Why Use Lean Six Sigma to Reduce Cost?

George, Michael L.; Tamilio, Mike

doi:10.1002/9781119204602.ch1

Cited by 25 publications

(30 citation statements)

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“…Lean does not possess the tools to reduce variation and bring a process under statistical control, and in the same way, despite the fact Six Sigma offers a lot of gains alone the process would be slow and its costs will be too high. More specifically, lean benefit Six Sigma in the identification of waste providing the powerful value stream map tool that highlight waste and delays, while improve process speed or cycle time [74].…”

Section: An Integral Management Model For the Work Execution Orientementioning

confidence: 99%

A Construction Management Framework for Mass Customisation in Traditional Construction

et al. 2015

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A Mass Customisation model is discussed as a competitive positioning strategy in the marketplace adding value to the customer's end-use. It includes the user as part of the construction process responding to the customer's demands and wishes. To the present day, almost all proposals for Mass Customisation have been focused on the design phase and single family houses. The reality is that the processes carried out in the work execution are so inefficient that the costs of the Mass Customisation models are assumed by the customer and they do not offer solutions that support the change management. Furthermore, this inefficiency often makes Mass Customisation unfeasible in terms of deadlines and site management. Therefore, the present proposal focuses on achieving the paradigm of Mass Customisation in the traditional residential construction complementary to the existing proposals in the design phase. All this through the proposal of a framework for the integral management in the work execution, which will address change management introduced by the users offering an efficient and productive model that reduces costs in the process. This model will focus on the synergy between different strategies, techniques and technologies

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Section: An Integral Management Model For the Work Execution Orientementioning

confidence: 99%

A Construction Management Framework for Mass Customisation in Traditional Construction

et al. 2015

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“…The Kasich administration drew on lean six sigma and total quality management techniques (e.g. George and George, 2003) to reform the implementation of the MBE set-aside process (Ohio DAS, 2015). Kasich staff targeted two components of the process to increase the percentage of procurement expenditures spent through contracts with MBEs: the registration of minority-owned firms as MBEs and the process for MBEs to offer proposals on agency bids.…”

Section: Discussionmentioning

confidence: 99%

The impact of strategy on public sector set-aside programs: the case of the state of Ohio

Blount¹,

Seetharaman²,

Brown

2018

JOPP

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Purpose The purpose of this study is to examine the impact of program strategy on the implementation of the efficacy of a procurement set-aside program at the state level. Design/methodology/approach This study examines the impact of program implementation strategy across two administrations considering the most compelling alternative arguments for what drives agency purchasing through contracts with MBEs. Findings The results of mixed effects linear regression models on the procurement expenditures of 70 state agencies in Ohio from 2008-2015 show significantly higher rates of procurement expenditures with MBEs under the Kasich administration. Originality/value These results provide support for the argument that changes in program implementation strategy led to substantive increases in the use of MBEs by state agencies in Ohio.

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“…A multidisciplinary team was assembled to apply lean six sigma principles using DMAIC methodology (define, measure, analyze, improve, and control) 4,5 to identify specific targets for quality improvement and cost reduction. Comprehensive value stream maps and process flow diagrams were created to delineate processes of care surrounding EVAR delivery and to identify specific targets for quality improvement.…”

Section: Methodsmentioning

confidence: 99%

Endovascular aneurysm repair delivery redesign leads to quality improvement and cost reduction

Warner

Horvath

Powell

et al. 2015

Journal of Vascular Surgery

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Objective Endovascular aneurysm repair (EVAR) is now a mainstay of therapy for abdominal aortic aneurysm, although it remains associated with significant expense. We performed a comprehensive analysis of EVAR delivery at an academic medical center to identify targets for quality improvement and cost reduction in light of impending health care reform. Methods All infrarenal EVARs performed from April 2011 to March 2012 were identified (N = 127). Procedures were included if they met standard commercial instructions for use guidelines, used a single manufacturer, and were billed to Medicare diagnosis-related group 238 (n = 49). By use of DMAIC (define, measure, analyze, improve, and control) quality improvement methodology (define, measure, analyze, improve, control), targets for EVAR quality improvement were identified and high-yield changes were implemented. Procedure technical costs were calculated before and after process redesign. Results Perioperative services and clinic visits were identified as targets for quality improvement efforts and cost reduction. Mean technical costs before the intervention were $31,672, with endograft implants accounting for 52%. Pricing redesign in collaboration with hospital purchasing reduced mean EVAR technical costs to $28,607, a 10% reduction in overall cost, with endograft implants now accounting for 46%. Perioperative implementation of instrument tray redesign reduced instrument use by 32% (184 vs 132 instruments), saving $50,000 annually. Unnecessary clinic visits were reduced by 39% (1.6 vs 1.1 clinic visits per patient) through implementation of a preclinic imaging protocol. There was no difference in mean length of stay after the intervention. Conclusions Comprehensive EVAR delivery redesign leads to cost reduction and waste elimination while preserving quality. Future efforts to achieve more competitive and transparent device pricing will make EVAR more cost neutral and enhance its financial sustainability for health care systems.

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Why Use Lean Six Sigma to Reduce Cost?

Cited by 25 publications

References 0 publications

A Construction Management Framework for Mass Customisation in Traditional Construction

A Construction Management Framework for Mass Customisation in Traditional Construction

The impact of strategy on public sector set-aside programs: the case of the state of Ohio

Endovascular aneurysm repair delivery redesign leads to quality improvement and cost reduction

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