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How Six Sigma Can Be
Applied to Healthcare
Presentation for the Quality Colloquium
By Roxanne O’Brasky, president
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Setting the Table
Appetizer: Brief 6σ introduction
Main course: Six 6σ perspectives
Widely applicable
Including healthcare
Dinner is prelude to dessert
(Upcoming presentations, case studies)
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What is
σ?
“σ” represents variation
Inherent everywhere
Inconsistency
Defects
Lack of predictability
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What is 6σ?
Process-centered business management
Data-driven, structured method
Philosophy of evaluation & improvement
(ducks in a row)
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5 Steps of 6σ
D efine: customer, business process
M easure: business-process performance
A
5
nalyze: defects’ root causes
I
mprove: using tech & discipline
C
ontrol: no backsliding
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6σ: From General to Bullseye
Defects results from process inputs
Breakthrough (not continuous) improvement
3.4 defects per million opportunities
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In Sum…
Flawed processes create
business defects
Data-driven method that
reduces variation
Goal: Breakthrough
levels of improvement
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Ways to View 6σ
Projects/Results
Methodology
Professionals
Measurement
Management System
Culture
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6σ as Projects/Results
Save money
Average savings $150k
(2004 ISSSP benchmarking survey)
Improve quality
Hospital mistakes = 195,000 deaths
(Reuters, 7.27.04)
Risk management, save money
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HC Defect Opportunities
Administrative errors
Admission & discharge
Claim submission
Coding
Hiring, payroll
Patient records
Payables & receivables
Reporting & compliance
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Clinical errors
Diagnosis & treatment
Lab timing & errors
Malpractice & litigation
Medication type, frequency,
& amount
Operating room care carts
Patient safety
Take-home instructions
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6σ as Methodology
Projects vary between industries…
But methodology remains the same
DMAIC
Project-management techniques
Reporting methods
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6σ is Flexible
Used in diverse industries
Manufacturing (to start)
Service
Transaction
IT
R&D
Healthcare (!!)
Integrates other methodologies
Lean
Hoshin
BPM
TQM
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6σ as Professionals
Stratified by knowledge
and expertise:
Yellow Belts: Process members
Green Belts: Process owners
Black Belts: Process improvers
Master Black Belts: Processimprovement improvers
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6σ as Measurement
Data gathering & interpretation
Business activity represented
as numbers
Justifies & validates:
Project selection
Project results
6σ as rational tool
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6σ as Management Systems
Foundation that supports change projects &
change professionals
Foundation
Includes:
Strategic planning/integration
Finance
Human resources
Communications
IT
Foundation
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6σ as Culture
“Little” culture - unique in every company
A 6σ culture is marked by:
Shared belief systems
Common language & stories
Buy-in from management
Sameness across business areas
Training & learning
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Cultural Differences
Ketchup
Catsup
A condiment consisting of a thick, smooth-textured,
spicy sauce usually made from tomatoes. (Dictionary.com)
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“Big” 6σ Culture
Spans businesses & industries
Professionals share, learn, network
Industry events (thanks to our hosts)
6σ-specific events
Benchmarking
Ongoing comparison & dialog
ISSSP’s Web-based tool
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To Recap…6 Views of 6σ
Projects/results
Methodology
Professionals
Measurement
Management system
Culture
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Putting it all Together
Results
Measurement
Projects
Culture
Mgmt.
System
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Professionals
Methodology
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Putting it all Together
Influence
Influence
Results
Projects
(re)create
Measurement
(re)create
(re)create
Culture
(re)create
(re)create
(re)create
Mgmt.
System
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Professionals
Methodology
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Summing it Up
Q: How can 6σ be applied to healthcare?
A: The same as it’s applied elsewhere
Q: What makes healthcare different?
A: Projects and culture
Q: How can it do that?
A: Flexibility & dynamism
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Clearing the Table
Appetizer: 6σ overview prepared
us for main course
Main course: Structured
understanding thru 6 perspectives
Dessert: Upcoming presentations
& case studies
Before that: Any questions?
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And now…
Let’s have
dessert
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