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Newsletter no.3
may-august '12

One valuable mail, every 4 months
business-improvement.eu

Logo business-improvement.euDear sir, mrs,

This is the third newsletter of business-improvement.eu

In this newsletter, we focus on the people part of improvement. Inspiring employees requires above all feeling for their emotions: how do they experience their work. Interestingly, the same can be said today regarding customers. How they experience your products or services determines if these will be successful!  

Another subject in the current newsletter is the complexity of business improvement within Philips, a company with a large variation in products and business models. We spoke with Michael Unverwerth, head of the Simply Philips improvement program.

Finally, we reviewed the newest edition of the book "Lean Hospitals". The author, Mark Graban, answers some questions.

I hope you enjoy reading this newsletter!

Business-improvement.eu is a knowledge platform about all common improvement methods, without prejudice. You should see us as a source of business inspiration. If you like our site, we hope you will spread the news of our existence, for example by forwarding this newsletter or by linking to our articles!
If you have ideas for the further development of business-improvement.eu, please do not hesitate to contact me by sending an e-mail.

Best regards, 
Dr Jaap van Ede, 
owner and editor-in-chief business-improvement.eu

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To view recenty published articles you might be asked to enter a username and password. If you don't have those, registrate for free. Did you forget your password? Read at the bottom or this newsletter what to do.
A. New articles:

1. Lead & Change:  The emotional side of value creation
    Cases: Sara Lee, Volvo, Philips, ASML, Teleroute

2. Lean Six Sigma:  Philips wants to accelerate
    Case: Philips

3. Lean:  A well-balanced introduction to Lean in hospitals
    Book: Lean Hospitals

Summaries of these articles you will find below. For more case descriptions, see our case-menu.

B. Summaries of the articles:

1. Lead & Change:  The emotional side of value creation
    Cases: Philips, Sara Lee, ASML, Volvo, Teleroute

Monitoring of takt times at ASML
^ Monitoring of takt times at ASML

Many organizations use Lean, Six Sigma or TPM to increase the value they create for their customers. Applying tools from these methods, like Value Stream Mapping or Kanban, is however not enough. This is acknowledged by companies like Philips, Sara Lee, ASML and Volvo. How to deal with the people part of continuous improvement?

In this article, managers from the multinationals mentioned above explain how they show that everyone counts, and how they stimulate that everyone contributes to improvement. Inspiring employees requires above all feeling for their emotions: how do they experience their work.

Interestingly, the same can be said regarding the customers. Today, how customers experience your products or services determines if these will be successful.  

When you combine these facts, the conclusion is that organizations should become dopamine companies in two respects:

  1. The employees experience ‘flow’, a feeling of energized focus, immersion and success
  2. The customers experience products or services which are so excellent, that they will recommend these to their friends
> more
2. Lean Six Sigma:  Philips wants to accelerate
    Case: Philips

Philips wants faster innovation
^ Philips wants faster innovation

Two years ago, there were two separate improvement methods within Philips Consumer Lifestyle:
  1. A successful people based Lean approach in factories called Simply Philips, to get everyone involved in continuously improving production processes.
  2. A Lean Six Sigma Black Belt program for rapid breakthrough improvement, which was also a management development program for future leaders.
In 2011, these two approaches merged into one new Simply Philips program. Besides that, a new initiative called Accelerate! was launched to increase business speed and innovation.  

> more
3. Lean:  A well-balanced introduction to Lean in hospitals
Book: Lean Hospitals

Cover Lean Hospitals & author Mark Graban
^ Cover Lean Hospitals & author Mark Graban

Do you want to know what lean working, thinking ánd managing in a hospital looks like, and what the results can be? The second edition of the book Lean hospitals of Mark Graban gives you a clear and well-balanced introduction! Almost all aspects pass in review, from standardizing and improving work, to creating flow and engaging employees. Also the need to create a problem-solving culture is addressed, be it on a basic level.

What I liked in particular is the practical line of approach. There are many inspiring examples, but Graban explains that you should experiment – of course without jeopardizing the quality of the care - to find out what works in your ward, laboratory etcetera. Typical Lean objectives like zero waste and creating a One Piece Flow should only serve as a direction for improvement, and the application of tools like 5S should not be exaggerated. It should always be kept in mind that the primary goal is more value for the patient. Lean tools are useful if these solve problems and reduce waste, with interfere with patient care.

There were only two things I missed in this well-written book: The concept of creating clinical pathways for patients with similar symptoms, and making a business case for Lean.

> more
C. Brief news

The latest news (also about new published articles in specialist journals) you will find on on our newspage. Visit our site on a regular basis!

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Use adjust registration data to have your login combination sended to you by e-mail. More information on my business-improvement.eu.

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