. Oakwood Outpatient Clinic is analyzing its operation in an effort to improve p
ID: 364325 • Letter: #
Question
. Oakwood Outpatient Clinic is analyzing its operation in an effort to improve performance. The clinic Case: Biddy’s Bakery (BB) Biddy’s Bakery was founded by Elizabeth McDoogle in 1984. Nicknamed “Biddy,” Elizabeth started the home- style bakery in Cincinnati, Ohio, as an alternative to commercially available baked goods. The mission of Biddy’s Bakery was to produce a variety of baked goods with old-fashioned style and taste. The goods produced included a variety of pies and cakes and were sold to the general public and local restaurants. The operation was initially started as a hobby by Elizabeth and a group of her friends. Many of the recipes they used had been passed down for generations in their families. The small production and sales facility was housed in a mixed commercial and residential area on the first floor of “Biddy’s” home. Elizabeth (“Biddy”) and three of her friends worked in the facility from 6 a.m. to 2 p.m. making and selling the pies. The operation was arranged as a job shop with workstations set up to perform a variety of tasks as needed. Most of the customers placed advanced orders, and Biddy’s Bakery took pride in accepting special requests. The bakery’s specialty was the McDoogle pie, a rich chocolate confection in a cookie crust. Meeting Capacity Needs Initially sales were slow, and there were periods when the business operated at a loss. However, after a few years Biddy’s Bakery began to attract a loyal customer following. Sales continued to grow slowly but steadily. In 1994 a first floor storage area was expanded to estimates that a patient spends on average 31 hours 2 at the facility. The amount of time the patient is in contact with staff (i.e., physicians, nurses, office staff, lab technicians) is estimated at 40 minutes. On average the facility sees 42 patients per day. The standard has been 40 patients per day. Determine process velocity and efficiency for the clinic.
Explanation / Answer
IN 1994 FIRST FLOOR STORAGE WAS EXPANDED TO ESTIMATE THAT A PATIENT SPENDS AN AVERAGE OF 3.5 HOUR
THE AMOUNT OF PATIENTS ESTIMATED 40 MINUTES
AVERAGE FACILITATES PER DAY = 42 PATIENTS PER DAY
THE STANDARD OF PATIENTS PER DAY = 40
NOW
PROCESS VELOCITY= THROUGHPUT TIME / VALUE - ADDED TIME
IF PROCESS VELOCITY = 1.0, THROUGH PUT TIME = VALUE ADDED TIME OR NO WASTED TIME
IF PROCESS VELOCITY> 1.0 THROUGH PUT TIME > VALUE ADDED TIME OR NO WASTED TIME
IF PROCESS VELOCITY< 1.0 THROUGH PUT TIME < VALUE ADDED TIME OR NO WASTED TIME
THEN,
PROCESS VELOCITY= THROUGHPUT TIME / VALUE - ADDED TIME
3.5 HOURS * 60 MINUTES / 40 MINUTES
210 MINUTES / 40 MINUTES
5.25
AS THE THROUGH PUT TIME (CYCLE TIME) IS 5.25 TIMES GREATER THAN THE VALUE ADDED TIME
THERE IS WASTED TIME IN SYSYTEM
170(210-40 ) MINUTES = 2.8 HOURS ARE WASTED IN ACTIVITES ( WAITING)
WHICH DO NOT ADD VALUE TO THE PATIENT
NOW HOW TO CALUCLATE EFFICIENCY
EFFICIENCY= ACTUAL OUTPUT / STANDARD OUTPUT
42 PATIENTS PER DAY/ 40 PATIENTS PER DAY
= 1.05
THE CLINIC OUT PUT MEASURED IN TERMS OF NUMBER OF PATIENT SEEN IS 5% GREATER THAN THE STANDARD
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