SOM Assignment

INDIAN INSTITUTE OF MANAGEMENT LUCKNOW

Submitted to Prof.

Sushil Kumar

Submitted by:

N Susheel Kumar Reddy

PGP 29072
Section - A

Health Maintenance Organisation (A)

1) Triangularised total flow matrix

Reception
Waiting Room
Examination
Laboratory
X-ray
Minor Surgery

A B C
A - 40 15
B
- 60
C
D
E
F

D
10
28
23
-

E
0
4
6
8
-

F
2
0
5
3
5
-

Layout: The X-ray room (E) and Waiting room (B) are not adjacent

Non-Adjacent area flow

Non adjacent Area Pairs
AF
AE
BF
BE

Flow
2
0
0
4

X
X
X
X

Distance
2
2
2
2

=
=
=
=

Total
4
0
0
8

The flow is minimised in the given scenario itself as the non-adjacent flow has the minimum
value for the given layout.

2) Salient Feature of the layout

The sequence of patient flow is most accurately captured by the layout. The patient
enters the clinic from reception (A) before moving to waiting (B) and later move to
examination (C). From where he/she can go to either X-ray or laboratory based on
requirement. The least probable activity of surgery (F) is placed at the back

Health Maintenance Organisation (B)

1)
Symbol
A
B
C
D
E

Activity
Receive prescription
Type labels
Fill prescriptions
Check prescriptions
Dispense prescriptions

Current System (2 technicians & 3 pharmacists)

The bottle process is the typing labels activity (B) which can only clear about 30
prescriptions per hour as shown in figure below
Bottle Neck

A
24s

T1

B
120s

150

T2

30

60s

P1

60

D
40s

P2

90

P3

E
30s

12
0

Capacity of the current system = 30 prescriptions / hour (equal to the capacity of the bottle
neck)

Improved system (2 technicians and 2 pharmacists)

The capacity of the pharmacy can be improved by evening out the activity time between
stations by clubbing them.
Activity A & B can be clubbed with 2 technician doing it simultaneously. Also, Activity D & E
can be clubbed to be done by one pharmacist instead of 2 from before.

A,B
144s

25

A,B
144s

T1

T2

60s

P1

60

D,E
70s

P2

51

25

Capacity of the new system = 50 prescriptions per hour

2) Benefits of new arrangement:

1. Both technicians have same skillsets and replace other in case other is not available.
2. Clubbing activities reduce the handoff costs & time between personnel

Health Maintenance Organisation (C)

Enrolees (000)
5
4
3
1
2
1
4
1
2
4
2
2
3

Census Tract
1
2
3
4
5
6
7
8
9
10
11
12
13.01

Census Tract
13.02
14
15.01
15.02
15.03
16.01
16.02
18.03
20
21.01
21.02
23.01
Median

Enrolees (000)
4
5
6
4
5
3
2
5
2
4
3
4
40.5

Census- Tract Map

*18.03

*15.01

*15.02

*15.03
*3

*2

*1

*21.01
*5

*4

*6
*16.01
*8

*7

*21.02
*16.02
*1
2

*9

*1
1

*10
*14

*13.01
*23.01
*13.02
*2
0

Solution: The ideal location for the clinic is the area between 6 & 7

Problem 10.11
Community

Set of communities served from site

1,2,3

2*

(1,2,4,5)*

1,3,4

4*

(2,3,4,6,7)*

2,5,6

4,5,6

4,7

Number: The minimum number of ATMs needed is 2

Location: The ATMs at communities (2, 4) will serve the entire region

Problem 10.8
a) The spend person per region can be calculated by taking the average of spend of the 2
persons surveyed per region. The following is the calculated spend per region per customer
Customer in area
i
B1
B2
B3
B4
B5

Average spend per

person (B12+B12/2)
125
87.5
125
110
122.5

Customers inn
region i
C1
C2
C3
C4
C5

Customers served
1500
2500
1000
3000
2000

Estimate Annual home appliance sales for store = 51 = 1,106,250

b) Assuming the size of local store S1 = 1 & size of Bulls-Eye S2 = 3

Store attractiveness (Aij)= Attraction of store j to customer in region i ; Local store j =1 , Bulls
eye j =2
=

(Ti) values are given)

Using calculated Aij values, we calculate Probability of customer going to each store using
the following formula

= 5 (Ti) values are given)

1

Attractiveness of
store j to region I
customers (Aij)
A11
A12
A21
A22
A31
A32
A41
A42
A51
A52

0.05
0.2
0.03
0.15
0.03
0.12
0.05
0.12
0.04
0.12

Probability of
customer I going to
store j (Pij)
P11
P12
P21
P22
P31
P32
P41
P42
P51
P52

0.05
0.22
0.03
0.16
0.03
0.13
0.05
0.13
0.04
0.13

Estimate of total annual customer expenditures for a store (E) = 51 = 50544.39