More waste


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Last week I talked about the need to remove waste from your processes to stay competitive. I briefly mentioned the flawed, post-process inspection the government was proposing for healthcare process improvement. A recent article in Business Week presents even more evidence of the need to remove waste from this last vestige of cost-plus business in the U.S.

The article states, “As much as $500 billion of the $2.2 trillion spent on health care each year is wasted on duplicate processes, bad coordination, and out-of-date scheduling, according to a GE estimate based on data from the U.S. Centers for Medicare and Medicaid Services.” According to Jan De Witte, CEO of GE’s Healthcare IT unit, “It’s generally accepted that for every $100 spent on health care, $20 or more is waste.”

That is stunning … at least to me. Could your business survive if you wasted at least 20% of your efforts? Removing waste, Lean Thinking, is mandatory in today’s global economy … regardless of your industry.


Republished with author's permission from original post.

Mitchell Goozé
Mitchell Goozé is the president and founder of Customer Manufacturing Group. His broad scope of business experience ranges from operations management in established firms, to start-up and turn-around situations and mergers. A seasoned general manager, he has headed divisions of large corporations and been CEO of independent firms, always focusing the company strategy on the most important person in business . . . the customer.


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