SixSigmaintheServiceIndustryScottKowalskiTechnicalTrainingSpecialistMinitabInc.December20042©MinitabInc.,2004SixSigmaislessaboutoverallaccuracyandmoreaboutreducingvariationAirlinepassengerswantimprovedon-timeperformancebutaremoreconcernedwitheliminatingdelays45minutesFed-Ex,whatiftheyaveraged12hoursbuthadtremendousvariationPatientwaits5minutesonetimeand55minutesthenexttime---probablynotsatisfiedwithaverage=30minutes3©MinitabInc.,2004RealizeControlImproveAnalyzeMeasureDefineCreatethebusinesscase,theproblemstatement,theobjectivestatementandlaunchtheprojectUnderstandtheprocess,validatethedataaccuracyanddetermineprocesscapabilityDeterminetherelationshipofY=f(X)andscreenforthepotentialcausesDetermine,validateandimplementsolutionstoachievetheobjectivestatementImplementprocesscontrolmethodsandmonitorperformancetosustainresultsObtainingongoingbusinessbenefitsasaresultoffindingthesolutiontotheproblem4©MinitabInc.,2004System--AgroupofinteractiveanddependentactivitieswhichoperateincontroltorepeatedlyachieveanexpectedresultwithlittleornoManagementSixSigmaSystem--Anenterprisewidestrategythatrecognizesproblematicareasofthebusiness,definesimprovementeffortsandprojects,determinesandimplementsdatadrivenbreakthroughlevelsolutions…..inapredictableandrepeatablemannertoimprovebusinessresults5©MinitabInc.,2004FocusofaprojectistosolveabusinessproblemAffectingthesuccessoftheorganizationAffectingcostsAffectingemployeeorcustomersatisfactionImpactingaCustomer(externaland/orinternal)CharacteristicsofaprojectTheyarenoteasilyorquicklysolvableusingtraditionalmethodsTargetedtoreducethedefectrateby70%overexistingperformancelevelsTargetanaverageannualimpactof$150K6©MinitabInc.,2004SixSigmahasevolvedfroma“QualityGoal”toanenterprisewidestrategyforbusinessmanagementandimprovementSixSigmahasbeensuccessfullydeployedinmultipleindustrysegmentsoverthepast15yearsIferrorreductioniswarrantedwithinmanufacturingindustriessuchasplasticsorelectronics,itshouldbeconsideredevenmorecrucialtofinancialareas,governmentsectors,andthedeliveryofhealthcare7©MinitabInc.,2004SixSigmaStatisticalToolsD/MAICD/MAIC•Pareto•GageR&R•ControlCharts•Capability•Graphics•GageR&R•HypothesisTests•ANOVA•Correlation•Regression•Capability•Graphics•DOE•ANOVA•Regression•DOE•ResponseOptimizer•Capability•HypothesisTests•GageR&R•ControlCharts•Capability•Reliability8©MinitabInc.,2004Inmanycases,dataforservicequalityprojectstendstobeattributeinnature.GageR&R–AttributeAgreementAnalysisControlCharts–P&NPorC&UChartsHypothesisTests–OneandTwoSampleProportionRegression–LogisticRegressionANOVA–LogisticRegressionDOE–LogisticRegressionCapability–BinomialandPoisson9©MinitabInc.,2004HealthcareAlexandraHospital(AH),SingaporeShanghaiJiaoTongUniversityAffiliatedFirstPeople'sHospitalQuestDiagnosticsCharlestonAreaMedicalCenterTheUniversityofWisconsinHospitalandClinicsThibodauxRegionalMedicalCenter(TRMC)Northshore–LIJHealthSystemYale-NewHavenHospitalWellmarkBlueCross&BlueShieldDecaturMemorialHospitalMcLeodRegionalMedicalCenter10©MinitabInc.,2004InDecember1999,theInstituteofMedicine(IOM)releaseditsreportwiththefollowingdata:Estimatesofupto98,000peopledieeveryyearintheUnitedStatesfrommedicalmistakesmadebyhealthcareprofessionalsMedicalmistakesrankedasthefifthleadingcauseofdeathinthecountry…behindheartdisease,cancer,strokeandlungdiseaseThecostoftheseerrorscouldbeashighas$29BillionayearHarvardUniversitystudyforthestateofNewYorkThisstudy,extrapolatedtothenationalpopulation,suggestedthat1.3millionpeopleareinjuredeachyearinhospitals180,000willdiefromtheinjuriesThereportalsosuggestedthatmostofthoseinjurieswereactuallypreventableAnnalsofInternalMedicinereportedthat19%ofmedicationsdispensedinhospitalsarestillerroneousononeormorecriteria.11©MinitabInc.,2004WrongPrescriptionsBedfallsIncorrectSurgicalProceduresBilling/InsuranceDroppedBabiesSchedulingofProcedures/AppointmentsMedicalTranscriptionErrorsPatientSatisfactionStaffing12©MinitabInc.,2004CaseStudies:ShanghaiJiaoTongUniversityAffiliatedFirstPeople'sHospitalTrainingsessionshelpedthehospitalacquirevaluableskillsanddevelopaninternalteamofSixSigmaGreenBelts.SixSigmateambeganarangeofeightprojectsacrosstheorganizationwiththetargetofloweringcostsandenhancingprocessefficiency.Aftersixmonths,theeightprojectshadhelpedthecustomerrealizetheequivalentofUS$135,000benefitinclinical,nursing,diagnostic,logisticandadministrativedepartments,13©MinitabInc.,2004IncreaseStomatologyDepartmentRevenueCollected1,146datapointstoanalyzecustomerneeds,doctorcompetencyandnurseperformanceProjectteamprovidedseveralsuggestionsonmarketingpromotion,newproductintroductionanddoctorperformanceevaluationIdeasledtoan80-percentincreaseinthedepartment'srevenue14©MinitabInc.,2004Projectanalysisandoutputincluded:Paretochartfornewproductintroductionsurvey.Doctortechnicalskillsanalysisfordifferentservicetypes.Thiswascomparedwithcustomerneedsandrevenuefromthisservicetomakesuggestionsonwhichtechnologyskillsneedfurthertrainingandenhancement.Doctorcommunicationskillssurvey.Thiswasusedtodetermineareasforimprovement