This resource provides students with a thorough foundation in operations management, supply chain management, and the strategic implementation of programs, techniques, and tools for reducing costs and improving quality in health care organizations.

Tables and Figures xi Preface xxi The Authors xxxi PART I STRATEGY 1 Chapter 1 Health Care Operations and Supply Chain Strategy 3 Health Care Operations and Supply Chain Management 4 Purchasing, Logistics, and Vendor-Managed Inventories 7 Efficiency, Effectiveness, and Value 8 Competitive Dimensions of Health Care 12 The Bullwhip Effect in Health Care 14 MiniCase: The Bullwhip Effect in Health Care Organizations 18 Chapter 2 Financial Aspects of Health Care Operations and Supply Chain Management 21 Health Care Finance and Operations/Supply Chain Management 22 Income Statement/Operating Statement 24 Balance Sheet 27 Statement of Cash Flows 32 Basic Financial Ratios and Metrics 35 Time Value of Money 47 Break-Even Analysis 49 Crossover Analysis 53 Chapter 3 Managerial Accounting Aspects of Health Care Operations and Supply Chain Management 61 Managerial Aspects of Health Care Operations and Supply Chain Management 62 Managerial Accounting 62 Activity-Based Costing 65 Supply Chain Management behind the Scenes: Cost Drivers at Hospitals 69 PART II PROCESS DESIGN AND ANALYSIS OF HEALTH CARE OPERATIONS 75 Chapter 4 Data and Statistical Tools for Health Care Operations Improvement 77 Descriptive Statistics for Describing Data Sets 78 Graphical Methods of Data Description 78 Numerical Methods of Data Description 81 Hypothesis Testing: Analyzing the Difference of Two Means 101 Pareto Analysis 116 Box-and-Whisker Plots 117 Tornado Diagrams and Sensitivity Analysis 129 Chapter 5 Problem Solving and Decision-Making Tools in Health Care Operations 143 Health Care Operations and Supply Chain Management in Action: How Legal Decision Makers Use Decision Models 144 Framing the Decision Problem 146 Components of a Decision-Making Problem 146 Payoff Tables 149 Decision-Making Criteria without Probability Assessments 151 Decision-Making Criteria with Probability Assessments 159 Expected Value of Perfect Information 162 Modeling 177 Decision Trees 179 Chapter 6 Simulation 201 Introduction 202 Process Flows 202 Probability Distributions 203 Random Number Generation 210 Discrete-Event versus Continuous Simulation 211 Monte Carlo Simulation 213 Agent-Based Simulation 215 Simulation in Health Care 215 Queuing Analysis 216 Chapter 7 Process Improvement and Patient Flow 229 Introduction 230 Process Mapping 231 Value Stream Mapping 233 Use of Maps and Charts in Health Care 240 Staffing 242 Workload Management 243 Productivity and Efficiency Analysis 245 Common Health Care Productivity and Efficiency Measures 248 Improving Productivity and Efficiency 249 MiniCase: Improving Process Flow to Improve Service-Level Performance Statistics 253 Chapter 8 Facility Layout 257 Introduction 257 Layout Considerations 258 Types of Layouts 262 Muther Diagrams 264 Workload Management 266 Evaluating Different Types of Layouts 267 Basics of Optimization 270 Optimization Using Excel Solver 272 Optimizing Facility Layout and Design 280 PART III MANAGING HEALTH CARE OPERATIONS QUALITY 287 Chapter 9 Managing Quality in a Health Care Setting 289 What Is Service Quality? 290 Quality Planning, Control, and Improvement 291 Quality and Financial Performance 292 Seven Tools for Quality Control 294 Six Sigma Concepts 305 Six Sigma and Lean 311 MiniCase: Delayed Room Cleaning Dilemma 320 Chapter 10 Quality Control and Improvement 323 Design of Quality Control Systems 324 Process Quality Control 324 Variables Control 327 Using Control Charts 331 Process Capability 334 Total Quality Management and Continuous Improvement 337 International Organization for Standardization Certification 338 Malcolm Baldrige Award 340 PART IV PLANNING AND CONTROLLING HEALTH CARE OPERATIONS 351 Chapter 11 Lean Concepts in Health Care 353 Introduction 354 What Is Lean? 354 Controlling Waste 355 Controlling Flow with a Kanban System 357 Kaizen Events 359 Value Stream Mapping 362 Measures and Tools 362 Adverse Effects of Becoming Too Lean 364 MiniCase: Using Lean Concepts to Improve Inpatient Care 366 Chapter 12 Forecasting for Health Care Management 369 Analyzing Data Using Time Series and Regression Models 370 Linear and Nonlinear Trends 371 Seasonality in Data 372 Naive Forecasting 376 Moving Averages 378 Weighted Moving Averages 381 Exponential Smoothing 383 Autocorrelation 387 Regression as a Forecasting Technique 393 Multiple Regression Model 402 Measuring Accuracy 409 Measuring Forecasting Errors 423 Chapter 13 Project Management 431 Introduction 432 Role of Project Manager 432 Objectives and Trade-Offs 433 Planning and Control in Projects 435 Project Scheduling 437 Critical Path Method 440 Gantt Charts 448 Program Evaluation and Review Technique 451 Implementation 453 MiniCase: Implementing Electronic Medical Records at St. Hampton’s Hospital 457 Chapter 14 Aggregate Planning, Scheduling, and Capacity Management in Health Care 461 Aggregate/Central Planning 462 Resource Planning and Control 464 Scheduling and Capacity Management 468 Workforce Scheduling 468 Dispatching Rules 473 Job Sequencing 474 Johnson’s Rule 475 Service Facility Location Analysis 486 Center of Gravity Method 487 Chapter 15 Inventory Management 501 Introduction 502 Purpose of Inventories 502 Costs of Inventories 504 Economic Order Quantity 506 Independent versus Dependent Demand 509 Periodic Review Systems 510 Continuous Review Systems 511 ABC Inventory Management 515 Inventory Management Technology 519 Index 525

Health Care Operations and Supply Chain Management This innovative text offers a thorough foundation in operations management, supply chain management,?and the strategic implementation of programs, techniques, and tools for reducing costs and improving quality in health care organizations. The authors incorporate the features and functions of Microsoft Excel where appropriate in their coverage of supply chain strategy, process design and analysis of health care operations, managing health care operations quality, and planning and controlling health care operations. Health Care Operations and Supply Chain Management offers real-world examples to illustrate the most current concepts and techniques such as value stream mapping and Six Sigma. In addition, the authors clearly demonstrate how operations and process improvement relate to contemporary health care trends such as evidence-based medicine and pay-for-performance. Health Care Operations and Supply Chain Management contains: Leading edge concepts and techniquesReal-life data and actual examples from health care settings to underscore the main concepts in the textInstruction in the use of Microsoft Excel for health care operations and supply side management The book's numerous screen shots and detailed instructions guide the student through the use of Microsoft Excel's many functions and features.