Quinte Mri Case Notes

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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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