Suppose that an HMO system for processing pre-natal care and baby delivery insurance claims involves three primary
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Question:
Suppose that an HMO system for processing pre-natal care and baby delivery insurance claims involves three primary steps (which we will call steps A, B, and C) in a sequential manner. Employees work in parallel on separate claims at each step
The following table shows the number of employees working on each step, and the processing time per claim per employee.
Step # of Employees Time Required/Claim/Employee
A | 40 | 10 minutes |
B | 10 | 4 minutes |
C | 30 | 6 minutes |
(a) Find the raw process time (meaning the total processing time, ignoring any waiting time) for an insurance claim
B) Find the capacity of each step and identify the bottleneck step. What is the capacity of the system?
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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