CONFIDENTIAL

Blood - Performance Review

29 January 2015

2

Pillar 1Blood Donation and

the Donor Experience

3

Five blood donation challenges

SUFFICIENCY OF SUPPLY Cannot continue meeting demand by increasing frequency of

donation only and must move towards a segmented management of the donor base

MODERNISATION Must modernise our sessions and the way we interact with donors

to secure the donor base of the future

ORGANISATION / WORKFORCE Have an organisation structure fit for purpose and strengthen

our front line management and planning

CUSTOMER SERVICE Exceed donors’ customer service expectations by improving our session

experience and environment and addressing variation between teams

EFFICIENCY Change our collection model both in session and out of

session to enable a step change in our productivity and have more flexibility to react to demand changes

Further improve

the quality

and safety

of our

service to

patients and

donors

Further improve

the quality

and safety

of our

service to

patients and

donors

Progress / main milestones achieved in Challenges 1 and 2

Strategic initiatives

Slow down rate of decline of O neg donor base

Progress/ Main milestones

Targets for O neg set and tracked monthly; Donor Plus (on-call) in place (5% signed up); Appointed “product manager” for O neg

Segmented management of donors by blood group

Interval Study

O neg donor base declining slower than overall donor base but below plan; marketing plan in place; exploring double dose red cells

Recruitment target of 50,000 achieved; results expected early 2017

Donor Portal

Modern Paperless Donor Journey

New donors awards

Launched end of Nov’13; c550,000 donors registered (150k target in first 12 months)

Donor Portal 2 to enhance and strengthen the portal is ongoing (end by Q3 2015)

Project in Discovery Phase; supplier appointed

Launched in July 2014 with limited complaints from donors

Sufficiency

Modernize

Connected sessions 4G ipads now distributed to blood collection teams; smartphones by July/Aug.

4

Progress / main milestones achieved in Challenge 3

Majority of the new organizational structure now implemented as planned with no disruption to blood supply

Pending roll-out of MAPS North Region (“go live” Feb’15) and new clinical & nursing structure

Project forecast to exceed the expected costs savings (£5,412k in OBC vs. current forecast of £5,775k)

Non recurring costs forecast to be lower than plan (£9,924k in OBC vs. £8,905 forecast)

Cultural change: action plan and leadership commitments agreed and tracked at SMT every 2 months

Scorecards for Ops&Nursing now live and being used by teams

Scorecards for Marketing being developed

Performance management has been part of BDOD training

Improvement of planning tools and skills will be linked to the new Planning and Control Systems Tools (collections will follow the demand and the manufacturing modules)

Appointment of external person to National Planning Manager

BDOD –

“Smarter” planning

Effective performance mgment

5

Progress / main milestones achieved in Challenges 4 and 5

Strategic initiatives

Staff behaviours

Progress/ Main milestones

Delayed due to lack of capacity Panel Segmentation

Volunteers

c80% of teams now trained on the three phases of Customer Service Improvement; donor satisfaction above target

Contact details now gathered and stored Initial training sessions to volunteers

completed with positive feedback

Session Consolidation

Reducing non donor facing time

Collecting more in static centres

Stage 1: WEDC/Kings Norton/Leeds went live in April’14 and Oct’14; on track to deliver savings

Stage 2 Business Case expected Jan’15

“Leaner” set up/pack down process being rolled-out nationally, at the same time as the standardization of the planning assumptions

Static centres expected to collect c28k more units in 14/15 vs. 13/14 (+15% YOY)

Platelets strategy: on track to reduce to 60% CD by end of 2015/16

Customer Services

Productivity

6

7

Pillar 2Manufacturing Operations

8

Manufacturing operations: 4 challenges

SUFFICIENCY OF SUPPLY Increase OTIF to 99%, including specialist components Improve ability to meet complex patient requirements Maximise the use of every donation

MODERNISATION Increase levels of automation to

• Reduce errors• Reduce waste• Increase efficiency of the supply change

ORGANISATION/WORKFORCE Embed a culture of quality and safety (zero major) Develop a customer focused, flexible, innovative and

multi-skilled workforce

EFFICIENCY Further increase processing and testing productivity

above 12,000 units/FTE/year and 28,000 units/FTE/year respectively

Optimize asset utilisation

Further improve

the quality

and safety

of our

service to

patients and

donors

Further improve

the quality

and safety

of our

service to

patients and

donors

Progress / main milestones expected

Strategic initiatives

Introduce Planning and Control Systems

Progress/ Main milestones

It will be part of the business case for consolidating the number of processing sites

Introduce standard scheduling and manufacturing techniques

On track to go live with the demand module and VMI functionality in January 2015

Automation

Consolidation of processing sites

Options for automatic labelling being assessed and piloted in 2015/16

On-going as part of BAU

Target date for business case May/ July 2015

Sufficiency

Modernisation of donors records Collective consultation completed Recruitment in Manchester & Filton started

9

Lean

Being completed as part of the business case to consolidate the number of processing sites

Standardize grading of staff in manufacturing

Modernize

Workforce

Efficiency

Expected in 2015/16 Number of majors YTD 0

Personal development plans: quality and safety

Performance on strategic targets (1/2)

Blood Donation Strategic Targets 13/14 actual14/15 YTD Plan

– Month 1014/15 YTD

Actual Month 10

zero days where stock is below 3 days for any blood group

0 0 0

N. of occasions where opening stock of platelets (for any blood group) is below average daily demand

0 0 44*

Number of donors donating over the last 12 months 941,458 910,798 901,244

Frequency of donation (overall) 1.90 1.90 1.90

O neg donors donating over the last 12 months 107,854 107,084 105,619

Frequency of donation of O neg donors 1.98 1.93 1.97

Donor recruitment 183,676 138,406 131,711

% of donors scoring >= 9/10 in overall satisfaction 67.6% 69.0% 71.0%

Complainants per million donations 6,007 5,200 5,661

10* Change to metric vs. last year; now tracked by blood group* Change to metric vs. last year; now tracked by blood group

Performance on strategic targets (2/2)

Blood Donation Strategic Targets 13/14 actual14/15 YTD Plan

– Month 10

14/15 YTD Actual Month

10

Zero critical and major non compliance at external inspection

6 0 0

Number of faints per 10,000 donors bled 164 160 163

Number of rebleeds per 10,000 donors bled 39 30 33

OTIF 93.4% 96% 94.9%

Blood Collection Productivity (units/FTE/year) 1,291 1,352 1,328

Manufacturing productivity 9,423 9,498 9,806

Testing productivity 20,827 22,224 22,935

% of collections in donor centres 10.5% 12.0% 12.9%

% of 9 bed sessions n.a. 47% 54.2%

11

Blood Donation financial performance

12

Total pay and non pay (£m)

-0.7% -3.5% -3.4% -5.5%YOY, %

Total WTE, excluding overtime and agency (number, end of year)

-3.5% -4.2% -12.5% -10.0%YOY, %

Over last 3 years, blood donation is on track to deliver:• A reduction of

total spend of £9.3m (-7.4%)

• A reduction of staff by c390 WTE (-19%)

Manufacturing and testing financial performance

13

Total pay and non pay (£m)

-0.9% -9.5% -1.9% -4.5%YOY, %

Total WTE, excluding overtime and agency (number)

0.5% -5.8% +1.3% -3.7%YOY, %

Over last 3 years, manufacturing and testing is on track to deliver: • A reduction of

total spend of £11.6m (-14%)

• A reduction of staff by c35 WTE (-4%)

Pillar 3Customer Service and the Hospital Interface

Hospital satisfaction

Hospital feedback is positive but some areas need improvement

What do hospitals want to improve?

68% top-box satisfaction score ability to provide a safe, sufficient and

cost-effective blood supply is well recognised

strong clinical and technical support services

educational support / PBM electronic interfaces: OBOS, SPiCE regional variation in satisfaction, large

hospitals less satisfied due to more complex needs

Blood supply Availability of specialist components

Manufacturing changes (planning and control improvements, standardised systems, site consolidation, 24/7 working, LEAN): 2015-17

Transport Tailored service for large hospitals

TMS 2014, VMI roll-out 2015/16, logistics review 2015

RCI improved turnaround times

SPICE - 90% of test results online: 2014 sample logistics pilot: Q2.15

extended working day pilots completed 2014, roll-out 2015

Digital interfaces Improved website: Q3.14 Integrated systems for ordering and invoicing

OBOS expansion: Q3.15 Orders to Cash: Q4.16

Targeted customer service intervention

What do hospitals think of NHSBT?

In summary

17

Overall, Blood Supply is on track to deliver the strategic initiatives approved as part of Blood Donation Strategy, and planning has commenced to deliver Blood Supply 2020 strategy

Over the last 3 years, blood supply is on track to reduce total spend by £20.9m (-11.6%) and staffing by 425 WTEs (-14.6%) which has enabled NHSBT to maintain the price of red blood cells to hospitals; this has been achieved in a context of demand for red blood cells declining by c10% and cost pressures

Increased focus and actions are being taken to continue slowing down the decline of the donor base, specially O neg, reduce donors complaints and increase OTIF performance