There are many ways to study and analyze the logistic operations using metrics and statistics. This presentation is an introductory view focused on the turnaround times (TAT) of on-demand medical transports. Discussed are some of the impacts that late Stat deliveries have on the operations and customers. Also discussed is the use of basic statistics to learn more about the late TAT and things the organization can do to reduce them.

1. Watch your TAT. Deliver Superior
Performance.
Gerard Ibarra, PhD 1

2. Abstract
This presentation is about using metrics and
analytics to recognize trends about the
performance of your operations and medical
courier companies. Draw on them to increase
efficiencies, reduce risk, lower costs, and
improve service.
© 2012 Newton Insight Corporation 2

3. Terms and Definitions
Turnaround Times (TAT) means the amount of
time it takes from when an order was placed
with a medical courier company to the time
they delivered it. For the purpose of this
presentation, it does not include accessioning
or completing the test of the specimen.
Stat implies urgent. It is short for statim, the
Latin word for immediately.
© 2012 Newton Insight Corporation 3

4. Terms and Definitions
Reliability means the chances of delivering the
order on time under normal conditions.
© 2012 Newton Insight Corporation 4

5. Typical Process of a Stat Order
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6. Late Stat deliveries can affect
your organization in many ways.
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7. Impact of Late Stat Deliveries
• Time:
~ Communicating constantly with medical courier
company about the condition of the late Stat
~ Communicating constantly with the lab department
about moving the late Stat from the back of the test
line to the front to avoid compromising the specimen
~ Filling out reports describing why there was a late Stat
and how to prevent it from occurring again
~ Having to spend time dealing with the clients
© 2012 Newton Insight Corporation 7

8. Impact of Late Stat Deliveries
• Risk:
~ Compromising the integrity of the specimen due to its
limited life span
~ Losing a client because a specimen was damaged
~ Facing possible lawsuits due to perceived negligence
© 2012 Newton Insight Corporation 8

9. Impact of Late Stat Deliveries
• Cost:
~ Incurring charges from the client to collect the
specimen again
~ Losing revenue due to a lost client
~ Spending time dealing with the late Stat deliveries
instead of growing the business
~ Dealing with having to pay lawyer fees and settlements
© 2012 Newton Insight Corporation 9

10. Impact of Late Stat Deliveries
• Service:
~ Trying to make amends with upset clients
~ Having to explain to clients why they are having
problems making deliveries on time
~ Making it more difficult to market and sell the services
of the lab
© 2012 Newton Insight Corporation 10

11. So what do you do?
© 2012 Newton Insight Corporation 11

12. Solution
Collect and compile Stat TATs from your
medical courier companies
Analyze the TAT
• Stay away from using averages alone to tell the
whole story
• Include limits in your analysis to get a better
understanding of trends
© 2012 Newton Insight Corporation 12

13. Minimum Insight
Combined Courier Stat Turnaround Times: March through April
200
120 Maximum Minutes
180
Allowed for TAT 108 Average TAT Minutes
160 for the Previous Month
140
120
100
80
60
40
20
0
1
79
287
495
14
27
40
53
66
92
105
118
131
144
157
170
183
196
209
222
235
248
261
274
300
313
326
339
352
365
378
391
404
417
430
443
456
469
482
508
521
534
547
560
573
586
Max Avg STAT TAT
© 2012 Newton Insight Corporation 13

14. Minimum Insight
The graph shows for the most part the
medical courier companies doing there job
• Below the maximum allowed time 561 out of 586
times or a 95.7% reliability rating – need to
address those that went over the allowed time
© 2012 Newton Insight Corporation 14

15. Minimum Insight
• Below the average TAT for the previous month 515
out of 586 times or a 87.9% reliability rating – this
appears that the medical courier companies are
doing good since they are more times than not
below the TAT average from the previous month
© 2012 Newton Insight Corporation 15

16. Minimum Insight
Except for the reliability of the medical courier
companies’ deliveries, the graph does not
provide much more information. It also might
give some false impression about how well
the couriers are doing.
© 2012 Newton Insight Corporation 16

17. Deeper Insight
Avg Daily Stat Turnaround Times: March through April
130
120
110
100
90
80
70
60
50
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41
Max Avg Avg Daily
© 2012 Newton Insight Corporation 17

18. Deeper Insight
The diagonal dash line pointing upward
indicates the medical courier companies are
making the deliveries later and later that is a
bad trend. Questions to ask:
• Are the medical courier companies getting more
Stat orders?
• Is there some significant road construction that
interferes with getting to the delivery location?
© 2012 Newton Insight Corporation 18

19. Deeper Insight
• Did one of the medical courier companies make a
significant change to their operations?
• Are the delivery times now being recorded more
accurately? This could be due to the purchase of a
new transportation system that allows you to
capture the delivery times of your medical courier
companies instead of them capturing the delivery
times for you.
© 2012 Newton Insight Corporation 19

20. Deeper Insight
The shaded box on the graph shows the TAT
were beginning to trend upward in March.
Knowing this type of information as early as
possible is important to anticipate and
prevent the TAT from getting out of hand.
Things to do and questions to ask:
• Bring to the attention of the medical courier
companies that they are starting to trend upward
in their Stat delivery times.
© 2012 Newton Insight Corporation 20

21. Deeper Insight
• Review the type of Stats the medical courier
companies are receiving and determine if there is
anything out of the ordinary. This includes items
such as the time the order was placed, the
distance of the pickup, and the number of orders
placed at the same time.
• Why was there a significant drop-off in Stat
delivery times from the previous month?
© 2012 Newton Insight Corporation 21

22. Deeper Insight
The dash circles show the TAT are significantly
below the average TAT of the previous month.
This skews the averages when aggregated.
Questions to ask:
• Did the medical courier companies receive less
Stats orders for those days?
© 2012 Newton Insight Corporation 22

23. Deeper Insight
• Did the medical courier companies get most of
their pickup orders close to the delivery point?
• Were the medical courier companies properly
staffed on those days?
• Were the medical courier companies talked to
about the escalating Stat delivery times that
caused them to focus on the TATs the next day?
© 2012 Newton Insight Corporation 23

24. Conclusion
Analyzing the TAT and recognizing trends gives
you the opportunity to address situations
before they become problems. The process
allows you to:
• Increase efficiencies by not wasting time on
unexpected events
• Lower the risk of damaging specimens
• Reduce costs from repeating tests
• Improve customer service by reducing mistakes
© 2012 Newton Insight Corporation 24

25. Contact Information
www.newtoninsight.com
gibarra@newtoninsight.com
© 2012 Newton Insight Corporation 25