[SOLUTION] Operations and Supply Chain Management

All details are in attachments and below.Your report should be a minimum of 6 pages and no longer than 8 pages, including all figures and tables (Times New Roman 11 pt., single spaced, 2 cm margins), including tables, figures, charts, etc. with answers to case questions. Use clear tables to document your answers.Grading criteria will include, but will not be limited to:1) accuracy and clarity of presentation for the quantitative results2) quality and thoughtfulness/thoroughness of qualitative answers3) appropriate application and original thought4) organization and structure of the documentsQuestion 1.- Help Dr. Horgan evaluate the current situation at Costmetic Clinic. Using the Tasks and Times (Figure2), calculate the capacity utilization for each category of staff(Receptionist, PCR, Technician, Staff Surgeon, and Cleaner) and for the pre-op, surgical and examination rooms. Don’t forget that Horgan needs to use this information to make an expansion decision, so take into account what makes sense for this decision.Hint: use the data given in the table and calculate the yearly capacity as• Annual non-surgeon minutes capacity = 5 days * 48 weeks * 9 hours * 60 min• Annual surgeon capacity = 5 days * 48 weeks * 8 hours * 60 min• Rooms are available for 10 hours a day.In your report clearly show how you calculate each of the 8 utilizations. You will not receive creditif the calculation is not clear in the report, including all the individual times you have used tocalculate the utilization.>> 2 points each (5 staff types, 3 room types), total of 16 pointsQuestion 2-a) By what percentage would patient volume change if Cosmetic Clinic reduced by half the patients who complete pre-op but who fail to show up for surgery? (This is the “No ShowProblem” between the pre-op and surgery.)Hint: here you need to work backwards from the current situation with 5283 procedures in 2019 and the yields given in the case.To start you off, the case states:In 2020, 68% of the clinic’s patients were insured, while 32% paid cash. Finally,the PCR would schedule the surgery. PCRs called the patients several days before the surgery, taking 2 minutes per call on average.…One of Horgan’s biggest headaches was the no-show rate. Even though thepatients had made the first inquiry and had taken the time to come to the preop appointment (and, in the case of non-insured patients, had paid for thesurgery), only 74% of the insured patients and 48% of the cash (non-insured)patients actually showed up for their surgery.This means that only (0.68 * 0.74 + 0.32 * 0.48) = 0.6568 or 65.68% of the patients who attended the pre-op appointment actually had surgery. So, to calculate the number of patients whoattended the pre-op appointment you need to divide 7,170 by 65.68%, or, 7170/0.6558 = 10916 patients attended the pre-op appointment.To answer Q2 a) you need to redo the above calculation, but this time the No Show percent between the Pre-Op and Surgery should be reduced by half.b) If the clinic could reduce the No Shows by half as specified in Q2a), there might be a needextra staff or room capacity. Calculate the capacity utilization change for each category ofstaff and type of rooms to answer this.>> 1 point each (5 staff types, 3 room types), total of 8 pointsc) Using the new utilization numbers for Q2 b) What new staffing/rooms would you proposeand why? Make exactly 3 suggestions for staffing/room increases and calculate the newutilizations and explain why for each.Hint: For this question it is important for you to consider that this is a service operations withhigh volatility. Therefore, your answer should consider what is an acceptable utilization for thissituation.*Keep in mind, we learned in the lecture that in a much more stable production situation,capacity utilizations >80% will cause long waiting times when there is variability in the system.Assumptions:• Use the demand for 2019 (do not take into account any market increase in youranswer, although this is actually an important point!)• Horgan will continue to do 1032 Botox operations per yearQuestion 3: What actions could Cosmetic Clinic do to increase the “yield” (i.e. reduce the No-Shows)? Give 3 suggestions based on the information given in the case and your reasoning.* Qualitative answers only.Question 4: How do you think Horgan should expand?a) Herewe expect you to analyze the finances (revenues from surgeries, costs, wages, benefits,and other costs) and compare the pre-tax income for the current situation with theimproved situationusing the values you calculated in Q2 b).Note: your comparison should consider on the existing staff and rooms (no additionalresources).b) Based on these results, do you think your expansion suggestions in Q2 c) are realizable?Here you should make the same calculations as for Q4 a) but using your capacity proposalsfrom Q2 c).For Q4 a) and b) The data should be presented clearly in table form with explanations of thecalculations indicated.c) Give an overall “Executive Summary” of the situation (max ½ page)

 

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