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Choosing A Quality/Performance Improvement Methodology

Methodology Comparisons: Six Sigma, Lean, Theory of Constraints and 
Customer-Inspired® Quality

by Hal Moyers, James G. Shaw, and Wayne New, FACHE

Copyright © 2004 Shaw Resources 

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With the concepts of Total Quality Management and Continuous Quality Improvement being introduced to hospital operations over the last fifteen years, hospital executives and quality improvement managers have had differing degrees of success. Knowledge and skill levels have increased as different methodologies of quality improvement have been studied, transferred from non-healthcare industries, and implemented in hospitals. Hospitals have expended enormous fiscal and human resources implementing leading methodologies, achieving some short-term successes but then becoming frustrated and uncertain as quality and cost effectiveness initiatives are not sustained. Executives continue to be dedicated to quality improvement but are left with the question – “What is the quality improvement methodology that is right for success in my organization?”

The purpose of this analysis is to review four leading quality improvement methodologies utilized in the market today to help you answer one of the most important questions that healthcare executives face today– How do you choose the one that’s right for your organization? The quality improvement methodologies reviewed in this analysis are:

  1. Six Sigma – Pioneered by Motorola and made famous by General Electric, this manufacturing methodology focuses on variance reduction through a problem solving approach that will improve output quality.
  2. Lean Thinking – Touted by Toyota as its key to success, this methodology strives to reduce waste to improve business performance through improved workflow.
  3. Theory of Constraints – TOC addresses manufacturing system constraints, emphasizing faster system throughput in system processes.
  4. Customer-Inspired® Quality – Patented by Shaw Resources in 1992, this service industry methodology focuses on work processes that directly impact the care and service provided to hospital and medical group patients by identifying, defining, analyzing, and improving the quality and effectiveness of processes. It liberally borrows techniques from each of the three other methodologies.

Comparison of Quality Improvement Methodologies

Program

Six Sigma

Lean Thinking

Theory of Constraints

Customer Inspired Quality

Theory Reduce variation Remove waste Manage constraints Customer perspective drives improvements

 

Target Organizations Manufacturing Manufacturing Manufacturing Service/Healthcare
Focus Problems Work Flow Systems constraints Customer’s perspective
Applications / Guidelines Define;

Measure;

Analyze;

Improve;

Control.

Identify value;

Identify value stream;

Flow;

Pull;

Perfection.

Identify constraint;

Exploit constraint;

Subordinate processes;

Elevate constraint.

Repeat cycle

Discover customer’s perspective of key processes;

Prioritize processes;

Create Process Profile® graphic;

Identify measures;

Improve process;

Review progress;

Monitor Customer-Measures;

Repeat cycle

Assumptions A problem exists;

Fast throughput;

Less inventory;

Fluctuation-performance measures for managers;

Improved quality.

Waste removal will improve business performance;

Many small improvements are better then systems analysis.

Emphasis on speed and volume;

Uses existing systems;

Process interdependence.

Customer perspective determines the key processes;

Improving processes that touch customers have the highest impact;

Organizations that satisfy customers have better financial results.

Primary impact Uniform process output Reduced flow time Fast throughput Improved customer loyalty and satisfaction
 Key effects Less waste;

Fast throughput;

Less inventory;

Fluctuation-performance measure for managers.

 

 

Less variation;

Uniform output;

Less inventory;

New accounting system;

Flow-performance measures for managers  improved.

Less inventory/waste;

Throughput cost accounting;

Throughput-performance measurement system;

Improved quality.

Increased market share;

Reduced cost;

Reduced errors and waste;

Improved quality;

Increased employee satisfaction;

Customer & management performance-measures.

Criticisms System interaction not considered;

Process improved independently;

Ignores customer perspective.

Statistical or system analysis not valued;

Ignores customer perspective.

Minimal worker input;

Data analysis not valued;

Ignores customer perspective.

Primarily for service organizations.

All the above methodologies rely on application of rigorous statistical and analytical techniques. Three of the above methodologies were developed for, and are primarily found in, manufacturing organizations. Only one of the methodologies, Customer-Inspired Quality (CIQ), was created for the healthcare service industry, addressing quality and cost effectiveness from a holistic perspective as seen by the patient.

Do the three manufacturing methods bring value to service organizations? Certainly, addressing specific problems or constraints will definitely improve quality. However, the manufacturing originated methodologies approach things first from management’s point of view, not the customer’s. By employing a ‘management perspective’, it is difficult, if not impossible, for these methodologies to be used as the vehicle for attaining top performance in high-touch patient-care environments or similar service settings.

In summary, the Shaw Resources’ Customer-Inspired Quality methodology is the quality and performance improvement methodology that is best suited for success in healthcare due to the following reasons: 

  • Customer-Inspired Quality defines all patient care and administrative work processes so that process improvement efforts can be prioritized from the customer’s perspective and a consistent and complete review and approach to improvement is maintained.

  • The methodology is hospital / service organization friendly and understandable by all stakeholders (medical staff, hospital staff, patients, and other care / service providers), encouraging a broad cross section of staff input and involvement.

  • It provides a comprehensive cross-functional work process review and analysis, addressing all problems and constraints found in each process or system of care.

  • Administrative and quality measures are implemented to monitor work process changes, to bring deviations back in line with process designs, and to alert managers to process variations before serious adverse effects occur.

  • Customer-Inspired Quality takes the quality methods used in manufacturing and adapts them so that the healthcare industry can successfully achieve short and long-term improvements in quality, safety, and customer satisfaction.

Copyright © Shaw Resources, 2006, all rights reserved. (888-SHAWRES), email: Info@ShawResources.com; www.ShawResources.com. You may reproduce this article provided: 1) each copy you generate is of the article in its entirety, without modification of any kind; 2) you receive no fee whatsoever; and 3) this copyright and permission notice, including the contact information, must be prominently displayed on each copy produced.
 
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