MMHA6700 Walden University Management Planning Project Because many aspects of health care operations are changing, health care administrators oversee a wi

MMHA6700 Walden University Management Planning Project Because many aspects of health care operations are changing, health care administrators oversee a wide variety of projects. These can include logistical projects such as moving a department to a new facility, technology-related projects such as introducing a new system or piece of equipment, or process-related projects such as initiating new procedures for patient discharge. If the project has any degree of complexity, it will benefit from a project management approach. Administrators and managers in health care need to have a working understanding of project management: why it is important, what it accomplishes, and the repercussions on the organization if its basic tenets are ignored or not followed. Within project management, the project plan is the cornerstone of successful execution of a project. The project plan is designed to guide the process and execution of a project.

For this Assignment, you will develop a project plan, using as your focus a work-related project you are doing now or will be doing in the future.

PART 1: SERVICE LEVEL AGREEMENT

It is suggested that the project you select be manageable in scope and not overly complex. You will assume that the objectives and scope of the project you have selected have been vetted and approved. The next step is to develop a project plan. You will develop a project management plan that will walk through key steps of the project management process. The objective of this Assignment is not a deep dive into the full intricacies of project management. Rather, it is to ensure that as a health care administrator, you have a solid theory and practical knowledge of key aspects of the project management process.

For Part 1 of this Assignment, you will create a Service Level Agreement (3–5 pages) which includes the following:

Project Description, Purpose, and Objectives: The project description delineates key aspects of a project. In 1–2 pages, your project plan should:
Describe the project and explain the purpose and justification for the project.
Explain the goals and objectives of the project.
Describe the requirements for the project.
Explain the tangible measures for acceptance criteria used to achieve project success.
Project Scope: The project scope defines the scope of the project and how the scope will be managed. In 2–3 pages, your project plan should:
Summarize, in detail, the expected deliverables for the project.
Explain the acceptance criteria for the project.
Explain the project assumptions, risks, and constraints.
Roles and Responsibilities: By definition, a project is a unique undertaking with a beginning and an end point. One responsibility of management is to determine who will be a part of the project team (including designation of a project manager). Ask yourself, “Who needs to be on this team to ensure that project goals are successfully met?” Consider as well the importance of communication among team members. What communication needs will each individual have? With whom will they communicate and how?
Using the Project Roles and Responsibilities Matrix template in the Learning Resources, list the names* and titles of all individuals or entities involved in the project. Indicate whether each stakeholder is internal or external to the project organization.
Note: For privacy purposes, please use pseudonyms.
Identify the internal and external stakeholders for a project.
Distinguish the roles and responsibilities of the project stakeholders.
Explain how to communicate with project stakeholders.
PART 2: PROJECT SCHEDULE

There are many different methodologies for planning and scheduling a project. For this Assignment, you will develop a Gantt chart that depicts key project activities, time allotted for each activity, and when each activity is scheduled to begin. To do so, you will need to consider dependencies. Some activities will be sequential, others may be simultaneous, and some may overlap.

Note: You may create your own Gantt chart using Excel, or search for and download a Gantt chart template.

Using a Gantt chart, construct a project schedule.
In 2–3 paragraphs of your project plan, explain the estimating techniques used to develop your project schedule. Provide rationale for why these techniques will be effective.
PART 3: STRATEGIES FOR MAINTAINING THE PROJECT BUDGET

A project begins with an approved budget. Too often, however, unless the budget is meticulously managed, budget overruns occur. Health care administrators must ensure that the project management process includes careful oversight on spending. In 2–3 pages, describe the project budget key success factors including the following:

Analyze at least three strategies that can be applied for due diligence and maintaining oversight of the project budget.
Explain at least two challenges each of these strategies might present and identify opportunities for improvement.
Compare the positive outcomes that might result from each strategy.
PART 4: RISK MANAGEMENT, QUALITY MANAGEMENT, AND SUSTAINABILITY

Even the most straightforward and well-planned project can be impacted by unexpected circumstances. Anticipating risks is a key part of project management, and one that a health care administrator or manager must ensure is taken into consideration by the project team. Additionally, If not carefully monitored, budget and time constraints can take a toll on the quality of a project. Create a 2–4 page risk management and quality management plan, which includes the following:

Describe how you plan to manage risks for your project.
Analyze strategies for managing quality within your project.
Analyze strategies for sustainability of your project.
Describe at least two tools and/or techniques you plan to use to manage quality and defend why you chose those tools. Project Roles and Responsibilities Matrix
Name*
(*Pseudonym)
Job Title
© 2016 Laureate Education, Inc.
Role in
Project
Responsibilities in
Project
Internal/External Communication
Needs
Page 1 of 1
programs, techniques, and tools for reducing costs and improving quality. It not
only covers the basics of operations management, but also explains how operations
and process improvement relate to contemporary healthcare trends such as evidence-based
medicine and pay-for-performance. The book’s practical approach includes real-world
examples to illustrate concepts.
Included CD-ROM
The book explains and demonstrates the use of various software tools associated with problem
solving and decision making, including Microsoft Excel and Project. A version of Arena
software is included in order to practice process modeling. Arena is a powerful simulation
tool used by healthcare organizations to optimize patient flow, develop scheduling systems,
and improve patient-care processes.
Companion Website
Visit ache.org/books/OpsManagement to access an extensive companion website that
features various Excel templates, Arena models, tutorials, exercises, and PowerPoint
presentations for each chapter.
Daniel McLaughlin, MHA, is director of the Center for Business Excellence in the Opus
College of Business at the University of St. Thomas, Minneapolis, MN. Previously,€he was the
executive director of the National Institute of Health Policy at the University of St. Thomas,
the CEO of Hennepin County Medical Center, and the director of a county health system.
Julie M. Hays, PhD, MBA, recently deceased, was an associate professor in the Opus
College of Business at the University of St. Thomas. She was the 1998 recipient of the
Juran Fellowship awarded by the Juran Center for Leadership in Quality at the University
of Minnesota.
Healthcare Operations MaNagement
T
his book is about operations management and the strategic implementation of
CD-ROM Inside
Healthcare
Operations
Management
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Daniel B. McLaughlin
Julie M. Hays
HEALTHCARE
OPERATIONS MANAGEMENT
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University of Iowa
Richard S. Kurz, Ph.D.
St. Louis University
Sarah B. Laditka, Ph.D.
University of South Carolina
Tim McBride, Ph.D.
St. Louis University
Stephen S. Mick, Ph.D.
Virginia Commonwealth University
Michael A. Morrisey, Ph.D.
University of Alabama–Birmingham
Dawn Oetjen, Ph.D.
University of Central Florida
Peter C. Olden, Ph.D.
University of Scranton
Lydia M. Reed
AUPHA
Sharon B. Schweikhart, Ph.D.
The Ohio State University
Nancy H. Shanks, Ph.D.
Metropolitan State College of Denver
HEALTHCARE
OPERATIONS MANAGEMENT
Daniel B. McLaughlin
Julie M. Hays
Health Administration Press, Chicago
AUPHA Press, Washington, DC
Your board, staff, or clients may also benefit from this book’s insight. For more information on quantity discounts, contact the Health Administration Press Marketing Manager at (312) 424-9470.
This publication is intended to provide accurate and authoritative information in regard to
the subject matter covered. It is sold, or otherwise provided, with the understanding that the
publisher is not engaged in rendering professional services. If professional advice or other
expert assistance is required, the services of a competent professional should be sought.
The statements and opinions contained in this book are strictly those of the author(s)
and do not represent the official positions of the American College of Healthcare Executives, of the Foundation of the American College of Healthcare Executives, or of the
Association of University Programs in Health Administration.
Copyright © 2008 by the Foundation of the American College of Healthcare Executives. Printed in the United States of America. All rights reserved. This book or parts
thereof may not be reproduced in any form without written permission of the publisher.
12
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5
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3
2
1
Library of Congress Cataloging-in-Publication Data
McLaughlin, Daniel B., 1945Healthcare operations management / Daniel B. McLaughlin, Julie M. Hays.
p. ; cm.
Includes bibliographical references and index.
ISBN-13: 978-1-56793-288-1 (alk. paper)
ISBN-10: 1-56793-288-6 (alk. paper)
1. Medical care—Quality control. 2. Health services administration—Quality control. 3.
Organizational effectiveness. 4. Total quality management. I. Hays, Julie M., 1954- II. Title.
[DNLM: 1. Quality Assurance, Health Care—organization & administration. 2. Decision
Support Techniques. 3. Efficiency, Organizational—standards. 4. Total Quality
Management—methods. W 84.1 M4785h 2008]
RA399.A1M374 2008
362.1068—dc22
2007036070
The paper used in this publication meets the minimum requirements of American
National Standard for Information Sciences—Permanence of Paper for Printed Library
™
Materials, ANSI Z39.48-1984.
Acquisitions editor: Janet Davis; Project manager: Ed Avis; Cover designer: Chris
Underdown.
Health Administration Press
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Association of University Programs
in Health Administration
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Arlington, VA 22201
(703) 894-0940
To my wife, Sharon, and daughters, Kelly and Katie,
for their love and support throughout my career.
Dan McLaughlin
To my family, Kevin, Jessica, Jake, and Abby,
for their constant understanding and support.
Julie Hays
• • •
During the final stages of the completion of this book, Julie Hays unexpectedly
died. As Dr. Christopher Puto, Dean of the Opus College of Business at the
University of St. Thomas, said, “Julie cared deeply about students and their
learning experience, and she was an accomplished scholar who was
well-respected by her peers.” This book is a final tribute to Julie’s accomplished
career and is dedicated to her legacy.
ACKNOWLEDGMENTS
A number of people contributed to this work. Dan McLaughlin would like
to thank his many colleagues at the University of St. Thomas Opus College
of Business. Specifically, Dr. Ernest Owens provided guidance on the project
management chapter and Dr. Michael Sheppeck assisted on the human
resources implications of operations improvement. Former U.S. Senator
Dave Durenberger, of the National Institute of Health Policy, provided an
impetus for this book, as he strongly feels that system change in U.S. healthcare must come from within—this is what much of this book is about.
The outstanding professionals at Hennepin County Medical Center in
Minneapolis, Minnesota, also provided much of the practical and realistic
examples in this book. Finally, Dan McLaughlin would like to thank Professor Vernon Weckwerth of the University of Minnesota, who inspired the
author early in his career to be numerate in his management but also careful
“not to focus on counting wing flaps if the bird can’t fly.”
Julie Hays would like to thank her many colleagues at the University
of St. Thomas Opus College of Business, especially Dr. Thomas Ressler, who
greatly influenced the statistics review chapter of this text.
The authors would also like to thank Rockwell Automation for permission to use Arena and for support of its application in healthcare. The
reviewers were particularly helpful with edits, comments, and suggestions for
additions. Janet Davis, acquisitions editor at Health Administration Press,
was invaluable in guiding the authors through the complex process of publishing in today’s multimedia world.
BRIEF CONTENTS
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
Part I
1
Introduction to Healthcare Operations . . . . . . . . . . . . . . . . . . . . . 1
The Challenge and the Opportunity . . . . . . . . . . . . . . . . . . . . . . . . 2
2 History of Performance Improvement . . . . . . . . . . . . . . . . . . . . . . 18
3
Evidence-Based Medicine and Pay-for-Performance . . . . . . . . . . . . 50
Part II
Setting Goals and Executing Strategy . . . . . . . . . . . . . . . . . . . . 69
4 Strategy and the Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . 70
5
Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Part III Performance Improvement Tools, Techniques,
and Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
6 Tools for Problem Solving and Decision Making . . . . . . . . . . . . . 138
7
Using Data and Statistical Tools for Operations Improvement . . . . . 170
8 Quality Management: Focus on Six Sigma . . . . . . . . . . . . . . . . . . 226
9 The Lean Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
10 Simulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
Part IV Applications to Contemporary Healthcare
Operations Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311
11 Process Improvement and Patient Flow . . . . . . . . . . . . . . . . . . . . 312
12 Scheduling and Capacity Management . . . . . . . . . . . . . . . . . . . . . 342
13 Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370
ix
x
Contents
Part V
Putting It All Together for Operational Excellence . . . . . . . . . . 399
14 Holding the Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
DETAILED CONTENTS
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii
Part I
1
Introduction to Healthcare Operations . . . . . . . . . . . . . . . . . . . . . 1
The Challenge and the Opportunity . . . . . . . . . . . . . . . . . . . . . . . . 2
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Purpose of this Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
The Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A Systems Look at Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
An Integrating Framework for Operations Management
in Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2 History of Performance Improvement . . . . . . . . . . . . . . . . . . . . . . 18
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Knowledge-Based Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
History of Scientific Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Service Typologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
20
20
21
22
24
29
41
43
44
46
46
Evidence-Based Medicine and Pay-for-Performance . . . . . . . . . . . . 50
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Evidence-Based Medicine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tools to Expand the Use of EBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vincent Valley Hospital and Health System and P4P . . . . . . . . . . . . . . . .
52
53
54
58
64
xi
xii
Detailed Contents
Using EBM and Public Reporting to Advance Health
Policy: A Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II
65
66
67
67
Setting Goals and Executing Strategy . . . . . . . . . . . . . . . . . . . . 69
4 Strategy and the Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . 70
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Moving Strategy to Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Balanced Scorecard in Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . .
Linking Balanced Scorecard Measures to Strategy . . . . . . . . . . . . . . . . . .
Implementation of the Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter Exercise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Case Study: Saint Mary’s Duluth Clinic . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
72
72
73
77
87
91
95
95
96
96
98
99
Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Definition of a Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
Project Selection and Chartering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Project Scope and Work Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Project Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Quality Management, Procurement, the Project Management Office,
and Project Closure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126
The Project Manager and Project Team . . . . . . . . . . . . . . . . . . . . . . . . 129
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Chapter Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Part III Performance Improvement Tools, Techniques,
and Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
6 Tools for Problem Solving and Decision Making . . . . . . . . . . . . . 138
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Decision-Making Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Detailed Contents
Mapping Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Problem Identification Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Analytical Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Implementation: Force Field Analysis . . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
144
149
157
165
167
167
168
168
Using Data and Statistical Tools for
Operations Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Graphic Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mathematic Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Probability and Probability Distributions . . . . . . . . . . . . . . . . . . . . . . . .
Confidence Intervals and Hypothesis Testing . . . . . . . . . . . . . . . . . . . .
Simple Linear Regression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiple Regression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discussion Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
172
174
175
178
183
186
201
210
218
219
220
222
222
224
8 Quality Management: Focus on Six Sigma . . . . . . . . . . . . . . . . . . 226
Operations Management in Action . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defining Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of Quality . . . . . . . . . . . . . . . . . . . . …
Purchase answer to see full
attachment