A Case Study on Dental Associates

2216 Words Jan 2nd, 2015 9 Pages
Case Study 1
Date: Oct. 5, 2014 Course: Operation Management Professor: Americo Cunha

Case background:
Dr. Steven Fox is not only a core dentist, but also a head administrator at the largest office called skyline in the group of Dental Associates. He is responsible for providing consultations concerning strategic decision such as new equipment purchased and general operations. Because he is very interested in dental innovation, and spends much time attending academic communication or local study groups in order to timely get the latest dental technology and trends. Therefore, Dr. B, Dr. Fox long-time colleague and
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2. Qualitative analysis:
Alternative 1: Make in–house for purchasing the CEREC3 machine

Small cost for manufacturing crowns.
Reducing the cost for anesthetic injection from two times to one, also eliminating the cost of others direct materials (such as: impressions, temporary crowns) as well.
Setting the price for crowns to get more profits, rather than relying on the price fluctuations by outsourcer.
Large initial investment on the machine.
Requiring a dedicate room for machine. However, it had an interior office available that was already covered under the monthly rent, but this available room may be used for other functions to get more business, such as rental or have opportunity to perform cosmetic dentistry.
Adding additional cost of maintenance and repair for the machine.

Patients only need one appointment.
Short time for installing a permanent crown (1.5 hours to complete a permanent crowns in one day)
The dentists could see other patients while the CEREC3 is making the crown, which implies that the doctor may potentially see more patients per the unit of time.
Treatment time is longer for patients at the beginning, because dentists are not familiar with this machine. Some mistakes will also be expected, so that it may take more than 1.5 hours to complete the whole process.
Dentists may attend multiple training sessions at manufacturer office, which will raise more workload to dentists but put less time
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