##### Question

In: Operations Management

# A medical facility was designed for 500 lab tests per day. Since this facility has been...

1. A medical facility was designed for 500 lab tests per day. Since this facility has been converted to do tests only for coronavirus, its effective capacity has been reduced to 450 tests per day. Its actual output based on the past 7 day’s data is 300 tests per day.
1. Calculate the efficiency and utilization of this facility. (20 Points)
2. What does this facility have to do to operate at 80% efficiency? (10 Points)
3. What do you think might be some factors that are contributing to a lower effective capacity? (10 Points)

## Solutions

##### Expert Solution

Given information is as shown under:

 Design Capacity = 500 lab tests per day Effective Capacity = 450 lab tests per day Actual output = 300 lab tests per day

 Efficiency =(Actual output/ Effective Capacity) Efficiency 66.67%
 Utilization =(Actual output / Design Capacity) Utilization 60.00%

For the facility to operate at 80% efficiency, the actual output has to increase.

Efficiency = (Actual output / Effective Capacity)

80% = (Actual Output / 450)

80/100 = (Actual Output / 450)

0.80 = (Actual Output / 450)

Actual Output = 0.80*450 = 360 lab test per day

Hence, Actual Output should be equal to 360 lab test per day for the facility to operate at 80% efficiency

Lower effective capacity could be because of the following factors:

• The facility is not able to conduct all kinds of tests (limited scope)
• Lesser number of total test required for coronavirus as compared to full scale testing of all ailments (the facility is equipped to test).
• Limited infrastructure to handle only one kind of test (as compared to full scale testing where the persons undergoing tests are distributed in various testing as per their requirement).

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