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 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 7 minutes for a receptionist. There are 3 receptionists It takes 10 minutes on average for the dental assistant to take an X-ray. There are 3 dental assistants on shift at any moment. There are 12 dentists working at the clinic. Each check-up takes 30 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 Paperworlk Data Entry X-ray Check-up 3 10 12 30 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 $30 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 per patient

Explanation / Answer

A. Labour cotent is the time spent by labour working in the clinic on a single patient.

Time taken by receptionist = 7

Time taken by dental assistant = 10

Time by spent dentist = 30

Hence, labour Content = 7+10+30.

B. Cost of direct labour is the total cost incurred by all the employees per hour.

Cost of receptionist = 30 * 3 * 7/60 = $10.5

Cost of dental assistants = 30 * 3 * 10/60 = $15

Cost of dentists = 150 * 12 * 30/60 = $900

Cost of direct labour = 10.5+15+900 = 925.5

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