Question

In: Operations Management

A capacity constrained hospital outpatient laboratory services operation requires that 4 consecutive activities be performed on...

A capacity constrained hospital outpatient laboratory services operation requires that 4 consecutive activities be

performed on each patient.. The activity times and number of workers for each of the four activities are given below.

Each worker makes $15/hr. including benefits:

Activity                                    activity time (minutes/patient)                        No. workers assigned

1 reception                             10                                                        1

2 registration                          14                                                        1

   3 lab procedure                    18                                                        1

4 consult & discharge             12                                                        1

A) What is the capacity (in patients/hour ) of the hospital outpatient laboratory services operation

B) What is the bottleneck activity?

C) What is the direct labor cost per patient?

Solutions

Expert Solution

Bottleneck activity governs the capacity of the operation.

A bottleneck is an activity with maximum activity time

As seen, Maximum activity is for Lab procedure = 18 minutes

Hence, capacity in patients / hour = 1 hours / bottleneck time = 60 minutes / 18 minutes = 3.33 patients per hour

A) The capacity (in patients/hour ) of the hospital outpatient laboratory services operation = 3.33 patients / hour

B) As seen from above, Activity C is the bottleneck.

C) Total direct cost per patient = Total cost per hour / capacity = No. of workers per hour * Wage / capacity = 4 * 15 / 3.33 = $18 per worker

The direct labor cost per patient = $18

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