Sutter Health

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Sutter Health

• The Decision to Go Lean
• LCI Sixth Annual Congress
• September 15-18, 2004

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The Background
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Who is Sutter Health
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Who is Sutter Health
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Business Challenges
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Past Experience
Problem Projects
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Sutter Health Capital Program

• The Executive Challenge
• Plan facilities that improve the patient
  experience and enhance operating margins for
  reinvestment
• Successfully execute the design and construction
  of resultant 5.5B program
• Minimize risk
• Traverse the OSHPD approval process
• Provide real-time project reporting to a variety
  of groups

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Current Program

• 5.5 Billion (2004-2012)
• Acute Care Facilities
• Non-Acute (e.g. Outpatient Surgery)
• Medical Office Buildings
• Parking Facilities
• Remodeling Existing Space

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FPDs Goal

• Increase reliability that projects conceptually
  approved and funded in year one are designed and
  constructed in year five . . .
• on-time or early
• within budget or less
• without claims
• safely (without creating patients), and
• without burn-out of FPD staff

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But, How?

• Standardize practices that worked well in the
  past
• Innovate and adopt new practices to support the
  goals

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Start with Planning

• Dave Chambers planning model
• Winston Churchill said We shape our buildings
  and afterward they shape us.
• Reinvent how hospitals deliver care to the
  patient
• Apply lean principles to operations (patient
  flow, waiting time, etc.)

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Apply Commercial Strategies

• Forge Integrated Project Team
• Early Selection of Cost-Plus CM/GC
• Early Selection of Major Trades
• Risk Sharing Among Owner, Designers, and
  Contractors
• Explore Incentives for achieving goals

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Move to Lean Project Delivery
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Actions Taken by Sutter Health

• Sutter Lean Summit
• Internal FPD Training Collaboration
• Implement use of LPS
• Kick-off sessions project coaching
• Sponsor A/E Workshop on Lean Design
• Develop A/E/C Collaboration Portal
• Sponsor A/E/C Community Events
• Develop Assessment Tools

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Opportunities Being Considered

• Introduction to Lean and LPS seminars
• Super Charettes for Concept/SD
• Target Costing
• Joint A/E CM/GC Agreements
• MOB S/D Challenge (2 wks)
• Collective Incentive Programs

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Challenge to our Vendors

• Learn the skills needed for Lean Project Delivery
• Develop an internal implementation strategy (with
  measurement of progress)
• Demonstrate a commitment to continuous
  improvement
• Exhibit a willingness to share the learning in
  our project community

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FPDs Value Proposition

• Deliver best value to Affiliates to compliment
  their mission of patient care
• Innovate and create a project environment that is
  challenging and engaging
• Push our design and construction partners to
  learn with us
• Never settle for adequate

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• Discussion