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 Typical
process improvement projects involve identifying current
throughput elements and developing a set of metrics in order to
quantify key parameters. Once identified and quantified we
focus on high cost (capital and variable) and high reimbursement
(revenue) services that have a material effect on overall
profitability. Next we collect existing cost, utilization,
throughput and reimbursement (revenue) information.
This enables us to analyze
activities that can increase or decrease throughput and
utilization. Based on our review of the existing
information, we would identify the areas that are potential
candidates for improvement. Quantifying potential
improvements confirms our understanding of the current operating
metrics and leads to an investigation of the feasibility of
implementing technology, process and management changes that
could improve process performance.
Based on our analysis, we
identify ways to increase utilization and throughput, reduce
fixed and variable costs and increase reimbursement revenue.
Finally, we review our
findings and recommendations to set a baseline of implementing
improvements and measuring the results.
For each approved
recommendation, we develop a plan of action and estimate the
time and cost to implement the recommendation and project the
financial benefit to be achieved from the recommendation.
Before implementing each
recommendation, we review the implementation plan and potential
benefits with management and obtain approval to proceed.
The final step in the
process is to evaluate through-put improvements and quantify
financial benefits. As each recommendation is implemented,
we develop and implement new management reporting metrics to
confirm the performance of the area and quantify the financial
benefit of the change.
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