Professional Documents
Culture Documents
HEALTHCARE
COMPLETED BY
GODWIN ONAH
VALENTINE O. SULE
ABDULKAREEM OWOLABI
CONTENTS
1
ABSTRACT
SECTION 8 CONCLUSION
ABSTRACT
2
SECTION ONE
3
BACKGROUND OF SIX SIGMA IN HEALTHCARE
1.0 INTRODUCTION
efficiency for the ultimate purpose in achieving the sole missions and goals of the
business in style. The healthcare business is not left out as the healthcare delivery to the
deaths are caused by medical error. This connotes a total of 250,000 deaths every year at
a cost of between $187.5 billion and $250 billion to the healthcare industry. (Daniel, M.,
2016).
efficiency of care delivery and quality initiatives. To this end, the application of Total
Processes Review (BPR) and Benchmarking have evolved over time with only a few
The application of Six Sigma to Health has become handy to offer a new lease of life to
SECTION TWO
terms, standard deviation. Six sigma offers a way of measuring the performance
the likelihood that an error will occur (Taner M. T. and Gebze B. S., 2007).
order to tie together quality, cost, process, people, and accountability. It begins with an
goal is to reduce both variance and control processes in order to assure compliance with
The higher the sigma level, the higher the performance of the healthcare system. For
example, a three-sigma process has a defect rate of 6.7 percent whereas a six-sigma
process has 3.4 defects per million opportunities. An Institute of Medicine (IOM) report
states that deaths attributable to anesthesia have fallen to 5.4 per million, which
approaches five-sigma and added that medical errors are responsible for the deaths of
44,000 to 98,000 hospital patients every year (Bion and Heffner, 2004).
In addition, reducing medical errors can also result in significant financial savings,
reporting that total national costs of preventable medical errors resulting in injury account
for between $17 billion and $29 billion per year. The study noted that preventable
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adverse drug reactions can increase average hospitalization costs by $4,700 per admission
(Bion and Heffner, 2004). Also, the average of doctor prescription writing has been
found to be between three and four-sigma (Rudisill and Druley, 2004). These examples
Six Sigma principles have their roots in manufacturing. Lean production was originally
used by the Japanese car manufacturing company Toyota. Since then, these principles
have been adopted and developed by organizations from all industries, including
The method used to apply Six Sigma principles in an organization is the same as the
method used to diagnose and treat medical conditions. It is built on the idea that
organizational issues should not be dealt with from the boardroom, but instead by
frontline workers who are usually closer to and understand the problems.
In healthcare, rather than senior management making decisions, it is the nurses, doctors
HEALTHCARE
Health care today is a vast web of complexity and contradiction. It offers astounding
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resource constraints and other issues that threaten the accessibility and safety of patient
care.
In 1998, the Institute of Medicine released an assessment stating that 98,000 people die
each year as a result of medical errors, highlighting the necessity for quality
An estimated £400 million is being paid in clinical negligence claims and adverse
Over the past decade, the need and desire for healthcare institutions to operate more
reimbursements and the rising cost of labour and supplies, healthcare organizations have
Generally, there are two primary areas to find savings – either through reductions in
labour costs or by reducing the high cost of supplies. With the continuing shortage of
etc., the opportunities to reduce expenses solely by reducing labour costs can play an
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Today’s health care organizations are complex dynamic systems focusing to improve
quality of care that meets stringent guidelines. Re–examining the method of evaluating
the service performance has become necessary. This would give room to focusing
SECTION THREE
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3.1 INTRODUCTION
Employing Six Sigma tools in healthcare does not only help to improve quality but helps
to solve healthcare problems. The DMAIC is a five-step improvement cycle with the aim
to continuously reduce errors The DMAIC approach – define, measure, analyse, improve
DEFINE
First of all, the identity of patients, as well as their needs and wants, will be clearly
defined. In the same vein, the objectives of the process and its capabilities also require
accurate definition.
MEASURE
However, data and information collected for measurement should be clear and concise.
ANALYSE
Furthermore, Six Sigma tools should be used to analyse data collected for measurement
to ensure efficiency. The analysis stage may involve complex statistical techniques to
IMPROVE
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During the Improve stage, the entire approach to patient care may need to undergo
CONTROL
This stage consolidates the gains from previous stages. It may involve the introduction of
new policies, protocols, etc, to ensure that care is provided at the high that has been
Healthcare providers face a lot of challenges in a bid to deliver outstanding patient care.
Some of these include stiff competition, rising health care costs, lack of access to
others. However, healthcare management can leverage on Six Sigma tools like, FMEA,
FMEA (failure mode and effects analysis) is a proactive tool embedded within the Six
before they occur. Moreover, the primary goal of Six Sigma in healthcare management is
to prevent defects that could be injurious to patients, their families as well as employees.
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In addition, FMEA can help to identify and eliminate concerns in the early stage of
Sigma in healthcare management. It can be used to continuously check and detect likely
errors in a process. By so doing, management can redesign the process into a new model
that is free from errors. When FMEA is properly executed in the health care system,
Design for Six Sigma (DFSS) is a Six Sigma tool used to design a product or service
from scratch. The most popular design for this method is DMADV (Define, Measure,
Like all Six Sigma projects, this approach also requires that the customer requirements
are well defined. The needs of the customers and the competitors should be measured and
determined. The process options should be analyzed and designed in detail to meet the
customer’s needs. Finally, the performance of the design and its ability to meet the needs
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3.2.2 DEFECT
Failing to deliver what the patient wants. In terms of impact to the patient, a defect in the
scenario, the defect can be fatal, as when a medication error results in the patient’s death.
3.2.4 VARIATION
Ensuring consistent, predictable processes to improve what the patient sees and feels.
SECTION FOUR
4.1 INTRODUCTION
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(Chakraborty, S.), advocated that depending on which sector of the world of business
one looks at, other programs in the form of Six Sigma have been implemented (though
have different names) such as TQM (Total Quality Management), Six Sigma,
Excellence, etc. The heart of these programs have always been targeted at changing the
In many cases, the benefits, in terms of employee morale and culture, customer
satisfaction and the bottom line have turned elusive. The question is – why is there this
The answer lies in the fact that most methodologies offer steps that are necessary to
(Graves A., 2014), opined that as more and more healthcare practitioners become
increasingly aware of issues around quality of care, Six Sigma in healthcare is becoming
Although Six Sigma is a very difficult strategy to master and execute, especially in
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The benefits that could be adduced in the adoption of a Six Sigma program in Healthcare
– helping to prevent medical errors, reducing mortality rates, decreasing time spent in
hospital, improving patient care and to boosting quality – can also make the difference
between a successful and a failed deployment. The benefits are analyzed as follows:
These principles are also used to help reduce departmental siloes, deliver better safety,
and streamline practices. Not only do these methodologies help reduce healthcare costs
by billions of dollars each year, but they can also be the difference between life and
death.
Every business seeks to improve its processes in order to meet and exceed customer
satisfaction. Likewise, in healthcare, the primary focus is on improving patient safety and
satisfaction. The conventional belief that patients will continue to use the same health
Nowadays, patients look out for quality as a requirement choosing a healthcare service.
In addition, patients can make more informed decisions about their treatments based on
their experiences and level of satisfaction. This is where Six Sigma in healthcare plays a
vital role.
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4.1.4 REDUCTION IN THE ERRORS
reducing the likelihood of errors occurring. Six Sigma helps to improve quality of
determining factor between life and death. Defects may range from long waiting time to
wrong diagnosis, prescriptions and treatments. Thus, employing Six Sigma in healthcare
will help improve quality patient care, reduce waste and eliminate these defects.
Besides reducing cost and increasing efficiency, Six Sigma gives healthcare management
an idea on how to manage procedures. These include registering patients, filing claims,
Variation is the enemy of quality. This method of quality improvement helps to reduce
variations in healthcare processes and identify best practices. Also, Six Sigma in
processes.
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4.1.8 REDUCTION IN MEDICAL ERRORS AND DEFECTS
Efficiency and safety in healthcare are often crippled by medical errors and defects in
care. However, implementing Six Sigma in health care will help reduce all of these to the
barest minimum. Six Sigma helps hospitals to deliver health care services effectively and
efficiently. This quality improvement methodology leads to less morbidity and mortality.
It also ensures safer patient care, quick service delivery and more coordinated care.
In general, Six Sigma improves the levels of patient’s satisfaction. It helps to reduce
patients waiting time, thereby promoting quick service delivery. Besides, Six Sigma helps
to improve patient care by reducing errors caused by clinicians and other staff.
In addition, the Six Sigma method improves turnaround time of diagnostic laboratories
and other related departments. Similarly, it speeds up the process of insurance claim
reimbursements.
Six Sigma in healthcare plays an important role in making information easily accessible
to patients. It also ensures that the voice of the patient is central to considerations in
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healthcare services. Ignoring this important voice could lead to lower demand for care.
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SECTION FIVE
5.1 INTRODUCTION
Six Sigma has been used to address many of the most common challenges facing
utilization, length of stay and throughput. In some cases, it has been used to focus on a
The figures in the table below illustrate several healthcare processes by sigma level. They
also illustrate that sometimes being 99 percent effective is just not good enough in
healthcare delivery. And the figures show the value in striving for a Six Sigma level of
Hold Limit
everyday day
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5.2 SOME IMPACTS OF SIX SIGMA IN HEALTHCARE
According to (Taner M. T. and Gebze B. S., 2007), some of the impacts of Six Sigma
Many blood tests and urinalyses requested in the pediatric and obstetrics-gynecology
wards must be repeated due to procedural errors. The result is delay in getting final
results to the physician and unnecessary costs due to rework. While human error is an
important cause in the majority of cases, important background factors may exist which
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5.2.2 IMPROVING MRI IMAGE QUALITY
Many imaging technologies are introduced to the healthcare market each year. These
physicians to more accurately treat patients. However, this is generally achieved only at
considerable additional expense. Redesign for cost and medical management have
become necessary (Taner and Antony, 2000). Six sigma tools can be used in optimizing
design protocols in radiology. In diagnostic imaging, there is always the risk of variation
since the reading may change from observer to observer. By superior imaging techniques,
Patients often register their dissatisfaction while they wait for surgery. From hospital’s
viewpoint, this resulted in wasted resources, increased costs, and additional risk to the
patient. As for the patients, they complain that their time has been wasted, and added that
there has been great inconvenience to the family. Moreover, the protracted anticipation of
Substantial delay has been found to be due to the laboratory tests to be reported and for
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5.2.4 REDUCING CATHETER INFECTION
Catheter infection has been established to be one of the serious problems that patients
face after surgery. The need to reduce the occurrence of catheter infection has become a
major issue in both the quality improvement and patient safety arenas during the catheter
This process is also beneficial in identifying various needs: the need for staff to
understand the nature and severity of the problem; a uniform education program for
nurses and physicians; selection of insertion site to reduce infection risk; standards for
Medical errors and adverse events in healthcare organizations are mostly common and
many of them are potentially avoidable. In addition to their capacity to harm patients,
these potentially avoidable outcomes can increase the length of stay adding considerably
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It is important that an effective discharge planning be put in place in order to ensure a
smooth transition from hospital to home thereby producing better outcomes for the
Hospitals generally think of their offerings as services rather than products. The core
service is patient care. However, the provision of medical treatment and patient care
creates demand for tangible medical and nonmedical products. Although personnel,
nursing, and physician pay accounts for a large portion of a hospital’s operating budget,
yet costs related to inventory, logistics, and administration processes are nevertheless
significant.
(Scheyer, W. L., 1995), (Poulin, E., 2003) and (Jarrett, P. G., 2006) have shown that
30% to 40% of hospital spending is invested in various logistical activities, such that
approximately half of this amount derives from the direct cost of acquiring materials and
services and the other half from the cost of managing them after acquisition. Nowadays,
healthcare providers are seeking to improve their logistics and supply chain management
Also, (Jørgensen et al., 2013), (Ferretti et al., 2014) and (Volland et al., 2017) revealed
several focus areas in the healthcare logistics’ studies including logistics activities
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(supply and procurement, inventory management, transportation, and distribution and
scheduling), holistic supply chain management, lean logistics, patients’ logistics, and
logistics technology. In the search for ways to improve healthcare logistics, academics
and practitioners have looked into methodologies that have been applied successfully in
other sectors, especially the manufacturing sector in order to replicate same in the
Healthcare sector.
According to (Graves A., 2014), Six Sigma has a successful history of helping corporate
environments reduce waste, and now these positive impacts have made their way into the
Six Sigma has long been used in a corporate or business environment to streamline
Implementing Six Sigma in healthcare facilities can help reduce healthcare costs by
billions of dollars each year. These costs can be decreased significantly by cutting the red
tape, preventing medical mistakes, providing improved patient care and initiating cost-
saving efficiencies.
FAILURE
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According to (Pexton, C.), the following are some of the common Six Sigma success
Conversely, some of the factors that have characterized less-successful Six Sigma
2. Poor communication
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It is important for any healthcare organization considering or deploying Six Sigma to
recognize that it will not transform the Healthcare System overnight. It requires strategic
First and foremost, the organization must make a clear and unequivocal commitment to
leading the six sigma initiative by providing adequate time, resources and communicating
Driving significant, sustainable results in healthcare is not about training, and it is not
even just about the tools. It is about changing the culture and developing enough
experience to know which tool to apply to each issue. Some problems may need the rigor
of Six Sigma, while others may simply be a matter of making a decision – with many
variations in between.
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SECTION SIX
6.1 INTRODUCTION
satisfaction, healthcare providers must focus on quality improvement strategies. That is,
culture. Six attributes for a quality healthcare system are identified as follows:
1. Safe.
2. Effective.
3. Patient – centred.
4. Timely.
5. Efficient.
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6. Equitable.
be part of the quality improvement initiative. Much effort has in the past and in some
places still is directed at imposing quality rather than concentrating on optimizing the
healthcare system.
The DNA of the six sigma methodology can be felt while reducing variation that leads to
safer, quicker and more coordinated care, less mortality and morbidity, better response to
needs and better value from resources. Up-to-date, six sigma projects in healthcare
industry have focused on direct care delivery, administrative support and financial
(Taner M. T. and Gebze B. S., 2007), asserted that Six sigma projects can be executed
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4. Improving accuracy of clinical coding;
15. Increasing accuracy of billing processes and thereby reducing the number of
billing errors;
problems;
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21. Improving operation room throughput;
diversions;
Organizations need to improve what they are currently doing as well as changing
operations to what they should be doing, and after measuring the outcomes they should
search for improvements on other new activities. Every improvement requires a change,
either in small scale or in large scale, and every change requires an act of creation
patient wait times, increased revenues and an enhanced quality of life for healthcare
personnel are some of the outcomes of moving to the higher sigma level. The goal is to
cultural change. This will result to the realization of sustainable bottom – line results in
hospitals. From emergency room to boardroom, six-sigma can reduce variability and
waste by translating to fewer errors, better processes, improved patient care, greater
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SECTION SEVEN
CONCLUSION
7.1 INTRODUCTION
Application of Six Sigma has increased in healthcare settings over the past 10 years.
However, they still remain largely under-utilized across the industry, particularly in areas
Healthcare industry is still in the early stages of evolution with regard to six-sigma.
Therefore, healthcare personnel should seek guidance for training and implementation by
the support of the top management. Successful execution of simple projects in hospitals
can enable practitioners to tackle tougher initiatives in the future and create clinical
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Appropriately implemented, Six Sigma clearly produces benefits in terms of better
has an impact in clinical areas such as infection control and medication delivery.
The application of six sigma in health care industry will continue to grow as time
progresses.
7.2 RECOMMENDATION
Six Sigma.
For Six Sigma to be successful in health care, the following should be put in place:
3. Improved time;
5. Proper training;
6. Proper selection;
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7. and Reduced Internal resistance.
Six Sigma as an effectiveness and efficiency strategy in the healthcare sector would
enable the delivery of a truly high – class service to patients which would definitely
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