In: Operations Management
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?
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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