RFID in healthcare: a Six Sigma DMAIC and simulation case study

• Published in: International journal of health care quality assurance 2012-01, Vol.25 (4), p.291-321
• Main Authors: Southard, Peter B, Chandra, Charu, Kumar, Sameer
• Format: Article
• Language: English
• Subjects: Ambulatory Surgical Procedures - economics; Ambulatory Surgical Procedures - methods; Case studies; Commerce - methods; Competition; Cost benefit analysis; Cost control; Cost reduction; Costs and Cost Analysis; Drug stores; Efficiency; Efficiency, Organizational; Elimination; Field study; Health administration; Health care delivery; Health care industry; Hospital Administration; Hospitals; Humans; Medical errors; Medical Errors - prevention & control; Nurses; Operations management; Patient Safety; Personnel; Process Assessment (Health Care); Quality Improvement - economics; Quality Improvement - organization & administration; Radio frequency identification; Radio Frequency Identification Device - economics; Radio Frequency Identification Device - organization & administration; Radio Frequency Identification Device - statistics & numerical data; Savings; Simulation; Six Sigma; Supplies; Supply chains; Surgery; Technology; Time Factors; Wage & price controls; Workflow
• ISSN: 0952-6862; 1758-6542
• DOI: 10.1108/09526861211221491

Purpose - The purpose of this paper is to develop a business model to generate quantitative evidence of the benefits of implementing radio frequency identification (RFID) technology, limiting the scope to outpatient surgical processes in hospitals.Design methodology approach - The study primarily uses the define-measure-analyze-improve-control (DMAIC) approach, and draws on various analytical tools such as work flow diagrams, value stream mapping, and discrete event simulation to examine the effect of implementing RFID technology on improving effectiveness (quality and timeliness) and efficiency (cost reduction) of outpatient surgical processes.Findings - The analysis showed significant estimated annual cost and time savings in carrying out patients' surgical procedures with RFID technology implementation for the outpatient surgery processes in a hospital. This is largely due to the elimination of both non-value added activities of locating supplies and equipment and also the elimination of the "return" loop created by preventable post operative infections. Several poka-yokes developed using RFID technology were identified to eliminate those two issues.Practical implications - Several poka-yokes developed using RFID technology were identified for improving the safety of the patient and cost effectiveness of the operation to ensure the success of the outpatient surgical process.Originality value - Many stakeholders in the hospital environment will be impacted including patients, physicians, nurses, technicians, administrators and other hospital personnel. Different levels of training of hospital personnel will be required, based on the degree of interaction with the RFID system. Computations of costs and savings will help decision makers understand the benefits and implications of the technology in the hospital environment.