The administrator of Hope 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 $6,400 Verifying patient information 9,600 Assignment patients 12,800 Searching/waiting for doctor 8,000 Doctor exam 4,800 Waiting for transport 17,600 Transporting patients 16,000 Verifying lab orders 14,400 Searching for equipment 8,000 Incorrect labs 12,800 Lab tests 17,600 Counting supplies 19,200 Looking for supplies 8,000 Staff training 4,800 Total 160,000 Problem 2 Instructions Prepare a Pareto chart of the ER activities. 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. 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. Determine the percentages of the total ER costs that are value-added and non-value-added. Interpret the information

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.2: Representing Data

Problem 22PFA

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Question

The administrator of Hope 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	$6,400
Verifying patient information	9,600
Assignment patients	12,800
Searching/waiting for doctor	8,000
Doctor exam	4,800
Waiting for transport	17,600
Transporting patients	16,000
Verifying lab orders	14,400
Searching for equipment	8,000
Incorrect labs	12,800
Lab tests	17,600
Counting supplies	19,200
Looking for supplies	8,000
Staff training	4,800
Total	160,000

Problem 2 Instructions

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.
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.
Determine the percentages of the total ER costs that are value-added and non-value-added.
Interpret the information

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