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Analysis Of Bohmer And Ferlins ( 2008 )

Decent Essays
Introduction In their case study, Bohmer and Ferlins (2008) presented the transformational change that occurred at Virginia Mason Medical Center (VMMC) since adopting the Toyota Production System (TPS) and tailoring it to create the Virginia Mason Production System (VPMS). The authors followed a structured way of presenting the case by outlining the need for change at VMMC, the strategy that Kaplan followed to transform VMMC, and the results achieved due to this change. The authors started by providing a history of how Virginia Mason began and the state of Virginia Mason that called for change. They also shared the vision that Kaplan created to help VMMC get out of the crisis it was facing and the strategies that were followed.…show more content…
 Reduction of the travel distance of parts by 77%, or 70 miles.
 Inventory cut in half
 Lead time decreased by 53%, or 708 days
 Productivity increased by 44%
 A saving between $12 million and $15 million in budget capital
 Reduction of utilized number of square feet by 24%
Need for Organizational Change at Virginia Mason Medical Center
Driven by the financial losses in 1998 and 1998, competition on “Pill Hill”, and declining staff morale, VMMC established a set of goals to achieve its vision of becoming the industry’s quality leader. And to become the quality leader, VMMC needed to focus on the patient, work in a team environment, and embrace change. Kaplan was the person in charge of implementing change at VMMC to achieve that vision. To do so, he needed a system that focused on quality and the Toyota Production System (TPS) was the perfect fit for this organizational change. Previously, VMMC utilized systems such as Total Quality Management (TQM) and Six Sigma. However, TQM was not generating the result that VMMC was seeking, and Six Sigma allowed a defect rate, which was not acceptable at VMMC since “safety and perfection are paramount,” as administrative director Christina Saint Martin noted. In the healthcare world, Dr. James Bender explains that “no one should die because of something we could prevent (Bohmer & Ferlins, 2008).”
Both systems, TPS and VMMC, share similar goals when it came to putting the customer first, focus on
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