ABSTRACT
This chapter proposes that the concept of dynamic capacity management is an additive solution for the pressing problem. Two concepts are critical to the understanding of dynamic systems such as healthcare. These two factors, variability and interdependencies, have created the need for new analytical methodologies and approaches in the complex world of healthcare capacity optimization. Interdependencies influence workload, workflow, staff and physical plant requirements, and the ability to move patients efficiently and effectively throughout their systemic journey. In systems with high variability and complex interdependencies, there are often "outliers." The chapter refers to outliers in the overall population of patients, such as "poly-chronics". Obviously the dynamism of systems requires a different approach than is common among the typical "industrial" process improvement methodologies. The chapter establishes that demand is dynamic, changing throughout the system every hour of every day of every season. A few of the good parts of Six Sigma that were retained were some minor analytical applications.
