Concept explainers
a)
Lead Time: Lead time is the time consumed for the creation of a product. It refers to the time period between the time the order is placed and the product is completed. Lesser lead time creates a more competitive edge for the company.
Lead Time = Value added time + Non-value added Time
Value: Value refers to the additional element provided in the product which caters to the need of the customer and for which the customer is willing to pay.
Value added activities: The value added activities are the activities which add to the value of a product.
Non-value added activities: The non value added activities are the activities which a customer may think unnecessary and tend to reduce the value of a product.
To Calculate: The time M reached home after visiting the doctor.
b)
To Calculate: The total non-value added time spent by M.
c)
To Calculate: The value added ratio (rounded to one place).
d)
To Explain: The reasons the doctors requiring the long wait of the patients.
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Financial & Managerial Accounting
- Suppose that the average waiting time for a patient at a physicians office is just over 29 minutes. To address the issue of long patient wait times, some physicians offices are using wait-tracking systems to notify patients of expected wait times. Patients can adjust their arrival times based on this information and spend less time in waiting rooms. The following data show wait times (in minutes) for a sample of patients at offices that do not have a wait-tracking system and wait times for a sample of patients at offices with such systems. a. What are the mean and median patient wait times for offices with a wait-tracking system? What are the mean and median patient wait times for offices without a wait-tracking system? b. What are the variance and standard deviation of patient wait times for offices with a wait-tracking system? What are the variance and standard deviation of patient wait times for visits to offices without a wait tracking system? c. Create a box plot for patient wait times for offices without a wait-tracking system. d. Create a box plot for patient wait times for offices with a wait-tracking system. e. Do offices with a wait-tracking system have shorter patient wait times than offices without a wait-tracking system? Explain.arrow_forwardIn Year 1, began to receive complaints from physicians that patients were experiencing unexpected side effects from the company’s sleep apnea drug. The company took the drug off the Market near the end of Year 1. During Year 2, the company was sued by 800 customers who had a severe allergic reaction to the company’s drug and required hospitalization. At the end of Year 2, the company’s attorneys estimated a 62% chance the company would need to make payments in the range of $2,500 to $7,000 to settle each claim, with all amounts in that range being equally likely. At the end of Year 3, while none of the cases had been resolved, the company’s attorney now estimated an 80% probability the company would be required to make payments in the range of $3,000 to $10,000 to settle each claim with all amounts in that range being equally likely. In Year 4, 400 claims were settled at a total cost of $2.5 million. Based on this experience, the company believes 30% of the remaining cases will be…arrow_forwardPhone calls arrive at the rate of 48 per hour at the reservation desk for Regional Airways. (Round your answers to four decimal places.) If no calls are currently being processed, what is the probability that the agent can take 2 minutes for personal time without being interrupted by a call?arrow_forward
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