Sales & Operations Process Improvement
Lean Six Sigma in Hospital HR Dept.

November 2009
In This Issue
Mitch - Grocery Retail Project
Lean Six Sigma in Hospitals
Greetings!
 
This newsletter will continue to analyze the improvements made in this VA Medical Center's Human Resource Department.  Specifically, we looked at improving the physical workflow and instilling operational discipline via 5S.  We began analyzing this HR department in July's newsletter (for prior e-newsletters, see www.supplyvelocity.com and click on the archive newsletter link to review). 
 
As part of their Lean journey to "Assure an Effective Workforce" for the Hospital, they implemented Performance Measurement/Scorecards, streamlined the Nurse Recruiting process and created a 5S workplace. 

But first a little update on what we are doing, and who we are helping this month. 
 
Sincerely,
 
Mitch Millstein & Ray Davis
Mitch Shopping What Mitch is Doing
Mitch is working with a Grocery Retailer on rationalizing the items they have for sale in their stores.  Initial analysis shows that the top quartile of items is over 70% of sales while the bottom quartile is less than 2%.  We expect to increase store / distribution center productivity and more importantly, retail sales.  
Erie VAMC Lean Six Sigma in Hospitals - 5S Visual Management
DETAILS: 5S Implementation
1). This HR department hoarded paper.  Like many people the HR Specialists felt the messier their desks the busier they must be.  It was cultural!  Everyone's desk looked like these pictures.    http://www.supplyvelocity.com/Oct_2009_HR_5S.ppt
2) Once we did the initial 5S blitz, we created a 5S Implementation Schedule for all of HR.  This schedule is critical.  You cannot expect 5S to just happen.  You have to schedule the area, people and then follow-through.  (See the 5S Schedule slide)
3) After the physical 5S was in place, we worked on Standardization.  Many of you have heard us say, "You need to have a workplace where the layout is conducive to your back-up being able to take over your work if you don't show up one day." 
4) We ensured each HR Specialist's office was identical in layout and labeling.  We also worked on quick-visuals to reduce searching time.  The team thought of color coding files based on the subject.  (See the 5S File Color Standards slide)
5) The result is a disciplined and standardized workplace, designed to reduce problems and maintain operational effectiveness.


LESSON LEARNED
This was the first HR department we had worked with on Lean.  It taught us that everyone has a "factory" in their office.  This "HR factory" worked on recruiting an effective workforce and other operational processes to retain great people.

RESULTS
5S and Performance Measurement are the glue that keep Lean a way of life in this HR department.  Performance Scorecard measures continue to slowly trend up. 
 
CLOSING
Next month we will look at Lean Six Sigma in Patient-Care areas of this Hospital.  In 2010 we will turn to applications of Lean Six Sigma in Retail/Distribution.