1 Data Quality Course Deirdre Baker TMA / MEPRS Program Office Management Control and Financial Studies Division Six Sigma MEPRS Management Metrics (S2M3)

2 By the end of this presentation, you will: Be able to define the Six Sigma quality process and list the process elements Understand how the process is used in health care and other industry Become familiar with using S2M3 within the context of Six Sigma

3 Six Sigma Six Sigma is a statistics based business improvement process that continually strives for perfection. It employs a disciplined methodology created from the manufacturing industry for eliminating the wastes of defects or variance to lower costs and improve customer satisfaction. Six Sigma Methodology for Improving Existing Processes DMAIC Define Opportunities Measure Performance Analyze Opportunity Improve Performance Control Performance

4 Six Sigma in Healthcare:  DSI, a medical reference and toxicology laboratory improved turnaround time by 54% and cut costs by $250,000 per year.  Avera McKennan Hospital Emergency Department cut patient turnaround time by 29% and saved $1.25 million in avoided construction costs. Six Sigma in Other Industries:  Bank of America has used Six Sigma for credit risk assessment reduction, fraud prevention, and customer satisfaction improvement.  In Engineering and Construction, on the Channel Tunnel Rail Link project in the UK, Bechtel’s project team uncovered a way to save hundreds of job hours on one of the tunneling jobs.

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6 FY04/FY05 Pharmacy Dispensing Cost per Script – Medical Centers

7 Findings: OCONUS is more expensive than CONUS. Facilities with a military mix are more expensive than those with contract or civilian personnel. Hospitals or clinics with greater volume of workload fare better. Inappropriate cost allocation drives cost results. Non-reporting of borrowed labor drive results.

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9 You should now: Be able to define the Six Sigma quality process and list the process elements Understand how the process is used in health care and other industry Be familiar with using S2M3 within the context of Six Sigma

10 Deirdre Baker TMA / MEPRS Program Office Management Control and Financial Studies Division Questions?