Background to the Case
Here are some questions to help you analyze the background of the case: •
State the background as you understand it
What business is Quinte MRI in?
What facilities does Quinte MRI have? Who are their customers? (ANSWER: physicians) •
How long has Benton-Cooper been operating? How is business going? •
Who are you in the case? (ANSWER: David Wright and/or Kevin Saskiw) •
What is your role?
What is the service being performed at Quinte? (ANSWER: completed diagnosis) •
How is it requested? How is it finished?
What is the “marketing task”? How do you make money in this business? •
What is the available demand? What is the future demand? Issue(s) Identification:
Here are some questions to help you discover the issues in the case: •
What is the root problem? Is anyone angry about the situation? •
How important are waiting times?
What is the current throughput time – from doctor’s request to receipt of the radiologist’s diagnosis? •
Are there serious problems? Or, is this a typical start-up issue that will get better over time? •
Is this just a scheduling and communications problem?
How urgent is the problem?
What is the estimated number of scans per year over the next five years? •
What does the backlog tell you?
How many scans per year are required to breakeven?
What is the fixed cost per year? (ANSWER: $690,000 including MR technician’s salary) •
What is the per-scan: revenue, expenses, net contribution? What is the breakeven point for Quinte MRI? (ANSWER: revenue = $700; expenses = $140 + $5 + $50 = $195; net contribution = $700 - $195 = $505 per scan; BREAKEVEN = $690,000/$505 = 1,366 scans per year) Criteria for Decisions:
Here are some questions to help you analyze the criteria for decisions: •
How much time do physicians expect to wait? (From request to results? ANSWER: 48 hours) •
What is the minimum number of scans per day? (ANSWER: Goal = 2/hour or 15/day) •
How could you continue to make your customers angry?
My plan is a good plan because ___________________________________________________ Environmental and Root Cause Analysis:
Here are some questions to help you analyze the case:
NOTE: concentrate on locating and analyzing the capacity, flow and bottleneck issues •
What is the process of doing one MRI scan?
What is being processed? What are the process steps and durations? •
Currently, how long does one cycle take? What is it a cycle of? •
What is your estimate for time of “average” scan?
What are your assumptions?
What is the current “unit” cycle times for (1) patient, (2) MR Technician, (3) MRI machine? (Examples: (1) 35 minutes, (2) 42 minutes, (3) 25 minutes – depends on assumptions) •
What is the current capacity?
What does Exhibit 7 in the case tell you?
Are there any productivity trends in the first six weeks? •
How did they acquire a 14-day backlog?
What could they do to clear the backlog?
What prevents you from doing the targeted two (2) scans per hour? •
Where is the bottleneck? How do you know? What is the “bottleneck”? •
What do they mean when they say, “Jeff is our most valuable asset”? (page 10 in the case) •
What is the maximum you would be willing to pay Jeff, if he were willing and anxious to do overtime? •
What is the maximum capacity possible with current resources? •
Why are high-risk patients being scheduled for scans?
How much experience does BCMC, Jeff or the schedulers have doing MRIs? •
Is there a “learning curve” here? Will everyone improve? •
How much revenue is lost for each scan not done? How much is gained for each extra scan? •
What is a good estimate for the average number of minutes of MRI time per scan? (Use 16.5 MRI minutes for a 30 minute scan or use??) •
What percentage of time is the MRI machine actually scanning? How much is it idle? Is there necessary idle time? •
What is the image quality? Can scan time be reduced for any given procedure? Alternatives and/or Options
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