Glenn Dental Clinic provides general dental care to residents of Philadelphia on
ID: 384835 • Letter: G
Question
Glenn Dental Clinic provides general dental care to residents of Philadelphia on a walk-in basis. The clinic has started receiving complaints from patients that the waiting time is too long and has asked you to investigate whether this problem can be solved Upon arrival, customers first receive a series of paperwork from the receptionist and fill out relevant information such as personal health records and insurance provider. The form is then handed back to a receptionist who enters the information into the computer system for the dentist to see. A dental assistant then takes an X-ray from the patient. A dentist then performs the check-up and discusses any issues with the patient.Based on conversations with staff members at the clinic, you have obtained the following information on the process It takes about 5 minutes for a customer to fill out the paperwork. Entry of information on the paperwork into the system and verification with past records takes another 5 minutes for a receptionist. There are 2 receptionists It takes 12 minutes on average for the dental assistant to take an X-ray. There are 5 dental assistants on shift at any moment. There are 12 dentists working at the clinic. Each check-up takes 35 minutes on average Table 1 summarizes the process data collected above Staffing (Number of Workers) Processing Time (Minutes per Patient) Resources Process A. Self-serve B. Receptionists C. Dental Assistant D. Dentist Paperwork Data Entry X-ray Check-up 2 35 Assume that there exists unlimited demand, unless otherwise stated. Assume further that the dentist gets paid $150 per hour while receptionist and dental assistant get paid $25 per hour Instruction: Round "cost of direct labor" to 2 decimal places a. What is the labor content? minutes per patient b. What is the cost of direct labor? ienExplanation / Answer
Labor content per patient
= Time spent by receptionist per patient + Time spent by dental assistant per patient + Time spent by dentist per patient
= 5 + 12 + 35 minutes
= 52 minutes
LABOR CONTENT WILL BE 52 MINUTES PER PATINET
Effective Processing time of each process will be defined as = Processing time per patient/ Number of workers
However , since Paperwork is a self serving process, effective processing time of PAPERWORK = 5 minutes per patient
Effective processing time of “Data entry” = 5/2 = 2.5 minutes / patient
Effective processing time of “X ray” = 12/5 = 2.4 minutes / patient
Effective processing time of “Check up” = 35/12 = 2.916 minutes/ patient
Thus the Bottleneck activity ( i.e. the activity with highest processing time ) is “Paperwork” with effective processing time of 5 minutes per patient.
The capacity of the overall process will be determined by the effective processing time of the bottleneck activity.
Thus capacity of the process = 5 minutes/ patient
In other words, hourly capacity of the process = 60/5 = 12 patients
Total labor cost
= Hourly wage of dentist x Number of dentists + Hourly wage of receptionist x Number of receptionists + Hourly wage of dental assistants x Number of dental assistants
= 150 x 12 + 25 x 2 + 25 x 5
= 1800 + 50 + 125
= $ 1975
Cost of direct labor = Total hourly labor cost/ Hourly capacity of the process = $1975/12 = $164.58
COST OF DIRECT LABOR = $164.58
LABOR CONTENT WILL BE 52 MINUTES PER PATINET
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