In chapter 2, we talked about the customer value and its benefits. Most of us ha

Question

In chapter 2, we talked about the customer value and its benefits. Most of us have been involved in some sort of organization that used quantitative performance criteria. Here are some examples.

Traffic tickets issued per shift: This is a quota used by a handful of poorly-managed police departments.

Customer wait time: In a fast-food restaurant, the number of seconds between receiving a customer order (typing it into the register), and finishing the transaction (receiving payment and issuing the receipt).

Have you ever been a part of such an organization? Describe it. Describe the performance criteria that were in place. Were they closely monitored? Did they matter? Why or why not? (If you have not been a part of such an organization, feel free to tap into the experiences of a friend or family member who has.)

Explanation / Answer

The quantitative performance measure in a hospital setting which has inpatient facilities with a number of beds is the percentage utilization of the facilities or beds in the hospital.

Utilization (%) = (Number of beds occupied/Number of beds available)*100

This measurement helps in understanding whether the facilities of a hospital are properly utilized or additional accommodation needs to be provided if the number of patients is high compared to the number of beds.

The utilization was closely monitored and if there are more patients than the beds available consistently, the hospital can base its decision to increase the capacity.

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