Six Sigma And Lean Transformation In Health Care

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.

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.

“Lean is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the **product at the pull of the customer in pursuit of perfection.” Lockwood [24].

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

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).

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.

Due to ineffective management systems, inefficiency is increasing, which often leads to congested emergency rooms, customer complaints, and lost revenue. Over the past seven years, Six Sigma concepts are increasingly being implemented in the healthcare industry. Despite the challenges of adopting these concepts, the healthcare industry uses them to improve services rendered quality, increase efficiency and reduce fatal human errors. Primarily because Six Sigma is based on a comprehensive approach on improving the human and transactional aspects of the process (human performance and task completion). In the case of JPS, the factors that determine quality and efficiency are the flow of information and interaction with the patients. Using the Six Sigma DMAIC process improvement approach, JPS Emergency Department should be able to streamline information flow and achieve strategic business results (p.

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

Pharmaceutical professional David Hanlon is certified in both Lean Six Sigma and Design for Six Sigma. These two business methodologies were created to allow companies to cut waste and streamline their systems for higher efficiency. Both processes use science and empirical research to determine where a company can remove excess and improve output.

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.

In order to achieve the goals, there are several tools and methods have been introduced in lean production. The tools and methods are including:

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.

Looking at the success of Motorola, many companies like Texas Instruments, Allied Signal etc started using Six Sigma methodology to bring organization-wide improvements.

Essentially, this is what we are speaking about when we refer to organizational performance and achievement of successful outcomes. (James, 2017)