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

Page | 2
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 for the non-surgeon staff, and 7 hours for surgical staff. Considering
60 minutes in an hour, 48 weeks in a year and 5 days a week, and 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 utilisation hence becomes
Time utilised
Time available

Page | 3
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.

Yearly capacity for non-surgeon is calculated as 115,200 minutes

Utilisation for the receptionist= 29,452/115,200 = 25.57%

PSR usage is 353,290/4, i.e 88322.5 divided by 115,200, which equals 76.67%

Utilisation rate of technicians = 70968.67/115,200 = 61.60%

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

The yearly capacity of a surgeon is equal to 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

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

Page | 4
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

Revenue: 1,338/procedure No. of patients * 7068654 8924460

1338

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

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

Page | 5
 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.

Page | 6
Q-5 Solution:-

Dr. Connors should look at methods of reducing yield loss to increase the clinic's pre-tax
profit. There is also the intangible cost of employee morale that she runs the risk of damaging
if she decides to raise working hours. In addition, there is no guarantee that an increase in
volume would compensate for the expenditures if she does not deal with the patients who
cancel their surgeries. She would lose $24,000 annually in rent from the small business tenant
($2,000 per month) if she expanded the current space, pay an additional $60,000 to buy out
the tenant, spend a significant amount on building and supplying (exam room = $42,000,
surgical room = $93,000, and intake room = $30,000), and risk closing the clinic for at least a
month during construction. Dr. Connors' efforts would be taxed if she were to move her
practise to a different location, and she may lose some of the intangible benefits she now
enjoys, such as the trust and loyalty of her patients and their families. I wonder how many
individuals may not have gone through with the procedure if she hadn't been there at the first
appointment to ease their nerves. Pre-tax profit gains from reducing yield loss outweigh the
risks of the other options.

Page | 7