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:

1	Activities	Activity Cost
2	Patient registration	$6,400.00
3	Verifying patient information	9,400.00
4	Assigning patients	12,800.00
5	Searching/waiting for doctor	8,000.00
6	Doctor exam	4,600.00
7	Waiting for transport	17,600.00
8	Transporting patients	15,900.00
9	Verifying lab orders	14,300.00
10	Searching for equipment	7,800.00
11	Incorrect labs	9,000.00
12	Lab tests	9,300.00
13	Counting supplies	16,900.00
14	Looking for supplies	5,200.00
15	Staff training	2,800.00
16	Total	$140,000.00

Required:

1.

Review the Pareto Charts in the panels. Select the Pareto chart the best represents these activities.

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.

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.*

4.

Determine the percentages of the total ER costs that are value- and non-value-added.*

5.

Interpret the information.

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

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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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Score: 30/77

1	Quality Cost Classification	Activity Cost	Percent of Total Department Cost
2	Appraisal
3	External failure
4	Internal failure
5	Prevention
6	Other patient care
7	Total

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4. 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.

Score: 12/36

1		Activity Cost	Percent of Total Department Cost
2	Value-added
3	Non-value-added
4	Total

Pareto Chart A Paalieto Clicalr@ 4naallicy Activitiess 25,000 20,000 n15,000 E3 10,000 5,000 Pareto Chart C Pareto Chart-Quality Activities 25,000 T 20,000 5,000 2 1 10,000 5,000 Pareto Chart D Pareto Chart-Quality Activities 25,000 20,000 n15,000 10,000 ILI 5,000