Re: Modelling the cost of quality

["William J. Latzko" <latzko@worldnet.att.net>]

At 23:02 6/29/1999 +0300, ANASTASIUS MOUMTZOGLOU wrote:
>I'm very much interested in modelling the cost of quality in health =
>care. However, I have not found any references on the subject except for =
>the Process Cost model, the Prevention Appraisal and Failure Model and =
>the CIMA model which are used by the industries.
>
>So, I'm wondering if there is anyone who is aware of any models with =
>respect to the cost of quality in health care?

I find this a strange request for the DEN. There are no real models that
include the customer cost (although Taguchi tries to introduce this) and
the cost due to employee frustration. I suggest that Professor Moumtzoglou
look at Deming's OUT OF THE CRISIS to see how the most important numbers
are unknown and unknowable. 

Should the question for health care be to use an organization cost
minimizing model or get the patient healthy? Deming's OUT OF THE CRISIS has
several areas devoted to health care including Dr. Sugiyama's use of a
control chart to determine when additional therapy will not help the
patient any further. This, not the supposed "cost of quality" should be the
driving force to improve health care.

By the way, I inadvertently used the words "cost of quality" in a not to Ed
Deming. Back came a response from him that said, "'Cost of quality', what
is that? I thought that costs go downwhen quality goes up!"

Bill Latzko
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[Moderator's Note:  As I criss-crossed the UK on my 3-week road trip - I
talked with many DENizens that I had not had the benefit to meet or that
I knew only as an e-mail address since they seldom or never posted.

One thread that was common to many of these informal chats was the need
for a less restrictive view of the philosophy that we study here.  By 1993,
Dr. Deming had spent much of his 93 years constantly developing his ideas
and philosophies.  Certainly, if he were still alive, his ideas would have
continued to evolve.

The noted discussions mentioned 3 concepts: quality awards, cost-of-quality,
and 6 sigma.  Each of these areas has continued to evolve as well and may
mean nothing similar to what they did 5 or 10 years ago.  I think that
Dr. Deming's disapproval for the term TQM was that it had no accepted
meaning - no operational definition.

So...  perhaps the good doctor might think differently in 1999??

For my purposes, both the DEN and I will remain firmly grounded in what Dr.
Deming wrote, as we all need a reference point -- but I will challenge
"old" ideas, just like he did.                   [soap box mode off]
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