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Deming-Based Lean Six Sigma Management as an Answer to Escalating Hospital Costs

Summary: [This abstract is based on the authors' abstract.] Escalating hospital costs are a major issue confronting American society; one of the main sources is an outmoded management paradigm. This paradigm uses management by objectives to set objectives without regard to the causes of process variation, and enforces these objectives through the traditional performance appraisal system. A better paradigm is available for controlling hospital costs; it is called Deming-based Lean Six Sigma management.

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  • Topics: Best Practices, Lean, Six Sigma
  • Keywords: Management by objectives (MBO), Performance appraisals, Six Sigma, Hospitals, Cost management, Deming philosophy, Healthcare industry, Cultural change
  • Author: Gitlow, Howard S.; Gitlow, Abraham L.
  • Journal: Quality Management Journal