Cost of Moving Departments.
Department Cost of Move ($)
Entrance 16,000
Waiting Area 8,000
Exam Room 1 32,000
Exam Room 2 18,000
X-Ray 135,000
Lab/EKG 90,000
Operating Room 195,000
Recovery Room 20,000
Cast Setting Room 13,000
a. Using the Layout template, enter the distance and transactions
data, and using weight of “1” determine how many feet of walking
take place in a month. This is the initial solution.
b. Change the locations of QHC departments to find the lowest “Total
Cost” solution, trying many variations until cost can no longer be
reduced. This is the final solution.
c. Compare the final solution to the initial solution and calculate the
difference in “Total Cost.” Annualize the difference and convert this
to miles (one mile has 5,280 feet). This shows how many extra
miles of walking by employees can be saved by implementing the
final solution layout.
d. Calculate how much an average QHC employee is paid per hour
(including fringe benefits).
e. Calculate the total annual savings that would result from
implementation of the final layout solution.
f. Calculate the total cost to implement the final solution layout. (Hint:
Compare the initial solution layout to the final solution layout and
see how many QHC sections need to be remodeled/moved.)
g. Determine whether it would be worthwhile to change the layout of
the QHC. If so, how many years would it take to recover the cost
of layout changes?
