1. 1 Six Sigma MEPRS Management Metrics Deirdre Baker SRA International, Inc. TMA MEPRS Program Office Management Control and Financial Studies Division

2. 2 By the end of this presentation, you will be able to:  Describe the origin and goals of Six Sigma  Identify how Six Sigma is used in healthcare and other industries  Define the DMAIC process and use the steps in your day-to-day operation  Understand and correctly interpret the S2M3 tool  Locate tools to help you begin exploring data quality opportunities

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5. 5 Six Sigma Methodology for Improving Existing Processes Define Opportunities Measure Performance Analyze Opportunity Improve Performance Control Performance

6. 6 DMAIC – Define Opportunities A defect is a) anything out of the scope of customer specifications b) decreases customer satisfaction c) does not fulfill functional/technical requirements A unit is something that is measurable or observable whether it is a physical product or some process with specific start and stop times. An opportunity is a measurable or observable chance of not meeting the required specification or having a defect. A defect can have more than one opportunity to occur but each opportunity for that defect is independent of the other opportunities.

7. 7 DMAIC – Define Opportunities A helpdesk example: Problem: “Too many EAS IV Tier 3 helpdesk tickets.” The defect is a help desk ticket that is not resolved at the Tier 1 level. The unit is a helpdesk call. The opportunity is one per helpdesk call.

8. 8 DMAIC – Define Opportunities A helpdesk example: Problem: “Too many EAS IV Tier 3 helpdesk tickets.” In Jun 2007, Opportunities: 133 calls Defects: 102 Tier 3 tickets

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12. 12 The Bell Curve Mean/ Avg Mean minus 1 St Dev Mean plus 1 St Dev

13. 13 DMAIC – Define Opportunities Defect: Andrews Dispensing Cost per Script falls outside of the 3 standard deviation range for large hospitals Unit: Raw scripts (decrease in script count from FY05 to FY06) or costs (no decrease in cost from FY05 to FY06) Opportunity: 1.Prescription 2.FTE 3.Cost

14. 14 23.5% decrease in workload 23.2% decrease in expenses

15. 15 Dispensing Cost per Script

16. 16 DMAIC – Analyze Opportunity Opportunity: Prescription Pharmacy Procedures Weighting Factor –Prescription 1.00 –Clinic Issue 0.60 –Sterile Product 2.00 –Unit Dose 0.15 –Bulk Issue 2.00

17. 17 DMAIC – Analyze Opportunity Opportunity: FTEs

18. 18 DMAIC – Analyze Opportunity Opportunity: Cost

19. 19 DMAIC – Analyze Opportunity Opportunity: Cost

20. 20 DMAIC – Analyze Opportunity Opportunity: Cost

21. 21 DMAIC – Improve Performance Prescriptions –All scripts reported? FTEs –Military Deployed? –Robotics? Cost –Change to program or policy? –Costs reported/allocated to correct FCC?

22. 22 DMAIC – Control Performance Monitoring Plan Control plan in place for sustaining improvements (short and long-term). Process Standardization New process steps, standards, and documentation are ingrained into normal operations. Documented Procedures Operating procedures are consistent. Knowledge gained on process is shared and institutionalized. Response Plan Response plans established, understood, and deployed. Transfer of Ownership (Project Closure) Transfer ownership and knowledge to process owner and process team tasked with the responsibilities. Six Sigma DMAIC Quick Reference - Control Phase By Patrick Waddick http://www.isixsigma.com/library/content/six_sigma_dmaic_quickref_control.asp

23. 23 You can now:  Describe the origin and goals of Six Sigma  Identify how Six Sigma is used in healthcare and other industries  Define the DMAIC process and use the steps in your day-to-day operation  Understand and correctly interpret the S2M3 tool  Locate tools to help you begin exploring data quality opportunities

24. 24 Six Sigma MEPRS Management Metrics Deirdre Baker SRA International, Inc. TMA MEPRS Program Office Management Control and Financial Studies Division Questions?