SIX SIGMA in Healthcare

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By Trevor CoonsBrigham Young UniversityMarriott Business School

Transcript of SIX SIGMA in Healthcare

Six Sigma In HealthcareBy Trevor CoonsBrigham Young University Marriott Business School

What Will Be Covered Six Sigma defined in context of healthcare Brainstorming Exercises Nuts and Bolts How It Works Real World Examples Exercises Summary Reading List

Six Sigma Defined In Context of HealthcareStatistically Sigma or is a character used in statistics to represent standard deviation. Six Sigma denote a process that is so in control that only 3.4 parts are defective for every million produced.

Six Sigma Defined In Context of HealthcareAs A Tool

With Six Sigma Motorola company was able to Eliminate waste Improve quality Reduce cost Reduce lead time

Six Sigma Defined In Context of Healthcare Coming To Healthcare Quality improvement plan Controlling variance is essential Increases accountability Builds off of current processes

Brainstorming ExercisesHow could Six Sigma help? First, come up with ideas how Six Sigma could improve healthcare as a whole Next ,think about how Six Sigma principals could help your company Lastly, think of ways that being able to create strong measures could help you in your job

Brainstorming Exercises How could Six Sigma help? Scenario 1 You are the manager over Lab and Imaging You seem to be plagued by complaints about taking too long Scenario 2 You are an Emergency Department Manger A slue of seemingly indeterminable delays are frequently putting you on diversion

Nuts and BoltsAll or Nothing vs. Contingency

All or Nothing means that the company either fully commits to Six Sigma or else it shouldnt bother- It offers greater rewards - But it comes at the cost of greater risk

Contingency- Allows a company to tailor its own solutions - If done half-hazard, it can cause more harm than good

Nuts and BoltsAll or Nothing

Six Sigma OrganizationChampion

Works with Black belts Appropriates resources Heavily trained Full time job cost savings Basic training Part time and work in groups

Black belt

Green belt

Nuts and BoltsAll or Nothing

Organization- Champion Works with the black belts Meets frequently with Black belts Identifies potential Black belts to train

Appropriates scarce resources They have to balance internal and external concerns Has final say on major projects and process changes

Nuts and BoltsAll or Nothing

Organization- Black belts Heavily trained Costs thousands of dollars and several month to train Is a specialist in quality management tools

Full time job cost savings Key to Six Sigma Projects vary in duration and scope

Nuts and BoltsAll or Nothing

Organization- Green belts Basic training Trained in basic quality tools

Part time and often work in groups Depending on the company They can do Black belt work Or green belts can be relegated lower priority projects

Nuts and BoltsAll or Nothing

Six Sigma Process DMAIC Scope of the project Define Critical-to-quality factors Create performance baseline Measure Collect comparable data Use data to identify underlying problem Analyze Implement process that will correct the problem Improve Monitor process

To best understand each of these steps, well follow a case example of North Shore University Hospital as they apply these steps.(The bullets in blue.)


Nuts and BoltsAll or Nothing

Process-DMAIC Define In specific terms explain what's wrong Critical-to-quality factors ED and PACU are diversion, Total Turnaround Time (TAT) taking too long, created a high-level process map

Measure Create baseline Collect data Target TAT set to 120 min. and upper specification limit set to 150 min., defect defined as a TAT over 150 min., collected information on 195 patients

Nuts and BoltsAll or Nothing

Process-DMAIC Analyze Use data to identify underlying problem Created a Control Impact Matrix, performed hypothesis testing on what they could control, found the underling problem was employees lacked proficiency with the hospitals bed tracking system (BTS).

Improve Implement process that will correct the problem Improved communication within the staff by: documenting communication and reformatting admission RNs beepers. Retraining employees on BTS and providing laminated instructions cards

Nuts and BoltsAll or Nothing

Process-DMAIC Control Monitoring the process TAT continued to be monitored on a monthly basis

Results Went from a slightly over one sigma process to a 3.1 sigma process Cut standard deviation from 170 minutes to 48 minutes The average TAT went from 226 minutes to 69 minutes

Nuts and BoltsContingency

Advice for Implementing on Contingency Manage expectations Manage for the correct outcomes Pick manageable problems Engage the customer Measure the right thing

How It WorksProject types Patient Satisfaction Safety Efficiency Outcomes Many Others

How It WorksPerformance Variables Patient Satisfaction Service Level Service Cost Clinical Excellence

How It WorksPhysician Engagement Why it is essential Why so hard to get Think differently Increases burdens

How to gain

Real World ExamplesOrganization Charleston Area Medical Center Commonwealth Health Corporation Froedtert Memorial Lutheran Hospital Project Supply chain for surgical supplies Radiology ICU lab timesMedicare+ Choice Plan reimbursementPhysician addition to managed care network

OutcomeLower inventory, Improved supplier relations Decreased time between dictation and signature, Improved wait times and staff scheduling

AchievementSaved: $163,410 immediately $841,540 future $800,000 savings, 25% better throughput and eliminated 14 positions

Reduced turnaround times Cut turnaround times from 52 to 23 minutesRedefined coding workingaged Medicare recipients

Mount Carmel HospitalWellmark Inc.

Profit $857,000

Reduced time for adding Savings: $3 million physicians to medical plan per year Profits: $600,000

Scottsdale Healthcare

Over crowded ED Improved transfer time from ED to inpatient hospital bed

ExercisesYou are trying to figure out what Sigma level your at You take meticulous notes of whats going on in your unit and observe 195 turnovers Sigma DPMO 691,462 130 of those observations were defects 1 2 308,538 Calculate defects per million 3 66,807 4 6,210 opportunities (DPMO) 5 233 (Hint)6 3.4

(Defects/ (Opportunities* Occurrences) ) X 1,000,000

ExercisesActivities to use in your meeting Managers go on a quality waste walk Discuss training youd like to pursue in your company Work to reduce reliance on competitive data for improvement initiatives Discuss how to improve physician engagement

Summary Six Sigma defined in context of healthcare Brainstorming Exercises Nuts and Bolts How It Works Real World Examples Exercises

Reading List Crossing the Quality Chasm- A new healthcare system for the 21st century. Institute of medicine. National Academy Press. Washington D.C. 2001 To Err is Human- Building a Safer Health System. Institute of medicine. National Academy Press. Washington D.C. 2000 Gawande, Atul. Better- A Surgeons Notes on Performance. New York: Henry Holt and Company, 2007 Addressing Variation in Hospital Quality: Is Six Sigma the Answer?. Woodard, Tanisha D. Journal of Healthcare Management. 50:4 July/August 2005.226-236 Healthcares Horizon- Form Incremental Improvement to Designing for the Future. Stahl, Richard and Schultz, Bradley and Prexton, Carolyn. Six Sigma Forum Magazine February 2003.17-26. Lean-Six Sigma Tools for rapid cycle cost reduction. Caldwell, Chip. Healthcare Financial Management Association. October 2006. 1-2.

Reading List Factors critical to the success of Six-Sigma quality program in an Australian hospital. Hilton, Roger and Balla, Margaret and Sohal, Amrik S. Total Quality Management. Vol. 19, No. 9, September 2008. 887-902. Engaging Physicians in Lean Six Sigma. Caldwell, Chip. and Brexler, Jim and Gillem, Tom. Quality Progress. November 2005. 42-46 Faster Turnaround Time. Martocci, Maude, and Pellicone, Angelo. Quality Progress. March 2006: 31-36 ( Integrating Six Sigma with Total Quality Management: A Case Example for Measuring Medication Errors. Revere, Lee and Black, Ken. Journal of Healthcare Management. 48:6 November/December 2003. 377-391 Whats Wrong with Six Sigma?. Goodman, John and Theuerkauf, Jon. Quality Progress. January 2005.37-42 Application of the Six Sigma concept in clinical laboratories: a review, Gras, Jeremie M. and Philippe, Marianne. Clin Chem Lab Med. 46:6 2007. 789-796 Managing Quality-Integrating the Supply Chain. Foster, S. Thomas. 4th edition. New York: Prentice Hall, 2010.