Question 5) Consider the process introduced in Question-4. You are provided with additional information: The hospital expects the demand to increase. A patient brings $4000 in revenue, on average. The hospital is investigating potential process improvements and considers the following options to increase the daily process capacity. The hospital wants to determine which option will have higher benefit (measured by total revenue minus the total variable costs).

Option-A: Let the anesthesiologist use the room to administer anesthesia so the 15 minutes of the operating room is now freed, and the anesthesiologist stays only for 30 minutes during the surgery instead of the current practice of 45 minutes.

Option-B: Hospital decides to add another operating room which costs $1000/hr and the anesthesiologist stays only for 30 minutes of each surgery instead of the current 45 minutes on the average. You can ignore the fixed cost of constructing a new operating room. a) (15 points)

Complete the table below to provide decision support to Eagle Dental Clinic management. Options Resulting process capacity (patients per hour) Resulting bottleneck resource(s) Total benefit ($ per day) in a 10-hour day (Total revenue per day Total variable cost per day) No change A B

b) (6 points) Which option is the best? Explain clearly, and make sure your recommendation and justification are supported by calculations. (For simplicity, you can assume that peak demand hours constitute the vast majority of their business and can ignore any potential impact on the slower hours.)

Question 4 has been done. Numbers given:

Question 4. (14 points) AUGeneral provides simple elective hernia surgeries to residents of Washington, D.C. Lately, the hospital started to hear complaints that the wait times are long and has asked you to investigate this issue. After arriving, patients receive a form from the receptionist and fill in their health history and insurance information. This task does not affect the capacity of the process. The form is then handed back to the receptionist who enters this information into the electronic health record system on the computer. Then, a nurse takes the patient to an examination room to prepare (i.e., take the vitals, give medication) them for the surgery. Then, the patient is brought to the operating room (op.room) in which an anesthesiologist performs general anesthesia to put the patient to an unconscious state. Currently, the anesthesiologist accompanies the patient till the surgery ends. After the patient is ready, the surgery starts. After the surgery, the patient is taken to a recovery room and the patient is attended by a nurse. The patient checks out once they are well enough to leave the facility. The following table shows the average time required to complete each task and the corresponding resources associated with each task: Task Check-in Average Time (minutes) 3 12 Resources Receptionist Nurse, Exam Room Anesthesiologist, Op. Room Anesthesiologist, Surgeon, Nurse, Op. Room Nurse, Recovery Room Receptionist 15 Preparation Anesthesia Surgery Recovery Check-out 45 25 5 There are 1 receptionist, 4 nurses, 2 exam rooms, 2 anesthesiologists, 2 surgeons, 2 op.rooms and 2 recovery rooms in the hospital. Question-5. (21 points) Consider the process introduced in allestion-4. You are provided with additional information: The hospital expects the demand to increase. A patient brings $4000 in revenue, on average. The hospital is investigating potential process improvements and considers the following options to increase the daily process capacity. The hospital wants to determine which option will have higher benefit (measured by total revenue minus the total variable costs). Option-A: Let the anesthesiologist use the exam room to administer anesthesia so the 15 minutes of the operating room is now freed, and the anesthesiologist stays only for 30 minutes during the surgery instead of the current practice of 45 minutes. Option-B: Hospital decides to add another operating room which costs $1000/hr and the anesthesiologist stays only for 30 minutes of each surgery instead of the current 45 minutes on the average. You can ignore the fixed cost of constructing a new operating room. a) (15 points) Complete the table below to provide decision support to Eagle Dental Clinic management. Options Resulting process capacity Resulting bottleneck (patients per hour) resource(s) Total benefit ($ per day) in a 10-hour day (Total revenue per day - Total variable cost per day) No change A B B b) (6 points) Which option is the best? Explain clearly, and make sure your recommendation and justification are supported by calculations. (For simplicity, you can assume that peak demand hours constitute the vast majority of their business and can ignore any potential impact on the slower hours.) Question 4. (14 points) AUGeneral provides simple elective hernia surgeries to residents of Washington, D.C. Lately, the hospital started to hear complaints that the wait times are long and has asked you to investigate this issue. After arriving, patients receive a form from the receptionist and fill in their health history and insurance information. This task does not affect the capacity of the process. The form is then handed back to the receptionist who enters this information into the electronic health record system on the computer. Then, a nurse takes the patient to an examination room to prepare (i.e., take the vitals, give medication) them for the surgery. Then, the patient is brought to the operating room (op.room) in which an anesthesiologist performs general anesthesia to put the patient to an unconscious state. Currently, the anesthesiologist accompanies the patient till the surgery ends. After the patient is ready, the surgery starts. After the surgery, the patient is taken to a recovery room and the patient is attended by a nurse. The patient checks out once they are well enough to leave the facility. The following table shows the average time required to complete each task and the corresponding resources associated with each task: Task Check-in Average Time (minutes) 3 12 Resources Receptionist Nurse, Exam Room Anesthesiologist, Op. Room Anesthesiologist, Surgeon, Nurse, Op. Room Nurse, Recovery Room Receptionist 15 Preparation Anesthesia Surgery Recovery Check-out 45 25 5 There are 1 receptionist, 4 nurses, 2 exam rooms, 2 anesthesiologists, 2 surgeons, 2 op.rooms and 2 recovery rooms in the hospital. Question-5. (21 points) Consider the process introduced in allestion-4. You are provided with additional information: The hospital expects the demand to increase. A patient brings $4000 in revenue, on average. The hospital is investigating potential process improvements and considers the following options to increase the daily process capacity. The hospital wants to determine which option will have higher benefit (measured by total revenue minus the total variable costs). Option-A: Let the anesthesiologist use the exam room to administer anesthesia so the 15 minutes of the operating room is now freed, and the anesthesiologist stays only for 30 minutes during the surgery instead of the current practice of 45 minutes. Option-B: Hospital decides to add another operating room which costs $1000/hr and the anesthesiologist stays only for 30 minutes of each surgery instead of the current 45 minutes on the average. You can ignore the fixed cost of constructing a new operating room. a) (15 points) Complete the table below to provide decision support to Eagle Dental Clinic management. Options Resulting process capacity Resulting bottleneck (patients per hour) resource(s) Total benefit ($ per day) in a 10-hour day (Total revenue per day - Total variable cost per day) No change A B B b) (6 points) Which option is the best? Explain clearly, and make sure your recommendation and justification are supported by calculations. (For simplicity, you can assume that peak demand hours constitute the vast majority of their business and can ignore any potential impact on the slower hours.)