Instructions The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $6,100.00 Verifying patient information 9,700.00 Assigning patients 12,600.00 Searching/waiting for doctor 8,000.00 Doctor exam 4,500.00 Waiting for transport 17,200.00 Transporting patients 15,800.00 9 Verifying lab orders 14,400.00 10 Searching for equipment 7,900.00 11 Incorrect labs 13,200.00 12 Lab tests 40,800.00 Counting supplies 29,100.00 14 Looking for supplies 6,900.00 15 Staff training 3,800.00 $190,000.00 16 Total Required: 1. Classify the activities into prevention, appraisal internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal internal failure, external failure, and other patient care activities.* 3. Determine the percentages of the total ER costs that are value-and non-value-added." 4. Interpret the information. *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Amount Descriptions Amount Descriptions Appraisal External failure Internal failure Non-value-added Other patient care Prevention Value-added Instructions Additional Question Shaded cells have feedback. 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. Activity Activity Cost Cost of Quality Classification Value Added/Non-Value Added Classification Patient registration 6,100 Appraisal Value-added Verifying patient information 9,700 Appraisal Value-added Assigning patients 12,600 Appraisal Value-added Searching/waiting for doctor 8,000 Appraisal Non-value-added Doctor exam 4,500 Other patient care Value-added Waiting for transport 17,200 Internal failure Non-value-added Transporting patients 15,800 Internal failure Value-added Verifying lab orders 14,400 Internal failure Value-added Searching for equipment 7,900 Internal failure Non-value-added Incorrect labs 13,200 Internal failure Non-value-added Lab tests 40,800 Internal failure Value-added Counting supplies 29,100 Internal failure Value-added Looking for supplies 6,900 Internal failure Non-value-added Staff training 3,800 Prevention Value-added Total $190,000 Points: 12/28 Feedback Check My Work Remember that Hope Hospital uses activity analysis to identify the costs of quality, which include prevention, appraisal, internal failure, external failure, and other patient care costs. Review the distinction between value-added and non-value-added cost of quality. Cost of Quality Report Shaded cells have feedback. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. Quality Cost Classification Activity Cost Percent of Total Department Cost Total Points: 0/17 Feedback Check My Work Classify each activity as either prevention, appraisal, internal failure, external failure, or other patient care. List the total costs of each of these five categories in a column called quality cost classification. Keep in mind that three are nonquality costs. Using the cost of the activities, divide individual amounts by total process costs to obtain a percent of total process cost. Together these percentages should equal 100%. Value Added/Non-Value Added Activity Analysis Shaded cells have feedback. 3. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. Activity Cost Percent of Total Department Cost Total Points: 078 Feedback Check My Work Classify each activity as value-added or non-value-added. Divide the total of value-added by the total costs to obtain the percentage and divide the total of non-value-added by the total costs to obtain the percentage. Together these percentages should equal 100%. Instructions The administrator of Hope Hospital has been asked to perform an activity analysis of the emergency room (ER). The ER activities include cost of quality and other patient care activities. The lab tests and transportation are hospital services external to the ER for determining external failure costs. The result of the activity analysis is summarized as follows: Activities Activity Cost Patient registration $6,100.00 Verifying patient information 9,700.00 Assigning patients 12,600.00 Searching/waiting for doctor 8,000.00 Doctor exam 4,500.00 Waiting for transport 17,200.00 Transporting patients 15,800.00 9 Verifying lab orders 14,400.00 10 Searching for equipment 7,900.00 11 Incorrect labs 13,200.00 12 Lab tests 40,800.00 Counting supplies 29,100.00 14 Looking for supplies 6,900.00 15 Staff training 3,800.00 $190,000.00 16 Total Required: 1. Classify the activities into prevention, appraisal internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal internal failure, external failure, and other patient care activities.* 3. Determine the percentages of the total ER costs that are value-and non-value-added." 4. Interpret the information. *Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Amount Descriptions Amount Descriptions Appraisal External failure Internal failure Non-value-added Other patient care Prevention Value-added Instructions Additional Question Shaded cells have feedback. 1. Classify the activities into prevention, appraisal, internal failure, external failure, and other patient care activities. Classify the activities into value-added and non-value-added activities. Activity Activity Cost Cost of Quality Classification Value Added/Non-Value Added Classification Patient registration 6,100 Appraisal Value-added Verifying patient information 9,700 Appraisal Value-added Assigning patients 12,600 Appraisal Value-added Searching/waiting for doctor 8,000 Appraisal Non-value-added Doctor exam 4,500 Other patient care Value-added Waiting for transport 17,200 Internal failure Non-value-added Transporting patients 15,800 Internal failure Value-added Verifying lab orders 14,400 Internal failure Value-added Searching for equipment 7,900 Internal failure Non-value-added Incorrect labs 13,200 Internal failure Non-value-added Lab tests 40,800 Internal failure Value-added Counting supplies 29,100 Internal failure Value-added Looking for supplies 6,900 Internal failure Non-value-added Staff training 3,800 Prevention Value-added Total $190,000 Points: 12/28 Feedback Check My Work Remember that Hope Hospital uses activity analysis to identify the costs of quality, which include prevention, appraisal, internal failure, external failure, and other patient care costs. Review the distinction between value-added and non-value-added cost of quality. Cost of Quality Report Shaded cells have feedback. 2. Use the activity cost information to determine the percentages of total ER costs that are prevention, appraisal, internal failure, external failure, and other patient care activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. Quality Cost Classification Activity Cost Percent of Total Department Cost Total Points: 0/17 Feedback Check My Work Classify each activity as either prevention, appraisal, internal failure, external failure, or other patient care. List the total costs of each of these five categories in a column called quality cost classification. Keep in mind that three are nonquality costs. Using the cost of the activities, divide individual amounts by total process costs to obtain a percent of total process cost. Together these percentages should equal 100%. Value Added/Non-Value Added Activity Analysis Shaded cells have feedback. 3. Determine the percentages of the total ER costs that are value- and non-value-added. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Question not attempted. Activity Cost Percent of Total Department Cost Total Points: 078 Feedback Check My Work Classify each activity as value-added or non-value-added. Divide the total of value-added by the total costs to obtain the percentage and divide the total of non-value-added by the total costs to obtain the percentage. Together these percentages should equal 100%
