Elshennawy 2015). There are numerous processes which are
covered under lean management system and application of any of them depends on the nature of
the business. There is a collection of techniques which are applied in a lean system such as
Kanban, Kaizen, Five S, Six Sigma for the purpose of effectively managing the operations
(Fullerton, Kennedy and Widener 2013). The lean management system nowadays is applied by
most of the organizations and have improved over the years. The focus of most of the businesses
is efficient and complete utilization of resources of the business and quality and cost control so
that the management can maximise the revenue of the business. As per Joseph Juran, lean
management system can be applied to manufacturing and healthcare industries as the same
would have effect on the business and improve the overall efficiency of the business. There
would also be another effect which is related to reduction of wastes of the business.
The principles which are closely followed with lean management system are incorporated
in such a manner that the same results in continuous improvement of quality and business
operations. Some of the principles of lean management system are discussed below in details:
 Identification of Value: The first major principle of lean management is identification of
activities which can create value for the organization. The product or services which is
offered by the business should be such that clients are ready to pay for the same. As per
general terms, any activity or product which does not create any value for the end users
are a total waste. The aim of this management is to ensure that there is significant

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reduction of wastes and thereby overall efficiency of the business is enhanced. This
management system ensures that value is created and if possible enhanced to its
maximum level.
 Value stream Mapping: This is another process which is followed by the management of
the company for the purpose of creating value. This requires management to effectively
manage and create a value stream map to ensure that all activities are of the business are
undertaken effectively. This process creates a map for all the activities which are to be
undertaken by the management of the company in order to ensure that value is created at
all processes.
 Create Continuous Workflow: The next step is creation of continuous workflow in the
operations of the business. These steps are undertaken after reduction of wastes of the
business and this step ensures that there is a continuous flow of work in the business so
that overall efficiency of the business can be improved significantly. The process requires
management to make continuous improvements in the work process so that the quality
and level of services for the clients can be improved significantly (Yang and Yang 2013).
The focus must also be on improvement of teamwork in the business.
 Create a Pull System: A business which has a stable work team can effectively meet the
quality and efficiency requirements of the business. The lean system encourages a pull
system which effectively ensures that the work which is demand is carried out first. This
ensures that the work process of the business follow priority basis while managing
operations of the business. This approach allows the management of the company to
maintain resources and also reduce wastage of resources and also optimum utilization of
resources of the business.

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 Continuous Improvements: The main principle behind lean management system is to
ensure that there are continuous improvements in the operational structure of the
business. Lean management system is closely followed by the management with a view
to make continuous improvements in the work process. The management change is
appropriate when it comes to maintaining efficiency and quality of the work which is
conducted by the management of the company (Graban 2016). The lean management
system is based on creative and innovative thinking and therefore continuous
improvement of the businesses processes forms an important step in the management
system.
The lean management system is also based on the social responsibilities which are
undertaken by the management of the company with a view to ensure that the society and the
clients are also benefited from the management practices which is applied by the business.
Figure 1: Stakeholders considered in Lean Management

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Source: (Business Jargons. 2017)
The above figure makes it clear that the major stakeholders which are considered under lean
management system are the customers and the employees who are working with the
organization. The lean management system is build on the principles of continuous improvement
and respect and safety of the people who are associated with the company. The process of lean
management system is also dependent on achieving social values which includes factors like
respect, social responsibilities and other factors as well. As per theory, the house of lean
management system is built on social values and continuous improvements which is
implemented by the management of the company.
Figure 2: Image showing house of Lean Management System
Source: (Management Meditations. (2019)

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The above figures show the house of lean management system which is directly dependent
on continuous improvements and also on social values. The lean management system depends on
on leadership and social values for the business. Therefore, any business needs to adhere to both
these principles for both the benefit of the business and also the stakeholders. The principles
which are stated in the above paragraph needs to be implemented in the business of Hull and
East Yorkshire Hospital NHS trust so that a better structure can be followed by the management
of the company.
Analysis of the Work Processes of Hull and East Yorkshire Hospital NHS trust
The management of Hull and East Yorkshire Hospital NHS trust is committed towards
quality control in the operations of the business. The company also takes all the effort to
maintain the agreed quality and safety priorities towards the services which is provided by the
management of the company. The business of Hull and East Yorkshire Hospital NHS trust publishes
quality accounts on an annual basis which is a form of annual report for the trust and the same
depicts the performance of the business for the time frame. The quality account which is
prepared for the year 2017/18 shows that the management of the company has taken various
steps for the purpose of improving the business structure and ensure that the patients of the
business are satisfied with the services which is the business provides.
As per the quality report which is available for the company for the period of 2017/18, it
is clear that the management has taken appropriate steps for improving the level of services
which is provided by the management of the company. An instance can be provided of the
Ophthalmology team of Hull and East Yorkshire Hospital NHS trust which has won many
prestigious awards for the level of services which is provided by the management of the

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company. The NHS Trust has been commended for the superb nursing services which the
business has been providing. In addition to this, to further demonstrate the growth which has
been achieved by the business during the period is related to the engagement with the Red Cross
Society. The trust has worked closely with the Red Crossed Society (Tenescu and Teodorescu,
2014). The Trust teamed up with the British Red Cross and has offers related to assisted
discharge scheme for patients ready to be discharged from Hull Royal Infirmary and Castle Hill
Hospital. The management has also focus on development of resources for effectively serving
maternity patients and babies. The trust was initially started as a maternity unit for serving
women and children. The infrastructure has significantly developed from that time and in current
time the trust has units on maternity, gynaecology and children’s services for families. The Trust
has made the current period its most successful year after a record number of families agreed to
save lives by donating organs and considerable number of life were saved (Arnaboldi, Lapsley
and Steccolini 2015). The above management processes show that the management of the
company is trying to continuously evolve the business operations of the business so that the
business can better serve the customers. One of the core features of lean management system is
to continuously change and improve in a given environment. Therefore, the activities which are
undertaken by the management of the company are indicating that the Hull and East Yorkshire
Hospital NHS trust follow lean management system.
In addition to this, the quality report which is prepared for the period also reflects that the
management of the company follows a target-based approach for which targets are undertaken
on the basis of priority of the same. The same is presented in the quality report which suggest
that the management of the company follows one of the core principles of lean management
system which is Creating a Pull System. This shows that the management of the company

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follows lean management system for effectively conducting the day to day operations of the
business.
The company takes all the necessary steps for ensuring that the safety of the patients is a
priority for the business. The business aims to protect the customers from any infections and
other aliments while the patient is staying in the hospital. The trust aims to ensure that the
patients undergo a speedy recovery (Gao and Low 2014). In addition to this, the business also
looks after the nutrition requirements of the patients by preparing proper diet charts and diet
control programs so that the health of the client is given the priority. Therefore, the principles
which are associated with the lean management system are consistent with the practices which is
followed by the business. The lean management system of a business effectively requires
businesses to utilize resources to the fullest and minimize the expenses of the business. The
management of the company is associated with healthcare services and the social services which
is provided by the business is appropriate and meet the criteria of lean management system
There are further evidences that the management of the company adhere to the principles
which are set out in lean management system. The management of the company already focuses
on social principles and provides health services. In addition to this, the management One of
such evidence is that the management has established orthopaedic centres and manage Dementia
Friendly Gardens so as to ensure that the patients can undergo recovery at a much faster pace.
The garden is maintained by the management of the trust so that the patients can have a change
of scenery and thereby recover more quickly. Therefore, the management of the trust takes all
the necessary steps to fulfil the social responsibilities of the business and effectively tries to
reduce the overall costs which is associated with the business by reducing wastes and ensuring
proper utilization of resources of the business. The trust follows a safer standard for the patients

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and ensure that all necessary requirements for maintaining health is provided to them. This is the
main reason that lean management system is especially applicable to healthcare business.
Recommendations
The above analysis shows that the management of Hull and East Yorkshire Hospital NHS
trust is trying to implement Lean management practices in the operations of the business so that
the overall efficiency of the business can be improved. The practices which are undertaken by
the management of Hull and East Yorkshire Hospital NHS trust are appropriate for the time
being but in order to follow lean practices continuous improvements and value creation should
be the focus of the business. The practices which are undertaken by the trust are focused towards
achieving efficient utilization of resources of the business and improving the overall quality of
services which is provided to the patients. There are certain gaps still in the management
processes and the same needs to be improved by the management of the company so that
efficiency level of the business can be enhanced. There are certain recommendations which are
suggested to the management of Hull and East Yorkshire Hospital NHS trust so that the overall
efficiency can be maintained. The recommendations are listed below in details:
 The management of Hull and East Yorkshire Hospital NHS trust needs to reduce the total
costs of the business and that the same should be a priority (Rauch et al. 2016). The
company is looking to improve the quality of services which is provided by the company
but the management also needs to ensure that the costs of the business is reduced.
 The quality report which is prepared by the management of the trust shows that there are
certain activities which have either been abandoned or not achieved the targets which
were previously set by the management. These targets need to be achieved by the

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management of the company and ensure that proper resources are allocated to such
activities of the business.
 The management needs to search for new areas whereby more improvements can be
brought about in the operations of the business. There are certain services which are not
provided by the healthcare trust which can be improved significantly (Stanton et al.
2013). In addition to this, the focus of the management should also be maternity ward and
ensure that mothers and their child receive the best care possible.
 The management of the company can enhance the range of medical services which is
provided so that the operations of the business can be enhanced and this would also come
under the purview of making continuous improvement and innovative thinking.
 The equipment’s which are used for the healthcare of the patients should be updated as
the life of the patients are depended on the same. The application of better equipment is a
step towards creation of safer environment for the patients and thereby also adhering to
the social responsibilities on the trust.
The above-mentioned recommendations need to be followed appropriately by the
management of Hull and East Yorkshire Hospital NHS trust. This will be ensuring that the
overall business structure of the trust is improved and the range of services which is provided by
the business is also enhanced. In addition to this, better quality of services would be provided to
the patients of the trust.
Critical Reflection
The assessment is regarding the use of lean management system in a business and the
business which is selected for the assessment is a health trust with the name Hull and East

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Yorkshire Hospital NHS trust. As far as I am gathering the concept is modern day concept and is
application to a manufacturing sector. In this assessment an attempt has been to shows the
application of lean management system in a health care industry. However, in order to
understand the applicability of the system on healthcare business, I need adequate knowledge on
lean management system.
From the theories which is available from authors, Lean management refers to a
technique that was developed with the aim of minimising the waste generation process and
maximising the value of the product or service to the customer, without compromising the
quality. In addition to this, I also gathered that the original plan of lean management system was
developed by Toyota Production system. I went through the Toyota Case and noticed that the
focus was also on proper utilization of resources for both materials and reduction of costs which
are associated with the business. The business model which was adopted by Toyota Production
system was inspirational and can be said has changed the management system outlook. I also
believe that the lean management system also holds a significant place in future and would be
used by most of the businesses in order to meet sustainability requirements. I am confident that I
would be able to be generate more earnings and appropriately plan for my future.
I agree with the concept of lean management system as the same brings about continuous
improvements in the business process of the organization. The concept can bring about rapid
improvements in a business organization and therefore appropriate application for the same
needs to be done. The evidence which I have gathered regarding the lean management system is
clear from the Toyota Production system case and the success of the same. I am also of the
opinion that the management of Hull and East Yorkshire Hospital NHS trust needs to make
certain changes so that further improvements can be made to the already lean management

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system applied by the business. The most favourable aspect of lean management system which I
find, is the continuous improvement process which keeps management of companies on their
toes and help in facing competitions. I agree with the view as well that even though the lean
management system is time taking and expensive process, the same will be bearing fruits in the
long run. The lean management system has an impact on business and enhances the operations
and efficiency of the business. The management of Hull and East Yorkshire Hospital NHS trust
needs to adopt lean management system in the business on a full scale.
Conclusion
The above discussion effectively shows the application of lean management system and
how the same can affect the operations of a business. The assessment shows definition and
applicability of the lean management system in a health care business namely Hull and East
Yorkshire Hospital NHS trust. The assessments effectively list out the benefits which are
associated with the implementation of the system in a business. In addition to this, the above
discussion also shows comparisons of the principles of lean management system with the
management system which is applied by Hull and East Yorkshire Hospital NHS trust.
Lean management system is derived from the Toyota production system which become
very famous and the same aimed at maximum utilization of resources and cutting out any
wastage of resources so that more revenue can be generated by the business. In the case of Hull
and East Yorkshire Hospital NHS trust, the motive of the business is to provide the best quality
of services to the patients and ensure that they recover speedily. The assessment also includes a
critical reflection regarding the lean management concept and also include recommendation

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which can be suggested to the management of Hull and East Yorkshire Hospital NHS trust
regarding implementation of lean management system in full scale.
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