Management Engineering/ Process Improvement (ME/PI)
“Provide Value”
What is a Management Engineer or Process Improvement (ME/PI) Professional?
Process Improvement (PI) professionals address the design, installation, and improvement of integrated systems of people, material, facilities, information, equipment and energy.
They bring a wide variety of work experience and educational backgrounds to the job.
Education• BS, Industrial Engineering, Management Engineering or
Operations Research
• MBA, MHA, MSIE, MS Operations Research or Health Systems
• PhD, MBA, MHA, BSBA Business Management or initial clinical background such as RN, RHIA, RHIT
• PhD, MHA, Allied Health Professionals with Business/Engineering minors
• Six-Sigma, Lean, CPHIMS, CPHQ, and other certifications
Key Practice SkillsAnalytical - a solid knowledge and experience with:
– quantitative statistical techniques and tools
– process improvement programs (Lean, 6-Sigma, ….)
– demand and supply forecasting
– workload and schedule optimization
– engineering economics, financial analysis and decision support
– queuing theory
– workflow analysis
– simulation modeling
– the quality process Formal Education
Key Practice Skills (continued)
The ability to:– collaborative with people in complex organizations
– manage the design and implementation of processes and systems
– promote ideas and influence change in a organization
– teach others the quality management problem solving tools
– teach and deploy business improvement methods and tools
Informal Education
Key Practice Skills (continued)
Profound knowledge of:
– JCAHO and other licensing standards
– clinical protocols and clinical outcomes
– hospital organization structure and interrelationships
Healthcare Education
ME/PI PhilosophyTo provide value by:
• Advancing a win-win culture
• Promoting customer centric environment
• Improving the system of production, service, and planning – Constantly!
• Educating and transferring skills to departments to assist them to realize their full potential
• Breaking down barriers between departments and becoming a catalyst for lasting improvements
• Promoting continuous quality improvement
ME/PI Profession Current State
Current State• Responsibilities and accountabilities are not
universally defined – Sometimes we’re “Jacks of all trades”– Reporting structure depends on the institution
• Lack of direction– Skill set, education and training has not been
standardized leading a broad arrays of professionals – No set continual education or certification– Prevalence of soft skills in the profession
Current State (cont.)
• Career path is sometimes limited– In industry people with our skills are frequently
brought into senior management
• Seen as “cost” versus “revenue” departments– Savings multipliers not touted– Project benefits not advertised
Customer
IT Engagement
Resource M
anagement
Per
form
ance
Impr
ovem
ent
ME/PI Concept
Performance Improvement Function
• Operational audits• Outcome measurements• Service quality audit and evaluations• Process identification, documentation and evaluation• Streamline or “tweak” existing processes• Design off current processes• Enhance value added activities• Modify existing systems• Conduct staff skill audits
Customer
ME/PI Concept
Performance Improvement (cont.)
• Identifying process and outcome measures• Performing quantitative and qualitative analysis• Aligning measures to meet organizational goals• Designing “Scorecards”• Evaluating system capacity• Establishing performance targets• Initiate DMAIC projects
Customer
ME/PI Concept
Performance Improvement Tools
• Department Functional Tree Structure
• Process mapping and analysis• Value stream mapping• Simulation (Modeling)• 5 Ss• Kaizen• Lean• Six Sigma DMAIC (Define, Measure, Analyze,
Improve, Control)
• Root cause analysis• FMECA• DOE• Kanban• SPC/SQC• Performance
Benchmarking• Poka-Yoka• Etc.
ME/PI Concept
Customer
• Internal and External Benchmarking– Develop opportunity matrices based on
current department performance
– Utilizing Action OI Reports for operational benchmarking
– Attending and facilitating departmental and interdepartmental meetings
Performance Improvement Tools (Cont.) Customer
ME/PI Concept
Performance Improvement Tools (Cont.)
• Operational Benchmark Indicators Paid FTEs/Adjusted Occupied Bed Paid Hours/Discharge Management FTEs/Total FTEs Department Paid Hours/Unit of Service Volume Square Feet/Adjusted Discharge Over Time as a % Percentage of Paid FTEs Agency, Temp, Contract FTEs as a % of Total Paid FTEs Adjusted Admission/Active Physician Percent Occupancy Surgery Suite Utilization
Customer
ME/PI Concept
Performance Improvement Tools (Cont.)
• Financial Benchmarks Indicators Salary & Benefits as a % of Net Revenue Labor Expense/Adjusted Discharge Non-Labor Expense (Supply, Drug, etc.)/ Adjusted Discharge Days in Accounts Receivable Bad Debt Percentage Revenue Per Adjusted Discharge
Customer
ME/PI Concept
Performance Improvement Tools (Cont.)
• Clinical Benchmarks Indicators Case Mix Adjusted Average Length of Stay Mortality Tests per case per physician
Customer
ME/PI Concept
InputInput
Staff HoursStaff Hours
SuppliesSupplies
EquipmentEquipment
ProcessProcess HappyHappy CustomerCustomer
Voice of Voice of
ProcessProcess
Voice of CustomerVoice of Customer
Patient Treatment Concept
Resource Management Function
• Service utilization evaluation• Supply standardization audit• Departmental staffing pattern audit and
evaluation• Supply chain Management evaluation• Service utilization benchmarking
Customer
ME/PI Concept
Resource Management Activities
• Clinical Process outcome analysis • Clinical Process Benchmarking• Productivity Analysis• In-Quality Staffing• Physician Profiling• Cost Per Case• Supply Chain Management (SCM)
Customer
ME/PI Concept
Productivity Measurement and Analysis• Measuring workload, identifying patterns and
trends• Identifying labor utilization, by type and cost
impact• Matching staffing to demand “In-Quality
Staffing”
Customer
ME/PI Concept
“In Quality” Staffing: Which customer(s) win?
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Tim
e in
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utes
Tim
e in
Min
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Number of Transports
In Quality plus Process ImprovementIn Quality plus Process Improvement
USL
LSL
Customer
ME/PI Concept
Physician Practice Profiling
• Reduce cost through reduction of unnecessary variation of utilization
• Sharing information with providers (Value Added)• Select cost effective physicians • Improve patient outcomes
Customer
ME/PI Concept
IT Engagement Function
To ensure the success of IT ME/PI provides following support services;
• Strategic Planning and strategic analysis• Needs Assessment• Assess current and emerging technology• Feasibility Study• Project Management• Cost and Benefit Analysis• Selection Criteria• Request for Proposal and/or Information• Selection of System• Vendor viability analysis
Customer
ME/PI Concept
IT Engagement Tools
• Process mapping (“As Is” and “Should Be”)• Gap analysis• System performance analysis• System reporting capability analysis• Project planning• Project management• Team and meeting facilitation• ROI calculation
Customer
ME/PI Concept
ME/PI ProfessionIdeal Future State
Customer
ME/PI Concept
Future State• Well defined roles and responsibilities within
Healthcare• Operational guru• Starting point for all healthcare operational leaders• Training ground for healthcare COO, Department
Directors and other healthcare operational leaders• Defined skill set for the entering to the profession
Customer
ME/PI Concept
Future State (cont.)
• Structured on the job training and licensure for promotion• At least 50% to 70% of ME staff to be trained engineers• Well developed on the job training program• Defined minimum performance criteria related to cost
savings, revenue enhancement, and quality improvement (i.e. Minimum contribution factor to bottom line should be 3 to 5 times of ME department cost)
Customer
ME/PI Concept
Questions
?Customer
ME/PI Concept