Management & Operations

Powerful Evidence Demonstrates That Lean Labs Consistently Outperform Conventionally-Managed Labs!

Pathologists and lab directors in conventional labs may be interested to learn that labs running Lean and Six Sigma programs are outperforming conventional labs on virtually every important performance measure. That's the result of a new analysis from 100 laboratories, including 14 Lean/Six Sigma laboratories. This assessment was developed by consultant Thomas P. Joseph, Managing Director of Management Insight, LLC  in Ann Arbor, Michigan.

The Dark Report is first to report these findings. In the current issue, published on January 21, 2008, an intelligence briefing provides clients and subscribers with the full details about this important lab industry study. The key conclusion is that, when the performance of Lean labs is compared with the performance of conventional labs, Lean labs are consistently more productive in how they use labor and equipment. They also provide improved service levels to customers.

In some of the most significant performance measures, Lean and Six Sigma laboratories document dramatically improved turnaround times (TAT), consistently producing common test results in much less than an hour. Lean and Six Sigma laboratories produce these outcomes while generating significantly fewer defects per million opportunities.

For labs seeking to contain salary costs, there is another important insight from this study. When compared to conventionally-managed laboratories, Lean and Six Sigma labs typically operate with 40% less technical staff in key testing work cells. Further, the Lean-Six Sigma laboratories have fewer outlier test results, according to Joseph.

"Lab managers pay close attention to outliers... because outliers (or excessive TATs) result in phone calls from medical staff demanding test results," observed Joseph. When Joseph compared outlier data from top conventional labs to that of Lean labs, he found Lean labs had about 1.0% to 1.9% outliers (beyond 45-minute TAT from receipt to verification). But, the top conventionally-managed laboratories had 2.6% to 6.4% outliers beyond 45 minutes. If each outlier result increases the odds of a call from medical staff, then conventional labs are generating measurably more phone calls about delays in turnaround time than is typical in Lean labs.

For any lab director who is still unconvinced of the value of Lean processes, "These numbers close the case," declared Joseph. "Further, because growing numbers of laboratories are taking steps to introduce Lean methods into their work process, I think it is safe to say that Lean has taken hold and will continue to make inroads into the lab industry."

In addition to collecting data on lab performance, Management Insight also offers a benchmarking service called Performance Insight which allows Joseph to compare lab performance in each segment of the value stream, including ordering, collecting, receiving specimens, analyzing, and reporting. The database includes more than 18 million performance measurements from laboratories covering the entire spectrum of institution and laboratory type and size and including such specialty labs as those serving ED, oncology, surgery, and clinics.

Dark Daily readers interested in reading the full coverage about the study comparing the performance differences between Lean-Six Sigma laboratories and conventionally-managed laboratories can obtain a complementary copy of January 21, 2008 issue of The Dark Report.  To obtain a copy, simply send an email requesting a copy to info@darkreport.com with a name and postal address for delivery. To contact Tom Joseph for information on the Management Insight benchmarking service, email tpjoseph@umich.edu.

Other articles in the January 21, 2008 issue of The Dark Report address the following important issues now faced by laboratories and pathology group practices:

• Efforts by labs to overturn the lab competitive bidding demonstration project in San Diego,
• A new molecular multiplex test for respiratory viruses,
• CMS' move to shine a spotlight on anatomic pathology services; and
• A report on the increase in national healthcare spending.

 

Current clients and subscribers to The Dark Report will receive this issue via regular mail.

Related Products:

Molecular Summit 2008(February 5-6, 2008)

Lab Quality Confab(coming September 24-25, 2008)