Brief Review of Shouldice Hospital Operations Management
Brief Review of Shouldice Hospital Operations ManagementBrief review of Shouldice hospital operations management
1. In your view, what are the most important elements of the Shouldice system?
Specialize in hernia repair – a niche market with substantial size
Based on an innovative idea:
Comfortable environment reducing anxiety and encouraging quick recovery
Focus on maximum value: perceived quality/value of the service provided to patients minus cost
2. Assume that Shouldice, under new management, aspires to increase it volume by a factor of 10 over 5 years by expanding in 10 large cities in North America. List the changes you would implement at Shouldice to achieve this goal. (For this assignment, assume that financing could be secured, and the markets are available. Concentrate on the operational issue)
3. Which of the elements listed in section 1 will survive under the test of section 2, and which will have to be replaced?
Key challenge – limited capacity and inability to satisfy demand.
Risk of competitors responding to the demand with similar business model , changing the market in the longer term.
Key question to stakeholders – stay small or grow?
Solution - low cost/short term
1. Objective – to improve turnover by reducing average time spent in hospital.
Time: Change schedule and have operations during the weekend. Involve patients in preparing for operation and reduce time lost in day one. Consider earlier checkout.
Personnel : add personnel with gradual shift to younger/positive on more intensive work staff
Time: Facility: add new floor and increase operating rooms and bedrooms.
2. Objective – to increase profitability by implementing tier pricing and increasing average price.
Solution - higher cost/longer term
1. Objective – to grow the business by adopting business model for multiplication and opening facilities in key markets.