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Analysis Question 1 Identify the bottleneck activity, and show how capacity can be increased by using only 2 pharmacists and 2 technicians. Health Maintenance -HMO pharmacy's peak hrs are from10am -3pm
-An assembly line fashion w/ 2 technicians & 3 pharmacists
-After 5pm, staff are reduced to 1 pharmacist & 1 technician
-Pharmacy is staffed with 5 person on duty until 5pm
- Waiting time are increased and prescriptions would be backed up
-Complaining that waiting time exceeds 1 hr - Ability to diagram a process, the bottleneck operation, & determine the system capacity are the fundamental skills in managing service operation & making improvements Process Terminology Cycle Time (CT)
- avg. service time to perform activity
-factor that limits production
- usually is the slowest operation
- constraint on the output of the system could arise from labor availability, info, & rate of customers arrivals
-measure of output per unit of time when busy Process Terminology Cont. Process Terminology Cont. - Administrator wants to open up a new clinic in Austin, Texas
-There are problems to solved with the original clinic located in NY & want to solve it before opening the new clinic HMO B CASE STUDY Organization
B Resources Answer to question 1 By: Long Vu, Erica Chan, Rhea Victor, John Dang, Jimmy Ma, & Michael Trach Continue... Activity Time in Seconds
Receive Prescription 24
Type labels 120
Fill Prescription 60
Check Prescription 40
Dispense Prescription 30 Answer to Question #2 Benefits allows the pharmacy to be staffed at half the capacity by assigning only one team of clerk & pharmacist during low demand periods. During high demand periods another clerk & pharmacist team can be scheduled and paid on a part-time basis to save on personnel costs. Question 2 In addition to savings on personnel costs, what benefits does this arrangement have? 1 2 3 4 150 24 30 120 60 60 90 40 Inv. Out 1,2 25 144 1,2 25 144 4,5 51 60 3 60 70 Inv. Out 5 120 30 * * Capacity Utilization
-a measure of how much output is actually achieved relative to the process capacity when fully busy Throughput Time
- time it takes to complete a process from time of arrival to exit
- sum of critical path operation times Throughput Formula Throughput time = Process time + Inspection time + Move time + Queue time Process Terminology Cont. Rush Order Flow Time
-the time it takes to go through the system from beginning to end without any time in queue Total Direct Labor Content
- is the sum of all operations times (touch time) summed in performing the service An ellipse represents a start or stop in a process A rectangle represents a process or action step Terminator Operation Decision A diamond represents a question or branch Wait A triangle represents a delay or inventory of goods An arrow shows movement of customers, goods, or information Flow Flowcharting Process Terminology Cont. Direct Labor Utilization
- is a measure of the percentage of time that workers actually contribute value to a fully busy service organization Formula Total direct labor content Direct Labor Utilization= _____________________________ (Process cycle time)(Number of workers) CT= 120 seconds
(60 seconds/ 1 minute)(1/ 120 seconds)= 1/2
or .5 applications per minute or 30 applications per hour