Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 26, Problem 2ADM

Turn around time in an operating room of a hospital

Turn around time (TAT) is a measure of the length of time from the end of one surgery in an operating room to the beginning of the next surgery. Improving TAT improves the operating room efficiency by allowing more surgeries to be performed per day. TAT involves:

■ sterilizing the operating room.

■ setting up equipment and supplies for the next patient.

■ preparing the next patient for surgery.

The average times associated with TAT activities were determined as follows:

Sterilization IS min.
Equipment and supply setup 10
Patient preparation 15
Total TAT 40 min.

Each activity is performed in the operating room sequentially so that the total TAT averages 40 minutes. A process improvement team determined that the TAT could be improved by moving some of this activity outside of the operating room, thus allowing these activities to be done simultaneously. Sterilization must be done in the operating room, so this activity was not changed. However, equipment and supplies were prepared in a room outside of the operating room while sterilization was proceeding. The equipment and supplies were placed on a rolling cart, and then rolled into the operating room and staged for the next surgery. In addition, the improvement team determined the patient could be prepared outside of the operating room by using a small room for patient preparation. When the operating room was ready, the patient could be rolled in on a rolling bed and staged for the procedure. As a result of these changes, the total equipment and supply setup only consumed 2 minutes in the operating room, while the total patient preparation only consumed 3 minutes in the operating room.

A. Determine the revised TAT of the new process.

B. What is the ratio of TAT improvement between the old and new processes?

C. If the average surgical lime took 40 minutes, how many additional surgeries could be performed in an eight-hour day as a result of the new process?

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Chapter 26 Solutions

Financial & Managerial Accounting

Ch. 26 - Prob. 11DQCh. 26 - Prob. 12DQCh. 26 - Prob. 13DQCh. 26 - Lead time Rough Riders Inc. manufactures jeans in...Ch. 26 - Lean features Which of the following are features...Ch. 26 - Lean accounting The annual budgeted conversion...Ch. 26 - Cost of quality report A quality control activity...Ch. 26 - Process activity analysis Roen Company incurred an...Ch. 26 - Prob. 26.1EXCh. 26 - Prob. 26.2EXCh. 26 - Lean principles Active Apparel Company...Ch. 26 - Lead time analysis Palm Pals Inc. manufactures toy...Ch. 26 - Reduce setup time Hammond Inc. has analyzed the...Ch. 26 - Calculate lead time Flint Fabricators Int....Ch. 26 - Calculate lead time Williams Optical Inc. is...Ch. 26 - Prob. 26.8EXCh. 26 - Prob. 26.9EXCh. 26 - Lean principles for a restaurant The management of...Ch. 26 - Prob. 26.11EXCh. 26 - Lean accounting Westgate Inc. uses a lean...Ch. 26 - Lean accounting Modern Lighting Inc. manufactures...Ch. 26 - Lean accounting Vintage Audio Inc. manufactures...Ch. 26 - Pareto chart Meagher Solutions Inc. manufacture....Ch. 26 - Prob. 26.16EXCh. 26 - Pareto chart for a service company Three Rivers...Ch. 26 - Cost of quality and value-added/non-value-added...Ch. 26 - Process activity analysis The Brite Beverage...Ch. 26 - Process activity analysis for a service company...Ch. 26 - Prob. 26.21EXCh. 26 - Prob. 26.1APRCh. 26 - Lead time Sound Tek Inc. manufactures electronic...Ch. 26 - Lean accounting Dashboard Inc. manufactures and...Ch. 26 - Pareto chart and cost of quality report for a...Ch. 26 - Prob. 26.1BPRCh. 26 - Lead time Master Chef Appliance Company...Ch. 26 - Lean accounting Com-Tel Inc. manufactures and...Ch. 26 - Pareto chart and cost of quality report for a...Ch. 26 - Prob. 1ADMCh. 26 - Turn around time in an operating room of a...Ch. 26 - Prob. 3ADMCh. 26 - Ethics in Action In August, Lannister Company...Ch. 26 - Prob. 26.3TIF
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