A
Note from Robert T. Yokl,
President and Chief Value Strategist
It’s never easy being green or a supply
chain professional because everyone is always pointing fingers
at you. But there is an upside: Nothing happens (surgeries,
cases, procedures, tests, etc.) in a healthcare organization
without a supply chain professional being involved. You are a
vital and essential cog in the wheel. Don’t forget it!
That’s why this week’s feature article is all about how the true
meaning of VALUE ANALYSIS has been lost in translation over the
years, and why it’s mission critical for supply chain
professional to take the leadership role to change the way we
interpret, define and employ our value analysis teams to save
money. Remember: Doing same old things, in the same old way,
won’t give you new and better results.
I also wanted to mention that if you believe you are getting
100% of our best savings ideas since you have been reading our
e-newsletter and blog for some time, I’m sorry to say that you
are only getting 20% of our best savings, ideas, tools,
training, strategies and tactics which we save for our clients.
However, we have now changed this dynamic with our
iSupplySavings Toolbox.
Think of it as one giant toolbox that’s loaded with millions of
dollars of savings ideas, tips, benchmarks, best practices and
educational resources: One website, one resource, one remarkable
value!
Lost in Translation: Value Analysis
The term value analysis has about a 28 year history in
healthcare, after being swiped from industry -- in name only.
Yet, the actual tenets of value analysis have been “Lost in
Translation” over all these years by healthcare
organizations to their detriment. It’s time to set the record
straight on what value analysis is and is not, so we can all
begin to employ this powerful savings methodology to dig even
deeper and broader into our supply streams for new and better
savings results.
What it is!
Value Analysis is a function-oriented, systematic team approach
for providing, designing or investigating the right functions
(primary, secondary and aesthetic) for the multi-million dollars
of products, services and technologies that are required to
operate a healthcare organization. The value analysis
methodology can be applied to any product, process, procedure,
system or service in your healthcare organization. Its goal is
to ascertain through value analysis studies, those
characteristics deemed most important by your customers, and
then to search for lower cost alternatives to meet their exact
specifications.
What it is not!
Value analysis isn’t: (i) a committee or team of 20+ members
reviewing, evaluating and approving GPO contracts, (ii)
Negotiating, bidding, comparison shopping or doing something
else to reduce supply chain expenses, (iii) standardization, new
product, service, or technology conversions, evaluations or
introductions, (iv) approving new product, service or technology
requests, and (v) any and all other of those things that most
healthcare organization are now calling value analysis.
With this said, our surveys have shown that only 1 in 10
healthcare organizations are really practicing or applying the
classic tenets of value analysis, thereby missing the
opportunity to slash 7% to 15% of their supply chain expenses.
This is because, as I have mentioned previously, they
think they are performing value analysis, but
they are really doing something else and calling it value
analysis.
It’s been our observation that most healthcare organizations
have now picked “the ripe fruit” (i.e. price and
standardization) in their vineyards, thereby obtaining the
lowest price for the commodities they are buying. With little
savings left in this vineyard to be picked, isn’t it time for
healthcare organizations to move on to the next level of savings
performance by employing the genuine, unadulterated and
definitive value analysis methodology that has been lost in
translation?
Warmest Regards,
Robert T. Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
Bobpres@strategicva.com
1-800-220-4274
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