Integrating DEA into Six Sigma methodology for measuring health service efficiency

Abstract

As a linear programming technique that is used to assess performance efficiency among organizational units, data envelopment analysis (DEA) has the practical value for planners to identify the most efficient units and thus project a best possible course of actions. This is also the fundamental goal of Six Sigma methodology for process improvement. Therefore, it is natural to integrate the DEA method into the framework of Six Sigma to enhance both the usefulness of Six Sigma and the effectiveness of DEA for assessing and improving health service efficiency. In this paper, the implementation of DEA is well incorporated into the Define, Measure, Analyze, Improve and Control process. The procedure can be well fitted into the Blackbelts training curriculum, which can also serve as a roadmap for Six Sigma practitioners to implement the DEA-enhanced projects. To illustrate how to integrate DEA into the Six Sigma framework, we present a Six Sigma project implemented to measure physician productivity in a clinical department.

Keywords:

• data envelopment analysis (DEA)
• Six Sigma
• DMAIC
• physician productivity
• health service efficiency

Acknowledgements

Appreciation is expressed to Kathy Price, Roy Olpin, Vicky Woodruff and Pamela Lindquist from the University of Texas M.D. Anderson Cancer Center for making the data available for use in this study. Thanks are also due to Xinjun Fan and Rohit Sharma for their help with data cleaning. The insightful comments from the anonymous reviewers are sincerely appreciated. Their constructive suggestions on the earlier versions have significantly improved this paper.