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.
New Rules, Systems & Models For Long-Lasting Savings Performance!
Time You Re-Think, Re-New And Re-Invent Your Value Analysis Model To
Do The Hard Work That Is Required In The 21st Century!
It’s been 21 years since
traditional Value Analysis emerged as a best practice in healthcare. This
stratagem has led the way to some of the most important
breakthroughs in supply chain cost management in the last decade.
Nevertheless, if you are really honest with yourself, it isn’t
getting the job done in the 21st century.
In years past, just putting
together a value analysis committee or team(s) assured you of
generating a variety of savings (mostly GPO savings) that just
happen unimpeded and unrestricted. I hope you have realized
by now that the time has passed when you can make these
easy and effortless savings continue to flow, surge and
gush without changing how your value analysis committee or team(s)
is organized, structured, selected, trained, measured, motivated and
In fact, to continue to make
big savings happen for your healthcare organization you will
need to optimize your supply value analysis process if you are
serious about meeting the challenges you will be facing in the
Can You Think of Anything That
You Were Doing 21 Years Ago that Has Not Been Upgraded, Automated,
Refined or Advanced?
Can you think of anything
that you were doing related to supply chain management 21 years ago
that hasn’t been upgraded, automated, refined, or advanced
to the next level of performance? With few exceptions, I think that
the answer would give is NOTHING! Then why are you still employing
the same value analysis model you have been utilizing for 6, 12 or
even 21 years?
Isn’t it about time you
re-think, re-new and re-invent what you are doing related to
value analysis to move your committees or team(s) to the next level
of performance too? By doing so, you will consistently grow your
profits, cut cost, improve quality, eliminate all defects, waste and
variations, etc. in your supply chain. This is what Value Analysis
2.0 is all about; deploying the new next generation value analysis
model to “wing the towel dry” on your supply chain savings.
identified (and implemented) over $1 million in savings the last
2 years. Beyond that, there is value in the (Value Analysis
2.0) process and the commitment it creates among organization
leaders and staff. It also brings the importance of every
purchase to “top of mind awareness.”
Vice President, Stillwater Medical Center, Stillwater, Oklahoma
Different About LEAN Value Analysis?
What’s different about
LEAN Value Analysis, and is missing in value analysis 1.0, is
a framework of discipline, new rules and a defined six-step system
for your value teams to religiously follow that can be
measure, monitored and controlled to identify, implement and sustain
your supply savings – over the long term.
Wouldn’t you agree it’s time for
all supply chain professionals to realize that if you are to attack
your hard to get at savings -- but robust savings
opportunities in the future -- you will need new
strategies, tactics, techniques and systems that they you won’t find
in traditional value analysis models that are now tired, worn-out and obsolete
in the 21st century.
CASE STUDY: 400 Bed Community Medical
Center Saves $4 Million and Wins GPO
National Leadership Award Too!
- 400-bed California not-for-profit
community medical center, noticed that
its supply, services and technologies
cost had been escalating in recent years
and wanted to be more proactive in
attacking these increases.
develop and sustain a data driven
process focused on their products,
services and technology whereby
purchasing and utilization decisions are
based on meeting the functional
requirements of their customers most
efficiently. And employ Strategic Value
Analysis® methods to systematically
analyze all of the millions of dollars
of products services and technologies
that they purchase on an annually.
- Adopted SVAH's scientific, customer
driven and function-oriented approach
known as the LEAN Value Analysis System. Thereby, plan, organize,
train, monitor and coach the hospital’s
four value analysis teams (Steering,
Surgical, Med/Surg and Support Services)
through a system wide supply value
- In less that 18-Months the medical
center was able to exceed their $4
million dollar savings goal and also
were recognized by their National GPO as
a Supply Chain Best Practice Leader in
2003 with their successful LEAN Value
Why Do We Need New Rules, Systems & Models For
New Long-Lasting Savings Performance?
healthcare organizations are “hitting the
wall” on their supply chain savings because
their value analysis committees and teams have
been too informal, unstructured and free form to
get the job done. To move to the next level of
savings performance your value analysis
committee or team(s) will need to have new
rules, systems and operational models to
generate new and long- lasting performance.
For example, your teams need to be heterogeneous
(think and act differently) vs. homogenous
(think and act alike) in design to create what
we call “Creative Friction” if you are
looking for new and better savings outcomes and
quality results. Otherwise, your committee or
team members will continue to be resistant to
change, fight new savings ideas and hold on to
their old ways of doing things.
“The LEAN Value Analysis System
created supply chain awareness throughout
our hospital and got people to start taking
about other ways to save money. In fact, we
are now under budget in our supplies
expenses for the first time in years, which
might not be a coincidence. I would say that
the system was well worth our investment for
the awareness it brought to our hospital."
Bill Baecker, CFO, Clinton Memorial
Hospital, Wilmington, Ohio
Benefits Of The LEAN Value Analysis Model
The best argument we can make to convince you to
upgrade to a LEAN Value Analysis Model
is the powerful benefits that would
accrue to you by doing so, such as:
by as much as 1% 2% or even 3% by uncovering the
unnecessary and unwanted cost in your
by an additional 3%, 6% or even 9%
through a disciplined approach to supply chain
by eliminating all waste and
inefficiency in your value chain.
that your customers don’t want or need in
your supply chain.
satisfaction by proactively solving their
bothersome supply chain problems.
your savings yield and throughput by as much as
76% by transforming your value analysis
teams into real life money-saving machines.
YOUR JOB EASIER
because all of your savings objectives
will just happen automatically for you.
These huge benefits can be yours today if you
take the first step by filling out the
“no cost” – no
obligation” Lean Value Analysis
Presentation request that you will find below. You have nothing
to lose and everything to save by doing so!
Call today or fill out the
contact request form below to have SVA assist you in determining where
your supply savings opportunities reside TODAY!
Today - 1-800-220-4274