Strategic Value Analysis In Healthcare
STRATEGIC VALUE ANALYSISTM NEWSLETTER
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Strategic Value Analysis In Healthcare |
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STRATEGIC VALUE ANALYSISTM NEWSLETTER |
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Home Weekly Strategic Value Analysis Newsletter View Archived Strategic Value Analysis Newsletters ValueNet CentralTM Value Analysis Software
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September 18, 2003
“Business Process Re-engineering Is An Old Way Of Thinking About Renewing or Reinventing Your Processes. A Much Better Way Is To Apply The Value Equation To Your Process Orientation. For over a decade the fundamental tool of business process re-engineering has been process mapping (or flow charting) to renew or reinvent an organization’s business or clinical processes. By utilizing this instinctive tool hundreds of thousands of businesses and healthcare organizations world-wide have improved their processes’ quality, service, cost and cycle time. So why is there still waste and inefficiencies still running rampant in our businesses and within our healthcare organizations today? Based on our research and empirical experience, the reason for this dichotomy is that process mapping is limited in its design, application and effectiveness in truly identifying what our customers absolutely, positively require in their processes. Process mapping is an old way of thinking about renewing or reinventing your processes. A much better way is to apply the value equation (function/cost = Value) to your process orientation by utilizing an advanced tool called FUNCTIONAL ANALYSIS SYSTEM TECHNIQUE (FAST). In this way you can more skillfully understand the complexity of your business processes as opposed to becoming preoccupied and paralyzed with the methods and practices of process mapping.
Function Analysis System Technique (FAST) If you are looking for a higher level of thinking, communicating, empowering and decision making when you are contemplating renewing or reinventing your business or clinical processes your tool of choice should be the Functional Analysis System Technique or FAST. The FAST Diagnostic System was originally developed by Charles W. Bytheway at Sperry Rand Corporation for the intense study of functions and function interactions of complex products, services, technologies, systems and processes by value practitioners. This system gives value practitioners a better understanding of the complexities of any product, service, technology, system or process than just the traditional process mapping approach the renewal and reinvention process that we have been talking about. The FAST system is a logical approach for determining the primary, secondary and aesthetic functions (higher and lower) as well as the supporting systems and technology necessary for a process to meet its reason for being…FUNCTION. The FAST system starts by asking three questions. Why is this function performed? How is this function accomplished? And when is this function performed? These questions are asked about each function under investigation and then we diagram the results as show below in Figure 1: Overhead Transparency FAST Diagram. Figure 1
By functionally diagramming any complex product, service, technology, system, business or clinical process as we have done with the overhead transparency FAST Diagram in Figure 1, you will be able to quickly substitute lower cost functional alternatives to meet your customer’s requirements exactly. Naturally, I can’t teach you all of the complexities of FAST DIAGAMMING in just one newsletter article, but it was my goal to raise your consciousness that process mapping alone has intrinsic weaknesses when determining the value of your business and clinical processes. If you would like to learn more about the FAST Diagramming System, please e-mail me at bobpres@strategicvalueanalysis.com.
The Danger Of Using Process Mapping To Determine Value If you have done any carpentry of any kind you will know that any small or big construction or repair project gets a lot easier, done faster and with better results if you are using the right tool for the right job. As an example, I started to install a new screening system for my porch this summer using a screening tool I had owned for many years only to find that when I finally purchased (after many days of frustration) the right screen tool that was recommended by the screening system manufacturer, I was then able to perform the required work easier, faster and better than I had before, because I was using an inappropriate tool for the screening job. It’s the same with renewing or reinventing your business or clinical processes. If you are using the wrong diagnostic tool, such as, process mapping to determine the relative value and worth of a business or clinical process, you will find that it is much easier and faster to generate better outcomes when you utilize the FAST system to do so.
About the Author
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COPYRIGHT 2003 - THE HCP GROUP, LTD. - ALL RIGHTS RESERVED |
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by
Robert T. Yokl, President