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Turn around time in an operating room of a hospital
Turn around time (TAT) is a measure of the length of time from the end of one surgery in an operating room to the beginning of the next surgery. Improving TAT improves the operating room efficiency by allowing more surgeries to be performed per day. TAT involves:
■ sterilizing the operating room.
■ setting up equipment and supplies for the next patient.
■ preparing the next patient for surgery.
The average times associated with TAT activities were determined as follows:
Sterilization | IS min. |
Equipment and supply setup | 10 |
Patient preparation | 15 |
Total TAT | 40 min. |
Each activity is performed in the operating room sequentially so that the total TAT averages 40 minutes. A process improvement team determined that the TAT could be improved by moving some of this activity outside of the operating room, thus allowing these activities to be done simultaneously. Sterilization must be done in the operating room, so this activity was not changed. However, equipment and supplies were prepared in a room outside of the operating room while sterilization was proceeding. The equipment and supplies were placed on a rolling cart, and then rolled into the operating room and staged for the next surgery. In addition, the improvement team determined the patient could be prepared outside of the operating room by using a small room for patient preparation. When the operating room was ready, the patient could be rolled in on a rolling bed and staged for the procedure. As a result of these changes, the total equipment and supply setup only consumed 2 minutes in the operating room, while the total patient preparation only consumed 3 minutes in the operating room.
A. Determine the revised TAT of the new process.
B. What is the ratio of TAT improvement between the old and new processes?
C. If the average surgical lime took 40 minutes, how many additional surgeries could be performed in an eight-hour day as a result of the new process?
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Chapter 26 Solutions
Financial & Managerial Accounting
- ABC, Resource Drivers, Service Industry Glencoe Medical Clinic operates a cardiology care unit and a maternity care unit. Colby Hep worth, the clinic’s administrator, is investigating the charges assigned to cardiology patients. Currently, all cardiology patients are charged the same rate per patient day for daily care services. Daily care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however, revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case being treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patientsrequire more monitoring than others, these activities should be separated. Third, the daily rateshould reflect the difference in demands resulting from differences in patient type. Separating theoccupancy activity into two separate activities also required the determination of the cost of…arrow_forwardABC, Resource Drivers, Service Industry Glencoe Medical Clinic operates a cardiology care unit and a maternity care unit. Colby Hepworth, the clinic’s administrator, is investigating the charges assigned to cardiology patients. Currently, all cardiology patients are charged the same rate per patient day for daily care services. Daily care services are broadly defined as occupancy, feeding, and nursing care. A recent study, however, revealed several interesting outcomes. First, the demands patients place on daily care services vary with the severity of the case being treated. Second, the occupancy activity is a combination of two activities: lodging and use of monitoring equipment. Since some patients require more monitoring than others, these activities should be separated. Third, the daily rate should reflect the difference in demands resulting from differences in patient type. Separating the occupancy activity into two separate activities also required the determination of the cost…arrow_forwardPareto chart and cost of quality report for a service company The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $ 6,500 Verifying patient information 9,700 Assigning patients 13,000 Searching/waiting for doctor 9,200 Doctor exam 4,900 Waiting for transport 17,500 Transporting patients 16,200 Verifying lab orders 14,500 Searching for equipment 8,200 Incorrect labs 11,300 Lab tests 17,000 Counting supplies 19,000 Looking for supplies 8,200 Staff training 4,800 Total $160,000 a. b. c. d. Classify the…arrow_forward
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- Mercy Hospital staffs its medical/surgical floors with nurses depending on the number of pa- tients assigned to the floor and the severity of their condition. The index used to capture nurse effort is termed a relative value unit, or RVU. For example, taking vital signs for a single patient may be equal to one RVU. RVU's are then summed to estimate the total RVU requirements for the floor. From this, the nursing staff budget is determined. The medical/surgical floor is scheduled to have 25 patients for each day of the coming seven-day week. Some patients will require more nursing effort than others, depending on the severity of their conditions or their ages. The following table summarizes the expected RVU requirements for the patients: Number of Patients RVUS per Day 5 20 8 25 10 30 40 A nurse earns $180 per day and is able to perform 40 RVUS per day. a. Determine the total number of RVUS expected per day for the coming week. b. Determine the total weekly nurse budget for the coming…arrow_forwardPareto chart and cost of quality report for a service company The administrator of Liberty Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Instructions 1. Prepare a Pareto chart of the ER activities. 2. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 3. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. 4. Determine the percentages of the total ER costs that are value-added and non-value-added. 5. Interpret the information.arrow_forwardUnk The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be: A. a) direct costs. B. b) indirect costs. C. c) incremental costs. D. d) opportunity costs. E. e) sunk costs.arrow_forward
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