Health Care Operations and Supply Chain Management Strategy, Operations, Planning, and Control

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  • Edition: 1st
  • Format: Paperback
  • Copyright: 2013-01-14
  • Publisher: Jossey-Bass

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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. It incorporates the features and functions of Microsoft Excel where appropriate in its 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. The book illustrates leading edge concepts and techniques such as six-sigma and lean logistics, and shows how operations and process improvement relate to contemporary health care trends such as evidence-based medicine and pay-for-performance.

Author Biography

John F. Kros, PhD, is a professor of marketing?and supply chain management in the College of Business at East Carolina University in Greenville, North Carolina.?He also is the coauthor of Statistics for Health Care Professionals: Working with Excel.

Evelyn C. Brown, PhD, is a professor in the Department of Engineering and Associate Dean for Research in the College of Technology and Computer Science at East Carolina University, Greenville, North Carolina.

Table of Contents

Figures and Tables


The Authors

Part 1 Strategy

Chapter 1 Health Care Operations and Supply Chain Strategy

Operations and Supply Chain Management

Purchasing, Logistics, and Vendor-Managed Inventories

Efficiency, Effectiveness, and Value

Competitive Dimensions of Health Care

The Bullwhip Effect in Health Care

MiniCase: The Bullwhip Effect in Health Care Organizations

Chapter 2 Financial Aspects of Health Care Operations and Supply Chain Management

Finance and Operations

Income Statement/Operating Statement

Balance Sheet

Statement of Cash Flows

Basic Financial Ratios and Metrics

Time Value of Money

Break-even Analysis

Crossover Analysis

Chapter 3 Managerial Accounting Aspects of Health Care Operations and Supply Chain Management

Managerial Aspects

Managerial Accounting

Activity-Based Costing

Behind the Scenes: Cost Drivers at Hospitals

Part 2 Process Design and Analysis of Health Care Operations

Chapter 4 Data and Statistical Tools for Health Care Operations Improvement

Descriptive Statistics for Describing Data Sets

Graphical Methods of Data Description

Numerical Methods of Data Description

Hypothesis Testing: Analyzing the Difference of Two Means

Pareto Analysis

Box-and-Whiskers Plots

Tornado Diagrams and Sensitivity Analysis

Chapter 5 Problem Solving and Decision-Making Tools in Health Care Operations

How Legal Decision Makers Use Decision Models

Framing the Problem

Components of a Decision-Making Problem

Payoff Tables

Decision-Making Criteria without Probability Assessments

Decision-Making Criteria with Probability Assessments

Expected Value of Perfect Information


Decision Trees

Chapter 6 Simulation


Process Flows

Probability Distributions

Random Number Generation

Discrete-Event versus Continuous Simulation

Monte Carlo Simulation

Agent-Based Simulation

Simulation in Health Care

Queuing Analysis

Chapter 7 Process Improvement and Patient Flow


Process Mapping

Value Stream Mapping

Use of Maps and Charts in Health Care


Workload Management

Productivity and Efficiency Analysis

Common Health Care Productivity and Efficiency Measures

Improving Productivity and Efficiency

MiniCase: Improving Process Flow to Improve Service-Level Performance Statistics

Chapter 8 Facility Layout


Layout Considerations

Types of Layouts

Muther Diagrams

Workload Management

Evaluating Different Types of Layouts

Basics of Optimization

Optimization Using Excel Solver

Optimizing Facility Layout and Design

Part 3 Managing Health Care Operations Quality

Chapter 9 Managing Quality in a Health Care Setting

What Is Service Quality?

Quality Planning, Control, and Improvement

Quality and Financial Performance

Seven Tools for Quality Control

Brief Example of x-Bar Control Chart Construction

Six Sigma Concepts

Six Sigma and Lean

MiniCase: Delayed Room Cleaning Dilemma

Chapter 10 Quality Control and Improvement

Design of Quality Control Systems

Process Quality Control

Variables Control

Using Control Charts

Process Capability

Total Quality Management and Continuous Improvement

International  Organization for Standardization Certification

Malcolm Baldrige Award

Part 4 Planning and Controlling Health Care Operations

Chapter 11 Lean Concepts in Health Care


What Is Lean?

Controlling Waste

Controlling Flow with a Kanban System

Kaizen Events

Value Stream Mapping

Measures and Tools

Adverse Effects of Becoming Too Lean

MiniCase: Using Lean Concepts to Improve Inpatient Care

Chapter 12 Forecasting for Health Care Management

Analyzing Data Using Time Series and Regression Models

Linear and Nonlinear Trends

Seasonality in Data

Naive Forecasting

Moving Averages

Weighted Moving Averages

Exponential Smoothing


Regression as a Forecasting Technique

Multiple Regression Model

Measuring Accuracy

Measuring Forecasting Errors

Chapter 13 Project Management


Role of Project Manager

Objectives and Trade-Offs

Planning and Control in Projects

Project Scheduling

Critical Path Method

Gantt Charts

Program Evaluation and Review Technique


MiniCase: Implementing Electronic Medical Records at St. Hampton’s Hospital

Chapter 14 Aggregate Planning, Scheduling, and Capacity Management in Health Care

Aggregate/Central Planning

Resource Planning and Control

Scheduling and Capacity Management

Workforce Scheduling

Dispatching Rules

Job Sequencing

Johnson’s Rule

Service Facility Location Analysis

Center of Gravity Method

Chapter 15 Inventory Management


Purpose of Inventories

Costs of Inventories

Economic Order Quantity

Independent versus Dependent Demand

Periodic Review Systems

Continuous Review Systems

ABC Inventory Management

Inventory Management Technology


Rewards Program

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