Healthcare / Project Management S h i r A growing number of healthcare organizations are implementing project l e management principles to improve cost and service efficiencies. They are y in desperate need of resources that clearly illustrate the project management needs of today’s healthcare professional. Project Management for Healthcare P fills this need. Using easy-to-follow language, it explains how the time-tested principles of project management can help maximize limited resources and r o ensure the highest possible quality of care. j e Exploring the discipline of project management from the perspective of the c healthcare environment, the book dissects the project process and provides t the tools and techniques required to successfully plan, execute, and control M any healthcare-based project. From identifying stakeholders to constructing a project plan, this book covers the complete spectrum of project planning a activities. Complete with chapter summaries, exercises, hints, review n questions, and case studies, it illustrates applications across a range of a healthcare settings. g • Explains how to utilize the project plan to execute projects e within budget, schedule, and quality objectives m • Covers program management as it relates to healthcare • Addresses the interaction between healthcare and e information technology n • Presents best practices from the pharmaceutical and medical t equipment industries—that can easily be adopted to readers’ settings f o Because most healthcare personnel will inevitably have to work r with program management and need to interact with pharmaceutical companies and medical device manufacturers, the book provides an H inside look at the processes and best practices used to bring products e to market in these industries. Explaining how to adapt these processes a to drive down costs and improve the quality of care in any healthcare l setting, the book includes a case study of a fictitious medical facility t that illustrates the proper application of the tools and techniques needed h to manage healthcare projects effectively and efficiently. c a r K11028 e ISBN: 978-1-4398-1953-1 90000 www.crcpress.com 9 781439 819531 www.auerbach-publications.com K11028 cvr mech.indd 1 3/9/11 10:17 AM Project Management for Healthcare ESI International Project Management Series Series Editor J. LeRoy Ward, Executive Vice President ESI International Arlington, Virginia Project Management for Heathcare David Shirley 978-1-4398-1953-1 Managing Web Projects Edward B. Farkas 978-1-4398-0495-7 Project Management Recipes for Success Guy L. De Furia 978-1-4200-7824-4 Building a Project Work Breakdown Structure: Visualizing Objectives, Deliverables, Activities, and Schedules Dennis P. Miller 978-1-4200-6969-3 A Standard for Enterprise Project Management Michael S. Zambruski 978-1-4200-7245-7 Determining Project Requirements Hans Jonasson 978-1-4200-4502-4 The Complete Project Management Office Handbook, Second Edition Gerard M. Hill 978-1-4200-4680-9 Practical Guide to Project Planning Ricardo Viana Vargas 978-1-4200-4504-8 Other ESI International Titles Available from Auerbach Publications, Taylor & Francis Group PMP® Challenge! Fourth Edition J. LeRoy Ward and Ginger Levin ISBN: 978-1-8903-6740-4 PMP® Exam: Practice Test and Study Guide, Seventh Edition J. LeRoy Ward ISBN: 978-1-8903-6741-1 The Project Management Drill Book: A Self-Study Guide Carl L. Pritchard ISBN: 978-1-8903-6734-3 Project Management Terms: A Working Glossary, Second Edition J. LeRoy Ward ISBN: 978-1-8903-6725-1 Project Management Tools CD, Version 4.3 ESI International ISBN: 978-1-8903-6736-7 Project Management for Healthcare David Shirley CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2011 by Taylor and Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4398-1954-8 (Ebook-PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents Preface ...................................................................................................xv Acknowledgments ............................................................................xxiii About the Author ................................................................................xxv Sec t ion i Definition c hapter 1 Defining a Project ..............................................................3 What Is a Project? ........................................................................3 What Is a Project Life Cycle? .....................................................4 The History of Project Management .........................................5 Roles and Responsibilities in Project Management ................6 Project Management and the Healthcare Environment ........7 Establishing Relationships in Healthcare ................................9 Differences in Management .....................................................11 Strategic Management .........................................................11 Operations Management .....................................................11 Crisis Management ...............................................................13 Project Management ............................................................13 Summary ....................................................................................14 Key Review Questions ..............................................................14 Endnotes .....................................................................................15 c hapter 2 Planning for a Project ......................................................17 Why Are Projects Chosen? .......................................................17 Personal ..................................................................................17 Financial.................................................................................17 Competitive ...........................................................................19 Safety .....................................................................................20 Regulatory .............................................................................20 Summary................................................................................21 Decision-Making Tools for Choosing a Project ....................21 Root Cause Analysis .............................................................21 © 2011 by Taylor & Francis Group, LLC v vi  •  Contents Cost-Benefit Analysis ...........................................................24 Brainstorming .......................................................................26 Consensus Building .............................................................28 Organizational Structure Influences on Project Choices ..................................................................................28 Functional Organization ...............................................28 Matrixed Organization ...................................................29 Project-Focused Organization ......................................30 Other Considerations for Project Choice ..........................33 Regulatory and Industry/Organization Standards .....33 Key Review Questions .............................................................34 Endnote ......................................................................................34 c hapter 3 Getting Started ...............................................................35 Project Sponsor ..........................................................................35 Project Charter ..........................................................................36 Goals and Objectives ................................................................38 Project Players ...........................................................................40 Project Plan ...............................................................................42 The Project Charter .............................................................42 Scope Statement ...................................................................42 Requirements and Expectations ...................................43 Detailed Project Description ..........................................45 Milestones and Deliverables ...........................................45 Acceptance/Success Criteria ..........................................46 Contractual Specifications ......................................................46 The Work Breakdown Structure .............................................47 Dealing with the Creeps ...........................................................49 Key Review Questions ..............................................................50 Endnotes .....................................................................................50 Sec t ion ii t he Details c hapter 4 Managing Time ................................................................53 Estimating Time ........................................................................53 Historical Information ........................................................54 © 2011 by Taylor & Francis Group, LLC Contents  •  vii Lessons Learned ...................................................................54 Expert Judgment ..................................................................54 3 and 6 Point Estimates........................................................55 Getting Estimates .................................................................55 Trusting the Data ............................................................56 Pushing Back ........................................................................56 Who Will Do the Tasks? ......................................................57 Understanding Scheduling Tools ............................................57 Network Diagram .................................................................58 Start–End–Float ....................................................................59 Gantt Chart ...........................................................................62 Task Relationships ................................................................62 Other Dependency Considerations ....................................63 Leads and Lags .....................................................................64 Calendars and Updating .....................................................64 Sequencing Tasks ..................................................................65 Schedule Development.............................................................66 Schedule Control ......................................................................66 Crashing ................................................................................66 Fast Tracking .........................................................................67 Key Review Questions ..............................................................67 c hapter 5 Managing Project Costs ...................................................69 Estimating Cost .........................................................................69 Cost Categories .....................................................................71 Direct Costs ......................................................................71 Variable Costs ...................................................................72 Indirect Costs ...................................................................72 Special Case Costs............................................................72 Capital Costs .....................................................................73 Assessing Costs ..........................................................................73 Types of Estimates ................................................................73 Order of Magnitude .........................................................73 Budget Estimate ...............................................................74 Definitive Estimate ..........................................................74 Pro Forma Assessments ..................................................74 Other Estimating Considerations..................................75 © 2011 by Taylor & Francis Group, LLC viii  •  Contents Cost Estimating Tools ..........................................................76 Analogous Estimating .....................................................76 Parametric Estimating ....................................................76 Bottom-Up Estimating ....................................................77 Allocating Budgeted Costs .......................................................77 Key Review Questions ..............................................................78 Endnote .......................................................................................78 c hapter 6 Managing Project Quality ...............................................79 History of Quality in the United States ..................................79 Project Quality Management ...................................................81 Project Planning ...................................................................82 Quality Management Tools .................................................82 Flow Charts .......................................................................82 Cause-and-Effect Diagrams ...........................................83 Check Sheets .....................................................................83 Pareto Charts ....................................................................83 Histograms ......................................................................84 Control Charts .................................................................85 Scatter Plot ........................................................................85 Project Quality Control .......................................................85 Project Quality Assurance ..................................................86 What Is Quality? ...................................................................87 A Transcendent Approach ..............................................87 Product-Based Approach ................................................87 User-Based Approach ......................................................87 Manufacturing-Based Approach ..................................88 Value-Based Approach ...................................................88 Quality of Service Approaches .......................................89 Basic Statistical Concepts Used in Quality Assessment.............................................................................89 Attributes and Variables .................................................89 Mean, Median, Mode .....................................................90 Range, Variance, Standard Deviation ..........................90 The Cost of Quality ...................................................................91 Summary ....................................................................................91 © 2011 by Taylor & Francis Group, LLC Contents  •  ix Key Review Questions ..............................................................91 Endnotes .....................................................................................92 c hapter 7 Communications ..............................................................93 The Process of Communicating ..............................................95 Methods of Communicating ...............................................95 Conditions of Communications ........................................96 Barriers to Communications ...................................................97 Improving Your Communications .........................................98 Variables of Communications ..............................................100 Communications Management Plan ....................................101 Communications Plan .......................................................102 Improving Communications .................................................103 Social Media and Healthcare .................................................105 Reporting ..................................................................................107 Key Review Questions ............................................................108 Endnotes ...................................................................................108 c hapter 8 Change ............................................................................109 Dealing with Change ..............................................................109 Monitoring and Controlling Changes ..................................112 Change as a Good Thing ........................................................117 Support and Authority .......................................................118 Project Managers as Change Agents ................................118 Projects/Change Are One and the Same .........................119 Summary .................................................................................120 Key Review Questions ...........................................................120 Endnotes ..................................................................................120 c hapter 9 Risk ..................................................................................121 What Is Risk? ...........................................................................121 Risk and Reward .....................................................................122 Interviewing ............................................................................123 Risk Matrices...........................................................................123 © 2011 by Taylor & Francis Group, LLC