Select Page

Complete the following and submit in a Word document. Be sure to show your process and calculations:As a financial analyst, you have been brought in to help various organizations or individuals to make decisions on possible financial investments that have been presented to them. Solve each of these problems using standard discounted cash flow analysis techniques.

Living Color Co. is facing a decision on a pending project with the following cash flows. If the required return for the project is 9.9 percent, what is the project’s NPV? Should Living Color move forward with the project? Show all calculations to arrive at the NPV.

Living Color Cash Flow

Year Cash Flow

0 -\$31,870

1 8,570

2 10,370

3 14,960

4 16,410

5 11,540

Kathy Flemings is planning on buying a new car in seven years. She thinks that she will need about \$25,000. She has decided to invest \$2,500 today and will do so at the beginning of each of the next six years for a total of seven payments. If her investment can earn 12 percent annually, how much will she have at the end of seven years? Will this be enough for her new car? Show all calculations to arrive at this answer.

Foodelicious Corp. is evaluating whether it should purchase an ethnic restaurant in Manhattan. The current owner had originally signed a 25-year lease, of which 16 years still remain. Foodelicious Corp. expects the restaurant to continue to have sales (and net cash flows) of about the same for the remainder of the lease. Last year, the restaurant brought in net cash flows of \$310,000. The current owner is asking \$1,950,000 for the business. If Foodelicious evaluates similar investments using a 15 percent discount rate, what is the present value of this investment? Should it take over the investment? Show all calculations to help Foodelicious make a decision.

Mary Lynn Sirianni believes that she will need \$750,000 in an IRA investment to live a comfortable life when she retires in 30 years. She is offered an IRA investment that will require her to invest \$3,000 a year for the next 30 years, starting at the end of this year. The investment will earn 13 percent annually. How much will she have at the end of 30 years? Should she make this investment? Show all calculations to help her make a decision.

Gretchen Williams won a lottery. She will have a choice of receiving either \$25,000 at the end of each year for the next 30 years or take a lump sum payment today of \$215,000. If she can earn a return of 10 percent on any investment she makes, which option should she take? Show all calculations to help her make a decision.

WEEK 9 ASSIGNMENT 2 – CASE STUDY: TOTAL QUALITY MANAGEMENT: THE PATIENT PROCESS AT EAST-SOUTHERN KENTUCKY COMMUNITY COLLEGE MEDICAL CLINIC

WEEK 9 ASSIGNMENT 2 – CASE STUDY: TOTAL QUALITY MANAGEMENT: THE PATIENT PROCESS AT EAST-SOUTHERN KENTUCKY COMMUNITY COLLEGE MEDICAL CLINIC

Dr. William Jones has been the director of the health center clinic at East-Southern Kentucky Community College (ESKCC) for about six months. Having been a part of a much larger medical center in the past, he has seen the benefits of total quality management (TQM) and feels that it would help improve the operations at the ESKCC clinic. He has made some positive changes to the staffing of the clinic, but now feels that he must tackle making improvements to its operations. Consequently, he has created a TQM team (of which you are a part) and has made certain that they have received the necessary training to start examining the various processes within the health center’s operations. The ambulatory health service department of the ESKCC health center clinic has received increased complaints from the ESKCC student body and staff concerning the services it offers in its walk-in urgent care clinic. Dr. Jones feels that this center would be an excellent starting point for the TQM team.

THE DATA

The team is presented with the following data regarding student/staff complaints:

Patient Complaint Data

Month Complaint Type 1 Complaint Type 2 Complaint Type 3 Complaint Type 4 Complaint Type 5 Complaint Type 6 Total Visits

September 31 41 17 48 13 115 841

October 21 27 8 41 11 52 971

November 11 48 11 24 28 31 1175

December 71 44 12 17 38 12 1042

January 15 30 12 14 17 41 671

February 21 62 6 12 8 51 1631

March 27 95 16 23 6 4 1512

April 47 34 3 13 15 3 781

May 4 21 2 17 18 2 473

Total 248 402 87 209 154 311 9097

Complaint Type Descriptions

Complaint Type Complaint Description

1 The quality of service received.

2 Waiting time was too long.

3 Follow-up care was not available.

4 Clinic was hard to find in the health center.

5 The medical care/treatment took too long.

6 The medical center could not find the individual’s medical records.

THE PATIENT REVIEW PROCESS

The process for a patient (either a student or a staff member) coming in because of a problem is as follows:

When a patient arrives at the clinic, the patient first sees the receptionist, who checks to see if the patient was seen before. If so, the receptionist pulls the medical record from the file. If the patient is new, the receptionist has the patient complete the necessary forms and creates a medical record.

Patients are seen by the physician in the order they arrive. If one of the two examination rooms is empty, the nurse escorts the patient to the examination room and records the patient’s medical complaint. If no examination rooms are available, the nurse escorts the patient to a waiting area until an examination room is available.

When the patient is in the examination room, the nurse performs routine tests. The nurse then writes the complaint and findings on a medical examination form, a form that will be subsequently filed with the patient’s medical record.

The physician examines the patient and orders medical tests, if necessary. A diagnosis and treatment plan is presented to the patient by the physician; a written copy of this plan and any other appropriate instructions are written on the medical examination form.

When the physician releases the patient, the patient returns to the receptionist, who prepares a bill. If the patient has health insurance, the bill is sent to the health insurance carrier.

The patient leaves after either paying the bill (by cash, check, or credit card) or signing the forms to authorize payment by his or her health insurance company. If the health insurance company refuses to pay or partially pays the bill, the receptionist bills the patient by mail. Any patient with an unpaid bill or bad credit history is refused subsequent treatment until the old bill is paid.

INSTRUCTIONS

As a member of the ESKCC TQM team, you are asked to put together a report that recommends improvements to the overall patient process. Create a 4–6 page report in a Word document (copy and paste any charts created in Excel) addressing the following tasks:

Construct a Pareto Chart for the data regarding complaints to the health center that is presented in Table 1. Describe two conclusions from examining this data.

Develop a control chart for the waiting time complaint (complaint #2). Explain how the control chart is developed and show the calculation process.

Illustrate the causes for Complaint #2 in a fishbone diagram. (Note: refer to the readings for examples.)

Develop a flow chart for the process that the clinic uses for a patient who comes into the ambulatory center. Draw two conclusions from examining the flow chart regarding either or both of the following:

How the process affects the patient.

Potential sources of unnecessary complexity.

Determine three improvements to streamline the patient process based on the insights that you gain from examining the process flow chart as well as your understanding of total quality management concepts from your course readings.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcome associated with this assignment is:

Propose improvements to a health services organization based on total quality management (TQM) concepts.