Strategic Value Analysis® Healthcare
Dramatically Improve Quality While Reducing Supply Costs
FREE Weekly Tips And Ideas
SIGN UP TODAY
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly E-Zine- September 21, 2006
Robert T.
Yokl
President & Chief Value Strategist
Greetings!
What is Your Value Analysis Return-On-Investment?
We just did an audit of an IDNs supply value analysis program and found that they had an 6.1 annualized ROI for their efforts. Whereas, our benchmark is an ROI of 25:1 or a 76% difference in productivity.
The question is why the difference?
The answer is that hospitals, systems and IDNs that invest in strategic planning, target their savings opportunities (vs. guessing where they reside) and provide advanced training for their value teams increase their annual savings yield by 2,500%.
This productivity breakthrough could be compared to making the investment of filling your car with high octane gasoline to obtain a big boost in your cars performance as opposed to sputtering along on regular gasoline that will never give you increased output in your car’s performance.
So if you want high performance value teams that will yield maximized savings for your efforts you need to do things differently than you have done in the past.
Your Partner in Supply Chain Savings,
Robert T. Yokl
President & Chief Value Strategist
P.S. If you are interested in the Value Analysis ROI formula I used for these calculations just click on my NEW BLOG at www.savingsbeyondprice.com and enter into the search engine “ROI”, which will give you the formula.
Value Analysis Is About More Than Just Money!
“Value Analysis Is A Cost And Quality Improvement Process That Takes The Variation And Defects Out Of Your Products, Services And Technologies.”
If you are practicing value analysis because you believe it’s all about the money then you are missing the whole point of what VA is all about! And you’re losing a huge opportunity to streamline and reinvent your supply chain.
DEFINITION: Value analysis is a cost and quality improvement process focused on the study of the functions of the product, services and technology you buy and the process you make use of to deploy, deliver, store, recycle or remove them from the environment.
In fact, our supply value analysis program has been approved, at numerous healthcare organizations, by the JCAHO as a quality initiative after reviewing how it worked in action. This was because the JCAHO inspectors saw immediately how the VA program achieved both qualitative and quantitative outcomes for our clients, not just savings.
Here’s what I’m talking about:
- One of our client’s project managers found that their hospital was using a non-compliant sterilizer control just before the JCAHO inspection team was due to arrive at their hospital for an inspection.
- At another hospital where we worked, a project manager discovered that their ECG electrodes were faulty (jell drying up in one out of three electrodes), which was driving their nurses crazy.
- At another major teaching hospital client's project manager found that their point-of-service diabetes test strips were defective.
- Client hospital was using Neonatal Pulse Oxisensors (at double the cost) for all patients in their ER.
These are just three examples out of hundreds that I could cite to show you that value analysis is a quality process you should be embracing, not just a savings best practice. By doing so you will quickly find when you have the right tools to do so, that VA can play a big role in your healthcare organization’s performance improvement initiatives.
DID YOU KNOW…
That the average organization (including healthcare) has a savings to revenues ratio of 1.2%, 3.3% or even 4.5% when they employ Six Sigma to reduce their cost and improve their quality. Just as important, when the Six Sigma toolbox is focused exclusively on the supply chain the return in revenues are even greater -- 3%, 6% or even 9%!
© 2006 - The Strategic Value Analysis in Healthcare, P.O. Box 939, 3887 Skippack, Pike, Skippack, PA 1-800-220-4271
About SVAH - Blog - Press Releases - Events & Speaking Engagements - Case Studies and Success Stories - General Hospital Consulting and Supply Chain Management - Value Analysis University - Best Price Analysis - Supply Chain Scorecard and Dashboard - Supply Six Sigma - Strategic Planning - Value Analysis Software - Value Analysis Services - Healthcare Supply Expense Reduction and Analysis - Value Analysis Team Training Programs - Supply Chain Best Practice Series TeleSeminars Savings Beyond Price Newsletter - Strategic Value Analysis in Healthcare White Papers - FREE Savings Beyond Price Weekly Newsletter - Archived Weekly Value Analysis Articles - Contact Us