Complete load-distance analysis for preliminary layout

Assignment Help Operation Management
Reference no: EM13732650 , Length: 1200 Words

Capacity Planning And Facility Location And Layout

Preparation

Jackson Medical Diagnostics Lab is a small lab providing medical testing for doctors and hospitals. It was founded 10 years ago, has a good reputation among local doctors, and has been experiencing strong growth the past two years. Jackson's general manager knows from a relatively recent operations management analysis that the lab's design capacity is 340 patients per day, its effective capacity is 310 patients per day, and the lab currently processes 295 patients per day. The general manager is concerned that the lab will not have the capacity to meet future demand unless the lab is expanded. She has hired a market research firm to study the demand for the lab's services in the area.

After completing its study, the market research firm predicted that there is a .60 probability of continued high demand (PH) for the lab's services over the next five years, and a .40 probability of low demand (PL). Based on that, Jackson's general manager has decided to move forward with an expansion. However, she is not sure whether she should do a small expansion (SE) by taking over some adjacent vacant office space that has recently become available, or do a large expansion (LE) by moving the lab to a different floor of the same building.

The general manager has worked with the lab's finance manager to come up with an estimate that a small expansion would have a profitability of $35,000 if the demand for the lab's services is low (ProfitSmallLow). If the lab undertakes a small expansion and the demand for the lab's services is high, the lab would likely have to undertake a second small expansion (assuming appropriate space was available), and the profitability of the two expansions would be $55,000 (ProfitSmallHigh). If the lab undertakes a large expansion, the profit would be $90,000 if the demand for its services is high (ProfitLargeHigh), but only a $52,000 profit is the demand is low (ProfitLargeLow).

Instructions

Complete the following three components:

Component 1. First, briefly describe the operations management issue in the scenario above, and describe how you would approach an analysis.

Component 2. Draw or outline a decision tree showing the possible decisions, the probability of each, and the profitability of each. Based on those probabilities and profits, determine the probabilistic profitability of each, and thus the best expansion decision for Jackson to pursue.

Component 3. As part of considering these two expansions, Jackson's general manager is looking into how they might best lay out the lab areas if they do the large expansion. The new larger space they would be using is already divided into several rooms connected by doors. Plumbing is available in each area, and thus the bathrooms (which are not yet built) could be located in any area. Jackson's general manager would like to design a layout that minimizes the number of trips employees must make between rooms each day.

Her preliminary layout involves a 3x2 equal size room arrangement. One set of three rooms in that preliminary layout consists of the reception (R) room, the office (O), and the private patient stations (P) room. The other set of three rooms in that preliminary layout consists of the employee break area (E), the bathrooms (B), and the storage area (S). (Refer to the Preliminary Layout Diagram.)

Preliminary Layout Diagram

Reception (R)

Office (O)

Private patient stations (P)

Employee break area (E)

Bathrooms (B)

Storage area (S)

Jackson's general manager has asked each employee to fill out a form logging how many times they currently walk from one area to the next (in their current location). Refer to the Data Table for the resulting data.

Data Table


(R)

(O)

(P)

(E)

(B)

(S)

Reception (R)

-

350

30

40

28

5

Office (O)


-

410

76

42

23

Patient stations (P)



-

15

295

2

Employee area (E)




-

37

8

Bathrooms (B)





-

3

Storage (S)






-

  • Complete a load-distance (LD) analysis for the preliminary layout by assigning a load of 15 feet for each room-to-adjacent-room movement (assume there is a door between all adjacent rooms).
  • Describe your calculations associated with that analysis, and calculate and provide the final LD numeric value.

Verified Expert

Reference no: EM13732650

When panera bread bakes its morning bagels and breads

When Panera Bread bakes its morning bagels and breads, ____________ utility is created. Bates Manufacturing produces some of the finest furniture in North Dakota. Buyers world

Ambitious can discourage employees and decrease motivation

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. As a

Proceed to close the deal with the airtran acquisition

What strategic issues and problems must Gary Kelly and Southwest executives address as they proceed to close the deal with the AirTran acquisition and contemplate how best to

Determining the shuttle service capacity

Transportation service is considering improving the shuttle service capacity during morning hours from city T to city M. The analyst predicts the demand for this service dur

Develop a linear program that phototech can use

Develop a linear program that PhotoTech can use to determine how many units of each battery pack to produce at each plant in order to minimize the total production and shipp

Queenswick adult social care

If you were the consultant, how would you have dealt with the attitude of the Initial Contact Centre staff? What needs to be done to get the project back on track? How would y

What law was violated

What law was violated or what ethical situation occurred in the article? Explain. Who was responsible for this violation? What do you think was the underlying cause of this vi

Retirement account-home-summer cottage-investments

Ann and Ben are getting divorced, and they want to determine how to divide up their joint property: retirement account, home, summer cottage, investments, and miscellaneous as

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd