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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).
Quiet Changes To Ripple Drugs-of-Abuse Market
By Robert Michel | From the Volume IX No. 17 – December 9, 2002 Issue
CEO SUMMARY: Drugs-of-abuse (DOA) testing is an intensely-competitive market poised for significant change. Historically, national lab companies have been the major players and used rock-bottom prices to control the nation’s biggest corporate DOA clients. But since this line of testing …
“December 9, 2002 Intelligence: Late Breaking Lab News”
By Robert Michel | From the Volume IX No. 17 – December 9, 2002 Issue
This morning AmeriPath, Inc. announced that it would be purchased by Welsh Carson Anderson & Stowe, a private equity firm based in New York City. Welsh Carson will pay $21.25 per share, a 30% premium over AmeriPath’s closing NASDAQ price of $16.45 on Friday, Decemb…
Academic Center Lab Implementing Six Sigma
By Robert Michel | From the Volume IX No. 16 – November 18, 2002 Issue
CEO SUMMARY: Fairview-University Medical Center’s laboratory may be the nation’s first academic center laboratory to deploy Six Sigma and Lean management systems. Administration expects Six Sigma to accelerate the rate at which improvements in quality and productivity can be realized….
Major Changes at Dade Behring Soon to Be Visible In Lab Market
By Robert Michel | From the Volume IX No. 15 – October 28, 2002 Issue
Its recent financial restructuring now complete, Dade Behring prepares a “brand building” campaign CEO SUMMARY: Dade Behring is poised to become a tough and high-profile competitor in the laboratory diagnostics marketplace. Earlier this month,…
Ken Freeman Discusses Plans to Integrate AML and Unilab
By Robert Michel | From the Volume IX No. 6 – April 22, 2002 Issue
CEO SUMMARY: Once again, Ken Freeman and Quest Diagnostics Incorporated is altering the national market for clinical laboratory testing. By acquiring American Medical Laboratories and Unilab, the nation’s largest lab company is expanding its presence in California, Nevada, and Washingto…
First-Ever “Black Belt” Certified In an American Hospital Lab
By Robert Michel | From the Volume IX No. 5 – April 1, 2002 Issue
IT WAS A BIG DEAL in the laboratory of Grant Riverside Hospital of Columbus, Ohio when Lab Site Manager Sandra Hood received her certification as a Six Sigma Black Belt on January 23, 2002. That’s because hospital administrators had selected the laboratory to be hospital’s guine…
Provider Performance Ranking Now Hitting Healthcare System
By Robert Michel | From the Volume IX No. 2 – January 28, 2002 Issue
CEO SUMMARY: When 96 big corporations, employing 28 million people and spending $52 billion on healthcare, begin publishing hospital performance measurements so their employees can make informed choices, that’s big news! THE DARK REPORT predicts this is a major step toward detailed meas…
“Lean” Management Helps Bay Care’s Lab Boost Quality
By Robert Michel | From the Volume VIII No. 14 – October 15, 2001 Issue
CEO SUMMARY: All laboratory managers and pathologists face the same challenge: do more testing with less money. This challenge is further complicated by the fact that there are inadequate numbers of trained laboratory professionals available to staff the nation’s laboratories. Now, earl…
Changing Lab Industry Trends Identified at War College
By Robert Michel | From the Volume VIII No. 7 – May 21, 2001 Issue
CEO SUMMARY: Clinical laboratories and pathology group practices are beginning to respond to a new set of marketplace trends. Speaker after speaker at this EXECUTIVE WAR COLLEGE included new business strategies not heard in past years. Probably the most notable difference is a growing emp…
Public Labs Enjoy Boom Times As Revenues & Profits Climb
By Robert Michel | From the Volume VIII No. 7 – May 21, 2001 Issue
TAKEN COLLECTIVELY, second quarter earnings reports by public lab and pathology companies send a strong message: the lab industry is in the midst of a revenue and profit boom. It’s been more than a decade since every public lab and pathology company reported strong growth in both revenues and oper…
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