Lean Management and Six-Sigma yield big gains in hospital's immediate response laboratory. Quality improvement techniques save more than $400,000.

DSI Laboratories has used Lean and Six-Sigma methodologies to systematically eliminate waste and reduce variation in its hospital clinical laboratory. The net result was a savings of more than $400,000 in the first year. After mapping its process, the laboratory found that phlebotomists were submitting samples in large batches, which created an early-morning flood of specimens. Switching to single-piece workflow and distributing the workload more evenly allowed DSI to cover the same number of patients with two to three phlebotomists instead of 12. By establishing a more efficient workflow process within the laboratory, a single technologist could quickly move between stations and perform those tests that made up 80% of the work volume. New inventory management techniques reduced both excess inventory and the risk of shortages. Cost savings for the first year were: Reduced overtime spending by 60% ($78,000), Reassigned six phlebotomists for an annual savings of $160,000, 4.5 fewer technologist positions for a savings of $250,000.