understanding cost of quality in laboratory

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quality cost money, but not having quality costs even more in laboratory service

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Understanding the cost of Quality in the Laboratory:

Understanding the cost of Quality in the Laboratory Prof. Ashok Rattan, MD, MAMS, INSA DFG, WHO Lab Director Academics, Industry: Research, Diagnosis, Public Health, Academics Adviser: Laboratory Operations, Pathkind Labs.

Traditional Thinking:

Traditional Thinking Value = output [product or services produced] Inputs [resources used] Cost value scenario Test cost Test reimbursement calculation value Positive cost value (gain) 100 200 200/100 2 Negative cost value (loss) 100 50 50/100 0.5

Research based Evidence indicate that due to:

Research based Evidence indicate that due to New technologies that have reduced human failures Automation has reduced human errors Delta checks & auto-verification has optimized human resources time utilization Small increase in Preventive & Appraisal cost can quickly reduce both failure costs & total quality costs Further along the lab workflow the Failure is detected, the greater would be the cost

Effect of Six Sigma on Revenue:

Effect of Six Sigma on Revenue

Philip Crosby:

Philip Crosby Good things only happen when planned Bad things happen on their own Quality is Free It is not a gift, but it is free What costs is the un-qualit y things that we do, where we Repeat tests Revise results Replace samples and redo All that costs money

Cost cutting mantra in the Lab :

Cost cutting mantra in the Lab Doing the Right thing Right, First Time & Every Time Anything else will cost MORE

Types of Quality costs:

Types of Quality costs

Types of Quality Cost:

Types of Quality Cost Preventive costs Appraisal costs Failure costs Internal Failure External Failure

Preventive cost:

Preventive cost Those associated with laboratory activities specially designed to prevent poor quality in laboratory services for occurring in the first place John F Kennedy : The time to fix the house roof is when the Sun is till shining. Periodic planning of quality goals & objectives Work process training with competency assessment Assessment of supplier capability Validation or verification of new or changed laboratory tests/processes Quality management & improvement activities

Preventive Costs:

Preventive Costs

Preventive Costs:

Preventive Costs

Preventive Costs:

Preventive Costs

Examples of Preventive Laboratory Costs:

Examples of Preventive Laboratory Costs

Examples of Preventive Laboratory Costs:

Examples of Preventive Laboratory Costs

Examples of Preventive Laboratory Costs:

Examples of Preventive Laboratory Costs

Examples of Preventive Laboratory Costs:

Examples of Preventive Laboratory Costs

Preventive Costs:

Preventive Costs Periodic Planning of Quality Goals & Objectives Work process training with initial competency assessment Assessment of supplier capability Preventive Maintenance Validation or verification of new or changed laboratory tests or processes Quality Management & continually improvement activities

Appraisal Cost:

Appraisal Cost

Appraisal Cost:

Appraisal Cost

Appraisal Cost:

Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost

Examples of Laboratory Appraisal Cost:

Examples of Laboratory Appraisal Cost Surveying customers & users Conducting ongoing competence assessment Calibrating measuring instruments & equipment Inspecting samples at receipt & at examinations Performing & reviewing IQC before running patient samples Participation in PT Measuring relevant Quality Indicators Conducting internal audits Participating in external lab inspection & accreditation

Failure Costs:

Failure Costs

Examples of Laboratory Internal Failure costs:

Examples of Laboratory Internal Failure costs

Examples of Laboratory Internal Failure costs:

Examples of Laboratory Internal Failure costs

Examples of Laboratory Internal Failure costs:

Examples of Laboratory Internal Failure costs

Examples of Laboratory Internal Failure costs:

Examples of Laboratory Internal Failure costs

Examples of Laboratory External Failure costs:

Examples of Laboratory External Failure costs

Examples of Laboratory External Failure costs:

Examples of Laboratory External Failure costs

Examples of Laboratory External Failure costs:

Examples of Laboratory External Failure costs

Examples of Laboratory External Failure costs:

Examples of Laboratory External Failure costs

Expenses for Rectifying Quality Problems: Failure costs:

Expenses for Rectifying Quality Problems: Failure costs Internal Failure costs Samples problems in the pre examination phase Insufficient or expired reagents or supplies Rework, repair, retesting, reinspection Wasted blood or blood components Downtime of equipment due to breakdown External Failure costs Lost reports Reporting errors Customer’s complaints Misdiagnosis lawsuits

Slide44:

If you donot have the time to do it right the first time When will you have the additional time & resources to do it right ?

The Cost of Quality:

The Cost of Quality

The Cost of Quality:

The Cost of Quality

Slide55:

Pathkind Labs Quality Policy   P athkind Labs will provide innovative, high quality medical diagnostic results that meet or exceed our customers’ requirements, the expectations of the health care community and the needs of the patients for whom the tests are designed.   We are acutely aware that our patients and physicians are depending upon us to produce accurate, complete and timely laboratory results. We will never forget that each specimen represents a person awaiting a laboratory report that they can trust to help in making important healthcare decisions. All staff members of Pathkind Labs would strive to Do the Right thing Right, the First time & Every time.   (Sanjeev Vashishta ) MD & CEO August 2017

Doing the Right thing Right, First time & Every Time:

Doing the Right thing Right, First time & Every Time

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