3/26/2013 Shouldice Hospital Limited (Abridged) Summary of case discussion Indicators of success • Profits – Revenue = 7600 * (320*4 + 650 + 300*20%) = $15 mil. – Costs = $8.5 mil for hospital + $3.5 for clinic $ $ – Profits = $3 mil • Word‐of‐mouth advertising – Afraid of advertising for fear of generating too much demand • Backlog of demand – Currently 2400‚ growing at 100 / 6 mo. • High percentage of doctors as patients • L Low recurrence – 0.8% vs. 10% at other hospitals • Patients reunions
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Section 2 PROCESSES 3. Strategic Capacity Management 4. Manufacturing Processes 5. Services Processes 6. Six-Sigma Quality PROCESSES The second section of Operations and Supply Management: The Core is centered on the design and analysis of business processes. Maybe becoming an efficiency expert is not your dream‚ but it is important to learn the fundamentals. Have you ever wondered why you always have to wait in line at one store but another one seems to be on top of the crowds? The key to
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Case Study Shouldice Hospital Limited 09. November 2011 1. How does Shouldice compete? Identify at least three characteristics of Shouldice´s operations that contribute to its competitiveness. The four most important influences on competiveness in a company are cost‚ time (speed)‚ flexibility and quality. Cost and time should be held as small as possible‚ flexibility and quality as high as possible. In the Shouldice case we added another category: customer service. For the categories
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of Situation and Identification of Problems 1.1 Service The Shouldice Hospital competitive advantage is that it only conducts external hernia operations and is specifically designed and operated to provide the highest probabilities for successful treatment with “country club like” patient service. Hernia operations typically have a 90% success rate‚ with Shouldice hernia operations boasting over a 99% success rate. The Shouldice competitive advantage can be summarized into: Surgical technique:
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Issues/BackgroundShouldice Hospital limited was started in 1940 by Dr. Earle Shouldice for treating Hernia. The method of surgery adopted by Shouldice Hospital was unique in a sense that it introduced the concept of flow shop in carrying out surgeries alongwith simplicity in surgery. Because of this uniqueness and simplicity‚ the demand for surgeries at Shouldice increased and Shouldice has reached a point where it has to increase its capacity to reduce the wait times being faced by the patients
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study‚ one problem can obviously been observed- paradox of change. Shouldice is operating at its "best operating level"(as we can see from the case)‚ a specialized work force but it is failing to meet all the demand for its chosen market niche. Adding additional capacity to meet market need may upset the existing work force and lower quality of operations. Failing to meet market requirements may cause competition that would lead hospital to loss market share. I make a SWOT analysis for better understanding
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MEMO To: Alan O’Dell – Hospital Administrator Date: 18 September 2013 Subject: Sustainable Growth Strategy As consultants for Shouldice Hospital Limited‚ we see that the major problems confronting the hospital are capacity management while maintaining quality‚ technique being copied by other doctors and succession planning. Although the hospital has good reputation and quality service‚ it is not able to service customers due to lack of capacity as well as conflicts among
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1. Model Shouldice Hospital as a processing operation with products‚ attributes‚ and resources. A. Process Structure: a. Input: Approved patient entering the clinic the day before operation b. Output: Successful patient leaving the facility c. Flow Unit: The patient going through the surgery process d. Network of activities and buffers (not sure?): The whole process with its wait times. Waiting room (20min wait time)‚ examination (15-20min)‚ waiting room for accounting office (5-15min)‚ accounting
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DSE7100 Managing Service Operations Discussion of Shouldice Hospital Limited Case Assignment #2: Questions for Shouldice Hospital Limited 1. How Successful is the Shouldice Hospital? 2. How do you account for the success of the hospital? 3. What is the strategic service concept of Shoudice Hospital? How are the elements in the service systems designed and managed to support the strategic service concept? 4. As Dr. Shouldice‚ what actions‚ if any‚ would you take to expand the hospital’s
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1. How well is the hospital currently utilizing its beds? (60+90+90+90+60+30+30)/ (90*7) =450/630=71.4% The hospital is currently utilizing 71.4% its beds 2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients? Check-in Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday 30 30 30
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