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Improving the operating budget process at Abbott Northwestern Hospital.

UNLABELLED: To set an example for the organization, the senior management team at Abbott Northwestern Hospital used quality tools and techniques to improve a highly visible, problematic system--the operating budget process. Team members narrowed the root cause to a faulty, nonintegrated assumption process and identified additional problems, such as inadequate communication, unclear accountabilities, and lengthy timetables. Then, the team streamlined the budget process from a 6-month to a 10-week cycle, which aligned the process with one of the organization's shared quality goals--reducing cycle time. RESULTS: Cycle time was reduced by 60 percent, from an average of 6 months to 10 weeks. Budget accuracy, which is measured by how close initial budget submissions come to targeted net income projections, improved by $12 million or 500 percent. The amount of rework, which is measured by the number of budget revisions made prior to Board approval, dropped from eight revisions to four. Overall satisfaction and familiarity with the budget process increased by 40 percent among managers and supervisors.

Budgets↗

Reducing delays in the CT scanning process at Bloomington Hospital.

UNLABELLED: Over a two-month period in 1992, a team in the Radiology Department at Bloomington Hospital recorded the number and types of delays that occurred in the computer tomography (CT) scanning process. Using the Pareto principle, the team identified two root causes for delays--equipment failure and insufficient information collected at scheduling. Appropriate interventions were identified, and the number of delays decreased dramatically. RESULTS: The number of delays in the CT scanning process decreased from a median of 19 per day to 2. Staff overtime hours decreased from a median of 87 per month to 46. The time patients spend waiting to receive a CT scan decreased from an average of 20 minutes to 30 minutes to 0 to 10 minutes. Patients are scheduled for a scan within one day's notice, as opposed to one week previously. Complaints from patients, physician offices, and other customers decreased dramatically. Morale and empowerment improved among staff.

Data Collection↗

Taming the supplies and inventory process at Westmead Hospital.

UNLABELLED: In July 1991, a team within the Clinical Chemistry Department at Westmead Hospital used control charts and other statistical tools to analyze the supplies and inventory process. No single major problem was discovered. Instead, the team found many small problems causing delays and inefficiencies in the process. By developing and implementing multiple solutions, the team was able to streamline the process and reduce the number of principal suppliers. RESULTS: The number of principal suppliers was reduced by two-thirds. The average number of "urgent" orders, which add extra steps to the purchasing process, was reduced by three-quarters. The mean turnaround time for common clinical chemistry laboratory tests improved by 8%.

Data Collection↗

Five years of total quality management: Campbelltown Hospital.

There are many articles in the health literature outlining either a framework for total quality management (TQM) or a success story. There is a dearth of literature reflecting the shortcomings of total quality management during implementation. Yet many of the world's most successful companies learn by reflecting about their past, for example, British Petroleum, IBM, Boeing, Xerox. This paper describes, from a general manager's perspective, the practical application of total quality management to a hospital setting over five years. The paper outlines the important ingredients to success and the shortcomings encountered along the way. Supporting literature is cited where appropriate. Strategies that were implemented contrary to common total quality management thinking are highlighted. The paper concludes with an outline of the four key lessons learnt over the five-year period.

Decision Making, Organizational↗

Applying Japanese management tips to patient accounts.

"Just in time," a Japanese management philosophy that has been applied successfully in manufacturing operations, also can be used to improve management of patient accounts departments. Under its principles, healthcare organizations would develop standardized procedures; involve workers in decision making; set up training and education programs aimed at creating a multi-skilled pool of workers; establish smooth production schedules; and foster cooperation and commitment to the philosophy throughout the organization.

Accounting↗

Does your patient accounting process pass the systems test?

There have been many changes to the patient accounting management process in recent years, the introduction of electronic data interchange (EDI) among them. The future, however, holds considerably more opportunities--and some potential threats. This article examines the issues and provides a series of practical suggestions for meeting the future challenges of the patient accounting process.

Accounts Payable and Receivable↗

The road to business process improvement--can you get there from here?

Historically, "improvements" within the organization have been frequently attained through automation by building and installing computer systems. Material requirements planning (MRP), manufacturing resource planning II (MRP II), just-in-time (JIT), computer aided design (CAD), computer aided manufacturing (CAM), electronic data interchange (EDI), and various other TLAs (three-letter acronyms) have been used as the methods to attain business objectives. But most companies have found that installing computer software, cleaning up their data, and providing every employee with training on how to best use the systems have not resulted in the level of business improvements needed. The software systems have simply made management around the problems easier but did little to solve the basic problems. The missing element in the efforts to improve the performance of the organization has been a shift in focus from individual department improvements to cross-organizational business process improvements. This article describes how the Electric Boat Division of General Dynamics Corporation, in conjunction with the Data Systems Division, moved its focus from one of vertical organizational processes to horizontal business processes. In other words, how we got rid of the dinosaurs.

Commerce↗

Organizational performance improvement through the development of a team-based facilities group.

The support services division at Pennsylvania Hospital in Philadelphia developed and implemented a service concept to improve organizational effectiveness and service. The design of the new concept has five major elements: implementation of a team-based organization, establishment of individual performance criteria or standards, development of performance goals and objectives for the teams, individual staff development and a recognition program. This document discusses the elements of team design and implementation, stages of growth and the role that the other four components (performance standards, goals, staff development and recognition) play in achieving improved organizational performances. This case study is intended to show general management techniques that can be adopted into a facility's management plan.

Efficiency, Organizational↗

An unmanaged computer system can stop you dead.

Many businesses today are discovering that technology alone will not ensure the success of their information systems. In fact, the growing availability of computer-driven technology has made it harder for many companies to keep pace, and some have already fallen behind. Complicating this grim picture is a growing shortage of trained personnel. Such serious problems jeopardize not only the computer systems but the very existence of some companies, says Brandt Allen. Senior executives must become closely involved with their information systems to reassess and perhaps reorganize their computer resources. He details some measures for first aid and long-term care of the information system that should help to avert life-threatening situations.

Computers↗

The new healthcare management information: consolidated operational reporting.

Most healthcare executives realize that hospitals financed through prospective payment cannot be effectively managed with conventional systems. They recognize the need for improved operational accountability, control and planning, though few have determined the means for achieving it. This article discusses a prototype operational control system designed to get beyond fragmented productivity and cost accounting efforts to an integrated, consolidated operational reporting system which will assist management in achieving its fiscal objectives. Consolidated Operational Reporting (CORE) at the University of California San Diego (UCSD) Medical Center consists of integrated product costing, labor productivity, inventory control, and productivity of capital. CORE enables top management through cost and performance indicators to proactively manage operations. Mid-level managers are a critical link to the CORE system. These front-line managers must understand the relationship between their regular operational decisions and the cost of hospital services. To promote this, UCSD conducts extensive mid-management seminars in operational control. Now these managers can reasonably be expected to understand, negotiate and act on accomplishing performance targets while being regularly updated, through CORE, as to their success at attaining the objective and the cost of the accomplishment.

Accounting↗