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Lean-Kaizen Transformation at Hospital

Sanat Sankrityayan 2011-02-04

Lean-Kaizen Transformation at Hospitals

Introduction & the scope

Lean is a management philosophy that incorporates world’s best analytical methods and problem solving tools to weed out the non-value adding activities and thus make the enterprise more profitable, even with the same people & resources.

Lean is an all-encompassing term, thereby including Kaizen, Process Improvement and Operational Excellence.  The foundation premise of Lean Management is the understanding of Value-Adding and Non-Value Adding Activities/Time/Resource.

It is widely popular amongst various sectors where it has led to stupendous benefits in terms of increased productivity, flawless quality, reduced throughput time, decreased process costs and better changeover times, predominantly in Manufacturing and Retail sector. It has yielded astounding results in IT and Services Sector. A brief synopsis of possible gains is given here.

Area of Improvement

Scope Gains
Productivity Non-Value Adding Activities are mapped and extricated to let the focus be on Value-Adding Activities Minimum 30% increment in productivity @ICE, Tata Group, Bajaj Auto, Patni, Tanishq, ITC, TCS
Quality On-line Quality Inspection and Self-Certified Work allows people to own their good work Minimum 20% Time and 20% Manpower is saved, too. COPQ & Rejects go down by 50%
Throughput Time Total Time to Complete the activities goes down once the Non-Value Adding Portion is weeded out Throughput time goes down by 40%
People Involvement Departmental Barrier broken 100% Employee Involvement with 2 Monthly Improvements coming from each employee
Cost Reduced rework, Causes of Cost Inefficiency mapped & plugged Waste of Resources cut down by 25%

Lean as a concept has still not caught up on the Indian Healthcare Scene.

However, Vedzen Institute @Pune is a pioneer in India and has implemented Lean-Kaizen Principles in Hospital.

We did the first Project in India on Lean-Kaizen in Hospital.

Lean Kaizen in Healthcare – Ruby Hall Clinic Testimonial – Click here for the VIDEO on YOUTUBE.

Vedzen Credentials

Vedzen implemented the Lean-Kaizen projects at Ruby Hall Clinic, Pune. Ruby Hall Clinic is one of the oldest and most respected healthcare centres in and around Pune. Our alliance with them was based on their desire to grow beyond ordinary, and cut across the departmental barriers (a natural outcome of increased size) to become the biggest healthcare service provider.


Lean-Kaizen in Hospital Projects and Intended Benefits




1 Reduce and Simplify Discharge Time Bed Turnaround Ratio went up by 25% within a month, Check-in to Discharge faster, More billing
2 Drug Stores Management and Inventory Control 20% More Collection and faster queue, Satellite Stores and door step Drug Supply to Patients
3 Billing – Faster and Error Free Billing Sequence Optimized, with more number of Bills per hour, Better Recovery and Man Utilization
4 Surgical Planning for Operation Theatres Occupancy of O.T. was higher, along with lesser miss-outs on critical surgical tools
5 Total Employee Involvement

People cut across departmental barriers, unite as a team, staff and doctors, nurses, and wardboys

Lean-Kaizen can assist Hospitals in continuously improving the bottom line: –

  1. Number of Bed Changeover/Patient turn around increased, Revenue Up
  2. Map and Balance all sources of revenue
  3. Revenue Earning Capacity Enhanced – Cost per Bed goes down, Discharge Cycle Time gone down leading to more filled-in Beds
  4. Machine (MRI, CAT Scan, X-Ray, Mammogram etc.) Utilization Ratio Up
  5. Staff Utilization modified and improved through Scheduling

A Case:

In a hospital unit with 48 beds, those 48 patients are “Work In Progress (WIP)”. Their average length of stay (LOS), the average time a patient in a bed is about 6 days. You might ask, how many beds do they turn over per day? Use Little’s Law:
Bed Turns = # of Beds/LOS = 48/6 = 8.


The hospital wants to reduce the average length of stay. Doing so will mean an increase in resources required to discharge patients and to clean rooms for the next patient. If they want to reduce average LOS to 5 days, you can calculate the expected # of bed turns = 48/5 = 9.6 bed turns per day.


Impact on Billing = 9.6-8/8 X100 = 20% Increment – Similar Illustrations will come up in subsequent blogs.

We focus on the Lean Kaizen principles and work out the projects for improving the bottom line. The sources of inefficiency are cut down thus making the organization fit, fast & flexible. Be in Touch for latest on Lean-Kaizen at Hospitals.

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