Module 3 - Homework Solutions

Chiemsee Knee Replacement Clinic

CKRC1.

Each of the 3 surgeons has 4 hours or 240 min available per day. Each patient takes 90 minutes
of OR time (10 min preparation + 60 min procedure + 20 min clean-up). Therefore, each
surgeon can see 240 min/90 min = 2.33 patients per day, which must be rounded down to 2
patients per day. The total # of patients who are seen per day is 2 patients/surgeon x 3
surgeons = 6 patients.

CKRC2.

OEE = (60 min value-add time/patient x 6 patients/day x 6 days/cycle) / (60 min/hr x 12 hr/day x
7 days/cycle) where each “cycle” = 7 days. Therefore OEE = 0.43.

Parsa Real Estate

PR1.

Capacity 10000
Rev generating offices -----------
Revenue --------------------- 8000 Load =2-0.02*6 0.8
576
EBIT Yield 6
264

Cost ---------------------- Monthly Maintenance =10*12 120

312 Variable Cost =12*2*8000/1000 192
ROIC
0.264

Capital ----------- Land 1000

1000

Answer: 0.264

PR2.

New occupancy rate = 2 – 0.2 * 8 = 0.4

New revenue = $384,000 and new (fixed + variable) cost = $216,000. Therefore new EBIT =
$168,000 and new ROIC = 0.168.

1
12 Tasks to 4 Workers

12T4W1.

Worker Task(s) Activity Time (sec) Capacity (units per hour)

1 1,2,3 70 51.43

2 4,5,6 55 65.45

3 7,8,9 85 42.35

4 10,11,12 60 60

Capacity = 1 / 85 sec = 42.35 units per hour

12T4W2.

Direct labor content = (70+55+85+60) sec = 270 sec/unit or 4.5 min/unit

12T4W3.

Demand = 20 units/min = 20 units/60 sec

Takt time = 1/demand = 3 sec/unit

12T4W4.

Target manpower = labor content/takt time = 270 sec/3 sec = 90 workers