10 11 12 13 114 115 116 Case Study 1 - Brookline Radiology Clinic Brookline Radiology Clinic, is a small-sized specialized private medical clinic in Brookline Massachusetts that gives services to senior patients of Boston, Brookline, Salem and Vorcester. The majority of the users of this facility are wealthy seniors who would prefer to do their medical radiology procedures at this center to avoid the longer-waiting time at the general hospitals. The clinic profitably processed 4000 scans in 2018. To improve its capacity in 2019 the clinic entered into a five-year rental contract with Sonic Corporation whereby Sonic undertook to Install and maintain high-resolution scanners for an annual flat fee of $500,000. This upgrade was based on the recommendation of Helen Pike, Radiology Manager, who believed the new faster equipment would allow the clinic to handle more patients and secure better revenue for the clinic. On January 2, 2020, Ron Hemkey, the operations manager of the Brookline Radiology clinic came to work concerned about a significant increase in patients' complaints and a modest reduction in the receivables of the clinic primarily related to the accounts of Vorcester patients. While this reduction was not significant, Ron was alarmed it might escalate to an unmanageable level and affect the profitability of his operations. Checking the processed invoices, Ron noticed that the clinic has performed 4665 scans at $350 per scan in 2019. He had anticipated that the new machine would expedite the radiology procedures leading to shorter patient waiting time and hence generating extra revenue. He was under the impression that with the reasonable operating costs of the equipment (estimated at $205 for labour and $45 for material per scan) the speed of machine would enhance the profitability of the clinic. Frustrated by the situation he called Helen Pike into his office. "You said the new equipment would allow us to handle more patients and eam better revenue! Now I am not sure about that extra revenue and what's worse, I am about to loose some patients What's going on? You highly recommended these new rental machines and worry-free maintenance offered by Sonic, now please either make it work as you promised or let us know what needs to be done about the situation." As Helen is a radiologist by training, she has referred to your group to help her with the situation. To analyze their operation, your group asked her to explain the operations of the clinic. In an email sent to your group Helen provided the following information: In our Radiology Clinic patients come to the reception desk every 2 minutes. One receptionist takes 2 minutes to verify the Radiology procedure they need and sends them to the Lab where two 1.8. 1.9.1. 10.-11. 12 113 114 115 116 11 new machine would expedite the radiology procedures leading to shorter patient waiting time and hence generating extra revenue. He was under the impression that with the reasonable operating costs of the equipment (estimated at $205 for labour and $45 for material per scan) the speed of machine would enhance the profitability of the clinic. Frustrated by the situation he called Helen Plke into his office. "You said the new equipment would allow us to handle more patients and earn better revenue! Now I am not sure about that extra revenue and what's worse, I am about to loose some patients! What's going on? You highly recommended these new rental machines and worry-free maintenance offered by Sonic, now please either make it work as you promised or el us know what needs to be done about the situation." As Helen is a radiologist by training, she has referred to your group to help her with the situation To analyze their operation, your group asked her to explain the operations of the clinic. In an email sent to your group Helen provided the following information: In our Radiology Clinic patients come to the reception desk every 2 minutes. One receptionist takes 2 minutes to verify the Radiology procedure they need and sends them to the Lab where two technicians perform the needed procedure. On average, each procedure is completed in 4 minutes. Next, the Radiology film/file of patients are sent to the radiologist to be read and interpreted while patients are waiting in a waiting room that can seat only 5 patients. Only one radiologist is on duty and the radiologist needs 4 minutes to read the film/file and write the result. Once the radiologist finishes writing the results, the film/file and the result report will be sent to delivery desk where one clerk needs a minute to verify the identity of the patients and hand them their result results before they leave the clinic. To logically help Helen and Ron your group needs to first depict the entire process and show the connections between the above-mentioned activities in order to pinpoint the problemed operational area(s). To do this effectively and professionally, your team should: 1. draw the process flow chart of radiology using flow chart icons, 2. identify the bottleneck(s) and state why they are bottlenecks 3. offer solution(s) to eliminate or reduce bottleneck(s) and justify your solutions and make recommendations 4. address Ron's concern about the profitability of the clinic and justify your advice. Please submit your report to the Submission Folder by due date/time specified on FOL