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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1. Executive Summary Shouldice hospital is a specialized hospital in the repair of external abdominal hernias in Canada. The hospital was established by Dr. Shouldice the founder of a new and superior surgical technique‚ now known as the Shouldice method‚ for repairing hernias which yields better medical results as well as a significantly shorter recovery time. The Shouldice Hospital is a successful organization and admired by most of the people who had relation with it or who have heard of it
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Shouldice Hospital Limited 1. How well is the hospital currently utilizing its beds? Shouldice Hospital is currently utilizing its beds quite well. Under the Shouldice method‚ they are operating with 90 beds‚ admitting 30 patients per day‚ and not accepting any new patients on Saturdays. Each patient admitted generally stays in the hospital for 3 days and is discharged on the fourth morning. By examining Exhibit 4.7‚ it is apparent that the hospital’s capacity utilization is roughly 71.43%
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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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While reading 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
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Operations Management Shouldice Hospital January‚ 2013 Table of Contents Executive Summary ....................................................................................................................3 Scope .................................................................................................................................................. 3 Analysis ......................................................................................................................
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Group #8 Assignment #1: Shouldice Hospital case 1. How does the hospital’s operations strategy support its business strategy? 2. How well is the hospital currently utilizing its beds? 3. Evaluate the effects of the following two alternatives on the utilization of the bed capacity. a) a. Adding operations on Saturday (assuming that 30 operations would still be performed each day). b) b. Increasing the number of beds by 50 percent (assuming that the hospital would increase the
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Bottleneck analysis: Also see enclosed Process flow chart (Appendix 1). Hospital is able to perform 42 exams/afternoon and send 38 patients to the operation rooms. But surgery capacity is 33 operations/day only. Bottleneck (number of operations/day) is therefore located between these two processes. Hospital performs 33 operations/day = demand 116 beds/Wed‚Thu and 99 beds/Tue. Demand is 116 and current capacity is 89. Bottleneck is the number of beds available. It is necessary to increase capacity
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1.) How well is the hospital currently utilizing its bed? 90 beds x 7 days/ week = 630 beds available in a week 30 patients x 3 days x 5 days per week = 450 beds utilized 450 beds utilized / 630 availble beds = 71.43% The hospital is currently utilizing 71.43% of their beds‚ this is actually an ideal operating point. To increase its rate of utilization might decrease the service quality. 2.) Develop a similar
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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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