Volume To Value

In the next 20 minutes…

• Current state• Where we’re going• Value, not volume• Value measurement(s) & definitions• Questions & discussion

Cpk 0.5 aka Sigma level 1.5 (at best)

Re-inventing the wheel…

http://jamanetwork.com/journals/jama/article-abstract/2552208 (University of Utah)

• A “bad process”

• Not very capable of producing the results you want

• Lots of “width” & little space

• High risk for patient to have > 240 min

• Typical sigma level for healthcare processes

Low High

0 6

Z actual = 1.20

Z potential = 1.26

28024020016012080400

LSL USL

shifts and drifts were eliminated.Potential (within) capability is what could be achieved if process Actual (overall) capability is what the customer experiences. parts from the process that are outside the spec limits.• The defect rate is 11.50%, which estimates the percentage of

Upper spec 240Target *Lower spec 0

Customer Requirements

Mean 178.28Standard deviation (overall) 51.348

Actual (overall) capability Pp 0.78 Ppk 0.40 Z.Bench 1.20 % Out of spec 11.50 PPM (DPMO) 114951

Process Characterization

Actual (Overall) CapabilityAre the data inside the limits?

Comments

Capability Analysis for MDArrivalBadSummary Report

How capable is the process?

Low High

0 6

Z actual = 4.15

Z potential = 4.21

21017514010570350

LSL USL

shifts and drifts were eliminated.Potential (within) capability is what could be achieved if process Actual (overall) capability is what the customer experiences. from the process that are outside the spec limits.• The defect rate is 0.00%, which estimates the percentage of parts

Upper spec 240Target *Lower spec 0

Customer Requirements

Mean 41.847Standard deviation (overall) 10.089

Actual (overall) capability Pp 3.96 Ppk 1.38 Z.Bench 4.15 % Out of spec 0.00 PPM (DPMO) 17

Process Characterization

Actual (Overall) CapabilityAre the data inside the limits?

Comments

Capability Analysis for MDArrivalSummary Report

How capable is the process? • A “good process”

• Very capable of producing the results you want

• Little “width” plenty of space

• Low risk for patient to have > 240 min

Number of Lean 6 Sigma studies is on the rise…

http://blog.minitab.com/blog/statistics-and-quality-data-analysis/qi-trends-in-healthcare:-what-are-the-statistical-soft-spots

50% of payments tied to quality or

value…by 2018 (!)

“Value” = ???

http://thehealthcareblog.com/blog/

2015/12/03/the-meaning-of-value-in-health-

care/

“Value” is defined as “the health outcomes per dollar spent.”

Value = Outcomes / Cost…& needs the VOC

“Cost” = ???

Sounds awesome! …and no one

does it.

Healthcare Value Process Index = (100) Cpk / COPQ*

*COPQ in thousands, eg $250,000 => 250…note the VOC

COPQ = $200,000; so HVPI = 0.1

COPQ = $125,000; so HVPI = 0.048

Use & spread these tools in healthcare

In summary: help your healthcare colleagues!

• Available at Amazon.com

• bit.ly/volume2value

• Visit www.TheSurgicalLab.com

• Focuses on use of quantitative tools

• Stories of using tools in healthcare

http://bit.ly/V2Vsurvey

In the last 20 minutes…

• Current state• Where we’re going• Value, not volume• Value measurement(s) & definitions• Questions & discussion

• workshops at your center

• http://Dav.id

• Stories of quality improvement (with tools) in Healthcare

• ThePhysiciansEdge.com