What is activity utilization at every step in the process? What is the direct labor utilization?

In the simplest of words utilization is a measure of time spent working. It is the ratio between the
time worked and time that could have been spent working.
i.e. Utilization =

Actual time spent working Time available for work

We are specifically looking at two types of utilization here. First we will look into the utilization
for each of the departments and then we look into direct labor utilization. The details of how the
calculations were done are provided in Appendix.
Activity Utilization
For the purpose of calculating activity utilization, we look into the utilization of each of the four
departments Front office (registration and verification), X-ray and radiology, X-ray hand off
and examination. For calculations we add all the times spent by all the staffs at each department
doing their tasks and divide this sum by the sum of the total man minutes available at each
department.
From the calculation of the utilization we can see that the overall utilization of the clinic is
76.36%. This logically seems a good utilization rate but a bit higher utilization could be targeted
for.
Looking at the 4 departments individually, the examination activity looks very much utilized at a
rate of 97.6%. This department looks to be under very high pressure and a little bit of variability
in could cause lots of problems. And as we will see in the next section, the employees including
the surgeon, cast technician and senior resident are all under immense pressure with the
surgeons utilization exceeding 100%.
The front desk that is responsible for the registration, verification, collection of X-Rays and
filing/preparation of examination room is utilized at a rate of 76.02%, which is comparable to the
clinics overall utilization and cannot be called over utilized. The X-Ray and radiology
department seems to be underutilized at just about 70%. Given the very long waiting times at this
department, a serious process improvement looks essential.
Direct Labor Utilization
The surgeon is being utilized for almost 110% i.e. he has to work more than the time he is
supposed to work and hence the complaint from him about being over utilized looks fair. The
senior resident also has a utilization rate of 92.23% and can be regarded fair enough although a
comparison to other human resources and the overall clinic utilization might make them look
over utilized as well. The third member of the examination hall in the cast technician has a
utilization rate of 90.03% and is also a good utilization rate. The nurses are being utilized at a
rate of 77.05% whereas the clerks are being utilized at a rate of 74.07%.
If we consider the radiology/X-Ray department as a part of the clinic then the labor utilization
for the technicians and the radiologists are 83.44% and 69.79% respectively.
Appendix: Calculation of Utilization Rate

1. Front Desk
1.1. Registration
Operating time 8:30 AM 11:30 AM i.e. 3 hours or 180 minutes
Total Staffs involved 3 clerks
Total time available = 3 180 = 540 minutes
Time spent on registration = 80 patients 5 minutes = 400 minutes
Utilization of clerks = utilization of the registration process = 400 540 = 74.07%
1.2. Verification
Operating time 8:30 AM 12:45 PM i.e. 4 hours 15 minutes or 255 minutes
Total Staffs involved 3 nurses
Total time available = 3 255 = 765 minutes
Time spent on Verification = 9 min 32 new patients + 4 min 48 follow up = 480 min
Utilization of the verification process = 480 765 = 62.75%
(Since the nurses are also involved in X-Ray collection, this is not equal to nurse direct
labor utilization)
Total utilization of the registration and verification activity =
(400+480) (540+765) = 67.43%
1.3. X-Ray Hand off
1.3.1. Collection of X-Ray
Total number of X-rays = 11 min (all new patients + 85% of follow up)
=11 (32 + .85 48) = 72.8
Total time available = 3 nurses 255 min = 765 minutes
Total time required = 2 minutes 72.8 X-rays = 146 minutes
Utilization = 146 765 = 19.04%
1.3.2. Filing and exam room preparation
Total time available = 1 nurse operating for 255 minutes (8:45 1:00) = 255 min
Time needed = 2 min 80 patients (assuming all patients necessitate preparation
of examination hall)
= 160 minutes
Utilization of the activity = 160 255 = 62.75%
Utilization of the X-Ray Hand off activity
= (146+160) (765+255) = 30%

2. Radiology Department

2.1. X-Ray Filming

Operating for 4 hours or 240 minutes from 8:30 to 12:30 with 6 technicians/machines
But out of this 240 minutes only 2/3 of the total time is for the clinic i.e. 160 minutes
Total time available for x-ray filming for the clinic = 160 6 = 960 minutes
Total time required = 72.8 X-rays 11 minutes = 801 minutes
Process utilization = 801 960 = 83.44%
2.2. X-Ray Development
This is a non-labor activity and is carried out totally by the machines
Time available = 960
Time needed = 72.8 x-rays 7 min = 510 minutes
Process utilization = 510 960 = 53.13%
2.3. Diagnosis reading and analysis
Operating time = 160 minutes for the clinic with 3 radiologists
Total time available = 160 3 = 480 minutes
Total time required = 5 min 72.8 x-rays = 364
Process utilization = 364 480 = 75.83%
Overall utilization of the radiology department
= (801+510+364) (960+960+480) = 69.79%
3. Examination
3.1. By the surgeon
Operating time: 8:45 1: 00 i.e. 255 minutes, one surgeon
Total time available = 255 minutes
Total time required = 7 min all new patients + 4 min 30% of follow up
= 7 32 + 4 .3 48 = 282 minutes
Utilization of the surgeon = 282 255 = 110.6%
3.2. By the senior resident
Time available = 255 minutes
Time required = 7 min 70% of all follow up patients
= 7 .7 48 = 235.2
Utilization rate for the senior resident = 235.2 255 = 92.23%

3.3. Cast Technician

Total time available = 255 minutes
Total time required = 17 min 25% of new patients + 13 min 15% of followup
= 17 .25 32 + 13 .15 48 = 229.6
Process/labor utilization = 229.6 255 = 90.03%
Overall utilization of the examination hall = (282+235.2+229.6) (255+255+255) = 97.6%
4. Labor utilization for the nurses
Total time available = Time for the three nurses at verification and x-ray collection + time for
the nurse at the exam prep duty
= 765 + 255 = 1020 minutes
Total time required = Verification + X-Ray collection + Filing and exam hall prep
=480 + 146 + 160 = 786 minutes
Labor utilization = 786 1020 = 77.05
5. Overall utilization of the clinic resources
Total time available
Clerks
Nurses
X-ray technicians
X-ray development
Radiologists
Surgeons
Senior Resident
Cast Technicians
Total
Total time required for
Registration and registration
X-ray processes
X-ray hand off
Examination
Total

540
1020
960
960
480
255
255
255
4725
880
1675
306
746
3607

Overall Utilization rate of the clinic = 3607 4725 = 76.36%