Operations Management A CEO Checklist for High-Value Health Care: Ten Elements Foundational elements • Governance priority—visible and determined leadership by CEO and board. • Culture of continuous improvement—commitment to ongoing, real-time learning. Infrastructure fundamentals • IT best practices—automated, reliable information to and from the point of care. • Evidence protocols—effective, efficient, and consistent care. • Resource utilization—optimized use of personnel, physical space, and other resources. Care delivery priorities • Integrated care—right care, right setting, right providers, right teamwork. • Shared decision-making—patient-clinician collaboration on care plans. • Targeted services—tailored community and clinic interventions for resource-intensive patients. Reliability and feedback • Embedded safeguards—supports and prompts to reduce injury and infection. • Internal transparency—visible progress in performance, outcomes, and costs. What is Operations Management? • The design, operation, and improvement of the processes that create and deliver the organization’s services. • The goal is to more effectively and efficiently produce and deliver the organization’s services. Healthcare Management • The management of processes or health systems that provide care to patients. • The use of decision tools to manage and improve processes. • Functional roles: – CEO – COO – CXO – Mid-level manager – Department or function manager Health Care Operations Management – Process improvement. – Quality control and outcomes . – Patient satisfaction. – Financial operations – cost, reimbursement. – Supply chain management – procurement, medical supplies. – Human resources management – productivity, motivating employees. – Information systems management. – Population health. – Physician alignment. – Governance. – Strategy and operations. System Decisions System Design Capacity. Location. Proximity. Service planning. Acquisition and placement of equipment. System Operations Personnel. Inventory. Scheduling. Product management. Quality measurement and assurance. There are two groups of decisions: Applicability to Health Care • Patient is a participant in the process. • Production and consumption occur simultaneously. • Uncontrollable capacity. • Site selection is dictated by patient location. • Labor intensive. INTRODUCTION TO PROCESS IMROVEMENT Process or Performance Improvement • Scientific management – Mass production • TQM, CQI, Six Sigma • ISO 9000 • Lean • Six Sigma Background • Scientific Management Techniques (1910s) – Frederic W. Taylor • Standardization – Frank & Gillian Gilberth • Psychological Effects of Work Conditions – Henry Gannt • Quantitative Inventory Management (1915) – F.W. Harris • Quality Control & Sampling (1930s) – W. Shewhart • Operations ...