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Suppose that a medical consultant proposes a new patient-processing system that will shorten diagnostic and treatment times but would require more skilled nurses and technicians
Suppose that a medical consultant proposes a new patient-processing system that will shorten diagnostic and treatment times but would require more skilled nurses and technicians as well as an equipment upgrade. However, the total practical capacity would remain the same, at 20,000 hours. Total resource costs are predicted to increase by $100,000. The consultant estimates that the cycle times for each patient type would be reduced from 3 to 2 hours, 5.6 to 4.5 hours, and 11 to 9 hours. The physicians that own the clinic have expressed a willingness to implement the changes, provided that the unit cost of servicing each patient type decreases. Use DBC to estimate the new unit costs
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