Lead time calculation for a service company obj. 1 Marcus Simmons caught the flu and needed to see the doctor. Simmons called to set up an appointment and was told to come in at 1:00 p.m. Simmons arrived at the doctor’s office promptly at 1:00 p.m. The waiting room had 5 other people in it. Patients were admitted from the waiting room in FIFO (first-in, first-out) order at a rate of 5 minutes per patient. After waiting until his turn, a nurse finally invited Simmons to an examining room. Once in the examining room, Simmons waited another 5 minutes before a nurse arrived to take some basic readings (temperature, blood pressure). The nurse needed 10 minutes to collect this clinical information. After the nurse left, Simmons waited 30 additional minutes before the doctor arrived. The doctor diagnosed the flu and provided a prescription for antibiotics, which took 5 minutes. Before leaving the doctor’s office, Simmons waited 10 minutes at the business office to pay for the office visit.

Simmons spent 5 minutes walking next door to fill the prescription at the pharmacy.

There were four people in front of Simmons, each person requiring 5 minutes to fill and purchase a prescription. Simmons arrived home 15 minutes after paying for his prescription.

a. What time does Simmons arrive home?

b. How much of the total elapsed time from 1:00 p.m. until when Simmons arrived home was non-value-added time?

c. What is the value-added ratio?

d. Why does the doctor require patients to wait so long for service?