Cost of poor quality (CoPQ) helps labs quantify the financial implications of nonconforming events.
Use the calculator to determine the optimal allocation of funds to quality improvement.
Leverage CoPQ data to engage with the C-suite
Ultimately, quality programs are about reducing risk and improving patient safety.
Quality Officer
ARUP Laboratories
The cost of poor quality consists of all costs that would disappear if there were no deficiencies— no errors, no rework, no field failures, and so on.
Joseph Juran
Juran’s Quality Control Handbook1
Twenty dollars per lost tube seems small, but compounded over time it can have a large impact.
Core Lab Medical Director
Baylor University
Figure 1: Classical model of optimum quality costs1
The CoPQ calculator was designed to help laboratorians precisely and reproducibly identify and quantify costs associated with failures and rework. This can help them demonstrate an ROI for quality efforts, pinpoint the optimal investment and further make the case for additional funds if needed.
Figure 2: Typical relationship/progression of CoPQ8
Figure 3: Fishbone diagram for CoPQ components for test reruns
Based on actual components from the CoPQ Calculator.
Figure 4: Calculated hard and soft CoPQ costs for each nonconforming event tracked
Figure 5: Graphical representation of the hard costs, soft costs and total CoPQ
Once you calculate the cost of a single event, show the cumulative effect on lab finances. You can demonstrate a total impact far greater than what is often expected.
Jennifer Dawson, MHA, FACHE, CPHQ, LSSBB, DLM
Vice President, Quality & Regulatory
Human Longevity, Inc.
Finances grab attention. Start with finances, then drill down into everything else.
Patty Eschliman, MHA, MLS(ASCP)DLM, CPC
Laboratory Manager
St. Luke’s South Hospital
We plan to use this to help make the case for a well- funded quality department with the C-suite.
Executive Director for Laboratory Services
Froedtert Health and Wisconsin Diagnostic Laboratories
When we operated more efficiently and reduced our CoPQ, we were able to grow capacity without adding costs.
Executive Director for Laboratory Services
Froedtert Health and Wisconsin Diagnostic Laboratories
This concept is necessary because it makes lab leadership go to the table, speak up and take the first step that they have trouble taking.
Quality Management Manager
American Esoteric Laboratories
References:
Jennifer Dawson, MHA, FACHE, CPHQ, LSSBB, DLM
Vice President, Quality & Regulatory
Human Longevity, Inc.
Executive Director for Laboratory Services
Froedtert Health and Wisconsin Diagnostic Laboratories
Laboratory Medicine: Advancing Quality in Patient Care
By James Nichols, PhD, DABCC, FACB, MS; Sharon Ehrmeyer, PhD, MT(ASCP);Neil Greenberg, PhD, DABCC;Catherine A. Hammett-Stabler, PhD, DABCC, FACB, MS;Stephen Master, MD, PhD, FACB; and Roland Valdes, PhD, MS
Laboratory medicine is integrated into the daily practice of virtually every clinician.
What's Your CoPQ?: Quantifying the Value of Your Lab's Quality Program
By Jennifer Dawson,MHA,FACHE,DLM
The concept of quality in clinical laboratory operations is omnipresent, yet it is a nebulous term. All laboratory professionals agree that quality is important, but what does the term really mean, and how is it defined and measured?
Cost of Quality (COQ)
By Grace L. Duffy
Cost of poor quality (CoPQ): The costs associated with providing poor quality products or services.