STEN WESTGARD: Before you add an instrument, you're supposed to assess it and think about whether it fits in your laboratory. So, while a Three Sigma test may be less expensive initially, in the long run it may generate too many unreliable results. It's going to cause laboratories to do more recalibration, run controls and troubleshooting.
JAMES WESTGARD: There is a way that the industry looks at cost, which I call quality cost. It's the cost to prevent things from occurring, the cost to monitor and detect, the cost of failures. Those are internal failures that affect a laboratory and increase costs. The most expensive cost, however, is an external failure where you report wrong results, and those wrong results are acted on and the patient is misdiagnosed and mistreated. You only need to imagine one of those to realize that all the money you're spending in the lab to try to assure quality is probably less than that one cost to a patient who’s mistreated.
When we first started looking at this industrial model, we could easily demonstrate that the costs in the laboratory to do better quality control could be saved by reducing the false rejections, the repeat costs. Doing better quality control, managing the system more carefully, pays for itself. There's nothing mysterious about it. But it can be difficult to come up with the numbers because you can’t estimate the external failure costs, which are the biggest part of the cost. But by achieving strong Sigma performance laboratories can control costs by ensuring quality and, in turn, fewer or no instances of results leading to misdiagnoses.