Glenn Dental Clinic provides general dental care to residents of Philadelphia on

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 whethe Upon arrlval, customers first recelve a serles of paperwork from the receptionist and fill out relevant Information such as personal health records and Insurance provicer. The form ls then handed back to a receptionlst who enters the information into the computer system for the centist to see. A dental assistant then takes an X-ray from the patient. A dentist then performs the check-up and disousses any issues with the patient.Based on oonversations 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. There are ten dentists working at the clinic. Each check-up takes 30 minutes on average. · Table 1 summarizes the process data collected above.

Explanation / Answer

Answer: - Given data

Dentist get paid = $100 per hour and dental assistant = $ 30 per hour

a) Formula to calculate Labor content is the sum of processing time done by the staff. As we can see paper work is self-service so it is excluded from sum of processing time.

So, sum of processing times = 5 + 15 + 30 = 50 minutes per patient, because the process done by receptionists, dental assistant and dentist.

Labor content = 50 minutes per patient

b) Cost of direct labor is calculated using the payment done for dentist and dental assistant, receptionist.

Dentist cost = Number of workers * paid amount per hour

= 10 * 100 = $1000 per hour

Receptionist and dental assistant cost = Number of workers * paid amount per hour = (2 + 3) * 30 = 5 * 30 = $150 per hour

Total cost per hour = $1000 + $150 = $1150 per hour

We need to find cost of direct labor per patient for that formula is

= Total cost per hour / bottleneck process

Here bottleneck process = staff / processing time

For Receptionist => 2 / 5 = 0.4 patients per minute or 24 patients per hour

For Dental assistant => 3 / 15 = 0.2 patients per minute or 12 patients per hour

For Dentist => 10 / 30 = 0.33 patients per minute or 19.9 patients per hour

From the above analysis bottle neck process is Dental assistant with lowest service process.

So, Cost of direct labor = $1150 per hour / 12 patients per hour

= $95.83 per patient

Cost of direct labor = $95.83 per patient

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