ADental Clinic provides general dental care to local residents on a walk-in basi

Question

ADental Clinic provides general dental care to local residents 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 processing times and staff available for each position depicted on the table below. Process Staffing (Number of Workers) Processing time (minutes per patient) A. Self. Serve B. Receptionists C. Dental Asssistant D. Dentist Paperwork Data entry X-ray Check up 18 32 10 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 $50 per hour. a. What is the labor content? minutes per patient b. What is the Flow rate? patients per hour 5.33 b. Cost of direct labor dollars per patient

Explanation / Answer

a.Labor content is processing time that labor actually put in work.

It is 5+18+32 (data entry+xray+check up) = 55 mins per patient.

b. Flow rate implies how many patients are treated in given time that is per hour.

c. Cost of dentist per hour is $150 and there are 10 dentist hence total cost of dentist per hour is $1500.

Cost of assistant is $50 per hour and there are 5 assitants including receptionists hence total assitant labor cost is 50*5 = $250.

Total direct labor cost per hour is 1500+250 = $1750

And one patient gets treated in 60 minutes (including self help too) that is 1 hour.

Thus cost of direct labor (in dollars per pateint) = 1750*1 = $1750

$1750 is amswer.

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