Question

. It takes about 5 minutes for a customer to fill out the paperwork. Entry of information on the paperwork into the system and verification with past records takes another 7 minutes for a receptionist. There are 2 receptionists. assistants on shift at any moment Table 1 summarizes the process data collected above. . It takes 17 minutes on average for the dental assistant to take an X-ray. There are 4 dental . There are 9 dentists working at the clinic. Each check-up takes 25 minutes on average. Staffing (Number of Workers) Processing Time (Minutes per Patient) Resources ProcesS A. Self-serve B. Receptionists C. Dental Assistant D. Dentist Paperwork Data Entry X-ray Check-up 7 17 25 4 Assume that there exists unlimited demand, unless otherwise stated. Assume further that the dentist gets $125 per hour while receptionist and dental assistant get paid $35 per hour Instruction Round "cost of direct labor to 2 decimal places a. What is the labor content? minutes per patient b. What is the cost of direct labor? per patient

Answer 1

Answer A: Labor content is the sum of the time spent by individuals working at the clinic on an individual patient. Thus, it is time spent by the receptionist (7 minutes) plus time spent by the dental assistant (17 minutes) plus time spent by the dentist (25 minutes).

Labor content = 7+17+25=49 minutes per patient

Answer B:-

There are 6 individuals who are paid $35 per hour, or, $210 per hour. Dentists are paid 9*125 = $1125 per hour, so the total hourly wage is $1335 per hour

We need to divide that by the hourly flow rate (in patients) to get the cost of direct labor. We see that the bottleneck resource is Dental Assistant with a capacity of 0.42 patients per minute or 25 patients per hour.

With unlimited demand the hourly flow rate equals the processing capacity, so the cost of direct labor = $1335/25= $53.4 per patient