Description
A value chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the company. Michael Porter developed this concept in his 1980 book 'Competitive Advantage'.
6/6/13
1
DEMING’S VALUE
CHAIN REACTION
Adaption and Application
Santa Clara Valley Mental Health Department
PQIC Strategic Planning:
Applying the Value Chain Reaction
1. Review the Revised Value Chain
2. Identify Current Policies, Processes and
Structures that
• Reduce or hinder value
• Prevent the chain reaction
3. Prepare to Share the Chain Reaction
4. Review & Revise QI Work Plan
• Address identified barriers to the chain reaction
• Provide guidance to Work Group leads to promote chain reaction
6/6/13
2
Informing Theory:
Deming’s Value Chain Reaction
Improve the value of products and services from the
viewpoint of the customer
Increase demand for the organization’s products and
services
Improve financial performance
Stay in business
Provide Jobs and More Jobs
Material is from THE IMPROVEMENT GUIDE, Second Edition, Jossey-Bass, March, 2009
Ideas for SCVMHD’s Value Chain Reaction
From PQIC (from work groups & voting)
Improve the value of experience and services of recovery and wellness
from the viewpoint of the customer; Improve the quality and value of
mental health services with an emphasis on recovery and mental
wellness
Increase capacity of services through matching service to the client
needs; Increase demand for PEI and decrease need for high end
services
Improve financial stability, efficiency and reinvestment opportunities;
Improve the outcomes to investment ratio
Maintain organizational viability; Provide excellent return on investment
for public investment
Provide Jobs and high quality care
Improve health of community
6/6/13
3
SCCMHD’s Value Chain Reaction
Proposed “Synthesized” Version
Improve the value of experience and services from the viewpoint
of the customer
Increase relevance, preference and availability of the system’s
services
Engage and enable a skilled and motivated workforce
Provide an excellent return on the public investment
Improve financial performance
Improve the health of the community
ACHIEVING THE
VALUE CHAIN
Identify current policies, processes and
structures that reduce or hinder value and
prevent the chain reaction
Identify forums to present the value chain and
promote its acceptance and application
6/6/13
4
System of Improvement
Five Activities for Leaders
Constancy of
Purpose
Establish and Communicate the
Purpose of the Organization
System Activity View the Organization as a System
Obtaining
Information
(Customer
Focus)
Establish a System to Obtain
Information Relevant to the Need the
Organization is Fulfilling
Planning Plan for Improvement
Managing
Improvement
Methods
Manage Individual and Team
Improvement Efforts
Material is from THE IMPROVEMENT GUIDE, Second Edition, Jossey-Bass, 2009
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A value chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the company. Michael Porter developed this concept in his 1980 book 'Competitive Advantage'.
6/6/13
1
DEMING’S VALUE
CHAIN REACTION
Adaption and Application
Santa Clara Valley Mental Health Department
PQIC Strategic Planning:
Applying the Value Chain Reaction
1. Review the Revised Value Chain
2. Identify Current Policies, Processes and
Structures that
• Reduce or hinder value
• Prevent the chain reaction
3. Prepare to Share the Chain Reaction
4. Review & Revise QI Work Plan
• Address identified barriers to the chain reaction
• Provide guidance to Work Group leads to promote chain reaction
6/6/13
2
Informing Theory:
Deming’s Value Chain Reaction
Improve the value of products and services from the
viewpoint of the customer
Increase demand for the organization’s products and
services
Improve financial performance
Stay in business
Provide Jobs and More Jobs
Material is from THE IMPROVEMENT GUIDE, Second Edition, Jossey-Bass, March, 2009
Ideas for SCVMHD’s Value Chain Reaction
From PQIC (from work groups & voting)
Improve the value of experience and services of recovery and wellness
from the viewpoint of the customer; Improve the quality and value of
mental health services with an emphasis on recovery and mental
wellness
Increase capacity of services through matching service to the client
needs; Increase demand for PEI and decrease need for high end
services
Improve financial stability, efficiency and reinvestment opportunities;
Improve the outcomes to investment ratio
Maintain organizational viability; Provide excellent return on investment
for public investment
Provide Jobs and high quality care
Improve health of community
6/6/13
3
SCCMHD’s Value Chain Reaction
Proposed “Synthesized” Version
Improve the value of experience and services from the viewpoint
of the customer
Increase relevance, preference and availability of the system’s
services
Engage and enable a skilled and motivated workforce
Provide an excellent return on the public investment
Improve financial performance
Improve the health of the community
ACHIEVING THE
VALUE CHAIN
Identify current policies, processes and
structures that reduce or hinder value and
prevent the chain reaction
Identify forums to present the value chain and
promote its acceptance and application
6/6/13
4
System of Improvement
Five Activities for Leaders
Constancy of
Purpose
Establish and Communicate the
Purpose of the Organization
System Activity View the Organization as a System
Obtaining
Information
(Customer
Focus)
Establish a System to Obtain
Information Relevant to the Need the
Organization is Fulfilling
Planning Plan for Improvement
Managing
Improvement
Methods
Manage Individual and Team
Improvement Efforts
Material is from THE IMPROVEMENT GUIDE, Second Edition, Jossey-Bass, 2009
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