Baxter Business Excellence Model

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Baxter Business
Excellence Model
Michael R. Whisman
Director, Quality
Baxter Healthcare Corporation
Copyright 2006, Baxter International, All Rights Reserved 2
Michael (Mike) R. Whisman
Ex-Army Captain (Viet Nam Era)
Over 33 Years Healthcare
Industry (Manufacturing & QA)
20 Years at Baxter
Baldrige Examiner (1997 2009)
Shingo Examiner (2005 2009)
ASQ ITEA Judge (2002 2009)

Chairman, ASQ Team &
Workplace Excellence Forum
(2008 2009)
BS Management (Texas A&M)
MBA Pepperdine Univ.
6-Sigma Black Belt
Baxter Master Black Belt
40 Years - Married 2 Grown
Kids, 1 New Grandson & Puppy

Questions
How many are implementing models?
What kind of issues do you face?
How many believe you have to have support from the top to
successfully implement?

Lets take a look at the model we use at Baxter

MODEL - OVERVIEW
Baxter Business
Excellence Model
Value Streams & Key Metrics
Lean Six Sigma
Total Employee Involvement
Improvement Opportunity
Identification and Prioritization
Strategic Challenges

Tool Set
Tangible, Verifiable Results
Strategic Objectives
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Baxter Business Excellence Model
Complete View
DFSS / DMAIC Methodology
Lean Six Sigma

6s * Kaizen ** Lean ***
Provides focus,
ensures alignment of
all employees towards
common goals, time-
tables and targets.
TOOLS
* Six Sigma Variation
** Kaizen Quick Change
*** Lean Waste
With Pictures
Strategic Challenges and Objectives
Strategic
Challenges
Operational Supplier Business Organizational Competitor/Market
1. 2. 3. 4. 5.
Strategic
Objectives
Note: Strategic Objectives can cover multiple Strategic Challenges
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Internal Strategic Challenges External Strategic Challenges
Customer
Key Strategic
Challenges
Key Strategic
Objectives
Lean Six Sigma

6s Kaizen Lean
Map processes that
support key strategic
objectives and create
customer value.
Include baseline on
key measures and
targets for
improvement; lead
time, cost, quality,
yield, etc.

Value Streams and Key Metrics
Strategic
Challenges
Operational Supplier Business Organizational Competitor/Market
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Internal Strategic Challenges External Strategic Challenges
Customer
Key Strategic
Challenges
Key Strategic
Objectives
Key Metrics: 1, 2 1 1, 2
Targets: A, B A A, B
Sales &
Marketing
Manufacturing
Environment,
Health,
&Safety
Finance
Human
Resources
Supply
Chain
Quality &
Regulatory
Information
Technology
Product
Development
Move from departmental thinking
Value Creation
Product
Development
Product
Manufacturing
Supply
Chain
Supplier
Customer
Information
Technology
Finance
Human
Resources
Sales &
Marketing
EH&S
Quality &
Regulatory
.To process thinking driven by key metrics with
customer and business excellence line-of-sight
50 min.
10 sec.
25 Min.
30 sec
25 min.
30 sec.
50 min
20 sec. Value Add
Non-Value Add
PCT = 151.5 mins
VAT = 1.5 mins
Process Step #1 Process Step #2
Process Step #4
I
50 units
Distributors
Sales
Data
Market
Intelligence
Market
Changes
Weekly
Material
Shipment
Weekly Schedule
300 units
I
50 units
Process Step #3
I
150 units
I
Supplier
PRODUCTION
CONTROL
MRP
C/T = 30 sec
C/O = 1 hr
Uptime = 75%
Yield = 60%
C/T = 30 sec
C/O = 2 hr
Uptime = 95%
Yield = 80%
C/T = 20 sec
C/O = 2 hr
Uptime = 80%
Yield = 70%
Example Value Stream Map
C/T = 10 sec
C/O = 1 hr
Uptime = 85%
Yield = 70%
Opportunity Identification
Lean Six Sigma

6s Kaizen Lean
Value Stream Map: Three Primary Purposes
Value Stream 1

Value Stream 2

Value Stream 3

1.
To engage the organization in
process thinking and
continuous improvement
2.
To identify improvement
opportunities through
process understanding
3.
To manage all improvement
efforts toward meeting all key
metric targets
Value Stream 1

Quick Hit
Opportunity Identification, Prioritization and
Project Selection
0-6 months
future state
12 months
future state
24 months
future state
36 months
ideal state
Project
Kaizen
6-Sigma
Project
Project
6-Sigma
6-Sigma
Quick Hit
6-Sigma
Kaizen
Kaizen
6-Sigma
Project
Kaizen
Project
Measure Improvements Against Key
Metrics and Strategic Objective
Lean Six Sigma

6s Kaizen Lean
Mechanism to drive
improvement.
Standardized
methodology and
language:
Define, Measure,
Analyze, Improve,
Control.
Lean Six Sigma
Toolkit.
Value Analysis
Value Added Activities
Activities essential to deliver product or service
according to customer requirements. Three criteria:
Transforms the item or service toward completion
Customer cares (would be willing to pay for it)
Done right the first time
Non-Value Added Activities
All other activities. These activities are considered
waste.
Overproduction
Waiting
Transportation
Excess Motion
Injuries
Inadequate procedures/methods (processing waste)
Unplanned Activities (processing waste)
Inventory
Poor Communication
Defects (not meeting customer requirements)
Variation
Baxters 11 Wastes
Definition of Waste

Waste is anything other than the minimum
amount of equipment, materials, parts,
space, and workers time which are
absolutely essential to add value to the
product.
Shoichiro Toyoda - President, Toyota
Lean Six Sigma
Lean Six Sigma

6s Kaizen Lean
Tools
What is Lean Six Sigma (LSS)?
Lean
A focus on waste
elimination, standardization,
cycle time reduction,
smooth process flow etc.

Six Sigma
A focus on variation
reduction that impedes
optimized performance.

Lean Six Sigma is a robust, data-driven approach to
improve and manage key business processes.
The Methodology: DMAIC
...measure what you care about;
know your measure is good...
look for root causes;
generate a prioritized list
... determine and confirm
the optimal solution ...
be sure the problem
doesnt come back...
... define the problem, clearly
and related to customer...
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MANAGE
DEFINE
CONTROL
IMPROVE
ANALYZE
MEASURE
The Tools: LSS Toolkit
Is/Is Not
Diagram
SIPOC
Process
Flow Chart
Value
Stream Map
Kaizen
6S
NPV
Surveys
VOC/CTQ
Kano Model
Boxplot
Dotplot
Charts
Pareto Chart
CTQ
Project Y
MSA
Gage R&R
Drilldown
Process
Capability
Study
Brainstorm
Fishbone
FMEA
Affinity
Multi-Voting
Scatter
Pareto Chart
Fault Tree
5 Whys
6-Sigma Tests
Takt Time
DOE
Mistake-
Proofing
Standard
Work
Flexible
Workforce
Visual Mgt.
TPM
Level
Loading
Pull/Kanban

Control Plan
Operating
Procedures
Revised
Process F
low
Project
Decom-
missioning

DEFINE MEASURE ANALYZE IMPROVE CONTROL
Lean Six Sigma

6s Kaizen Lean
Allocation of the
appropriate resources
and engagement of
the entire
organization.
Achievement of
results directly
supporting the
organizations
strategic objectives.
Business Excellence Model
Align - Integrate - Assess
Lean Six Sigma
Opportunity Identification,
Prioritization, and Project Selection

6s Kaizen Lean
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Assess progress
toward goals.
Refine based upon
results and changes
to strategic
challenges and
strategic objectives.
MODEL - DEPLOYMENT
Baxter Efforts
25+ Years
Questions
How many have tried to implement a business model in
your company and were successful right out of the gate?
How many have tried to implement a business model and
slammed full on into cultural issues:
Were different
Tried it before and failed
That stuff wont work here
How many have actually made some inroads with
employees, only to see stubborn leaders kill the motivation?

Deployment Resources & Brief History
Initiated QLP in mid-80s World-wide Deployment
QLP Sr. VP reporting to CEO Millions in Funding
64 Full time Director/Coaches to deploy program
All Leaders sent to Crosby School in Florida
Issues
Deployment to manufacturing world-wide. Division Leaders
made an effort.
Merger of Baxter and American Hospital
Did not include Technical Areas (i.e. R&D, IT, Finance, etc.)

Model History
Initiated QLP (Total Quality) in mid-80s World-wide
Deployment
QLP Sr. VP reporting to CEO Millions in Funding
64 Full time Director/Coaches to deploy program
All Leaders sent to Crosby School in Florida
Initiated Baldrige Approach (1989) Global intent
Deployment to manufacturing world-wide. Some Division
Leaders were successful.
Four Full-time VPs, an award office of staff & 200+ Examiners
Leaders asked QLP or Baldrige, which one?
Model History
Some Key Plants Initiated Shingo (2000)
Success - Manufacturing Plant Level
Not much interest elsewhere
Merged Shingo with Baldrige Approach (2005 Present)
Builds on everything we learned thus far
Leaders at Many Levels of the Organization Interested
Lost enough, we are starting over in many areas
Manufacturing Plants still generally the best examples
Great efforts being made in Quality Organizations
Model History
Lean (2002)
Success in Some Manufacturing Plants
One Key Leader
Business Excellence (2002)
One Sr. VP reporting to Corp. Quality VP
Eleven Person Corporate Group Five Gurus with five
coaches in training.
Strongest Support in Manufacturing & Quality
IT, Finance, Supply Chain, & a Division are Developing

Pitfalls We Experienced
QLP - Not Training Everyone at Once
Baldrige Model Placing it in competition with QLP
Seeing LEAN, Six Sigma, Kaizen, etc. as Models
Succession Planning Failure to consider culture/style
Reduction in Organizational Resources
Decentralization
Program not reporting to the top

What We Did Right
Stuck With IT Saved Millions, Developed & Maintained
a Core Competence in Manufacturing
Merged it all Together
QLP Culture
Baldrige/Shingo Model Fits Partial & Complete Organizations
6-Sigma/Lean/Kaizen/Etc. as Tools
Implementation Anywhere There is Interest
Using Examples of Success to Tempt Leaders
Practicing What We Preach
Baxter is Charging for Success


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