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Variance Management Systems
Instructor: Bob Luttman.
Principal, Robert Luttman & Associates

Syllabus: Module 1 Introduction: The Role of Variance Management Systems
Module 2 Issues in Variance Management Systems Design
Module 3 Next Generation Variance Management Systems: The Gateway Model
Module 4 Process Thinking Tools for Variance Analysis
Module 5 Statistical Thinking Tools for Variance Analysis
Module 6 Putting It All Together: Next Generation Quality for Healthcare

I. Introduction: The Role of Variance Management Systems

 

 

 

Clinical pathways, continuous improvement, and process re-engineering have become extremely important in healthcare as organizations struggle to adapt to change and increasing clinical integration.

Variance Management Systems can be a key component of an organizational management and improvement system. This week's class discusses the role of the variance management system in the context of designing, managing, and improving clinical and operational processes.

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II. Issues in Variance Management System Design

 

Several issues complicate variance management system design. This week's lesson will discuss the statistical, logistical / operational, and legal issues that affect variance systems. The class will also discuss the limitations of traditional variance system design.

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III. Next Generation Variance Management Systems Design: The Gateway Model

 

Overcoming the issues endemic in variance management system design requires new thinking about variance systems. The Gateway Model is a variance model that adapts quality management tools and concepts to variance systems.

The model stresses several key quality management concepts: focusing on the important issues, fostering collaboration and communication among care givers, process thinking, statistical thinking, and transparent data collection. The model has the further advantages of significantly reduced data management requirements, real-time data analysis, and ease of automation using information systems.

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IV. Process Thinking Tools for Variance Analysis

 

 

Data without context cannot provide meaningful information for management or improvement. Process thinking tools connect variance (and ultimately outcomes measures) to the process that produced the data. These process thinking tools help care teams identify key variances and gateways in the care process; assess the effects of variances; identify the variance causes; and adapt pathways to changing requirements.

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V. Statistical Thinking Tools for Variance Analysis

 

Statistical tools adapted from quality management help care teams overcome the statistical issues discussed in Module Two and more rigorously analyze variance data in real-time. The tools are graphically oriented, require a minimal statistical background, and are easily performed using standard computer spreadsheets.

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VI. Putting It All Together: Next Generation Quality for Healthcare

 

 

This concluding class integrates the pathways, patient documentation, variance mangement systems, and continuous improvement into a system for achieving organizational excellence. The class discusses creating and analyzing feedback reports that merge variance data with other organizational performance indicators; integrating clinical pathway design and management improvement loops; and a process for short cycle process improvement.

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Recommended Reading: How to Design Clinical Pathway Variance Systems for Continuous Improvement,Robert Luttman, 1996.
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