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The Quintessential Survival Guide in the Corporate Quagmire! | |
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Quality Improvement is Free
The point of a quality improvement program should not only be to improve a product or the delivery of healthcare but it should also be to save time and money by reducing or eliminating waste or errors. For example, a doctor or nurse practitioner writes a prescription. We wouldn't deliver some of the best quality pills along with a few randomly chosen pills and we wouldn't completely incorrectly fill the prescription. To do either could create serious consequences. Rather, we want to only deliver the best quality. But there is another side to not achieving the best quality. If we incorrectly fill the prescription, even if there is no patient harm, there is waste. Once the error is found, the prescription must be refilled and paperwork redone. Wasted time and money for the healthcare provider! Quality projects build processes that prevent errors and waste. In fact, the main goal of lean healthcare is to eliminate waste in a structured approach. The Japanese use the term kaisen event. They use this idea to eliminate waste in any environment, whether manufacturing or service orientated. Quality projects that I have done have always resulted in avoidance of waste and thus a savings in time and cost. Almost all projects I have read about in journals present the savings of cost and time. Hence, if you are involved in a quality project you need to calculate the costs in time and money of accomplishing a process as it currently exists and then do the same for the "quality improved" process. There should be a substantial savings of both time and money. After all, time is money. To make the required analysis I suggest that one of the project team members be your cost accountant or chief financial officer. Doing so will improve the accuracy of calculations of savings. Plus, you will impress upon one of the leaders of your healthcare unit the importance of continuing quality projects. In fact, your project team will probably be lauded for their achievement. Finally, in totaling the costs of a project, don't forget to factor in the costs of the team in time and money. Count the costs of materials used, the pays of all involved and the time spent by all on the project. If the project is well executed and planned, you should realize a substantial cost/benefit ratio. That is, the costs of executing the project should be a fraction of the realized savings. Calculating this ratio speaks the language of upper management and directors and produces positive benefits, such as the demand for more of such projects. You will be able to aptly demonstrate that "Quality is Free." Overall, as demonstrated, quality improvement projects should not only deliver a superior product but also should demonstrate the savings in time and money. Doing so ensures the continuance of quality improvement at a site, which will produce superior products with little waste. Donald Bryant helps healthcare providers meet their challenges. If you liked this article and want more free tips, visit http://www.bryantsstatisticalconsulting.com for a free article to help you start making improvements at your site immediately.
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Summary Box: Commodities fall on Greece debt woes (AP) AP - GREEK WOES: Commodity prices fell broadly as a plan to fix Greece's crippling debt crisis remained far from settled, renewing concerns about global economic growth. Most commodity prices fall on Greece debt woes (AP) AP - Commodity prices fell broadly Friday after a plan to fix Greece's crippling debt crisis suffered a setback, renewing concerns about global economic growth. Bernanke urges action to heal housing markets (Reuters) Reuters - Federal Reserve Chairman Ben Bernanke on Friday issued a call to action to restore U.S. housing markets, saying depressed house prices and sales are a serious drag on the economic recovery. Obama call for manufacturing revival a tough goal (AP) AP - President Barack Obama is making a strong election-year push for an economic revival "built on American manufacturing." But he faces an uphill slog, with little consensus even within his own party on how to do it. Gov't on pace for $1T deficit despite January dip (AP) AP - The federal deficit was lower through the first four months of the budget year than the same period last year. Still, the deficit is expected to top $1 trillion for the fourth year in a row, putting more pressure on Congress and President Barack Obama in an election year. Bernanke: Weak housing has hurt consumer spending (AP)
January budget gap shrinks (Reuters) Reuters - The monthly budget deficit narrowed to $27.4 billion in January from $49.8 billion in the same month a year earlier, partly because some benefit payments normally made in January were shifted to December, the Treasury Department said on Friday. Anxiety over incomes hits consumer morale (Reuters) Reuters - Americans felt worse about their personal finances in early February, but rising confidence in the labor market's prospects should help to support spending and the broader economy. Romney appeals to U.S. business with harsh China talk (Reuters) Reuters - Mitt Romney slammed China's "autocratic model" of capitalism in a speech to technology executives on Friday, keeping up attacks on the economic powerhouse days before a visit from a Chinese official expected to be the country's next leader. Housing a "significant headwind" to recovery: Fed's Pianalto (Reuters) Reuters - The housing market is holding back the broader economic recovery now that foreclosures have become "a national crisis," a top Federal Reserve official said on Friday. Exclusive: Future of bank benchmark rate under review (Reuters) Reuters - A global probe into whether banks colluded to set the interest rates at which they borrow money from each other has thrown into question the future of the benchmark they use to price financial products worth an estimated $360 trillion. Bernanke urges action to heal U.S. housing markets (Reuters)
Spain cuts firing costs in new labor reform (Reuters) Reuters - Spain cut severance pay for workers on Friday and watered down collective bargaining rights, giving more power to employers as it attempts to kick start its moribund jobs market and slash Europe's highest unemployment rate. Portugal watches Greek debt drama with foreboding (Reuters) Reuters - Portugal's economy will shrink as much as Greece's this year, according to IMF projections. The two will have identical current account deficits and the red ink in Portugal's budget will be almost as deep as in Greece's. Trade deficit widens to $48.8 billion in December (AP)
U.S. jobless rate projected to fall sharply (Reuters) Reuters - Economists in a survey see the unemployment rate falling much faster this year than previously expected, an improvement in the jobs market that could help President Obama's re-election chances. Consumer mood worsens in February on income worries (Reuters) Reuters - Americans felt worse about their personal finances in early February, even as they saw a light at the end of the tunnel for the jobs market, a survey released on Friday showed. Instant View: Consumer mood worsens in early February (Reuters) Reuters - Americans turned less optimistic about the economy in early February on worries about falling income even as their outlook on the jobs market rose to a record high, a survey released on Friday showed. |
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