Due to the unreliability of the supply system in the Seattle Children’s Hospital, a new supply system instituted by the hospital early last year following practices typically used in manufacturing or retailing, not health care, has been implemented.

This method of empty bins going to the central supply office where the bar codes are scanned to generate a new order, has resulted in less space required and fewer supplies discarded for exceeding their expiration dates.

Woman using new supply system

The Children’s Hospital says it has implemented other such innovations and practices made famous by Toyota and others, reducing waste and increasing value for customers through continuous small improvements.

Manufacturers, particularly in the auto industries, have been using these methods for many years. The hospital found that methods used in the business world such as checklists, standardization and nonstop brainstorming with staff and customers has paid off.

Also, the program “continuous performance improvement,” or C.P.I., examines every aspect of patients’ stays at the hospital, from the time they arrive in the parking lot until they are discharged, to observe their behavioural patterns and improve their customer services to match their needs. Sounds similar to the cameras in the clothing stores, doesn’t it?

“Last year, amid rising health care expenses nationally, C.P.I. helped cut Seattle Children’s costs per patient by 3.7 percent, for a total savings of $23 million,” Mr. Hagan says.

Increasing the use of operations management techniques such as the C.P.I will evidently have significant return on investment.

Article and Picture From:

Weed, Julie. “Factory Efficiency Comes to the Hospital.” New York Times. N.p., 10 July 2010. Web. 15 Nov. 2013. <http://www.nytimes.com/2010/07/11/business/11seattle.html?pagewanted=all&_r=0>.