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The evolution Of project management, process engineering, And quality At LHI. PMI Chapter Meeting 09.22.2014. Discussion Points. LHI Corporate Overview PMO – How It All Started Organizational Challenges Project Management Process Engineering Quality and Continuous Improvement
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The evolution Of project management, process engineering, And quality At LHI PMI Chapter Meeting 09.22.2014
Discussion Points • LHI Corporate Overview • PMO – How It All Started • Organizational Challenges • Project Management • Process Engineering • Quality and Continuous Improvement • Acceptance Study • Take-A-Ways
Headquartered in La Crosse, WI • LHI was founded in La Crosse in 1999 and has additional offices in Detroit and Chicago • Purchased by Optum in March 2011 • LHI employs nearly 1,000 people across its three locations
Competencies and Customers LHI is a trusted partner of the top government agency clients as well as several industry leading private-sector clients Government • U.S. Department of Defense • Active/Reserve Components • Timely medical processing for military applicants • Reserve Components and National Guard Bureau • Ensuring a medically ready force • U.S. Department of Veterans Affairs • Veterans Health Administration • Timely disability exams for veterans • U.S. Department of Health & Human Services • National Institute for Occupational Safety and Health • Care for first responders Private-Sector • America’s leading transportation companies: CSX, BNSF, Union Pacific, Norfolk Southern • Medical Support for rail and transportation
Care for Mission Critical • Service Types • Medical, Dental, and Behavioral Health • Pre and post-deployment medical readiness evaluations • Comprehensive Veterans’ disability exams • Service delivery platforms to administer large-scale health care programs to ensure physical and mental readiness for duty • On-Location Group events • In-clinic Appointments • Call Center Services • Provider Strength • Over 18,500 trained and credentialed network providers • In 2013, LHI provided more than 1.9 million health care services and served nearly 480,000 service members and veterans
PMO – How It All Started • PMO • Established – November 2007 with 3 employees • Run Projects and “Center of Excellence” for Project Management knowledge • Mission • Support the business goals of the Organization by providing a managed approach to projects, process, and quality. • Guiding Principle • The success of the PMO is weighed and measured by the Organization’s ability to meet commitments with confidence
Reactive Nature of Companies • Innovation is born out of unique challenges • Capitalize on industry concepts and right size for the organization • Build your tool box
Organizational Challenges • Challenge #1 – Everything got done • Whatever it Takes – “The few the proud” • Functional Operational Silos • IT decides what you need • Challenge #2 – Focus on the right projects • Contract Implementations • IT/Operational Blank Checks
Project Management Group • 4 staged approach to Project Management • Initiation, Planning, Execute, Close-Out • Strong Matrixed • Project Mix: Operational, Operational/IT, IT • Project Architecture – 80% Cost Time Solution • Goals – Increased Visibility, More accurate Estimates, Strategic Alignment • Project Discovery • Concept Definition • ROI Pipeline • 80% Cost Time Solution • Committee – Project Manager, Business Analyst, Process Engineers • Governance • Ensure projects align with strategic direction • Committee – VPs, Directors, and Program Managers
Project Management Challenges & Benefits • Challenges • The Culture • Information Technology Group • Project Predictability and Visibility • Dumping Grounds • Level of Effort • Leadership Accountability • Benefits • Project Visibility • Customer Representation • Focus on the “Right” Projects • Start of Process Awareness
Organizational Challenges • Challenge #3 – Process Efficiency and Proactive Improvement • Poor Process Awareness • KPI Crisis
Process Engineering Group Process Flows • Analysis Infrastructure (AI) – Framework developed for process improvement • Process Flows • Graphical representation of the steps in a process • Process Binders • Documented SOPs, WI, and Measures • Measures • Time studies; IT Platform • Business Intelligence (BI) • Focal point for all analysis -- Website • Process Improvement Teams • Meetings to discuss Process Improvements • Review data from Audits Process Binders AI C D Measures Business Intelligence Process Improvement Teams I M A
Lean at LHI • Value Added Time - required steps customers pay for • Value Enabling Time – necessary for delivery of services • Non-Value Added Time - do not contribute to process, waste Current State Future State Use LEAN to Eliminate “Waste”, Improve Process Flow Result Less Waste Reduced Process Time Higher Capacity Lower Cost
Process Engineering Challenges & Benefits • Challenges • The Culture • Creation and Execution of the Framework • Process Ownership • Realization of Savings • Benefits • Process Awareness • Vetting Work • Six Sigma and Lean • Business Intelligence Website • Start of Continuous Improvement
Organizational Challenges • Challenge #4 – Quality had a very narrow focus • Contract Customer Satisfaction and KPI Monitoring • Not Aligned • Unrealized Potential • No defined Quality Management System
Quality Assurance Group • Continuous Improvement • Create a collaborative culture that empowers employees through data driven process improvement • ISO Certification 9001:2008 – 2013 • Defined Quality Management System and created Document Management System • URAC Accreditation – 2013 • Health Call Center and Core Standards] • Strengthen Quality Process • Audit, CAPA, Incident Management • Quality Planning Process • Pursuing NCQA Accreditation – 2015
Quality Assurance Challenges & Benefits • Challenges • The Culture • Benefits • Unified Approach to Quality • Quality Planning and Quality Control • Auditing for Improvement and Conformance • Documented Quality Management System • Communication
LHI Model for Continuous Improvement ISO C D Lean I M A
Organizational Challenges • On-Going Challenge #5 – Leadership Accountability • Executive End-Run Around • Show me the Money • Leveraging the Framework
Take-A-Ways • Right size methods • Aggressive maturity • Capitalize on a crisis • Spring board to standardized process • Communicate, communicate, communicate! • Sometimes positive change requires a change in leadership • Cannot influence and negotiate with everyone • Do not become complacent • “No growth in a comfort zone and no comfort in a growth zone” • Do not underestimate the culture factor • The most significant challenge will be changing the culture • Leadership Accountability • Essential to reduce end-runs around formalized and approved process
Contact me to learn more • Wiliam T. Arnold, PMP • LHI | 328 Front Street | La Crosse WI 54601 • 608.783.7560 x4608 • warnold@logisticshealth.com