Six Sigma and Lean Transformation in Health Care
By
Amy O’Connell
Organization Behavior MGMT 630
Wendy Waugh
Dec 1, 2016
Introduction
Lean Transformation and Six Sigma are process improvement strategies that can make any industry more efficient and cost effective. Implementing Lean processes and Six Sigma in managed healthcare can greatly improve the quality of healthcare, it can lower costs, and improve patient care. Lean Transformations in healthcare have also been able to greatly improve errors, improved patient outcomes, raise staff morale, and save millions of dollars in costs without affecting staffing (Taninecz, 2014).
Managed healthcare is an industry that could very much benefit from using these types of transformation
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• Outcomes are put into action (Kollm, 2015).
Another Lean transformation process that can be implemented is a JDI or just do it. In this type of process the Lean transformation team identifies processes, work flows and policy that are ineffective and inefficient. Instead of going through the standard process to change it, the group agrees to change the process right then at that moment. A JDI is supposed to quickly education, demonstration, and implementation a change for the better.
Six Sigma
The other commonly used process to transform healthcare is Six Sigma. Six Sigma is a statistically-based method to reduce variation in processes, work flow and policies. It was originally created in 1986 by engineer Bill Smith for the company Motorola (Nicoletti, 2013). Six Sigma is a management strategy with the goal of reducing the amount of defects in production, offering error-free products 99.9997% of the
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At Consorci Santiari del Garraf hospital, Doctors and Nurses have solved all types of problems. The Doctors and Nurses problem solving skills have not only created solutions but have made things better for themselves and the patients. The management and administration have been very supportive of the decision making process and it has provided a since of ownership to the staff members. The staff was so effective at solving problems they even came up with a way to close a 20% budget shortfall. The hospital was later awarded the prize for the best-managed hospital in Spain (Jones,
Lean production and Six Sigma help a company to make the production and the workers work more efficient. The processes allow different types of programs to be put in place to ensure the workers and the production process operate at the optimal levels. The processes ensure that each element of the production and looks at each step to ensure that the process is working in a more efficient way (Wisner , Tan, & Leong, 2012).
Health care managers need to improve quality services in health organizations. To improve these quality services they have to use methods that are proven helpful in the QI process. For example, Six Sigma is used to display and measure quality improvement data. It is also used to measure
The purpose of this article is to serve as a reference point for people who desire to tackle a process improvement project. The authors explain the how to initiate a quality improvement project and direct the reader through the process of complying a team, identifying key stakeholders, and choosing a framework. The authors then present a clinical scenario through which to demonstrate the applicability of Lean, Six Sigma, and Model for Improvement methodologies. A brief overview of Lean and Six Sigma are presented as well as concise descriptions regarding their strengths and weakness. The Model for Improvement is highly emphasized throughout the work because of the methodology’s flexibility and simplistic nature. Overall the article serves a
The methodology is service friendly and all of the hospital staff is encouraged to provide their input. This methods con is that the method is structured primarily for health care organizations. Florida Hospital uses the Six Sigma method for quality improvement because it provides the best opportunity to implement best practices that have been identified.
Physicians are faced with competitive practice environments that challenge their financial survival. The application of Lean Six Sigma, as you stated, is important to improving care, reducing costs, and ensuring sustainability of physicians practice. Medical practices have changed over the years as more physicians are seeking higher levels of practice security as payers change reimbursement models. Reimbursement models have changed from payment for each service rendered to the patient to fixed payments for all of the care required for a specific procedure or episode of care, and fixed payment for all the care required by a population of patients for a period of time. Income growth can no longer be achieved by seeing more patients but on value
In order to achieve the goals, there are several tools and methods have been introduced in lean production. The tools and methods are including:
Successful deployment of Lean Six Sigma is often considered a function of the inputs with those being shown below in figure 1.1. As the companies are evaluated keep in mind those critical X’s are often evaluated as the function Y = f(X) or Outputs = f(Inputs). In other words by controlling the inputs an organization can predict the output of the Lean Six Sigma implementation. This point is key when evaluating the difference between successful and not-so-successful implementations.
However, Chase et al (1998) identified lean themes as total visibility; respect for people; flexibility; continuous improvement (kaizen); synchronisation and balance; responsibility for the environment and a holistic approach. These two are similar as one must have respect for people while specifying value by putting their needs into consideration, the value stream needs to be identified and made to flow continuously and this can be achieved through synchronisation and balancing, the pull system depicts the flexibility approach and lastly both emphasize continuous improvement.
1. Six Sigma is a management philosophy that sets objectives, collects data and analyzes results as a way to remove wasted expenses from its processes and help reduce the number of defective products produced. Six Sigma uses quality measures to strive for near perfection by eliminating errors and variables.
The healthcare industry could apply lean concepts and benefit greatly from its findings. Lean is a different way of thinking and acting for an organization that can really give them a competitive edge over competing organizations. I am not sure if there is really a competition going on between healthcare organizations, but it could also contribute to fewer incidents, accidents, reduced costs, and improved employee morale. Lean is not a program that the organization uses for a short term, but rather a different way of doing business that has long term, long lasting effects for the organization overall. This method can also lead to the overall satisfaction of the patients that, in simple terms, means a returning customer.
The lean philosophy centers on the elimination of waste in all forms in an organisation (Shpak, 2016). Lean is usually implemented by initially conducting training, initiating pilot projects and implementing changes (Poksinska, 2010). Some of the benefits of lean implementation includes: improves quality and safety; improves staff moral; improves throughput; improves delivery and helps in cost reduction (Jones and Mitchel, 2006; NHS Institute for Innovation and Improvement 2007). The challenges of lean implementation include: resistance to change and lack of team work; limited communication and leadership and staff having less knowledge of the lean concept (Grove et al., 2010; Halling and Wijk, 2013 and Poksinska, 2010). This research is to explore some challenges of
In this session of Leading and Managing Change, the class is tasked with writing about an organizational change that we are or have been involved with and its outcome. For my example, I am writing about a failed organizational change that I was part of that occurred in 2007 and involved a Lean Six Sigma initiative.
Essentially, this is what we are speaking about when we refer to organizational performance and achievement of successful outcomes. (James, 2017)
A quantitative study conducted by Lifvergren, Gremyr, Hellstrom, Chakhunashvili, and Bergman (2010) analyzed the experiences and from a hospital group during a three-year period after the introduction of Six Sigma. It reports on 22 large Six Sigma improvement projects, their results and influence on other improvement activities. The study shows that 75% of the completed projects reached their goals within 18 months. The average net cost savings per completed project/year was $55,300. Overall, the results showed that Six Sigma is a useful concept when trying to improve healthcare processes. They recommend that Six Sigma should be an addition to the improvement practices used in healthcare development initiatives. It was also observed that the Six Sigma program can create much organizational pull regarding quality management and improvement efforts if teamwork is applied.
Even though the complete implementation of lean thinking requires genuine and thoughtful leadership, the process involves various simple steps (Anthony, 2012). These simple steps include eliminating costs that create inefficiency and waste, using inefficient in-house options rather than partnerships, and getting the support of stakeholders. The other steps are neglecting supply chain efficiencies and restructuring a high-performance team or process.