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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).

Medicare Soon Won’t Pay Hospitals for Errors

CEO SUMMARY: CMS issued new rules, effective in October 2008, that it will no longer pay the extra cost of treating patients after preventable errors, infections, or injuries that occur in hospitals. It continues Medicare’s transformation from a “passive payer simply …

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Laboratory Error Results In Mistaken Mastectomy

CEO SUMMARY: In New York, because of a laboratory error and wrong diagnosis, a woman underwent a needless double mastectomy. In reporting the case, New York newspapers discovered another case of lab error and both women are suing the labs involved. Each case is a reminder that the public …

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Heeding the Lessons of Market Competition

COMPETITION FOR LAB TESTING DOLLARS IS THROWING NEW CURVEBALLS at both clinical labs and pathology group packages. Failure to spot these developments and respond to them now will have swift financial consequences. In this issue of THE DARK REPORT, readers will notice how we’ve identified market th…

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Quest South Florida Wins Governor’s Award for Quality

CEO SUMMARY: It’s an important milestone for the clinical laboratory profession. Quest Diagnostics Incorporated South Florida, based in Deerfield Beach, Florida, earned the 2007 Florida Governor’s Sterling Award for quality. This is only the second laboratory in this country to win a …

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Lean/Six Sigma in Labs Becomes More Common

CEO SUMMARY: Across healthcare, laboratories, hospitals, and health systems are leading the drive to incorporate quality management methods into clinical services and daily operations. This fall, in Atlanta, the Lab Quality Confab will provide a detailed look at this trend, with 50 speake…

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Recognizing Laboratory Leadership

WHEN LABORATORY CORPORATION OF AMERICA CLOSES ON THE SALE and becomes the owner of DSI Laboratories, Inc., of Fort Meyers, Florida, it will mark the end of one of the nation’s oldest hospital laboratory outreach programs. I consider this to be a good news/bad news…

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Global Laboratory Trends Dominated by Rising Costs and Labor Shortage

“The Web has transformed many industries and it’s clearly affected our industry. This trend will help raise the bar in quality and overall performance among laboratories and manufacturers.” —Jim Reid-Anderson Chairman, President, and CEO of Dade Behring…

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June 4, 2007 “Intelligence: Late Breaking Lab News”

When the Lab Quality Confab convenes in Atlanta on September 19-20, 2007, it will feature 40 speakers and sessions on how labs and pathology groups are using quality management methods to improve the performance of their lab organizations. If your laboratory would like to showcase its succes…

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Emerging Global Trends in How Labs Are Using “Distributed Computing”

“In several different countries, laboratories already use ‘distributed computing’, in the form of a single LIS data center that provides informatics services to as many as 25 laboratories in a region. The trend is to increase interoperability and portability of the i…

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May 14, 2007 “Intelligence: Late Breaking Lab News”

With so many baby boomers in lab management ranks making preparations for their retirement, a question now asked often is “what can I do as an encore?” Recently, THE DARK REPORT caught up with Dixie McFadden, who retired from her position as Laboratory Administrator at Kaiser Permanente N…

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