need #5

Pareto chart and cost of quality report for a service company The administrator of Liberty 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 Patient registration Verifying patient information Assigning patients Searching/waiting for doctor Doctor exam Waiting for transport Transporting patients Verifying lab orders Searching for equipment Incorrect labs Lab tests Counting supplies Looking for supplies Staff training Activity Cost $ 6,500 9,700 13,000 9,200 4,900 17,500 16,200 14,500 8,200 11,300 17,000 19,000 8,200 4,800 $160,000 Total Required: 1. Select the following Pareto chart of the ER activities. Check My Work 3 more Check My Work uses remaining Previous 2. 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. Cost of Quality Classification Value-Added/ Non-Value-Added Classification Activity Activity Cost Patient registration $6,500 Other patient care Value-added Verifying patient information Value-added 9,700 Appraisal 13,000 Other patient care Assigning patients Value-added Searching/waiting for doctor Non-value-added 9,200 Internal failure 4,900 Other patient care Doctor exam Value-added Waiting for transport 17,500 External failure Non-value-added Transporting patients 16,200 Other patient care Value-added Verifying lab orders Value-added Searching for equipment Non-value-added 14,500 Appraisal 8,200 Internal failure 11,300 External failure 17,000 Other patient care Incorrect labs Non-value-added Lab tests Value-added Counting supplies 19,000 Appraisal Value-added Looking for supplies 8,200 Internal failure Non-value-added Staff training 4,800 Prevention Value-added Check My Work 3 more Check My Work uses remaining Previous 3. 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. Quality Cost Classification Percent of Total Department Cost Activity Cost Prevention $ 4,800 3 % Appraisal 43,200 27 % Internal failure 25,600 16 % External failure 28,800 18 % Other patient care 57,600 36 % Total 160,000 100 % 4. Determine the percentages of the total ER costs that are value-added and non-value-added. Percent of Total Department Cost Activity Cost $ 105,600 Value-added 66 % Non-value-added 54,400 34 % Total 160,000 100 % 5. The ER has % of its total costs as non-value-added. Internal failure and external failure costs represent % of the total costs. Feedback Check My Work 3 more Check My Work uses remaining