Brief Review of Shouldice Hospital Operations Management

In: Business and Management

Submitted By andrey
Words 295
Pages 2
Brief review of Shouldice hospital operations management

SHOULDICE HOSPITAL

1. In your view, what are the most important elements of the Shouldice system?
Shouldice method
Specialize in hernia repair – a niche market with substantial size
Based on an innovative idea:
Preliminary selection
Early ambulation
Procedure technique
Comfortable environment reducing anxiety and encouraging quick recovery
Focus on maximum value: perceived quality/value of the service provided to patients minus cost
Proved efficiency

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?
Challenges
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…...

Similar Documents

Operation Management

..., systems, and actions into a systematic response to the competitive priorities chosen and communicated by the corporate or business strategy (Operations Strategy, 2011). Operational sustainability is the ability of a business to meet the operational objectives over extended periods of time. A sustainable strategy that meets the needs of shareholders and employees, and preserves the environment is critical. Currently working for Verizon, the operations management can be defined as both an effective and ineffective process. I have this view because the company ensures that business operations are efficient in terms of using as little resources as needed, but at times can struggle when ensuring operations are effective in terms of meeting customer requirement. With that being said however, Verizon operations management can be defined as effective in many areas. The areas consist of product creation, development, and production. Verizon does a great job maximizing all their resources in order to produce a great product and service. The organization focuses on the operations of the entire organization, rather than managing a particular product or service. With this occurring, the quality of the operations management is high. Quality management is crucial to effective operations management for Verizon and plays a major role on the constant growth. Verizon’s high quality and performance, focuses on improving customer satisfaction through continuous and incremental...

Words: 644 - Pages: 3

Shouldice Hospital Case

...Question 1 Model Shouldice Hospital as a processing operation with products, attributes and resources. Model Shouldice Hospital as a Processing Operations unit can be viewed as having the following Process structure. Input: The patients entering the Clinic after getting the confirmation on the date of the operation. Output: The output in this case is the number of successfully operated patients who underwent the entire process. Flow Unit: This is one patient that go through the process. The Process starts when the patient enters the hospital and ends on the day of the discharge. We can also find that the number of inputs in the process may not be equal to or could be less than the number of output. There are patients who are sent back because of the medical complications such as overweight and if the diagnose proves to be negative. The process can be viewed in a diagram. There are waiting times in between each location. Process view of Shouldice hospital Limited Network of activities and Buffers (Patients at different departments ) (Waiting time for each) * Input Output Patients operated patients Capital and Labour Products Since the case is from a service sector the set of process outputs include tangible and intangible interpretation. The product of the service can be inferred as the number of cured patients but along with that there are some intangible aspects such as the experience of the patients in the Hospital...

Words: 2166 - Pages: 9

Brief Review of Shouldice Hospital Operations Management

...Brief review of Shouldice hospital operations management SHOULDICE HOSPITAL  1. In your view, what are the most important elements of the Shouldice system?  Shouldice method Specialize in hernia repair – a niche market with substantial size Based on an innovative idea: Preliminary selection Early ambulation Procedure technique Comfortable environment reducing anxiety and encouraging quick recovery Focus on maximum value: perceived quality/value of the service provided to patients minus cost Proved efficiency 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?  Challenges 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......

Words: 295 - Pages: 2

Shouldice Hospital Case Study

... profit per week. The additional revenue of $52,500 per week would make the payback period be 85.71 weeks or 1.65 years. In this case the return on investment would be worth it. If the Shouldice Hospital is not able to perform 45 operations per day, and could only perform 40 operations per day, they would be able to perform 50 additional operations per week. If they perform 50 additional operations per week and make $700 per operation, they would make an additional $35,000 per week. Making an additional $35,000 per week would make their payback period 128.57 weeks, or 2.47 years. Either way, their return on investment would be worth it and they would be able to justify the investment for the expansion within their 5 year period. Overall the Shouldice Hospital is currently utilizing its capacity very well right now and has the ability to expand and maintain a high utilization rate. With the expansion options detailed above, they would have to make some strategic management decisions on where they would like their business to go from here. They have some opportunity to increase demand and expand if they choose to do so but they may want to stay with the same business model that they have been successful with for years. Dr. Shouldice created a method that was very efficient and effective, over the years they have provided great service and a great atmosphere for patients to come for hernia surgery. Works Cited F. Robert James, Richard B. Chase. Operations......

Words: 2168 - Pages: 9

Operation Management

... chapters. Chapter one of the paper give a brief explanation of the research objective, introduction and scope of the study and how the study was conducted. The second chapter deals with the review of related literature. Chapter three, deals with analysis and interpretation of data. Finally, chapter four presents the conclusion drawn from the finding and recommendation. A bibliography and appendices complete the paper. Chapter two 2. Literature review 2.1 Background of Linear Programming Linear programming was developed as a discipline in the 1940’s, motivated initially by the need to solve complex planning problems in war time operations. It is developed accelerated rapidly in the post war periods as many industries found its valuable uses for linear programming. The founder of the subject are generally regarded as George B. Dantzing, who devised the simplex method in 1947, and John Von Meumann, who establish the theory of duality that same year. The noble price in economics was awarded in 1975 to the mathematician Leonid Kantrovich (USSR) and the economist Tjalling Koopmas (USA) for their contribution to the theory of optimal allocation of resource, in which linear programming played key role. Many industrial linear programming as a standard tool, e.g. to allocate a finite set of resource in an optimal way. Example of important application area include Airline crew scheduling, manufacturing, shipping and telecommunication network, oil refining and blending, stock...

Words: 2742 - Pages: 11

Shouldice Hospital Case Study

...1. How successful is Shouldice? Shouldice is successful in a technical sense with its combination of low recurrence rate, low cost and short recovery time. According to www.webmd.com an inguinal hernia repair, which is the primary procedure Shouldice Hospital performs, has an average recurrence rate of 1% to 10%. The recurrence rate for hernia repairs performed at Shouldice is less than 0.5%. The average recovery time for this procedure is 1to 2 weeks for light activity and up to 4 weeks for full recovery. Shouldice patients often walk to the wheelchair from the operating table, are participating in light exercise the same day, and are back to work within 8 to 10 days. Costs for this procedure at other facilities range from $2,000 to $4,000 while Shouldice is able to perform it for under $1,000. Shouldice is also successful in providing a positive experience with nearly 80% of patients being swayed by a positive review from friends and family. 2. How does Shouldice maximize perceived customer value? Shouldice maximizes perceived customer value by providing services of quality higher than the market at a cost lower than the market in an environment that has the feel of a country club rather than a hospital. They have succeeded in instilling such camaraderie in their former patients that tickets to an annual alumni convention sell out every year. Shouldice has succeeded in wrapping their medical care within a social experience usually restricted to vacations...

Words: 909 - Pages: 4

Shouldice Hospital

...Executive summary or Conclusion Shouldice Hospital was founded in 1945 by Dr. Earle Shouldice. It is a well known hospital in Ontario, Canada for its extraordinary service and care of hernia repair. The hospital is famous for lots of notable features in its service delivery system - superior surgery technique, effective recovery methods and comfortable and friendly environment with gregarious staff and service. Shouldice Hospital is a small 90-bed hospital with averaged 7,000 operations annually. However, the demand on the hernia operation is much grater than the Hospital’s current capacity. The management of Shoudice is thinking to expand the hospital’s capacity to service unmet demand. There are two expansion options to consider, one is to add Saturday to the existing five day operation’s schedule to increase capacity by 20%; another is to increase the number of beds by 50% by adding another floor of rooms to the hospital. But another opinion within the hospital is that further expansion of capacity might make it hard to maintain current high quality of service delivered. By analyzing, calculating and comparing current situation and the proposed options, the recommendations are made as below: Add Saturday operation to existing five days schedule to increase 20% capacity in the short term. This method is simple to follow and will solve the need of increasing demand with very minimal impact on current quality of service. Within in the next five years, add...

Words: 592 - Pages: 3

Shouldice Hospital Case

...The Shouldice Hospital was created by Dr. Edward Earle Shouldice who is the inventor of the Shouldice method which is a hernia surgery designed to reduce recovery time and improve surgical results. The method was in response to men who couldn’t enlist in the military due to complications and it would quickly restore their physical fitness for military training. Due to high demand and scarce hospital space, Dr. Shouldice decided to open up his own hospital specializing in his unique hernia repair method. At the Shouldice hospital, only external types of hernias were performed creating a facility that offers expertise and specialization in their service. There are numerous characteristics of the Shouldice hospital that differ from most other hospitals. The most significant difference is the performance of a single operation and nothing else. This helps provide customers were assurance that they are being taken care of by knowledgeable professionals who have performed hundreds of similar operations. Not only were they getting a quality service, but a speedy recovery time helped to add value to their experience. In addition to the surgery received, the entire experience of a quick check in, a comfortable atmosphere, an opportunity to create relationships, well prepared meals, and the freedom to move around are all services which help to differentiate themselves from your typical hospital. This helps to relieve stress and anxiety many people have when getting a surgical...

Words: 1668 - Pages: 7

Operation Management

... ___ | | | |Program / Intake: _________BSC 18E________________ | |Module: _______OPERATION MANAGEMENT_________ ( ( Pre-course / ( Main Assignment | |Lecturer: _____Professor Brian Fynes __ Received by: ________________________________ | Operation Management Pre-assignment [pic] Bsc 18 Management Qu MengLi UCD student number: 12257675 Word count: 956 An essay on how the effective management of operations contributes to competitive advantage in Philips. Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization. ( Investopedia ) Operation management includes the product design, delivery process design, supply chain design and value chain design. Koninklijke Philips N.V. (Royal Philips, commonly known as Philips) is a......

Words: 1111 - Pages: 5

Case Study of Shouldice Hospital

... needed surgical treatment to repair their hernias before they could be pronounced physically fit for military training. In 1940, hospital space and doctors were scarce, especially for this non-emergency surgery contributing his services at no fee, he performed an innovative method of surgery on seventy of these men. The delighted recruits soon made known their success stories and by the war's end, more than 200 civilians had contacted the doctor and were awaiting surgery. Dr Shouldice had given extensive thought to several factors that contributed to early ambulation following surgery, among them were the local anesthetic, the nature of surgical procedure itself, the design of facility to encourage movement without unnecessarily causing discomfort and the postoperative regimen. With this in mind he began to develop a surgical technique for repairing hernia that was successful and superior to others. His license permitted him to operate anywhere even on kitchen table. However, as more and more patient requested operation and scarcity of hospitals beds however, created a major problem..There was only one solution, Dr. Shouldice decided to open his own hospital. By buying a rambling 130 acre estate with 17,000 square foot main house un Toronto suburb of Thornhill. Dr Shouldice died in 1965 at the time Shouldice was formed to operate both the hospital and clinical facilities under the surgical direction of Dr Nicholas Obney. In 1999, Dr. Casim Degani, an internationally......

Words: 458 - Pages: 2

Operation Management

... dedicated to provide education, training, public awareness, and conduct researches for the purpose of reducing cancer suffering rates with highest possible ethical standards and quality of care . 1.2 Vision KHCC's vision is to transition into a prominent institution in oncology care, and be an inspiration to other institutions in the region and beyond. 1.3 Core Values  Compassion  Effectiveness  Timeliness  Resourcefulness  Efficiency 1.4 Goals The goals and objectives of KHCC are to attain and maintain: • Excellence in Clinical Care • Excellence in Cancer Education, Training and Public Awareness • Excellence in Clinical Research 2. Core processes: 2.1 SUPPLIER RELATIONSHIP PROCESS: At KHCC supplier relationship is done through the Material Management Department. This department is responsible for the purchase, receive, storage, and dispense of items to other processes. Their main duties are: arranging agreements with suppliers, establishing standing orders for materials used, preparing product catalog list and vendor list, and guaranteeing the availability of necessary items for the center daily operations. 2.2 NEW SERVICE, PRODUCT DEVELOPMENT: IRB institutional review board is the system through which any new research pass, the board reviews proposals for research and determines the level of risk; it then manages the input levels and funding. Research results are reviewed by experts......

Words: 2794 - Pages: 12

Shouldice Hospital Case Analysis

...Introduction Shouldice is a private hospital located in Toronto, and was founded by Dr. Earle Shouldice in July 1945. The hospital started out as a six-room nursing home in downtown Toronto. As demand increased for hernia operations, Dr. Shouldice expanded the facilities to a capacity of 36-beds, which turned into an 89-bed facility after the addition of a large wing. Dr. Shouldice is a famous doctor known for his private method of hernia surgery. Unlike normal methods, his way allowed the patient to be up and about right after surgery, and move freely about by the end of the day. When patient numbers increased, Dr. Shouldice decided to exploit this by opening up his own hospital. His hospital, Shouldice Hospital, specialized in external hernia cases and proved to be a big success. Dr. Shouldice died in 1965, but his hospital continued to grow, and by the end of 1982, his hospital had 6,850 operations per year. Issue Statement The Shouldice Hospital is a successful and admired organization. However, due to its unique surgery method, and without the assistance of mass advertisement, they are operating close to 100% capacity. Thus, Shouldice fears not being able to meet future demand. Moreover, “competing” hospitals and surgeons utilize and perform the Shouldice method (and advertise as such), although they often perform the method incorrectly, ultimately giving the Shouldice Hospital a bad reputation. Shouldice’s critical concerns are meeting future demand...

Words: 1451 - Pages: 6

Shouldice Hospital

...© 2007-2008 Richard E Murphy Even Swaps - Shouldice Hospital 18 November 2007 1. How Successful is Shouldice Hospital? Shouldice Hospital is a highly successful business that maintains a focused service delivery system due to the success rate of its surgeries, its low employee turnover, its ability to maintain high quality standards, its ability to keep costs low and to remain profitable, and most especially the positive evaluations of its patients. Its strengths can be attributed to stringent policies of staff training in the Shouldice surgical method; the preservation of a communal atmosphere amongst both the staff and with the patients; the implementation of efficient and cost-effective facility operations; and high demand for operations. Its less successful aspects include: an inability to serve a considerable unsatisfied demand, as it is operating at near-full-capacity in its present facility; limited marketing; and an inability to prevent proliferation of its surgical techniques. 2. What Accounts for Shouldice’s Performance? a. Unique Operating Techniques Shouldice has vertically integrated nearly all operational functions in an effort to tightly control its distinctive techniques for performing hernia operations, as well as for pre- and post-operative patient care. The hospital has been remarkably successful in its ability to provide its patients with a quick, quality, low cost surgery in a comfortable environment, and has enjoyed...

Words: 2143 - Pages: 9

Shouldice Hospital Case

...1. How successful is the Shouldice Hospital? Process: Day 1 Day 2 Day 3 Day 4 Steady state scenario Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 29 29 29 29 Table 1 Shouldice hospital is currently only focussed on hernia operations. Their USP is their focus on early ambulation. They also put more emphasis on post-operative care for 2-3 days offering accommodation. Other hospitals do not focus on early ambulation or accommodation after operation. This gives Shouldice a competitive advantage. The procedure is well defined and structured. As it is mentioned in the case, change in procedure usually requires the chief surgeon to be present to look after the proceedings. This fixed procedure ensured that the primary operations got over in 45 mins, and minimal chances of secondary operations on Shouldice operated cases. The secondary operations also take about 90 mins. The number of operations performed by a typical general surgeon is 25-30 per year whereas the surgeons at Shouldice perform 750 operations per year. They are well paid and looked after with a profit sharing plan, and this applies to even the administrative staff along with nurses and surgeons. Some features: Infrastructure - A 17,000 square foot main building on a 130 acre estate with 89 beds for patients with 7600 operations performed per year as of 2004...

Words: 1429 - Pages: 6

Shouldice Hospital

... decide in the creation of a new project. On the other hand, the opportunity cost refers to cash flows that are lost because of accepting a project. For example, utilizing one’s own building space for a project will mean loss of potential rental revenue due to the space occupancy of the new project. An incremented cash flow is the additional operating cash flow that an organization would need to receive to take on a new project. However, a positive cash flow means that the company will not lose money but will result an increase with the acceptance of taking on the new project. On the other hand, there are several components that must be identified when looking at incremental cash flows which include: The initial outlay, cash flows from taking on the project, terminal cost or value and the scale and timing of the project. This means that a positive incremental cash flow is a good indication that an organization should spend time and money investing in the project. Operating Cash Flow (OCF) is a measure of the amount of cash that a company generates at their normal business operation. However, operating cash flow is important because it is an indicator of whether a company is able to generate sufficive amount of cash flow to maintain and grow its operations or whether it may require external financing to launch the project. Conclusion New business project can require time in bring on the establishment. However, the finance manager should analyze and research their...

Words: 644 - Pages: 3