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When The Big Ten Meets The Big Three, The Successes Add Up

When The Big Ten Meets The Big Three, The Successes Add Up. Agenda. GM Perspective UM Perspective. Agenda. GM Perspective GM’s Lean History Challenges Within GM Applying GMS In The Supply Chain Lessons Learned Results UM Perspective. Lean History. GM and Toyota negotiate

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When The Big Ten Meets The Big Three, The Successes Add Up

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  1. When The Big Ten Meets The Big Three, The Successes Add Up

  2. Agenda • GM Perspective • UM Perspective

  3. Agenda • GM Perspective • GM’s Lean History • Challenges Within GM • Applying GMS In The Supply Chain • Lessons Learned • Results • UM Perspective

  4. Lean History • GM and Toyota negotiate • NUMMI joint venture • Toyota Production System • Manufacturing in the United States

  5. Lean History • Years of learning • Hundreds of plant tours • Executive development programs • Short term and two year assignments • Multiple interpretation • Localized implementation

  6. Jack Smith former GM Chairman “All GM plants are a part of the same company and must operate with one production system with common elements” Run Common and Run Lean

  7. Lean History Eisenach

  8. Lean History • GM Global Manufacturing System • General Motors’ interpretation and application of Lean best practices • Deliver improved business performance

  9. J.D. Power and Associates2006 Initial Quality Study Results

  10. 2006 Top 15 North/South America Plants North/South America Plant Average 65 PPH Based on Defect/Malfunction 7 of Top 15 PP100

  11. Wins • Oshawa 2 received the Gold North/South American plant award for the 2nd consecutive year • 5th consecutive year that a GM plant has won this award • Magna Steyr’s Graz, Austria plant, which builds the Saab 9-3 convertible, received the Gold European Plant Award • 2 segment winners – Grand Prix and Silverado Light Duty Pickup • 11 segment leaders (top 3) • Swept the Large Pickup segment • Corvette among top 10 models in industry • Seven of the top 15 plants in North/South America, more than any other manufacturer

  12. Top Ten Vehicle Assembly Plants - HPV Sable, Taurus Allure, Grand Prix, Lacrosse Altima Malibu Altima Grand Am, Malibu Monte Carlo, Impala Camry, Solara Frontier ION

  13. A Leaner GM • GM then: • 600,000 employees around the world • 460,000 in the United States • Sold 5.2 million cars and trucks globally • GM now: • 327,000 employees worldwide • 140,000 employees in the United States • Sold 9.2 million cars and trucks globally

  14. Challenges… • Increase in competition • $5.3 billion for health care in 2005 • Largest private purchaser of health care • 1.1 million employees, retirees and dependents

  15. Initial Collaboration Efforts • Continuous improvement workshops • Traditional supply base and health care • Area of focus • Quality improvement • Productivity increase • Inventory reduction • Lead time reduction

  16. Lean History • Five Lean Principles: • People Involvement • Standardization • Built-in Quality • Short Lead Time • Continuous Improvement

  17. GMS PeopleInvolvement ContinuousImprovement Standardization ShortLead Time Built-in Quality

  18. Goal… • Building Value and Eliminating Waste

  19. 1996 Global Manufacturing System • Assembly Plants • Metal Fabrication Plants • Powertrain • Engineering • Sales and Marketing • HR • Finance • Purchasing… 2003 Global Manufacturing System Application Of GMS

  20. Global Application 2006 Global Manufacturing System • Engineering • Sales/Marketing • HR, Finance • Purchasing • HealthCare • Mfg. Plants • Service Centers • Parts Warehouses • Mock-Up/Prototype • Suppliers’ Operations… Administrative Environment Operations Environment

  21. Supplier GMS (S-GMS) • Improve QUALITY through a Shop Floor Management Process • Teach, Coach, Mentor Leadership behavior • Engage Team Members • Develop Leaders as Teachers • Apply the “What – How – Why – Thinking” • Incorporate PDCA – Plan-Do-Check-Act

  22. Collaboration

  23. Lean Leadership Culture of Learning Commitment To Lean People focused on improving processes using GM-GMS Cross-functional Involvement Problems as Opportunities Problem Solving Plan-Do-Check-Act

  24. Lean Leadership Culture of Learning Commitment To Lean People focused on improving processes using GM-GMS Cross-functional Involvement Problems as Opportunities Problem Solving Plan-Do-Check-Act

  25. Lean Leadership Culture of Learning Cross-functional Involvement Problems as Opportunities Commitment To Lean People focused on improving processes using GM-GMS Problem Solving Plan-Do-Check-Act

  26. Lean Leadership Culture of Learning Cross-functional Involvement Problems as Opportunities Problem Solving Commitment To Lean People focused on improving processes using GM-GMS Plan-Do-Check-Act

  27. Lean Leadership Culture of Learning Cross-functional Involvement Problems as Opportunities Problem Solving Plan-Do-Check-Act Commitment To Lean People focused on improving processes using GM-GMS

  28. Lessons Learned • The principles of GMS can achieve results in health care • Leadership commitment is key • Long term change and sustainability requires more than quick hit workshops

  29. Lean Leadership Culture of Learning People focused on improving processes using GM-GMS Cross-functional Involvement Problems as Opportunities Problem Solving Plan-Do-Check-Act Results

  30. Agenda • GM Perspective • UM Perspective • Who We Are • Where We Want to Go • Why We Need Lean to Get Us There • How GM Got Us on the Right Road • Where We Are Now

  31. Who We Are Integrated Academic Health System, within major public research university: • UM Hospitals and Health Centers • 817 beds • 1.6 million outpatient visits • 10,000 employees • UM Medical School • 1500 faculty physicians • 995 resident physicians • 690 medical students • M-CARE Health Plan

  32. Mission Synergy Education PatientCare Research

  33. Good-to-Great in Health Care “Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter conscious choice and discipline”. ---Jim Collins, AuthorGood to Great

  34. How an Academic Medical Center Adds Value Produces ‘social goods’ of value effectively and efficiently: • Competent, compassionate physicians and nurses • Medical knowledge, new treatments and better models of care • Unique services not available elsewhere • Safety net services for the poor and uninsured

  35. How an Academic Medical Center Adds Value Delivers value as defined by multiple stakeholders: • Our patients have the ideal healthcare experience • Our students obtain a superb education • Our faculty have rewarding academic careers • Our staff satisfaction is high • Our researchsponsors get more out of our work and…

  36. How an Academic Medical Center Adds Value • Those who pay the bills for healthcare • General Motors, Blue Cross, Medicare, Medicaid, and people like you receive high quality, cost effective, patient- satisfying care

  37. Why Health Care Needs Lean Thinking Traditional Health Care (or, the way I was trained) • Episodic • Requires patient initiation • Not well coordinated (patients & doctors) • Sporadic communication among clinicians • Sporadic patient education • Variable process of care • Clinicians’ opinions drive decisions • Systems do not prevent errors • Outcomes not measured • Expensive

  38. Where Do We Want to Go? Our future state vision: Based on Institute of Medicine Report “Crossing the Quality Chasm”Care that is: • Safe • Effective • Patient-Centered • Timely • Efficient • Equitable

  39. Crossing the Quality Chasm • The IOM “Chasm” Report gives us a vision of where to go • Lean Thinking gives us tools and methods to get there

  40. Crossing the Quality Chasm • The IOM “Chasm” Report gives us a vision of where to go • Lean Thinking gives us tools and methods to get there

  41. Burning Platform for Change?

  42. Burning Platform for Change? Gaps at UMHS: • Quality: Not all diabetic patients on statins, aspirin • Safety: - Wrong site surgery - Fatal medication errors - Preventable wound infections • Efficiency: Days waiting for a CT scan • Appropriateness: Generic drug rate around 55%

  43. Burning Platform for Change? • Bottlenecks • ORs • Inpatient beds • Stress of overwork (muri): • Physicians, nurses, clerks running faster • Nurse and physician shortage • Financial pressures • Troubled State economy • Health care costs burden employers • The uninsured

  44. New Way of Thinking • Cultivate • Accountability • Collaboration • Teamwork • Weed out • Silos • Tribalism • WASTE and unnecessary complexity

  45. “Act your way to a new way of thinking”. ---John Shook, Ph.D. Senior Advisor, Lean Enterprise Institute Author, Learning to See

  46. “Find it, Fix it” “Cultivate a ‘Find it, Fix it’ mentality for overcoming challenges in your area”. ---G. Richard Wagoner, Jr. Chairman and CEO

  47. How Did GM Get Us on the Right Road? • Provided GMS training • GM University (Pontiac, MI) • Lansing Grand River visit • Shared GMS materials, tools and templates • Coached initial learning projects • Provided training for UMHS coaches • Introduced UMHS to lean experts

  48. Lansing Grand River Visit

  49. Purpose: To Teach an overview of the Five Principles of GMS and some of the Elements through an Interactive Exercise UMHS Leadership Day 2005 People Involvement Continuous Improvement Standardization GM-GMS Short Lead Time Built-In-Quality GMS Exercise

  50. UMHS Leadership Day 2005 GMS Exercise

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