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?