Operations Management in Health Care
Question #1: (9 points)
1.1 Work stress and burnout among nurses is a serious issue in many health care organizations. Develop a mind map of this problem?
1.2 Choose a service offered by a healthcare organization and create a service blueprint. You may have to imagine some of the services that take place backstage if you are unfamiliar with them.
1.3 Develop a map of a healthcare process with which you are familiar. Make sure that your process map has a start and an endpoint, all inputs and outputs are defined, and all key process steps are included?
Question #2: (7 points)
If a hospital food service can provide inpatients with 9,000 meals in one month, in the meantime,
the radiology department performs all magnetic resonance images (MRIs) for inpatients. Given that the MRI machine would have a capacity of 24 MRIs/day and the department has two MRI
machines working 20 days a month. Based on the following data obtained from the two departments, answer the following questions:
2.1 Compare the single-factor productivity ratios between the two departments, using hours of labor.
Productivity = Output (O)/Input(I)
Nutrition Department:
Output = 9000 meals
Input = 240 hours
9000 meals/240 = 37.5 meals per hour.
Radiology Department:
Output = 24 x 2 x 20 = 960
Input = 160 hours
960/ 160 = 6 MRIs per hour
2.2 Compare the multifactor productivity ratios between the two departments, using the dollar as a unit of measurement for productivity.
Nutrition Department
Output = 9000 meals
Input is based on multiple factors:
Technicians = $9000
Supervisors = $4000
Cashiers = $1500
Cooks = $3500
Material Costs = (1000 x $15 per unit) = $15000
Other costs ( energy, space) = (1500 x $15 per unit) = $22500
Total input = $55,500
Output/Input = 9000/55,500
= 0.162 meals per dollar
Radiology Department:
Output = 960 MRIs
Input factors:
Supervisors = $6000
Material costs (4000 x $500 per unit) = $2,000,000
Other costs (energy, space) = (3000 x $500 per unit) = $1,500,000
Total input = $3,506,000
960/3,506,000
= 0.0002738 MRIs per dollar
2.3 Assume that a new MRI machine could allow 20% of the labor force to be eliminated. Using a total equipment cost of $50,000, Is this a wise decision for a capital substitution over labor? Calculate the percentage of productivity improvement or decline after capital substitution for labor?
The new MRI machine will reduce the labour of supervisors, the only labor force in Radiology Department, by 20 percent; 20% x 6000 = $1200
20 percent has been replaced by the new machine at cost of $50,000, and assuming that the machine will run for a year, its monthly cost will be 4167
Monthly Input = (6000-1200) + 4167 = $8967
It is not a wise decision to substitute capital over labor using one year as the useful life of the Machine since increases the monthly costs by $2967
Initial productivity
960/6000 = 0.16
Current productivity
960/8967 = 0.11
0.11 – 0.16 = -0.05
(-0.05/0.16)x 100 = -31.25%Question #3 (4 points)
1n 2018, the total patient revenues in one of Dubai’s hospitals were 6 million dollars, wherein 20% of these revenues come from outpatient services. Given that inpatient days were 40,000 days and the numbers of productive and nonproductive labor hours were 80,000 and 500, respectively. Using the previous information, calculate:
3.1 The adjusted patient day
3.2 The adjusted occupied beds
3.3 If an FTE employee worked 40 hours per week for the previous calendar year, calculate the productive FTE in 2018?