Class Twenty Six Notes

Class Twenty Six Notes - Page 1 of 24 Class Twenty Six...

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Page 1 of 24 1 I went to this seminar in the 1970s. It is 2.3% in 2007, down a bit from 2.5% in 2006. It seems to be fairly consistent as other data suggested similar low to middle 2% rates in earlier parts of the 2000s. See the 2007 CCH Unscheduled Absence Survey,, retrieved November 21, 2007. April 21, 2009 (6:21pm) E:\SWT\HA4315\Class notes\Spring 2009 version\C_26 spg09.wpd Reduce, recycle, reuse!! HA 4315 I. Logistics and Objectives A. Statistical thinking and control charts B. Memory Jogger II , pp. 132-136, measuring process capacity II. Statistical and control chart thinking On my first health care management job I went to a seminar on absenteeism. Until then I had no idea what an appropriate rate of absenteeism should be. I was supervising 500 people and simply knew that absences were relatively common. Once I was told what the averages were and what constituted a problem, I had some benchmarks and some standards. We learned that unscheduled absences due to sickness or simply not coming to work averaged about 2.5% to 3%. 1 Any organization with an absenteeism rate in excess of 4% was considered to have a problem. Then I had to measure the amount of absenteeism. Of course, I found a big problem. Figure 1
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Page 2 of 24 April 21, 2009 (6:21pm) E:\SWT\HA4315\Class notes\Spring 2009 version\C_26 spg09.wpd Reduce, recycle, reuse!! The absenteeism rate in my departments was 8%!!! This was double the “trouble” level. Then I had to find the causes of the problem and keep measuring performance so that the standard would stay within the limits that made sense to me. I didn’t know about control charts then and computers had not even been invented. Today, they would be a powerful tool to stratify data among the many crews, sections, and shifts in the several departments under my supervision, allowing me to see if the interventions I put in place worked. Over a period of some months, the absenteeism rate fell to 4%. Considering I was supervising 500 people, having 4% more on the job on any average day than before is equivalent to having 20 additional employees. 4% * 500 = 20. When it comes time for layoffs, it may be that simply cutting the absenteeism rate and not hiring into open positions may keep the work force adequately staffed while reducing the costs of the labor to do it. Consider that if these employees only cost $10.50 an hour, each would earn $21,840. This is computed as 52 weeks times 40 hours a week * $7 per hour (52 * 40 *7 = $21,840. If I could reduce the workforce by 20, I would save the organization $436,800, ($24,840 * 20). Being able to put that on your resume and explain it will get you a long way in moving up the organizational ladder. Now let’s return to the original example and see how to determine what the upper and lower control limits are for these two charts on the x chart. In the
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Class Twenty Six Notes - Page 1 of 24 Class Twenty Six...

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