Management Engineering/ Process Improvement (ME/PI)

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Management Engineering/ Process Improvement
(ME/PI)

• Provide Value

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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.

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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

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Key Practice Skills

• Analytical - 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
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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
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Key Practice Skills (continued)

• Profound knowledge of
• JCAHO and other licensing standards
• clinical protocols and clinical outcomes
• hospital organization structure and
  interrelationships

Healthcare Education
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ME/PI Philosophy

• To 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

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ME/PI Profession Current State
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Current State

• Responsibilities and accountabilities are not
  universally defined
• Sometimes were 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

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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

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ME/PI Concept
Customer
Performance Improvement
Resource Management
IT Engagement
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Performance Improvement Function
ME/PI Concept

• 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

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Performance Improvement (cont.)
ME/PI Concept

• 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

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Performance Improvement Tools
ME/PI Concept

• Root cause analysis
• FMECA
• DOE
• Kanban
• SPC/SQC
• Performance Benchmarking
• Poka-Yoka
• Etc.

• 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)

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Performance Improvement Tools (Cont.)
ME/PI Concept

• 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

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Performance Improvement Tools (Cont.)
ME/PI Concept

• 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

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Performance Improvement Tools (Cont.)
ME/PI Concept

• 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

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Performance Improvement Tools (Cont.)
ME/PI Concept

• Clinical Benchmarks Indicators
• Case Mix Adjusted Average Length of Stay
• Mortality
• Tests per case per physician

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Patient Treatment Concept
Process
Happy Customer
Input
Staff Hours
Supplies
Equipment
Voice of Process
Voice of Customer
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Resource Management Function
ME/PI Concept

• Service utilization evaluation
• Supply standardization audit
• Departmental staffing pattern audit and
  evaluation
• Supply chain Management evaluation
• Service utilization benchmarking

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Resource Management Activities
ME/PI Concept

• Clinical Process outcome analysis
• Clinical Process Benchmarking
• Productivity Analysis
• In-Quality Staffing
• Physician Profiling
• Cost Per Case
• Supply Chain Management (SCM)

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Productivity Measurement and Analysis
ME/PI Concept

• Measuring workload, identifying patterns and
  trends
• Identifying labor utilization, by type and cost
  impact
• Matching staffing to demand In-Quality Staffing

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ME/PI Concept
In Quality Staffing Which customer(s) win?
In Quality plus Process Improvement
Time in Minutes
USL
LSL
Number of Transports
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Physician Practice Profiling
ME/PI Concept

• Reduce cost through reduction of unnecessary
  variation of utilization
• Sharing information with providers (Value Added)
• Select cost effective physicians
• Improve patient outcomes

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IT Engagement Function
ME/PI Concept

• 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

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IT Engagement Tools
ME/PI Concept

• 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

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ME/PI ProfessionIdeal Future State
ME/PI Concept
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Future State
ME/PI Concept

• 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

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Future State (cont.)
ME/PI Concept

• 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)

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ME/PI Concept
Questions
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