MGMT6003: Operations Plan - Lean Management in Healthcare Industry

This presentation provides an overview of lean management principles and their application within the healthcare industry, focusing on how disruptive technologies can enhance operations and improve patient care. The presentation examines the adoption of lean management concepts, inspired by Toyota's model, to address rising healthcare costs and service quality concerns. It highlights the role of disruptive innovation, such as artificial intelligence, robotics, and data analytics, in transforming hospital processes. The presentation specifically analyzes the emergency room through a value stream map, identifying bottlenecks and proposing future states that integrate technologies like IoT, 3D printing, and autonomous vehicles. The conclusion emphasizes the potential of combining lean management and disruptive innovation to create a more efficient, cost-effective, and patient-centered healthcare system.

MANAGEMENT

INTRODUCTION
 In this presentation, various changes in the healthcare industry
including its operations, processes and practices will be
discussed.
 From past few years, the healthcare industry is adopting various
industrial practices due to the rising in the health care cost and
the decrease in the service quality.
 Therefore, the healthcare industry has adopted Lean
Management Concept evolves from the Toyota Motors.

LEAN MANAGEMENT SYSTEM
 Founder, Taaicchi Ohno in 1990, arouses when Toyota Models
facing manufacturing problems.
 It includes several principles like –
 Value identification of customers.
 Management of value stream.
 Flow production increased capabilities.
 Alteration of Mechanism to “pull” approach.
 Promote perfection through zero waste treatment.

Disruptive Innovation and
technology
 It is a process where small and new companies have an
opportunity to challenge a well –established business established
enterprise through their creativity and innovation.
 Disruptive innovation and technology have the potential to create
a new marketplace with a competitive paradigm.
 This can help the industry in making an immediate profit, quickly
enter into a competitive marketplace and enhancing more
capabilities in a shorter period of time.

Disruptive innovation in Hospitals
 Various disruptive technologies which supports lean management
and used in the hospitals are mention below –
 The major four areas of investments are –
1. Artificial Intelligence
2. Robotics
3. Autonomous Mobility
4. Data and Cloud Technology

Disruptive innovation in Hospitals
(Continue)
 In London hospital, AI is using in diagnosing cancer on CT scans
for analyzing, which A&E patients are seen.
 In many large hospitals in Australia, Surgical robots like da Vinci
Surgical System are used in surgeries ranging from head and
neck to urology surgery,
 Boston Children’s Hospital is innovating on top of cloud system
through Big Data Analysis and Cloud computing technology in
hospitals.

Disruptive innovation in the
Healthcare Industry (MAP)
 The modern industries are facing the problem of the operations
in the manufacturing processes. To make a competitive position
in the market, these industries have to make their production
process more consistent with the help of applying the principles
of lean management and disruptive innovation.
 Therefore, identifying the bottlenecks in the system is necessary
for making the production more stabilize.

Value Stream Map – Emergency
Room

SYSTEM DESCRIPTION OF THE
VALUE STREAM MAP
 The step starts with the registration of patient which goes to the
waiting in ER room till the nurse or doctor does not come for the
checkup.
 After that, the nurse brings the necessary medical supplies
followed by treatment of a doctor.
 In the last stage, departing instructions will be given and then
the patient goes home.

SYSTEM DESCRIPTION OF THE
VALUE STREAM MAP (Continue)
 In the whole system, both information and material are flowing in
a consistent and systematic manner.
 The acceptable amount of WIP can not be evaluated as this map
deals with the real human people and not with the hardware.
 In the next slide, various proposed future states has bee
described:

Suggested Future State
 Several disruptive technologies need to be used in the service
map of the emergency room.
 These include –
1. IoT (Internet of things)
2. 3D printing
3. AI (Artificial Intelligence)
4. Medial Innovation
5. Robotics
6. Autonomous vehicles packed with AI algorithms.

Suggested Future State
(CONTINUE)
 IoT helps the healthcare industry by connecting every element to
the internet so as to fill the gap of geographic boundaries.
 In the above service map, IoT can connect all the flow of
information and material in the emergency room with the
internet so that to increase the boundary of accessibility which
leads in faster response time.

Suggested Future State
(CONTINUE)
 The next most important disruptive technology is AI which stands
for artificial intelligence.
 It can help in the improvement of medical records and treatment
solutions by interacting with personal medical history.
 In the emergency room service map, AI can be used at various
aspects like while diagnosing the patient, during the treatment of
the patient and during the time of registration (Insurance
verification).

Suggested Future State
(CONTINUE)
 In the future, 3D disruptive technology in healthcare can help in
building various organs and tissues such as liver, hearts and
kidneys.
 With relation to the service map, this technology can remove the
unnecessary element which is related to the treatment given by
the doctor.

Suggested Future State
(CONTINUE)
 Medical innovation can also change the way of the operations
due to the future development in the field of gene editing, DNA
testing, etc.
 Using robotics is now also becoming the part of the healthcare
industry and with the collaboration of AI algorithms, it can work
more efficiently
 This technology can be used in all areas of service maps like –
1. Pre-stage of registration by noting down necessary details of the
patient.

Suggested Future State
(CONTINUE)
2. Insurance verification
3. For supplying of medicines during the treatment etc.
The last and the most necessary technology, i.e. autonomous
vehicles.
This technology can be proved to beneficial from both the
perspectives – personal and healthcare industry.
It helps in the service map of the emergency room in an indirect way
like -

Suggested Future State
(CONTINUE)
 Providing on-demand health service through “healthcare cloud”,
example collaboration of MedStar with UBER.
 Using an ambulance packed with an AI system that can help in
finding the best effective route from the patient to the hospital,
inside treatment in the ambulance for the purpose of diagnosing,
etc.

CONCLUSION
 Healthcare industry can be surely boosted if they use lean
management principles and applies them to disruptive
innovation.
 This helps them to make a stand in the competitive market with
the adoption of low-cost techniques, proper treatment of waste
and the effective use of the availability of resources.
 Although the process map showed the whole process of the
information and material flow in a single image, it is a vitally
important aspect of how that process proceeds