Animal Farm Company is a company specialising in the veterinary treatment of animals. The services provided by the company are grouped into three categories:
A. domestic animals
B. farm animals
C. ‘exotic' animals.
There are several other animal hospitals in the local area, and the owner of Animal Farm, who is also its CEO and chief vet, is very aware of the threat from competitors.
The system used for dealing with customers is as follows. Customers telephone the company's medical centre when they are concerned about their animal. The medical centre receptionist then:
(A) For domestic and exotic animals, suggests whether or not the animal should be brought into the medical centre for examination and treatment
(B) For farm animals, suggests whether a vet should visit the farmer to examine the animal (or animals)
(C) Gives an indicative price of treatment.
Customers cannot bring their animal into the centre without first making an appointment with the receptionist.
Animal Farm has a policy of employing no more than eight veterinary surgeons (‘vets'), who work full time on either domestic animals or farm animals. ‘Exotic' animals are treated by specialists, who are not full- time employees; these specialists work for the company when required, in response to telephone requests for assistance.
Full time vets are paid a salary of $90,000 each per year. In addition, they receive a bonus of 50% of the amount by which actual fee income exceeds the budgeted fee income for the year. The total bonus is shared equally between the full-time vets.
The full-time vets are also required to deal with complaints from customers about poor treatment or unsuccessful treatments.
The owner and CEO of Animal Farm is committed to keeping staff fully up-to-date with current developments in the treatment of sick and injured animals. Each vet has a personal development programme, and is allowed to attend external training courses and seminars for up to eight days each year.
|
|
Number of examinations/treatments
|
|
New business
|
2,500
|
3,000
|
|
Repeat business
|
12,700
|
11,200
|
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Mix of examinations/treatments
|
|
Domestic animals
|
11,900
|
9,500
|
|
Farm animals
|
3,200
|
4,400
|
|
'Exotic' animals
|
100
|
300
|
|
Other statistics:
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|
|
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Fee income
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$2,100,000
|
$2,250,000
|
|
Training costs
|
$60,000
|
$80,000
|
|
Fees for part-time vets (exotic animals)
|
$15,000
|
$48,000
|
|
Other operating costs
|
$1,120,000
|
$1,390,000
|
|
Number of complaints
|
300
|
410
|
'Repeat business' refers to customers who have used the services of the Animal Farm medical centre before.
Required
Using the Fitzgerald and Moon framework for the analysis of performance systems, select a performance indicator for ANY FIVE of the six dimensions of performance in the framework, and use this to measure the performance of Animal Farm in 20X4.