SCOR for Services

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SCOR for Services

• Review and Call for SIG/TDSC Committee

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Agenda

• End-to-End?
• SCOR Extensions
• How to Make a Service
• Speakers Research NeedThom Sloan, MBA,
  FACHEVice President of Business Development
• Crystal Wilkinson, MSN, RN, CNS, CPHQ
• Sr. Health Services Consultant
• TMF Health Quality Institute
• What is a SIG
• Call to action 2007

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End-to-End

• For a Computer, easy to understand

Deliver
Make
Deliver
Make
Source
Source
Make
Deliver
Source
CustomersCustomer
Your Company
Supplier
Customer
SuppliersSupplier
Internal or External
Internal or External
SCOR Model
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End-to-End For a Hip Replacement?
"Supplier"
Source/Make/Deliver?
Source/Make/Deliver?
New Hip
Surgical Theatre
Anesthesia
Physical Therapy
Antibiotics
Pre Post-Surgery
X-Rays
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We have a Retail addition
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Research SCOR2 Framework
This is a configured version of SCOR for SCOR,
which makes SCM processes configured to meet
business requirements, with equivalent source,
make and deliver process steps we know SCOR
can be versioned for non-manufacturing activities
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Initial Focus

• Critical Issues
• Intangibles
• Mobile Factories
• Knowledge and Skills as Raw Material
• Location of activities Make, MRO, Sourcing?
• Planning Labor Management criticality
• High HR focus
• Key Areas (for a start)
• Financial Services
• Healthcare
• Security
• Consulting
• Legal, Financial, Engineering, Architecture,
  Accounting
• Education
• Government

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Needs Research

• Thom Sloan
• 27 years experience in healthcare operations,
  marketing, product design, and evaluation
• Currently VP of Business Development for TMF
  Health Quality Institute-Austin, TX
• 20 years with the University of New Mexico Health
  Sciences Center as VP of Planning and Development
• 4 years with California State University in
  health management and development
• Author and speaker on marketing, business
  planning, health policy, finance, and economics
• Cowboy and rodeo judge
• thoms_at_tmf.org

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Needs Research

• Crystal Wilkinson
• Celebrating her silver anniversary as a nurse
• Currently a Senior Health Services Consultant in
  Business Development, TMF Health Quality
  Institute
• Current work activities include consulting with
  healthcare organization on regulatory compliance,
  evaluation of the quality of care, peer review,
  and improving the efficiency and cost
  effectiveness of health care
• Interests how business theory and healthcare
  delivery processes intersect
• crystalw_at_tmf.org

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Why SCOR in U.S. Healthcare?

• Healthcare represents 16 of the GDP or 1.877
  trillion
• 5,700 hospitals in U.S., 885,000 physicians, 2.4
  million nurses
• Reduced length of stay from 7.2 days in 1990 to
  5.6 days in 2004
• U.S. ranking in health status has dropped from
  23rd in 1990 to 28th in 2002
• Life expectancy is increasing from 71.8 and 78.8
  years for men and women in 1990 to 75.2 and 80.4
  years
• Federal government pays for 32 of healthcare
• Feds are encouraging adoption of electronic
  communications/records
• Medical errors

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External Motivators to Change

• Capacity and efficiency issues
• Decreasing reimbursement
• Increasing numbers of uninsured
• Customer service orientation as a way to secure
  market share
• Electronic documentation and workflow challenges
• Renewed focus on six sigma and LEAN concepts of
  QI
• Old ways must change to remain fiscally viable.

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Reduction in Variability

• Healthcare is a highly complex series of
  interactions among related entities to provide a
  product of health
• Patient is consumer, but patient does not
  determine need or make purchasing decisions
• Physicians are consumers, but dont pay the bill
• Culture of medicine resists standardization
• Payment mechanism does not encourage systems
  approach
• Hospitals often address only segmented areas of
  systems in process improvement
• Innovations and use of electronics, robotics as
  labor substitutes drives need for process
  documentation and improvement

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Healthcares Supply Chain Method

• Utilization management - focuses on planning,
  organizing, directing, and controlling the
  healthcare product to insure that cost effective,
  high quality care is provided while contributing
  to the overall goals of the institution
• Assure appropriate services, appropriate setting,
  quality and cost-effectiveness of care along the
  care continuum
• Illness
  Wellness
• Admission
  Discharge
• Birth Death

Healthcare continuum
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Hip Replacement Process

• Decision to replace hip, perform surgery
• What facility?
• What day
• When can a OR suite, the surgeon, an
  anesthesiologist, an OR team and the patient all
  be scheduled?
• Are all the materials available to perform the
  surgery?
• Decision regarding joint hardware
• Does the physician purchase and bring his own
  favorite?
• Does the facility stock the physicians
  favorite?
• Is the favorite the most recommended?
• Is the favorite safe?
• Decisions regarding pharmaceuticals
• What to give, when to give, how to give, why to
  give etc.

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Healthcare-Summary

• There are many opportunities to truly optimize
  the performance of very, very large healthcare
  systems, cutting waste, cycle time, and improving
  cost effectiveness.
• What it will take is looking holistically at the
  healthcare delivery system and adapting business
  process improvement and supply chain principles
  to creatively meet demands, reduce cost and
  decrease variation

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SIG Typical Mission

• Identify appropriate use of SCOR in the SIG
• Professional Education for SIG members
• Identify SIG-specific SCOR customization
• Identify SIG-specific best practices
• Develop relationships between SIG companies
• Prioritize or develop SCOR metrics for the SIG
• Develop hard deliverables
• Whitepapers
• Reference Guides
• Articles
• Benchmark Data
• Case Studies

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SIG Typical Activities

• Conferences and meetings
• Supply-Chain Operations Reference model (SCOR)
  development teams
• SIG-specific SCOR Workshops
• Benchmarking Studies
• Surveys
• Senior Executive Retreat
• SCOR Technical Development projects
• Internet web site
• Web Casts
• Speakers Bureau

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Current and Past SIGs

• Aerospace Defense
• New SCOR elements, metrics
• Award Program
• Collaboration Framework
• Automotive
• Industry Professional Education
• eCommerce/SCOR and Automotive Industry
• Chemical
• Best Practices
• SCOR use for Process Industry
• Electronics
• SCOR/Rosetta-Net Integration
• Implementation Case Studies
• Sig-Sigma/Lean
• Whitepapers
• Surveys
• Training Program (Convergence)
• Methodology Documentation
• Retail (Past)

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SIG Setup

• Charter
• Development
• Approval by SCC Board
• Membership
• Open to SCC Members
• Unlimited participation by SCC Member companies
• Structure
• Steering Body
• Research Teams
• Committees
• Meetings
• Monthly, Quarterly, Annually
• At SCC Meetings, SCC Conferences

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Next Steps

• 5-10 Companies to participate
• Practitioners mandatory for Board Approval
• SCC Board Sponsor
• SIG Kickoff
• Goals and Objectives
• Year Planning
• Deliverables
• Committees
• SCC Visibility Globally

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www.supply-chain.org

• jfrancis_at_supply-chain.org