History of Performance Improvement

7/27/2019 History of Performance Improvement

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Chapter 2. History of Performance

Improvement

Daniel B. McLaughlin

Julie M. Hays

Healthcare Operations

Management


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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


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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.


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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


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Systems View

LaborMaterial

MachinesManagement

Capital

Goods orServices

OUTPUTINPUT TransformationProcessFeedback


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Knowledge Hierarchy

Importance

Learning

Information

Data

Knowledge

Understanding

Wisdom

Relationships

Patterns

Principles

Morals


7/20Copyright 2008 Health Administration Press. All rights reserved. 2-7

Mass Production

Two men use

hammers on

Fordfactory

assembly lineMen work on

Fordon

assembly line

and then drive

away

Two men assemblingcar in Fordfactory
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=en



Frederick Taylor

The Principles of Scientific Management(1911)

Wasted human effort

One best way

Four principles

- Standard work

- Training

- Cooperation

- Planning



Frank and Lillian Gilbreth

One best way

Time and motion studies

Cheaper by the Dozen



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



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.gif



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.gif


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Joseph M. Juran

Quality trilogy- Quality planning

- Control

- Improvement


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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


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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.htm


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JITLeanAgile

Just In Time (JIT)- Inventory management strategy aimed at

reducing inventory

Lean- Philosophy of eliminating waste

Agile

- Ability to respond quickly to changing conditions


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Service Process Matrix

Adapted from Schmenner, R. W. 2004. "Service Businesses and Productivity." Decision Sciences35 (3): 333347.

Degree of Variation

Customer Interaction and Service Customization

Service factory

R

elativeThro

ughputTime

Low

LowHigh

High

Service shop

Mass serviceProfessional service


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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


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Important Events in Performance

Improvement


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Performance Improvement

Improve the quality, safety, efficiency, andeffectiveness of healthcare using

knowledge-basedtools, techniques, and

programs for systemimprovement.

Documents

History of Performance Improvement