7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
1/21
Chapter 2. History of Performance
Improvement
By: Mr. Vijay L. IkharM.B.A.(Operations mgmt) , B.Sc.(Biotech)
Healthcare Operations
Management
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
2/21
Copyright 2008 Health Administration Press. All rights reserved. 2-2
Chapter 2History of Performance Improvement
Knowledge Based Management (KBM) Scientific Management
- Mass Production
- Frederick Taylor
- Frank and Lillian Gilbreth
Quality- Quality Gurus
TQM, CQI, Six Sigma
ISO 9000, Baldrige Award
Lean
Service Typologies
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
3/21
Copyright 2008 Health Administration Press. All rights reserved. 2-3
Operations Management
What is operations management?
Operations management is the design,
operation, and improvement of the
processes and systems that create anddeliver the organizations products and
services. The goal of operations
management is to more effectively andefficiently produce and deliver the
organizations products and services.
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
4/21
Copyright 2008 Health Administration Press. All rights reserved. 2-4
Operations Management in
Healthcare Organizations
Cost and level of healthcare is increasing- 1987 11% of US economy for healthcare
- 2004 15% of US economy
Control costs
Improve level of service
Improve quality
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
5/21
Copyright 2008 Health Administration Press. All rights reserved. 2-5
Systems View
LaborMaterial
MachinesManagement
Capital
Goods orServices
OUTPUTINPUT TransformationProcessFeedback
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
6/21
Copyright 2008 Health Administration Press. All rights reserved. 2-6
Knowledge Hierarchy
Importance
Learning
Information
Data
Knowledge
Understanding
Wisdom
Relationships
Patterns
Principles
Morals
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
7/21Copyright 2008 Health Administration Press. All rights reserved. 2-7
Mass Production
Two men use
hammers on
Ford factory
assembly lineMen work on
Ford on
assembly line
and then drive
away
Two men assemblingcar in Ford factory
http://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-8468960577878174683&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-522453280762533439&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=enhttp://video.google.com/videoplay?docid=-4840955025129765799&q=ford+production&hl=en7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
8/21Copyright 2008 Health Administration Press. All rights reserved. 2-8
Frederick Taylor
The Principles of Scientific Management(1911)
Wasted human effort
One best way
Four principles
- Standard work
- Training
- Cooperation
- Planning
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
9/21Copyright 2008 Health Administration Press. All rights reserved. 2-9
Frank and Lillian Gilbreth
One best way
Time and motion studies
Cheaper by the Dozen
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
10/21Copyright 2008 Health Administration Press. All rights reserved. 2-10
Project Management
Gantt chart (early 1900s)
Program Evaluation and Review Technique
(1950s)
- U.S. Navy
- Beta distribution for task times
Critical Path Method (1950s)
- DuPont and Remington Rand
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
11/21Copyright 2008 Health Administration Press. All rights reserved. 2-11
Quality Gurus
Walter Shewhart- SPC and PDCA
W. Edwards Deming
Joseph M. Juran
Do
Act
Plan
Check
PDCA
Cycle
http://en.wikipedia.org/wiki/Image:W._Edwards_Deming.gif7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
12/21Copyright 2008 Health Administration Press. All rights reserved. 2-12
W. Edwards Deming
Father of the quality revolution
1970s energy crisis
Common cause versus special variation
14 points
System of profound knowledge
- Appreciation for a system
- Knowledge about variation
- Theory of knowledge
- Knowledge of psychology
http://en.wikipedia.org/wiki/Image:W._Edwards_Deming.gif7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
13/21
Copyright 2008 Health Administration Press. All rights reserved. 2-13
Joseph M. Juran
Quality trilogy- Quality planning
- Control
- Improvement
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
14/21
Copyright 2008 Health Administration Press. All rights reserved. 2-14
TQM (CQI) Six Sigma
TQM less codified than Six Sigma
Based on the teachings of Shewhart,
Deming, Juran
Top management support and leadership
Continuous improvement
DMAIC, PDCA
Six Sigma goal of 3.4 DPMO
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
15/21
Copyright 2008 Health Administration Press. All rights reserved. 2-15
Quality Certification and Awards
ISO 9000- To be certified, an organization must demonstrate
compliance with the standards
- Standards are concerned with the processes ofinsuring quality
Baldrige Award
- Based on organizational excellence in sevencategories
- Dissemination of best practices
- 2005 winners
http://www.nist.gov/public_affairs/releases/2005baldrigewinners.htmhttp://www.nist.gov/public_affairs/releases/2005baldrigewinners.htm7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
16/21
Copyright 2008 Health Administration Press. All rights reserved. 2-16
JIT Lean Agile
Just In Time (JIT)- Inventory management strategy aimed at
reducing inventory
Lean- Philosophy of eliminating waste
Agile
- Ability to respond quickly to changing conditions
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
17/21
Copyright 2008 Health Administration Press. All rights reserved. 2-17
Service Process Matrix
Adapted from Schmenner, R. W. 2004. "Service Businesses and Productivity." Decision Sciences 35 (3): 333347.
Degree of Variation
Customer Interaction and Service Customization
Service factory
R
elativeThro
ughputTime
Low
LowHigh
High
Service shop
Mass serviceProfessional service
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
18/21
Copyright 2008 Health Administration Press. All rights reserved. 2-18
Supply Chain Management
Supply chain management encompasses theplanning and management of all activities involved
in sourcing and procurement, conversion, and all
logistics management activities. It also includes
coordination and collaboration with channel
partners, which can be suppliers, intermediaries,
third-party service providers, and customers. In
essence, supply chain management integratessupply and demand management within and
across companies.
I t t E t i P f
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
19/21
Copyright 2008 Health Administration Press. All rights reserved. 2-19
Important Events in Performance
Improvement
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
20/21
Copyright 2008 Health Administration Press. All rights reserved. 2-20
Performance Improvement
Improve the quality, safety, efficiency, andeffectiveness of healthcare using
knowledge-based tools, techniques, and
programs forsystem improvement.
7/30/2019 Ch. 2 Slidesedited_clean by VIJAY
21/21
Thank you.
Copyright 2008 Health Administration Press All rights reserved 2-21