REPORT ON

ClearEyes Cataracts Clinic

Submitted in partial fulfilment of the requirements of

Operations Management - 1

By :-

Group No. 14

Amit Gawai (221007)

Rohith K S (2210046)

Sagar Bhoriya (2210047)

Srishti Jain (2210058)

Sumit Kishore (2210062)

Under the guidance of

Prof. Rohit Titiyal

 Case Analysis & Solutions

Q-1 Solution :-

Fig 1.1 : Process Flow Diagram

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Table 1.1 :-

Table 1.2 :-

Table 1.3 :-

The capacity utilisation of each category of staff is given in table 1.1. It has been calculated
by considering 8 hour working days for all staff apart from the surgeon, who works for 7 hours
in a day. Considering 60 minutes in an hour, 48 weeks in a year and 5 days a week, and
number of workers in each category as given in the table, we obtain the time available with
each category of employee in a year. The time utilised was given in the exhibit 2, and capacity
𝑇𝑖𝑚𝑒 𝑢𝑡𝑖𝑙𝑖𝑠𝑒𝑑
utilisation hence becomes 𝑇𝑖𝑚𝑒 𝑎𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒

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Q-2 Solution:-
According to the case, 34.42% of patients who finish the intake process didn’t show up for
their scheduled procedure.
34.42/2 = 17.21% will be the increase in the number of patients who finish the intake process
and show up for their scheduled procedure.

Hence, 65.58% + 17.21% , i.e. 82.79% of patients finish the intake process and show up for
the surgery.

8,056 people present themselves for intake, which results in a total of 6,670 patients being
seen. 6,670-5,283/8,056 = 1,387/8,056 = 17.21% increase in patient volume.

Annual capacity for non-surgeon minutes is calculated as 115,200 minutes (5 days * 48

weeks * 8 hours * 60 minutes).

Receptionist utilisation = 29,452/115,200 = 25.57%

PSR usage (per person) is 353,290 divided by 115,200, which equals 306.68%, multiplied by
four employees for this job title, which equals 76.67%

Utilisation rate of technicians (per person) = 212,906/115,200 = 184.81%/3 employees with

this job title = 61.60%

Cleaner usage = 51,826/115,200 = 44.99%

The annual capacity of a surgeon's minutes is equal to 5 days * 48 weeks * 7 hours * 60

minutes, which equals 100,800 minutes.

Utilisation of the Staff Surgeon = 119,960 out of 100,800 = 119.01%

Hence, staff required will be increased for surgeons, since their utilisation has increased
beyond 100%. This can be done by employing an additional part time staff surgeon.

Total Time Capacity

Rooms Availability Time Utilised
Available Utilisation
Intake 2 259,200 161,120 62.2%

Surgical Room 3 388,800 174,339 44.8%

Examination
2 259,200 114,593 44.2%
Room

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The utilisation of the surgery room and exam room will be changed to 60% and 55.8%
respectively, (refer to table above). Hence there are no requirements to add any new surgery
or exam room. The utilisation of the intake room remains the same, as the yield increase
happens after the intake.

Q-3 Solution:-
Description Rate Calculation Before Yield After Yield
Formula Increase ($) Increase ($)

Procedures Yield increase 5283 6670

per year: calculated above

Revenues: 1,338 net revenue per 1,338 * no of 7068654 8924460

procedure patients

Total 7068654 8924460

Revenue

Costs

Direct Variable Cost 480 * no of 2535840 3201600

per procedure patients

Wages Surgeon : 200,000 + 200000+40*no of 384440 (A) 439920

40/operation patients

1 Receptionist :38,000 Fixed Cost 38000 (B) 38,000

4 PSRs : 38,000 Fixed Cost 152000 (C) 152000

3 Technicians : 48,000 Fixed Cost 144000 (D) 144000

1 Cleaner : 31,000 Fixed Cost 31000 (E) 31000

Benefits at 28% of labour costs =0.28*(A+B+C+D 209843 217963

+E)

Other Costs Advertising Fixed Cost 48000 48000

Facility Cost net of Fixed Cost 36000 36000

rent

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 Cleaning and Fixed Cost 36000 36000
Maintenance

Other facility: Fixed Cost 90238 90238

insurance, IT, various

Legal Fixed Cost 280969 280969

Miscellaneous Fixed Cost 80420 80420

Accounting Fixed Cost 90000 90000

Depreciation Fixed Cost 160000 160000

Total Cost 4156750 5046110

Total Pre Total Revenue - 2911904 3878350

Tax Total Cost
Revenue

Hence, from the above table, it can be concluded that the pre tax revenue has increased
from $2911904 to $3878350, i.e. an increase of $9,66,446 due to an increase in the yield of
the process.

Q-4 Solution:-
From the available data in the exhibit 3, the following actions can be taken to increase yield:
● Lack of funds is the reason for a majority of the population not to show up, and to
tackle this; discounts could be offered for the patients who do not show up due to this
reason since there is a margin of $(1338-480), i.e., $858 for operation.
● Conners can consider providing a ride to and fro from a clinic during scheduling the
calls. It can be planned so that the patients from the same area are called on the same
day.
● Regular follow-up calls of patients who are planning to do it in the future are to be
done, so that the number of people who plan to do it in the future increases.

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Q-5 Solution:-

We would recommend Dr. Connors to investigate lowering yield loss, which would boost the
clinic's pre-tax profitability. In addition, if she chooses to increase worker hours, she risks
destroying morale, which has an intangible cost. Moreover, if she did not handle the no-shows
for surgery, she would run the risk of a decrease in staff utilisation and an increase in other
costs (such as cleaning and maintenance), with no assurance that an increase in volume would
offset these expenses. And, if she expanded the existing space, she would lose $24,000 per year
in rent from the small business tenant ($2,000 per month), incur a one-time cost of $60,000 to
buy out the tenant, incur significant construction and furnishing costs (exam room = $42,000,
surgical room = $93,000, and intake room = $30,000), and risk closing the clinic for a minimum
of one month for construction. Expanding to a new location would strain Dr. Connors and could
result in the loss of other intangible advantages, such as those that occur from her soothing
anxious patients and their families. How many people may not have completed the operation
if she were not present in the initial clinic to calm their fears? The increase in pre-tax earnings
from minimising yield loss overcomes the dangers associated with the other alternatives.

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