Carson Manor
Case 6-3: Carson Manor
Situation:
Ms. Elaine Taylor, is director of supply for the city of Winston(director of PSD)
Was reviewing proposals for the Carson Manor study
Three consulting groups had responded to a RFP
Has to recommend a consultant by mid-December
Carson Manor
Was opened about 30 years ago for persons requiring nursing care.
It has a bed capacity of 470 and staff totaled 235 with nonmanagement personnel unionized.
The report structure:
Purchasing and supply division (PSD)
The PSD and its director had purchasing and disposal authority for the city’s engineering, fire, social services and so on.
The main objective of the PSD was to respond to the needs of other departments and divisions for goods and services at minimum cost, consistent with desired quality, delivery timing and reliability.
The Carson Manor study
The Carson Manor had a history of problems related to budgeting and cost control
City council felt the cost per bed higher than privately run institutions.
The report for submission to the Carson Manor Committee of Man- agement in early June :
Carson Manor costs were approximately 14% higher than state averages on a per-bed basis.
It is difficult to measure and control costs in the absence of a patient classification system.
It recommended an operational review by an outside agency and outlined some general guidelines and objectives.
Council accepted the report’s recommendations and initiates an independent consultant’s study of Carson Manor.
Three proposals:
Patientcare Ltd. large operators of nursing homes $35000
Clarke-Hamilton Ltd. management consulting firm located 100 miles away. $47000
Standardcare Ltd. large operators of nursing homes $77000
BASIC ISSUES:
Need Criteria in the Value Proposition
Categories of Needs
Repetitive or Non-repetitive Requirements
Methods of Description
Standardization & Simplification
Risk management
Tasks
What does Elaine do?
Questions for discussion: How does a
Situation:
Ms. Elaine Taylor, is director of supply for the city of Winston(director of PSD)
Was reviewing proposals for the Carson Manor study
Three consulting groups had responded to a RFP
Has to recommend a consultant by mid-December
Carson Manor
Was opened about 30 years ago for persons requiring nursing care.
It has a bed capacity of 470 and staff totaled 235 with nonmanagement personnel unionized.
The report structure:
Purchasing and supply division (PSD)
The PSD and its director had purchasing and disposal authority for the city’s engineering, fire, social services and so on.
The main objective of the PSD was to respond to the needs of other departments and divisions for goods and services at minimum cost, consistent with desired quality, delivery timing and reliability.
The Carson Manor study
The Carson Manor had a history of problems related to budgeting and cost control
City council felt the cost per bed higher than privately run institutions.
The report for submission to the Carson Manor Committee of Man- agement in early June :
Carson Manor costs were approximately 14% higher than state averages on a per-bed basis.
It is difficult to measure and control costs in the absence of a patient classification system.
It recommended an operational review by an outside agency and outlined some general guidelines and objectives.
Council accepted the report’s recommendations and initiates an independent consultant’s study of Carson Manor.
Three proposals:
Patientcare Ltd. large operators of nursing homes $35000
Clarke-Hamilton Ltd. management consulting firm located 100 miles away. $47000
Standardcare Ltd. large operators of nursing homes $77000
BASIC ISSUES:
Need Criteria in the Value Proposition
Categories of Needs
Repetitive or Non-repetitive Requirements
Methods of Description
Standardization & Simplification
Risk management
Tasks
What does Elaine do?
Questions for discussion: How does a