Cost of quality vs Cost of Non quality.

1. Can Mercedes be
Economical
than Maruti-??
Dr. B.K.Gupta
Gupta Eye Hospital LLP, Panipat
bkgupta35@gmail.COM

2. Mercedes – A White Elephant???
MYTHS regarding costing of NABH
• Consultancy: 5 lac
• OT Renovation: 20 lac
• Hospital Renovations / modifications/ development: 1 lac
per bed
• Recurring expenses: Extra staff, Quality Managers, Safety
Managers, Legal Fees, Accreditation Fees/Renewal.
• Can a SHCO BEAR IT????

3. But it is a myth:
Quality is Economical: (Save on costing)
• Consultancy: Hire yourself.
• Read NABH guidelines again & again before renovations
• Plan recurring expenses as per your requirement; not as
per consultant's requirement

4. Increase your turn over
• Consider Quality expenses just like your land, building &
equipment expenses.
• Consider Recurring expenses like your advertisement
expenses.
• Turnover Addition by:
-New Clients- Empanelments
-More revisits due to patient satisfaction
-More charges due to better quality services

5. Cost of quality/Cost of poor quality
– Prevention Cost
– Appraisal Costs
– Internal Failures
– External Failures

6. Prevention Costs
• Defining your scope &
Quality policy
• Define specifications of
medicines & consumables
• Training of staff
• Preventive maintenance of
equipments
Apprasial Costs
• Appraisal of suppliers &
Service providers
• Appraisal of staff

7. Internal Failures
• Check before treating a
patient
• Pilling of stock & Scrap
• Re explorations
• Service failures &
equipment breakdowns
External Failures
• Deficiency discovered by
patient
• Loss of clientage
• Complaints & Litigations
• Compensations

8. Example…..
Item Quote Optimum
Consultancy 5 1
Renovations 20 5
Recurring expenses 5 1
Year -1 0 1
Fixed Assets 25 31
Recurring Expenses 10 11
Annual Turnover 25 25 50