this case 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
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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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Shouldice Hospital – A Cut Above 1.) How well is the hospital currently utilizing its beds? The hospital stay cycles have been provided: | Mon Beds | Tue Beds | Wed Beds | Thu Beds | Fri Beds | Sat Beds | Sun Beds | Available Beds | 90 | 90 | 90 | 90 | 90 | 90 | 90 | Monday Admission | 30 | 30 | 30 | | | | | Tuesday Admission | | 30 | 30 | 30 | | | | Wednesday Admission | | | 30 | 30 | 30 | | | Thursday Admission | | | | 30 | 30 | 30 | | Friday Admission | |
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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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“Shouldice Hospital‚ the house that hernias built‚ is a converted country estate which gives the hospital a ‘country club’ appeal.” A quote from American Medical News Shouldice Hospital in Canada is widely known for one thing – hernia repair! In fact‚ that is the only operation it performs‚ and it performs a great many of them. Over the past two decades this small 90-bed hospital has averaged 7‚000 operations annually. Last year‚ they had a record year and performed nearly 7‚500 operations
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Situational Analysis and Problem Definition: The Shouldice Hospital in Ontario‚ Canada is a pioneer in the field of treating patients suffering from external abdominal hernias. With its current capacity‚ it can treat up to 6850 patients annually. The patients are treated using the Shouldice Method‚ and on an average each patient has to spend about four days in the hospital recuperating. The USP of the Shouldice Hospital is it’s distinct surgical procedure. The speedy ambulation coupled with it’s
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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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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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Solution for Q1: Shouldice hospital is a leader in treating patients who suffer from Hernia. Shouldice achieved outstanding performance and reputation through its distinguished services to customers in terms of cost‚ quality‚ delivery and flexibility Cost: At Shouldice‚ Operating cost is not the only cost factor that attract customers. Besides‚ typical operation cost (including the patients stay at hospital) ranges from only $954 to $1029 compared to a total of $2‚000 to $4‚000 elsewhere. Even
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Case Study: Shouldice Hospital Shouldice Hospital Ltd. is a unique clinic located in Toronto Canada that specializes in external abdominal hernias. Open since 1945‚ the clinic that is more like a country club uses a method developed by Dr. Earle Shouldice that encourages a different procedure than used by most hospitals. The Shouldice Method reinforces the abdomen walls and requires only a sleeping pill with a local anesthetic which results in immediate patient ambulation and
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