Author name: Forrest Breyfogle

Enhanced Approach for Lean Six Sigma in Healthcare Insurance Industry

While a great deal of process improvement work has finally begun to take hold within healthcare around patient safety and hospital operational efficiencies, what about the other non-clinical aspects of the overall healthcare system which can consume physician resources and adversely impact hospital finances? Healthcare insurance processes can have a major impact on both patient care as well as operational efficiencies. This paper describes how one healthcare insurance company has begun to use Six Sigma to not only make itself more efficient and effective internally, but is now also directing its energies toward lowering medical costs while improving patient service and outcomes

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Enhanced Control Charts for Defective Proportions with Predictive Process Capability Statement

This paper addresses technical problems with p-chart and provides an alternative. Statistical Process Control (SPC) has a primary purpose of identifying when special cause conditions occur for timely corrective actions. SPC textbooks and training state that a p-chart should be used for non-conformance rate tracking, when the data are attribute. With a p-chart, there is non-conformance rate reporting that has time-series identified rational sub-groups. Described in this paper are technical issues with the p-chart that can lead to a falsely identifying common cause process variation as though it were special cause. The technical reason for this occurrence is discussed along with an alternative 30,000-foot-level reporting system that addresses these issues. Traditional p-chart control charts can lead to much firefighting, since the underlying assumptions for these charts are often not valid in the real world. In the 30,000-foot-level metric reporting methodology, which centers on use of the individuals control chart, process response is evaluated for regions of stability. Within identified stable regions, a process capability non-conformance estimate can then be reported. If there is a recent region of stability, one can consider the data in this region to be a random sample of the future; hence, a prediction statement can be made. An enterprise can assess its value-chain metrics collectively – where each has 30,000-foot-level reporting – to determine where improvements can be made that positively impact the enterprise financials as a whole. Goals to these metrics would pull for a process improvement or design project creation that positively impacts these 30,000-foot-level metrics.

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Enhanced Reporting Techniques for Scorecards are Illustrated in these Predictive Analytics Examples

These enhanced predictive analytics examples illustrate the power of providing futuristic statements in business management system scorecards and how to create this form of enhanced performance measurement reporting. 

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