Abstract
The COVID-19 pandemic highlighted the necessity of good quality and adequate quantity of healthcare infrastructure facilities. Healthcare facilities were provided for COVID-19 facilities with improvisation and supplementary lateral infrastructure from other sectors. However, the main point of contemplation going into the future was regarding how to quickly develop healthcare facilities. The subject domain of ‘industrial engineering’ (IE) and its associated perspectives could provide some key insights regarding this. The authors undertook a conceptual literature review and provided theoretical argumentation toward this. The findings provided insights regarding the application of industrial engineering concepts in healthcare facilities and services.
Keywords
Introduction
India as a country has prospered well post the era of liberalization, globalization, and privatization (LPG) embarked from the year 1991 (Agarwal, 2003; Anand, 2014; McCartney, 2009; Sharma, 2015). The footprints of both foreign and private players increased in both Indian industries and the market. Certain sectors in Indian industries, like information technology, aviation, banking, electronics, and telecommunications, among others, did relatively well as compared to certain other sectors. The healthcare industry in India did witness more progress in the late 1990s and the two decades of the new millennium than what India had witnessed in the first half a century post independence. However, most healthcare experts would agree that Indian healthcare facilities infrastructure in terms of both quantity and quality generally had been far weaker than it ought to have been (Golechha, 2015). The quantum of healthcare facilities always was far less than what was required by the country of 1.3 billion citizens (Gupta et al., 2015; Itumalla & Acharyulu, 2012). It would be also important to note that around 30%–40% of the Indian population lived their lives based upon daily/weekly wages of less than US$4–5 a day. Thus, the ability of these individuals to pay for healthcare services and products was extremely limited.
It has been argued that the Indian economy had done well since the year 1991 because of the efforts of Indian workers (the labor force), especially the contract employees (Kotwal et al., 2011; Maiti, 2013). A substantive section of the Indian workforce had over the years put in long, hard hours of work to propel and script the Indian economic boom (Thomas, 2013). However, long hours of work and difficulties of commute had systematically taken a toll on the health of many Indians, especially the ones dwelling in urban areas (Tomozawa, 2017). Given the hardships of work, sedentary lifestyle, intense work pressure, and long hours and difficulties of commuting, many in India suffered from lifestyle diseases (Kaveeshwar & Cornwall, 2014; Misra et al., 2001; Ramachandran, 2004). These individuals mostly belonged to the middle-age group (mid 30s to early 40s) and harbored lifestyle diseases, like diabetes, hypertension, chronic anxiety, and such others (Mohan et al., 2001; Narendran et al., 2002; Unnikrishnan et al., 2007). Over the last few decades, India has become home to one of the largest populations of diabetic and hypertension patients (Mohan et al., 2001; Unnikrishnan et al., 2007). In the long run, people with diabetes, hypertension, and such other diseases often become patients of more severe life-threatening diseases, like chronic renal disease (CRD), cardiac arrests, and others. Given the pressures of work and life in India, reducing the intensity and incidences of diabetes, blood pressure, and other lifestyle diseases would be challenging. One way to address the challenge would be to manage the healthcare system better (Nair, 2015). For an emerging economy like India, the field of ‘industrial engineering’ (IE) might offer a much-needed solution. It would be important to note that though in the context of the manufacturing sector, IE has been a dominant perspective, its uptake in the services sector has been significantly slow. This has been especially so in the context of the healthcare sector. This was surprising, because healthcare has been one of the most critical sectors in services and indeed a sector of prime importance for India as a country. Given this context, it would be important that a conceptual review of IE concepts is undertaken and the IE concepts are reviewed anchored to the needs and requirements of the healthcare industry. This could be for hospital owners and managers as the point of reference. Healthcare firm managers and entrepreneurs would require an integrated perspective (Bhattacharyya, 2020). Healthcare firm managers, like any other firm managers, need to capture value (Bhattacharyya & Sivanand, 2011). The authors of this study undertook a conceptual literature review for comprehending the applicability of IE concepts in healthcare services. The article has been organized with the literature review of IE concepts and its applicability in the context of Indian healthcare facilities and its services being discussed in the next section. Subsequently, the decision and the conclusion sections are presented. Toward the end of the article, the managerial-direction implications, the scope of the article and the future directions of research in this domain are presented.
Study Context of Industrial Engineering in Healthcare
The field of IE and subsequently its applications in ‘industrial management’ (IM) primarily focused toward increasing productivity (Maynard, 1963). In simple terms, it meant more output per unit input provided (Ritti, 1971). This was achieved through a variety of tools and techniques developed over the years spanning the entire globe. The essence of IM or IE tools was that they did not force the requirement of additional investments in capacity. Instead, generally, IE and IM concepts stressed how to best utilize the invested capacity (Monden, 1981). The principles of IE and IM both pointed toward increasing efficiency and effectiveness. Given a set of constraints of resources and capabilities, ‘maximization’ of certain goals, ‘optimization’ of another set of goals, and ‘minimization’ of the non-value-adding (NVA) activities were stressed (Badiru & Omitaomu, 2010; Maynard, 1963). The means and methods of undertaking the same would focus on achieving output that was of the desired quality, higher output at minimal costs, and timely delivery (Badiru & Omitaomu, 2010; Maynard, 1963). Broadly, IE and IM tools also focused on the activity level. The aim was on reduction of wastes in the necessary activities, as well as on doing away with unnecessary activities for good (Monden, 1981; Ritti, 1971).
As mentioned, the diseases like CRD, cardiac issues, and others would continue to be major segments of diseases in India. From a social perspective, this would require special healthcare for the suffering patients. Given the nature of the socio-economic reality in India, the required healthcare facilities would be required at very affordable rates for a substantive majority of the patients (Nair, 2015). However, from a business perspective, this market, though substantive, would require a fine balance in providing necessary quality healthcare at minimal price points. This would be challenging for organizations providing the same.
However, one must note that in India, healthcare has been an island of excellence in an ocean of needs. Narayana Health (NH) and Aravind Eye Hospitals (AEH) have been lauded all over the globe for providing high-quality cardiac and ophthalmological health interventional treatments at minimal price points (Ahmed et al., 2017; Chaudhary et al., 2012; Govindarajan & Ramamurti, 2013; Natchiar et al., 2008). NH and AEH provided the best class of healthcare treatment to a substantial number of economically needy patients. In addition to this, there were many hospitals that provided Western (developed-country) standards of healthcare in cardiac, dental, and surgical care, and such others at a fraction of the price point charged by the developed Western countries’ healthcare organizations (Mishra & Shailesh, 2012). Given this, in many cases, patients from the developed world had been coming to India to undergo healthcare services. This indicated that certain Indian healthcare organizations possessed the resources and capabilities to deliver routine tertiary healthcare (super specialty care) at the world’s best quality level (Govindarajan & Ramamurti, 2013). In other words, in terms of resources, as well as capabilities, India possessed excellence in certain hospitals up to the level of best of world standards. The challenge would be to convert such islands of excellence into oceans of excellence. It would be pertinent to note that India has also been a major hub in the global pharmaceutical map primarily in generics (Chittoor et al., 2009; Feinberg & Majumdar, 2001; Kale & Little, 2007). Pharmaceutical capabilities were lateral to the medical capabilities in the healthcare ecosystem (Sultanow et al., 2018). Lenin had famously told that sometimes in decades nothing happens and at other times decades happen in days. The present coronavirus disease 2019 (COVID-19) crisis has been such an event in the world. This event has been potent enough make everyone think regarding the true need of industrial-scale healthcare management facilities. Healthcare provision, like factory-level manufacturing (Narayanamurthy et al., 2018) and the benefits of this, results in productivity improvement, waste reduction, quality improvement, cost reduction, activity-time requirement, and timely delivery.
Research Design for Literature Review
For the conceptual literature review research, the method advocated by scholars was followed (Bhattacharyya & Verma, 2019, 2020; Modgil et al., 2020; Osterrieder et al., 2020; Taylor et al., 2020). The planning of the review was set for IE concepts that were well accepted in reputed journals in IE, like Web of Science- or Scopus-indexed ones. Popular books in IE were also considered for the literature review. For piloting the review, the IE concepts were vetted by two IE experts, one an academic expert and the other a practitioner of IE. The reporting of the conceptual literature review was carried out in a tubular format as advocated by scholars (Osterrieder et al., 2020; Taylor et al., 2020).
In Table 1, the various IE tools that could be applied for management of healthcare in India at the industrial scale are tabulated. In Table 1, the most appropriate IE tool for each concept is presented, with green indicating the most appropriate context, orange moderate usage suitability, and red usage unsuitability. The color coding scheme in Table 1 is based on the authors’ comprehension and analysis regarding the importance and appropriate applicability of the specific IE concepts in the context of a healthcare facility or a service. Thus, this color coding reflects the intensity analysis of the relevance and fit of the various IE concepts for application in healthcare operations as per the authors’ domain knowledge and expertise. There are three categories of intensity, namely, ‘high intensity and relevance’, ‘moderate intensity and relevance’, and ‘low intensity and relevance’. Green color reflects ‘high intensity and relevance’, yellow color indicates ‘moderate intensity and relevance’, and red color indicates ‘low intensity and relevance’ according to the authors’ analysis.
The literature review of IE concepts presented in Table 1 was set with the objective of developing a comprehension of application of the IE perspective in healthcare management. The main focus was toward such a ‘mindset’ among healthcare managers in India. Owners, administrators, medical/hospital entrepreneurs, doctors, and all other relevant stakeholders responsible for the management of public or private healthcare management facilities and assets need to develop this IE-based ‘mindset’. The importance of ‘mindset’ has been stressed in the management literature (Dweck, 2008, 2015). An IE-laden ‘mindset’, if present across the entire management, staff, and workers in a healthcare facility firm, would usher in a changed frame of references on how healthcare services are delivered. Especially, an IE-driven ‘mindset’ at the leadership level in a healthcare firm can be tautologically argued to develop a positive organizational cultural toward increasing efficiency, as well as efficacy.
Discussion
‘Industrial Engineering’ and ‘Industrial Management’ Tools and Techniques.
Another important element in the application of IE concepts in healthcare stems from the value–cost proposition. In a country like India, healthcare provisions have to be affordable, and toward this, healthcare services have to be provided at the lowest cost. This would entail that minimum inputs are incurred in delivery. Cost consciousness and the sensitivity to reduce costs sprouted from the concepts of economies of scale and scope, but most importantly, from an IE perspective, costs could be reduced with increased efficiency and efficacy of the healthcare services delivery. This is portrayed by the IE-based tools of value stream mapping (VSM; Hines & Rich, 1997; Serrano et al., 2008; Serrano Lasa et al., 2008), Mudas (Fercoq et al., 2016; Naylor et al., 1999; Ohno, 1988), Jidoka (Baudin, 2007; Gaiardelli et al., 2019), and Heijunka (Hüttmeir et al., 2009). Through the application of VSM, Mudas, Jidoka, and Heijunka, NVA activities could be eliminated and buffers and wastages could be reduced, resulting in savings. Another element of IE-based thinking results from the application of temporal thinking built into healthcare service provision. This is depicted in the IE concepts of continuous review inventory system (CRIS) (Axsäter, 1993; Kocer & Yalcin, 2020; Moinzadeh & Nahmias, 1988; Moon & Choi, 1998; Sangeetha et al., 2020) and suppliers, inputs, process, outputs, and customers (SIPOC; Mishra & Sharma, 2014; Yeung, 2009). IE concepts emphasize the need for timely delivery of healthcare services, as well as timely purchase and stocking of the critical ingredients of medical supplies. Drum Buffer Rope (Goldratt, 1990; Guide, 1996) and the theory of constraints (TOC; Goldratt, 1990; Rahman, 1998) are concepts that, as advocated, could be applied to remove the constraints that delay the delivery of healthcare services. Even in the present-day context, the voice of the customer (VoC), as advocated by scholars (Brown, 1991; Cooper & Dreher, 2010; Griffin & Hauser, 1993), could be applied to understand the patients’ expectations, and their feedback could be considered for securing insights for healthcare services decision-making.
Conclusion
This study was a conceptual work. This conceptual literature review would help provide IE scholars, as well as healthcare facilities and their service delivery researchers, a platform to anchor their research to a set of theoretical constructs on IE concepts. Healthcare facility managers and healthcare service executives, in turn, based on this conceptual literature review, could comprehend what kinds of appropriate tools they could apply so as to make the relevant healthcare facilities management and service delivery more efficient and effective and with increased efficacy. Application of the IE concepts outlined in the study would help in providing quality healthcare, at affordable price points, in a timely fashion and in adequate quantity. India, a country with a large population, needs the application of IE concepts both in healthcare facilities management and in healthcare services delivery. This study was a conceptual literature review. In future, empirical studies could be undertaken for investigations regarding the adoption, application, and implementation of these IE concepts in both healthcare facilities management and healthcare services delivery. It would be important to understand that for healthcare firms to succeed, apart from the hard infrastructure, a vigorous soft (IE-motivated ‘mindset’) infrastructure is necessary. Difficulties definitely reside in securing hard assets, like physical infrastructure, healthcare equipment, technology, and others, but it is of paramount importance that an IE-oriented healthcare management ‘mindset’ is developed in parallel, if not first, fast. This would lead to industrial-scale management of healthcare, an existential need indeed for India. At an organizational level, this would result in increased productivity, with the present healthcare facilities’ capacity. Optimized production with the given organizational healthcare resource and capability constraints would be possible as well, as there would be reduced wastages in healthcare value addition processes. Further, elimination of NVA healthcare processes and increased efficiency and effectiveness of healthcare services would be possible. The cost of operations would be reduced, so as to deliver healthcare services at lower price points, and the time to deliver healthcare services would be reduced. Quality delivery of healthcare services over time across different facilities would also be possible. Finally, easy-to-experience healthcare services could be provided to consumers.
The combined effects of these benefits would result in substantive gains (Kondasani & Panda, 2015; Narayanamurthy et al., 2018; Nayak et al., 2018; Young & McClean, 2009). The aim of the study was to comprehend how an ‘IE’-based ‘mindset’ in healthcare provision could be developed among healthcare managers, hospital owners, administrators, and policymakers in India. First, an ‘intent’ has to be developed among the managers (Reyes-Rodriguez et al., 2013; Wheeler et al., 2010). Subsequent to that, the managerial intent has to be converted into organizational action through consistent behavioral change among the organizational actors (Dutton & Jackson, 1987; Ghoshal & Bartlett, 1994; Nadler & Tushman, 1990; Turner & Rindova, 2012). This was a conceptual treatise; however, future studies would be required to provide a theoretical explication regarding developing a ‘mindset’. Specific contributions would be required toward the ‘process of generation and development’ of ‘mindset‘, in this case that of an ‘IE’-based ‘mindset’ in the context of healthcare in India. This would thus help practitioners regarding the necessities for developing more enhanced and better-quality healthcare facilities through developing an appropriate managerial or administrative ‘mindset’. This study’s results shall be helpful for Indian society in general, because improvement of healthcare is a primary social welfare goal of any nation and very much so in the Indian context. Given the troubled times of COVID-19, such studies would provide timely insights regarding better provision of healthcare, which would be a win-win for all stakeholders. Studies on ‘IE’-based ‘mindset’ from a healthcare perspective have been very scarce. Given this backdrop, the authors posit that future studies on how to inculcate an IE-driven ‘mindset’ among healthcare executives in India is of paramount importance, and this conceptual study is the initial step on that path.
Footnotes
Declaration of Conflicting Interests
Funding
The authors received no financial support for the research, authorship, and/or publication of this article.
