Question

In: Accounting

Marcus Simmons caught the flu and needed to see the doctor. Simmons called to set up...

Marcus Simmons caught the flu and needed to see the doctor. Simmons called to set up an appointment and was told to come in at 1:00 P.M. Simmons arrived at the doctor's office promptly at 1:00 P.M. The waiting room had 5 other people in it. Patients were admitted from the waiting room in FIFO (first-in, first-out) order at a rate of 5 minutes per patient. After waiting until his turn, a nurse finally invited Simmons to an examining room. Once in the examining room, Simmons waited another 5 minutes before a nurse arrived to take some basic readings (temperature, blood pressure). The nurse needed 10 minutes to collect this clinical information. After the nurse left, Simmons waited 30 additional minutes before the doctor arrived. The doctor diagnosed the flu and provided a prescription for antibiotics, which took 5 minutes. Before leaving the doctor's office, Simmons waited 10 minutes at the business office to pay for the office visit.

Simmons spent 5 minutes walking next door to fill the prescription at the pharmacy. There were four people in front of Simmons, each person requiring 5 minutes to fill and purchase a prescription. Simmons arrived home 15 minutes after paying for his prescription.

a. What time does Simmons arrive home?
3:10 p.m.

b. How much of the total elapsed time from 1:00 P.M. until when Simmons arrived home was non-value-added time?

Total elapsed time minutes
Non-value-added time minutes

c. What is the value-added ratio? Round your percent to one decimal place.
%

d. Which of the following statement is correct?
All of the above.

Solutions

Expert Solution

Simon arrived at 1:00 P.M.
Then waited for 25 min (5 patients * 5 min. per patient)
Time will be 1:25 P.M.
Waited another 5 minutes before nurse arrived.
Time will be 1:30 P.M.
Nurse take 10 min. to collect the information.
Time will be 1:40 P.M.
Simmons waited 30 additional minutes before the doctor arrived.
Time will be 2:10 P.M.
Doctor took 5 min.
Time will be 2:15 P.M.
Simmons waited 10 minutes at the business office to pay for the office visit.
Time will be 2:25 P.M.
Simmons spent 5 minutes walking next door to fill the prescription at the pharmacy.
Time will be 2:30 P.M.
Simon waited 20 min (4 people * 5 min.) to fill and purchase a prescription and himself take 5 min also.
Time will be 2:55 P.M.
Simmons arrived home 15 minutes after paying for his prescription.
Time will be 3:10 P.M
a). Hence Simon will arrive home at 3:10 P.M.

b). Total Elasped Time = 3:10 P.M. - 1:00 P.M. = 2 hours 10 minutes.
Non Value added Time = 1 hour 50 minutes.

c). Value added time -= 20 minutes
Value added ratio = 20 minutes / 2 hours 10 minutes = 15.38%


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