CASE 5.1 Health Maintenance Organization (A) In January 2012, Joan Taylor, the administrator of the LifeTime Insurance Company HMO in Buffalo, New York, was pleased with the Austin, Texas, location that was

CASE 5.1 Health Maintenance Organization (A)
In January 2012, Joan Taylor, the administrator of the LifeTime Insurance Company HMO in Buffalo, New York, was pleased with the Austin, Texas, location that was selected for a new ambulatory
health center. (The process used to select this site is discussed in Chapter 8, Service Facility Location.) The center not only would serve as a clinic for the acutely ill but also as a center for preventive
health services.
An important goal of the HMO was to offer programs that would encourage members to stay healthy. Various programs already had been planned, including those on smoking cessation, proper nutrition,
diet, and exercise.
The clinic portion of the health center would be quite large; however, certain constraints in the layout would be necessary. Acutely ill patients would need to be separated from well patients. In addition,
federal safety regulations prohibited the radiography department from being adjacent to the main waiting room.
It was very important to Ms. Taylor to minimize the walking distance for both the patients and the HMO personnel. The matrix below provides the expected flow between departments based on 35 patients
per day.
Questions
1. Beginning with a good initial layout, use operations sequence analysis to determine a better layout that would minimize the walking distance between different areas in the clinic.
2. Defend your final layout based on features other than minimizing walking distance.
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A
C
D
E
F
Reception
–
30
5
Waiting room
B
10
–
40
10
0
0
Examination
C
15
20
15
5
5
Laboratory
D
5
18
8
3
X-ray
E
0
4
1
2
4
Minor surgery
F
2
0
0
1
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