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MGMT 676 Factory Physics & Six Sigma Concepts for Healthcare Engineering & Management Research Solutions in Healthcare: Successes, Challenges, & Lessons.

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Presentation on theme: "MGMT 676 Factory Physics & Six Sigma Concepts for Healthcare Engineering & Management Research Solutions in Healthcare: Successes, Challenges, & Lessons."— Presentation transcript:

1 MGMT 676 Factory Physics & Six Sigma Concepts for Healthcare Engineering & Management Research Solutions in Healthcare: Successes, Challenges, & Lessons Learned 2008 Spring Conference April 22, 2008 Herbert Moskowitz Suresh Chand Steve Shade

2 Table of Contents Perspectives History / Evolution Details: Overview, Focus, Content, & Topics Appendices –Tools –Team Projects 2

3 Perspective Uniqueness, Objectives Linking Students with Current Healthcare Practice Skills Obtained Enhancing & Expanding the Course 3

4 History / Evolution Industry Juran Center for Quality… University of Minnesota Healthcare Applications… IUMG & Regenstrief Center Development of Healthcare Course 4

5 Industry (Thomson Consumer Electronics) Issue –Improve Product Quality (TVs) Using Six Sigma Concepts Lessons Learned –Need to Change Habits –On Building a Successful Team for Change –IT Essential for Six Sigma Implementation –Six Sigma Training Expensive –Humans Poor Statisticians 5

6 Industry (Thomson Consumer Electronics) Research Byproduct –IT Brings Data to Process Owner / Decision Maker –With Data, Potentially Everything Can be Modeled –Improve Decision Making by Letting Humans & Machines Do What They Do Best… Humans: Creativity… Define, Measure Machines: Model… Analyze, Improve, Control –Led to Use of Machine Learning Algorithms… Validation of Concept in Practice (Eli Lilly) 6

7 Industry (Thomson Consumer Electronics) Six Sigma Course for MBAs –Product Focused –Replicate Reality Animated Simulation of Manufacturing Process for Process Improvement Team-based Competition vs. Machine Learning Algorithm 7

8 Juran Center for Quality - University of Minnesota Major Focus on Healthcare Issues Annual Meetings –Criticality of Healthcare to Economy & Industry (Paul ONeil… Former Secretary of Treasury) –Need for Operations Professionals to Improve Healthcare Processes (Denis Cortese… CEO Mayo Clinic) 8

9 Healthcare Applications: IUMG & Regenstrief Center IUMG / Krannert Collaboration –Improve Patient Flow at Grassy Creek Clinic –Approach Used TCE Team Model… Champion (Dr. Deanna Willis), Grassy Creek / Purdue Team Developed Animated Simulation of Patient Flow as Experimental Platform Integrated Six Sigma & Factory Physics Concepts / Tools –Results Successful 9

10 Birth of Regenstrief Center –Same Laws Govern Behavior of Healthcare & Manufacturing Systems –Need for Healthcare Course Using Manufacturing Science to Healthcare System Operational Effectiveness & Efficiency –Emulate Model of Product-focused Six Sigma Course Healthcare Applications: IUMG & Regenstrief Center 10

11 Details: Overview, Content, & Topics Overview –Factory Physics (FP) and Six Sigma (SS) Complementary Concepts Hot Button Issues in Industry to Improve Processes & Product Quality Healthcare a High Priority National Issue with Direct Impact on Manufacturing Costs ($1,500 of GM Car Due to Cost of Employee Healthcare) Need to Transfer FP & SS Technology to Healthcare Systems… Spawn Demand for Operational Professionals 11

12 Details: Overview, Content, & Topics Focus –Tools, Applications, Research Focused –Multidisciplinary Graduate Course 12

13 Details: Overview, Content, & Topics Content –Part I: Overview, Fundamentals, & Tools Concept & Tools Case Studies Guest Speakers Active Learning Exercises (Minitab Data Files, Patient Flow Simulation) –Part II: Advanced Concepts, Applications, & Research to Healthcare Delivery 13

14 Topics Six Sigma Concepts & Tools –On Habits –Micro and Macro Economics of Quality –Measurement Capability –Statistical Process Control –Process Capability –Design of Experiments Full Factorial Designs Fractional Factorial Designs Response Surface Design Single & Multiple Response Optimization 14

15 Topics Factory Physics –Concepts & Principles –Tools & Applications Case Studies –Applicability of Management Models from Production Industries to Healthcare Delivery (Toyota Production System) –Physician Order Entry (Electronic Medical Records) 15

16 Topics Guest Speakers –Application of Lean Systems in the Healthcare Industry –Improving Efficiency & Operational Effectiveness of an Eye Clinic –About the Regenstrief Center for Healthcare Engineering 16

17 Perspectives Uniqueness –Mulitdisciplinary –Integrate Factory Physics and Six Sigma, Transfer Technology from Manufacturing to Healthcare –Active Learning Physical & Computer Simulations Live Team Projects in Healthcare Practice 17

18 Perspectives Objectives –Identify Research Opportunities in Healthcare… Theses, Dissertations, Research Funding –Concepts/Tools for Improving Healthcare System Performance from Manufacturing –Multidisciplinary Project Teams 18

19 Perspectives Linking Academics & Practice –Case Studies –Guest Speakers –Active Learning Animated Simulations Live Healthcare Team Projects Skills Learned –Manufacturing Science Technology is Transferrable to Healthcare Systems –Concepts / Tools of Factory Physics & Six Sigma to Improve Performance 19

20 Perspectives Enhancing / Expanding Course –University-wide Course Orientation Professionals Researchers –Executive Education Course for Healthcare Professionals –Virtualization… Develop More Animated Simulations of Real Processes for Active Learning & Experimentation 20

21 Appendix 1: Course Content 21

22 Factory Physics Concepts Factory Physics is study of laws governing behavior of manufacturing systems. Both Factory Physics and Six Sigma focus on process variation reduction, and thus are highly complementary. The authors of the book Factory Physics state, Factory Physics is a systematic description of the underlying behavior of manufacturing systems. Understanding it enables managers and engineers to work with the natural tendencies of manufacturing systems to: (1) Identify opportunities for improving existing systems, (2) Design effective new systems, and (3) Make the tradeoffs needed to coordinate policies from disparate areas. In this course, we will see that the manufacturing and healthcare systems are similar in many ways, and the same laws govern the behavior of healthcare systems also. Some specific concepts/tools covered are: 1.Effect of process time variability on performance 2.Sources of variability in process time 3.How variability propagates from one stage to the next 4.Pooling of resources to reduce effect of variability Reference: Wallace J. Hopp and Mark L. Spearman, Factory Physics, Irwin McGraw-Hill,

23 Six Sigma Concepts and Tools Macroeconomics of Quality Microeconomics of Quality Where Can Six Sigma Be Deployed Define Phase DMAIC StepsTools Used Identify Customers and Requirements Define Problem: QFD & House of Quality Create Process Map Flowcharting QFD & House of Quality CTQ & CTC Definitions 23

24 Six Sigma Concepts and Tools Measure Phase DMAIC StepsTools Used Define Defect, Defectives, and Opportunity Validate the Measurement System Collect the Data Determine Process Capability and Sigma Baseline Process Flowchart Pareto Analysis w/ and w/out Data Cause-Effect Analysis Failure Modes and Effects Analysis (FMEA) Measurement Capability Analysis Process Sigma Analysis 24

25 Six Sigma Concepts and Tools Analyze Phase DMAIC StepsTools Used Define Performance Objectives Identify Sources of Variation Histogram SPC Charts Statistical Analysis Hypothesis Testing (Continuous and Discrete) Non-normal Data Analysis 25

26 Six Sigma Concepts and Tools Improve Phase DMAIC StepsTools Used Perform Design of Experiments Validate Potential Improvement Using Simulation Correct / Re-evaluate Potential Solution Screening Experiments Response Surface Optimization Control Phase Detecting Out-of-Control Conditions Implement Statistical Process Control Determine Process Capability Calculate Process Sigma Variable and Attribute Control Charts 26

27 Appendix 2: Team Healthcare Projects 27

28 Operational Effectiveness & Efficiency… Process Improvement Projects Scheduling to Improve Patient Flow at IUMG Outpatient Clinic –Simulation Design of Experiments: Scattered Appointments, Overflow Call Routing to PSAs, Batching of Patient Records, Pooled Registration Queues Call Center Volume Management –Time Series Forecasting, Staffing 28

29 Operational Effectiveness & Efficiency… Process Improvement Projects Modeling & Optimizing Multitasking Administrative Operations –Check-in and Phone Calls Modeling Patient Attendance at Outpatient Clinics –Logistic Regression, Machine Learning Algorithms 29

30 Operational Effectiveness & Efficiency… Process Improvement Projects Modeling Patient Flow in a Centralized Registration Process –Simulation Evaluating Scheduling Policies in a Colorectal Cancer Care Center –Agent-based Simulation 30

31 Additional Projects Medical Diagnosis –Computational Intelligence / Machine Learning Algorithms for Diagnosing Breast Cancer Information Technology –Electronic Medical Records 31


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