FAQs

Who is ValuMetrix?

How did Ortho-Clinical Diagnostics get into the Process Excellence business?

Laboratories face growing pressures to improve quality and reduce costs while labor shortages persist and reimbursements tighten. It wasn’t enough for us to provide our customers with world-class clinical chemistry instruments and blood bank products, we felt a responsibility to help them improve their processes. We understand that systems + processes equal best practices.

Why wasn’t it enough to install the right equipment?

Because the problems in a laboratory are rarely caused by the instruments. They come from the systems and processes between the instruments. That’s why we say people shouldn’t rush out and buy automation until they thoroughly examine their process, their people and their instruments.

Is Process Excellence something you were doing within Johnson & Johnson?

Absolutely. Johnson & Johnson began applying Process Excellence internally in 1997. All of the operating companies in the Johnson & Johnson Family of Companies have a Process Excellence team. Johnson & Johnson Corporate Headquarters has a division that conducts audits and oversees Process Excellence across the companies.

Why such strong emphasis? Because it really works. Since 1997, Process Excellence has brought Johnson & Johnson well over a billion dollars in added revenue and saved costs. Wherever we apply it, we routinely see an average productivity improvement of 70%, a 50% inventory reduction and a 30% space reduction. These are typical results, time after time.

Johnson & Johnson is active in so many areas of healthcare. Why did you start with Process Excellence in the labs?

We started in labs because they operate most like a manufacturing operation. They have the kind of repetitive,
labor-intensive process that Lean and Six Sigma were designed to improve. Some of our clients have expanded Process Excellence initiatives to other departments in the hospital with terrific results.

What is a typical payback period for ValuMetrix Services?

A majority of our clients – I’d say 80% – recover the cost of our services in less than 12 months. From that point on, they’re adding to the bottom line. By 24 months, 100% of our clients are breaking even and ahead of the game.

Are clients ever surprised by their results?

They always think they don’t have enough space. The fact is, they have more than enough space. We eliminate the supplies their people are hoarding, the records they never archived, and we usually save them 30% of their space. People never believe – until they see it – that we can give them consistent turnaround times of less than 30 to 45 minutes, with a really tight standard deviation. When we apply Process Excellence, we see gains in the high double-digit numbers, every single time.

Is Process Excellence different from Lean and Six Sigma?

Process Excellence is a combination of Lean, Six Sigma and Design Excellence. Each of these alone will only take you so far. Johnson & Johnson has combined all three in a way that makes them exponentially more powerful. It’s like 1+1+1=8. As with anything, you need to understand the tools so then when you see an issue you can decide what combination of tools you should use. The strength that Johnson & Johnson brings is its experience in combining all three. In healthcare, for example, we typically apply Lean first to remove waste. But once you’ve streamlined your operation, you find variability and quality issues that still affect your productivity. That’s when the tools of Six Sigma come into play.

And Design Excellence?

You use Design Excellence when you’re starting a process from scratch, or building a new space.

Is this combination a unique offering from ValuMetrix Services?

Yes, plus we have the most experience in applying Process Excellence to laboratories and healthcare. We understand the pressures they’re under, the factors they have to balance and what they need to achieve. We’ve worked with over 50 institutions, improving their operations, reducing costs and enhancing revenue.

Another big advantage is our commitment to knowledge transfer. We really pride ourselves on how many of our clients have learned Process Excellence and taken it beyond one project, expanding throughout the lab and beyond. They’ve become leaders and innovators in their institutions.

Don’t other consulting firms operate the same way?

No, typically a consultant comes in, looks around and leaves a report that says, “If you do the following things, life will be great.” We see ourselves more as trainers and service providers. Our people get their hands dirty and help you learn by doing. We set you up structurally to accomplish what you need to accomplish. We implement the changes and show you how to get past the initial resistance and monitor the outcome. When we leave, you have at least one huge success under your belt. We’re not only fishing for you, but teaching you how to fish.

Can’t Lean and Six Sigma be learned from a book?

Every one of our customers could learn it by themselves. But Process Excellence is more than techniques. It’s about changing your culture. When we come in and work with your team and make it happen for the first project, we provide the catalyst for that cultural change.

Isn’t it bad for business to teach your clients not to need you anymore?

No. There’s tremendous interest in Process Excellence. It’s a huge opportunity for all of us. And hopefully, by the time these techniques are standard in the entire healthcare industry, we’ll have something else that we can share with our clients to make them even more successful.