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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).
Newsmaker Interview: Adam Slone, Tara Kochis
By Joseph Burns | From the Volume XX No. 13 – September 30, 2013 Issue
“When it comes to hiring senior leaders, labs today are more diligent in recruiting and interviewing candidates for key executive and management positions. One reason for this change is the shrinking financial margins at most labs.” …
Labs Push to Cut Costs As Budgets, Prices Shrink
By Robert Michel | From the Volume XX No. 11 – August 13, 2013 Issue
CEO SUMMARY: Cost-cutting is now the prime directive at progressive labs because nearly every laboratory organization in the United States is under sustained financial pressure. This is due to shrinking budgets for hospital labs and more aggressive price-cutting by private payers. Even Ob…
Standard Bar Code Labels Can Reduce Lab Errors
By Joseph Burns | From the Volume XX No. 6 – May 6, 2013 Issue
CEO SUMMARY: Standardization of bar code labels is a concept whose time has come. After implementing CLSI standard AUTO12-A, first-mover clinical labs report fewer specimen identification errors, a reduction of costs associated with specimen handling errors, and a boost in lab productivit…
2012’s Top Ten Lab Stories Predict More Challenges
By Robert Michel | From the Volume XIX No. 18 – December 31, 2012 Issue
CEO SUMMARY: It’s been a year with more lows than highs, when viewed through the lens of THE DARK REPORT’S “Top Ten Lab Stories of 2012.” The end of the TC grandfather clause, new policies for prostate biopsy billing, and a dramatic 52% cut to 88305- TC fees were widely reported. …
First-Mover Labs Reveal Success with Lean & QMS
By Robert Michel | From the Volume XIX No. 16 – November 19, 2012 Issue
CEO SUMMARY: There is good news for those clinical labs and pathology groups currently operating robust Lean, Six Sigma, and process improvement programs. The Institute of Medicine’s new report calls for all healthcare providers to rapidly transform themselves into ‘continuously learn…
October 29, 2012 “Intelligence: Late Breaking Lab News”
By Robert Michel | From the Volume XIX No. 15 – October 29, 2012 Issue
OURLab and its parent company, Prost Data, Inc., of Nashville, Tennessee, entered into an agreement to be sold to Opko Health Inc., of Miami, Florida. The purchase price of $40 million will be paid as $9.4 million in cash and $30.6 million in stock. …
IOM Endorses Continuous Improvement, Lean
By R. Lewis Dark | From the Volume XIX No. – October 8, 2012 Issue
IT IS ONE OF THE IRONIES OF HEALTHCARE that it has taken the prestigious Institute of Medicine (IOM) more than three decades to fully recognize the necessary and essential role that continuous improvement and the associated disciplines of Lean, Six Sigma, and process improvement must…
Process Improvement Coming to Healthcare
By Robert Michel | From the Volume XIX No. – October 8, 2012 Issue
CEO SUMMARY: One new byword coming to healthcare in the United States is the “continuously-learning healthcare system.” At the upcoming Lab Quality Confab in San Antonio next month, lab managers and pathologists can learn more about how to achieve and sustain continuous improvement in…
Narrower Provider Networks Topic during Quest Conference Call
By Robert Michel | From the Volume XIX No. 12 – August 27, 2012 Issue
SINCE MAY 1, 2012, the nation’s largest clinical laboratory company has had a new CEO, who is Stephen H. Rusckowski. The company’s second quarter conference call provided an opportunity to learn more about how he views Quest Diagnostics Incorporated. Conducted on July 19, the fi…
Sarasota Hospital Lab Reduces Number of Hemolyzed Specimens
By Joseph Burns | From the Volume XIX No. 7 – May 14, 2012 Issue
CEO SUMMARY: Seeking to improve turnaround time for stat lab tests, the laboratory at Sarasota Memorial Health Care System identified high rates of hemolysis as the chief reason for less than ideal TAT. Because 32% of blood draws were handled by the lab’s phlebotomy staff while 68% of b…
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