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Six Sigma

Six Sigma, like Lean, is used to improve the quality and efficiency of operational processes. During the past decade, these process improvement techniques increasingly have been applied outside of the manufacturing sector, for example, in healthcare.

While Lean focuses on identifying ways to streamline processes and reduce waste, Six Sigma aims predominantly to make processes, such as those used in clinical laboratories and pathology group labs, more uniform and precise through the application of statistical methods.

Along with Lean, this process improvement technique has become popular with labs as a way to streamline laboratory processes, reduce costs, increase productivity, and improve quality in a time when labs are increasingly pressured by downward price trends for lab tests. At the same time, labs are able to increase value offered to “customers,” that is, patients.

The principles of a Six Sigma-based system were originally developed by Bill Smith of Motorola in 1986 as a way of eliminating defects in manufacturing, where a defect is understood to be a product or process that fails to meet customers’ expectations and requirements. The name refers to a quality level defined as the near-perfect defect rate of 3.4 defects per million opportunities. As a process improvement strategy, it gained much attention through its association with General Electric and its former CEO Jack Welsh.

Six Sigma also involves the training and certification of designated process specialists (called black belts, green belts, or other similar titles) within organizations to help guide Six Sigma improvement efforts. Other distinctive features include the expectation that process quality improvements be translated into financial metrics to assess value and the active involvement of top management in all initiatives.

Six Sigma is often combined with Lean management techniques to produce a methodology that relies on a collaborative team effort to improve performance by systematically removing waste (Lean) as well as defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion and extra-processing (Six Sigma).

National Lab Standards Coming For Patient Safety

CEO SUMMARY: Because lab test data plays such an important role in medical decision-making, the Centers for Disease Control and Prevention (CDC) has launched a national effort to evaluate the quality of clinical and public health laboratories. In forming a Quality Institute, the goal is t…

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Gauging The Impact Of Lab Patient Safety

CEO SUMMARY: Within 18 months, the Laboratory Quality Institute plans to issue a national report on the quality of laboratory services. Not only will this bring a new level of public attention and scrutiny to clinical laboratory operations, but it will require everyone involved in deliver…

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First ISO-Designed Clinical Lab Improves Outcomes, Costs

CEO SUMMARY: In the first 14 months of operation, Kaiser Permanente Northwest’s new automated regional laboratory facility, the nation’s first designed by an ISO-9000-certified lab organization, is yielding big gains in both productivity and outcomes. In its high-volume core lab, prod…

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Kaiser Permanente NW Incorporates ISO-9000 In Regional Lab Design

CEO SUMMARY: After achieving its ISO-9000 certification, Kaiser Permanente Northwest’s laboratory division accomplished another distinction. It became the first lab in the nation to use the principles of ISO-9000 to design, build and operate a new, state-of-the-art, automated laboratory…

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Boost for Labs: Study Reveals Big Care Gap

CEO SUMMARY: This research project involved 13,000 patients and a detailed review of medical records. The startling conclusion: the health system provides proper diagnosis and treatment only 55% of the time! Because of the study’s depth, it provides a compelling argument that the nation…

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New Lab Management Directions Now Visible

CEO SUMMARY: Seat-of-the-pants laboratory management is on its way out, replaced by numbers-driven methods. Judging by the presentations given at this year’s Executive War College on Lab and Pathology Management, a growing number of laboratory administrators and pathologists are activel…

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Why Patient Safety Is Change Agent for Labs

CEO SUMMARY: In the 1990s, managed care was the dominant change agent to the nation’s healthcare system. During the 2000s, it will be patient safety. However, unlike the unpleasant consequences of HMOs, capitation, and utilization risk, patient safety will prove to be a benevolent trend…

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Quest Ready to Move on Unilab, Announces Its 2002 Earnings

PERSISTENCE IS ABOUT TO PAY OFF for Quest Diagnostics Incorporated. After ten months of effort, it expects to finalize its acquisition of Unilab Corporation within weeks. But the Unilab acquisition soon to close looks different than the acquisition that was original…

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New Trends in 2003 Affect Clinical Lab Services

CEO SUMMARY: Here’s our current list of macro trends that affect clinical laboratories, updated from the last list in January 2000. One bold prediction is that Medicare, as we know it, is on the verge of a major meltdown. Employers and consumers are also new forces to be reckoned with b…

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Several Major Surprises Mark Events of 2002

CEO SUMMARY: It was a year when the two blood brothers got much bigger and expanded market share by buying their largest competitors. With patient safety as the goal, employers began active steps to force hospitals, physicians, and other healthcare providers to use quality management syst…

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