Six Sigma Business process reengineering and continuous improvement efforts such
ID: 374504 • Letter: S
Question
Six Sigma
Business process reengineering and continuous improvement efforts such as TQM and Six Sigma are both designed to improve efficiency, produce better product quality and greater customer satisfaction. The purpose for using operational improvement programs such as benchmarking, best practices, business process reengineering, TQM, and Six Sigma is to improve the performance of strategy critical activities and promote superior strategy execution.
Case:
Illustration Capsule 11.1 discusses Charleston Area Medical Center's use of Six Sigma practices. Read the case below and answer the questions below.
Established in 1972, Charleston Area Medical Center (CAMC) is West Virginia’s largest health care provider in terms of beds, admissions, and revenues. In 2000, CAMC implemented a Six Sigma program to examine quality problems and standardize care processes. Performance improvement was important to CAMC’s management for a variety of strategic reasons, including competitive positioning and cost control.
The United States has been evolving toward a pay-for-performance structure, which rewards hospitals for providing quality care. CAMC has utilized its Six Sigma program to take advantage of these changes in the health care environment. For example, to improve its performance in acute myocardial infarction (AMI), CAMC applied a Six Sigma DMAIC (define-measure-analyze-improve-control) approach. Nursing staff members were educated on AMI care processes, performance targets were posted in nursing units, and adherence to the eight Hospital Quality Alliance (HQA) indicators of quality care for AMI patients was tracked. As a result of the program, CAMC improved its compliance with HQA-recommended treatment for AMI from 50 to 95 percent. Harvard researchers identified CAMC as one of the top-performing hospitals reporting comparable data.
Controlling cost has also been an important aspect of CAMC’s performance improvement initiatives due to local regulations. West Virginia is one of two states where medical services rates are set by state regulators. This forces CAMC to limit expenditures because the hospital cannot raise prices. CAMC first applied Six Sigma in an effort to control costs by managing the supply chain more effectively. The effort created a one-time $150,000 savings by working with vendors to remove outdated inventory. As a result of continuous improvement, a 2015 report stated that CAMC had achieved supply chain management savings of $12 million in the past four years.
Since CAMC introduced Six Sigma, over 100 quality improvement projects have been initiated. A key to CAMC’s success has been instilling a continuous improvement mindset into the organization’s culture. Dale Wood, chief quality officer at CAMC, stated: “If you have people at the top who completely support and want these changes to occur, you can still fall flat on your face. . . . You need a group of networkers who can carry change across an organization.” Due to CAMC’s performance improvement culture, the hospital ranks high nationally in ratings for quality of care and patient safety, as reported on the Centers for Medicare and Medicaid Services (CMS) website.
How can the use of a Six Sigma program help medical providers survive and thrive in the current industry climate?
Explanation / Answer
Human service organizations - According to essential services , services are available in time span and some services available 24 X 7. The services which are available 24 X 7 which include transportation & hospitality needs regular staff perform task. While performing this services many serving people become victim of accident and there future life become less prospective. Thus to protect the welfare of such employee certain special provision are made which will protect his employment as social security.
Barrier in implementation- If person get victim of accident & become temporary or permanent disable, then to help it require financial strong organization to bear his expenses. Thus rule and regulation differ according to capacity of organization . If organization is capable to bear cost incurred for compensation and continuation of employment in that case such rule are applicable but in case of organization not capable to bear financial bourdon in that case its unfortunate for employee to continue with that organization.
Cultural change- Culture of organizations differ according to its globe & stander norms. If organization is having separate employee welfare department, which is there for care for employee & care for his social benefit in that case immediate redressal of claim is possible. Thus Social insurance is device by which each employee accidental insouciance policy can be purchase which certainly help to minimum certain financial pressure. The government circular directly impact to understandings of people.
Employee awareness- employee awareness is useful and to boost employee awareness it require proper communication . If certain norms for employee welfare made compulsory in that case, unfortunately employee become victim of any accidental situation, this will not spoil whole family life for want of financial requirement. Also some sensitive issue attached with is that to purchase insurance policy for partner may develop certain doubt for existence of malice. To avoid this Its responsibility that each individual must reserve some fund self so that in case of any abnormal condition arose this fund will help him support for financial to him or his family ..