Pareto chart &cost of quality report for Liberty Hospital.

Pareto chart and cost of quality report for a service company The administrator of Librty 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 $6,500 Patient registration Verifying patient information 9,700 13,000 Assigning patients Searching/waiting for doctor 9,200 4,900 Doctor exam Waiting for transport 17,500 Transporting patients 16,200 14,500 Verifying lab orders Searching for equipment 8,200 11,300 Incorrect labs 17,000 Lab tests 19.000 Counting supplies 8,200 Looking for supplies 4,800 Staff training $160,000 Total Required: 1. Select the following Pareto chart of the ER activities. Cost of Value-Added/ Quality Non-Value-Added Activity Activity Cost Classification Classification Patient registration $6,500 Other patient care Value-added 9,700 Appraisal Value-added Verifying patient information Other patient care Value-added Assigning patients 13,000 Internal failure Non-value-added Searching/waiting for doctor 9,200 Other patient care Value-added Doctor exam 4,900 External failure Non-value-added Waiting for transport 17,500 16,200 Other patient care Value-added Transporting patients 14,500 Appraisal Value-added Verifying lab orders Non-value-added Internal failure 8,200 Searching for equipment External failure Non-value-added 11,300 Incorrect labs Other patient care Value-added 17,000 Lab tests Value-added 19,000 Appraisal Counting supplies 8.200 Internal failure Non-value-added Looking for sunnlies Appraisal Internal failure % External failure % Other patient care % Total % 4. Determine the percentages of the total ER costs that are value-added and non-value-added. Percent of Total Activity Cost Department Cost Value-added 57.88 X % % Non-value-added % Total X % of the total cost 5. The ER has 42.12 X % of its total costs as non-value-added. Internal failure and external failure costs represent Feedback Y Check My Work