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Writer's pictureAndrei Soran

Focused Factories in Healthcare: A Path to Peak Performance


The healthcare landscape is constantly evolving, demanding innovative approaches to deliver efficient and high-quality care. Could the focused factory model, originally developed in manufacturing, be making a comeback in healthcare? This article explores the potential of applying focused factories within healthcare organizations and examines how existing departments can be transformed for optimal performance.



The Genesis of Focused Factories


The concept of focused factories emerged in 1974 with Wickham Skinner's seminal article published in the Harvard Business Review. Responding to a widely recognized "productivity crisis," Skinner proposed a solution to streamline manufacturing processes. Traditional factories often cater to diverse customer segments and markets, simultaneously producing a wide range of products. This approach demands a multitude of tasks from one group of resources.


Focused factories argue against designing a single strategy encompassing numerous, potentially conflicting objectives. Instead, they advocate for a targeted approach to a specific and well-defined production task. Regina Herzlinger further refined the concept for healthcare, describing focused factories as multidisciplinary organizations based on shared objectives like treating a particular patient group.



The Power of Focus


The core idea behind focused factories is that "simplicity and repetition breed competence”. By concentrating on specific procedures or patient populations, healthcare departments can develop expertise, streamline processes, and ultimately enhance patient outcomes. This resonates with the rise of specialty hospitals and ambulatory surgery centers, demonstrating the success of focused care models.



A Proven Approach to Healthcare Excellence


One of the earliest and most notable examples of a focused factory in healthcare is the Shouldice Hospital in Canada. Established in 1945, Shouldice has dedicated itself exclusively to hernia repair, performing over 1 million procedures to date. Their success lies in their unwavering focus on a single procedure, enabling them to develop expertise, streamline processes, and achieve exceptional outcomes.

By concentrating on a specific service, they have established themselves as global leaders in hernia repair, demonstrating the viability and effectiveness of this approach. As healthcare organizations seek to optimize performance and deliver superior patient care, the focused factory model offers a compelling pathway to achieving these goals.



Successful Implementation Hinges on Strategy


While the potential benefits are evident, implementing focused factories within a larger healthcare organization presents unique challenges. Successful implementation hinges on careful planning, strategic execution, and the guidance of experienced professionals to ensure they become a catalyst for excellence rather than a recipe for failure.



Challenges and Considerations


Here are some key questions to consider when implementing focused factories:

  • Autonomy vs. Integration: How much autonomy does a focused department require to function effectively? Can it achieve excellence while remaining integrated with the broader hospital system? Many healthcare organizations already have "Centers of Excellence" - but are they truly independent, with dedicated budgets and the ability to streamline processes and hire specialists?


  • Competition vs. Collaboration: If a department becomes a "center of excellence" for a specific service, does it create internal competition for resources? Or can it foster collaboration and knowledge sharing across the organization?


  • Segregation vs. Integration: Is complete physical separation necessary for a focused factory to thrive, or can it operate effectively within the existing hospital structure? Should affiliated physician practices or outpatient surgery centers be under separate management?


Relevant cases analyze the results of different focus domain applications in situations where a change of paradigm was necessary.





Finding the Right Balance


Current research suggests there might be different "focus domains" for focused factories in healthcare:


  • Product-based: Departments dedicated to specific diseases or patient populations (e.g., cardiac surgery).

Turning a factory into a hospital

  • Process-based: Focusing on efficient delivery of particular procedures (e.g., low-complexity elective surgeries).


  • Product-process: Offering a single treatment type for a well-defined patient group (e.g., total hip replacement center).


By understanding these nuances, healthcare organizations can determine the optimal way to leverage focused factories within their existing structures. This may involve identifying departments primed for specialization, streamlining protocols for targeted procedures, empowering teams with the necessary autonomy and resources, and fostering a culture of collaboration and knowledge sharing across departments. This multi-pronged approach ensures that focused factories become seamlessly integrated and contribute to the organization's overall success.



The Importance of Expert Guidance


Successful implementation of focused factories requires several key ingredients:

  • A committed leadership team with experience in the approach's advantages and pitfalls.


  • Expert guidance to transform the model from a theoretical concept into a tangible reality. Organizations navigating this process alone risk encountering unforeseen challenges.


  • Tools like Lean Management to continuously create improvements.


  • Physician buy-in for successful implementation.


Such an approach often requires resources for setup. Outside consulting firms can bridge the gap and accelerate implementation.

What do you think? Can focused factories be a path to peak performance in healthcare?

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