Free Essay

Shouldice Case Study

In: Business and Management

Submitted By kbsnell
Words 2308
Pages 10
Case Study 2: Shouldice Hospital Kenneth Snell, David Drummond

1. How successful is the Shouldice Hospital? a. Perform a comparison of the cost to patients at Shouldice vs other Hospitals The cost to a patient at Shouldice is based on an average 3.5 day stay: ($320.00/day x 3.5 days) = $1120.00 $650.00 surgical fee $300 anesthesia fee (20% of the patients) = 300 x .2 = $60.00 Average cost to patient is $1120.00 + $650.00 + $60.00 = $1830.00 Average charge for operations performed at other facilities: $5,240.00 b. Perform an analysis of the profitability of the operation at Shouldice. Include Return on Investment (7,600 patients/year) x $1120.00/patient = $13,908.00 annually Operating budget for the clinic: $3.5M Operating budget for the hospital: $8.5M Estimated annual net income: $13.9M - $12M = $1.908M *Net income is the numerator for any return calculation, and typically shareholder’s equity and total assets would be in the denominator. Since insufficient data was given to estimate total INVESTED CAPITAL in this business, ROI cannot be effectively calculated. c. How is all this achieved? How do you account for this performance? The keys to financial success for the hospital is that Shouldice manages its expenses to reduce overhead costs through allowing patients to be active participants in the service delivery process, reducing the need for a large nursing staff. As an example, Shouldice employs 1 nurse for every 15 patients at the facility; however, acute care hospitals average around 1 nurse for every 4 patients. Additionally, since the average flow time for each patient is only 3.5 days, this further reduces the need/cost for housekeeping staff .

2. The hospital offers only one “product”. What are the implications of this single product offering? Shouldice is highly successful with its current strategy of maintaining one “product” offering that matches its structure; however, there are some inherent implications of operating a treatment facility with an emphasis in one area of medicine. Although the Shouldice method has been idealized as being superior to conventional surgical methods, the fact is that specialized medicine has advanced over the last several decades (the Shouldice method was first introduced circa 1940) and it may be only a matter of time before superior methods are developed that would render the Shouldice method obsolete. Given that, the current facility would be in jeopardy of losing potential clientele (patients) and would not have a concrete business plan set in place to regain its market share. Secondly, Shouldice does run the risk of losing business due to its method and system of operations being replicated by other facilities and doctors. Potentially, medical professionals can be trained in the technique and are not bound to any type of non-disclosure contract. In effect, the professional training a surgeon receives at Shouldice could be leveraged at competing facilities, and this could negatively impact operations due lost potential business. Moreover, the implication is that if Shouldice loses future business to the competition either through improved processes or replication of their current process, there is no way they can fall back on alternate forms of revenue because there are no other services offered to potential clientele.

3. Using activity times given in the case, compute the weekly capacity (patients per week) of the following resources: a. Examination Rooms [6 rooms x 3hrs (1-4pm) x 5 days x 60 min/hr]/(20 min/exam) = 270 patients/week b. Admitting Procedure [2 people x 4hrs (1-5pm) x 5 days x 60 min/hr]/(10min/patient) = 240 patients/week c. Nurses Station [2 stations x 4hrs (1-5pm) x 5 days x 60min/hr]/(10min/patient) = 240 patients/week d. Operating room 5 operating rooms x 7.5 hrs/day x 1hr/patient x 5 days = 188 patients e. Doctors 10 surgeons x 3.5 operations/day x 5 days = 175 patients f. Rooms [44.5 x 5 day/week]/3.5 day average = 64 patients. Since there are 2 beds per room: 64 x 2 = 128 patients (this is where the bottleneck occurs)

Use average time per patient when there is variability in the time. Consider the existing policies of the hospital (patients arrive only on 5 days of the week for example). State any assumptions you may need to make.

4. Shouldice is currently processing about 7600 patients per year, or about 146 per week on average. What resource is keeping Shouldice from increasing the throughput rate (from 146 per week to a larger number)? In other words, what is the bottleneck resource? Develop a day-to-day weekly room capacity schedule under the following assumptions: ***as stated above, the current number of rooms/beds is the bottleneck resource***

a. Use of 89 beds, 3.5 day average stay


b. Use of 89 beds plus 14 “hostel” rooms, 3.5 day average stay


c. Use of 89 beds, plus 14 “hostel” rooms, 3 day average stay


d. Use of 134 beds (with new 45-bed addition), 3.5 average stay


e. Use of 89 beds only, 3.5 day average stay, scheduling of Saturday operations


f. Use of 89 beds plus 14 “hostel” rooms, 3.5 day average stay, scheduling of Saturday operations


5. Evaluate the following four expansion options from both a capacity and profitability perspective and provide management with an expansion recommendation:

a. Add 45 more Hospital beds

• Total number of beds will increase from 89 to 134 • Total number of patients will increase to 193/week • Current throughput is 128/ theoretical throughput 148 • New throughput: 193 x 126/148 = 164 • Additional patients per year (164-128) x 50 wks per year = 1800 additional patients • Additional revenue for the clinic: 1800 x $1830.00 = $3.294M

The disadvantages are that the hospital will be forced to schedule all surgeons to full capacity at five days per week (if no additional staff is hired). There will be an increased work load on the nursing staff in addition to the kitchen, laundry, and housekeeping staff. Recommendation: do not add additional hospital beds.

b. Schedule Saturday as an operating day

• Use 89 rooms at a 3.5 day average = 161 patients per week • Current throughput is 128/theoretical throughput 148 • New throughput: 161 x 126/148 = 137 • Additional patients per year (137 -128) x 50 wks per year = 450 additional patients • Additional revenue for clinic: 450 x $1830.00 = $823,500

The disadvantage is that the hospital would have to schedule operations on Saturday requiring at least 6 surgeons and 1 supervising surgeon. This is in direct opposition to the hospital’s implied contract with its employees. However, there is no investment needed to maintain a new schedule on Saturday and the hospital can still maintain the same standards and quality of service they current provide to their patients. Recommendation: schedule surgeries on Saturday

c. A second facility for treating Hernias


• Being able to build a second facility at a secondary location that would attract patients outside of Canada • This would improve Shouldice’s competitive position and increase profit margins • The potential to operate in a less restrictive environment • Additional opportunities for medical and non-medical staff • There would be a transfer of expertise and knowledge to the new facility • Additional facility could potentially double capacity


• Second facility would require a substantial investment (Shouldice’s access to capital is not known) • Maintaining the same level of quality is not guaranteed • It would be extremely difficult to replicate the same culture and atmosphere as the existing facility • There would also be potential competition with the existing facility, lowering current throughput/profitability

*Overall the recommendation is to not invest in a second facility

d. A second facility for treating a different problem


• Second facility would improve Shouldice’s competitive position • Treating a secondary problem would allow Shouldice to tap into a market that otherwise would not be available to them • The opportunity to increase referral networks through a secondary treatment option • Additional opportunities for current staff to increase expertise and knowledge in the medical profession • Treatment of an alternate problem would allow Shouldice to create a more solid business plan in the event it would have to shift emphasis due to market completion • Treating a secondary problem could strengthen Shouldice’s professional reputation • Increased capacity at an alternate location


• Shouldice is risk adverse and expanding into an unknown secondary market is not a sound course of action • All surgeons are trained in one specialty, therefore Shouldice would have to invest the time, resources, and money into training a full time medical staff • Currently Shouldice is succeeding in a niche market due to the nature of the method of treatment and post-op recovery. It would be extremely difficult to replicate this in another area • Quality control could potentially be an issue, which in turn could impact Shouldice’s reputation • The investment would be costly with no guarantee of a return • Shouldice would not have the working capital to expand its current operation if needed (currently the company is facing a large backlog of patients)

*Recommendation: this is a high-risk investment that could potentially impact current operations. Do not expand into a secondary market.

6. How does Shouldice Compete? Shouldice Hospital competes by offering patients, suffering from hernias, with a highly specialized surgical technique, which produces superior results while maximizing efficiency.

Key Characteristics of Shouldice’s Operation:

Maximized Efficiency: Doctors could conduct 600 operations in a year as compared to 25 to 50 operations per year in other hospitals. This was possible due to the standardization of operating procedures. This standardization led to efficient utilization of the medical staff and other resources. To adhere to the Shouldice technique and match the value system with that of the hospital, experienced doctors and nursing staff were recruited carefully.

Patient Value Proposition: Shouldice’s specialized surgical technique allowed the hospital to generate significant value proposition for patients in the following ways:

1. Faster Recovery times: Shouldice’s specialized surgical technique procedure led to quicker recovery times as compared to the existing methods at other hospitals. Patients were able to resume their normal routine and jobs in a much shorter period of time (one to four weeks) as compared to other hospitals (two to eight weeks). 2. Minimized risks. The avoidance of general anesthesia minimized patient’s risks 3. Lower costs. Patients saved up to two thousand dollars by having their hernia operation performed at Shouldice rather than at other hospitals 4. Patient confidence. Shouldice’s excellent track record and its experienced and superiorly trained doctors nurses and staff in the areas of hernias instilled a high level of confidence for patients in need of this operation operation.

Significant Cost Advantages: 1. low nurse to patient ratios 2. fewer housekeepers 3. lower operating equipment costs than competing hospitals 4. No advertising and marketing costs helped keep costs low

How aggressively should Shouldice management act to preserve the hospital name?

The Shouldice name had begun to get tarnished by the competition replicating its technique with varying levels of success. Therefore, Shouldice should act aggressively toward preserving is hospital name. It should develop accreditation programs offering the same Shouldice training and standards with certificates rewarded for anyone who wished to use the Shouldice technique. The accreditation program should have fees associated for its membership and Shouldice inspectors should randomly inspect its members to ensure that operation standards are kept in line with Shouldice’s high requirements. This could ensure that greater quality control measures are in place.

Should Shouldice seek to increase its market share?

Yes it should seek to increase its market share. As previously mentioned, Shouldice should open Saturday operation hours. However, it would not be prudent to invest capital in expanding the Toronto building. A major issue that works against Shouldice is its location in Toronto. Competitors are using the Shouldice technique and could then advertise to patients that it can be done in locations closer to their residences. Therefore, Shouldice should strategically open offices in key states within the U.S in an effort to increase its market share. Additionally by doing so, it could potentially recruit skilled doctors, nurses, and staff who had been intrigued at working for Shouldice, but did not want to relocate to Toronto.

Shouldice should also increase its marketing efforts, instead of relying on word of mouth advertising.

There are 3 groups that Shouldice should specifically target:

1. Perspective Patients: provide perspective patients with detailed data showing the result rates and highlighting the benefits of choosing Shouldice such as lower costs and first class care support.

2. Primary Care Physicians: Shouldice should provide primary physicians with similar data and results, but with language geared toward the medical profession. For instance, Shouldice’s could market to primary care physicians by stating data that the gross recurrence rate for all hernia operations performed at Shouldice was 0.8% versus the gross recurrence rate in the U.S. of .10%.

Additionally, at the time of the case, 53% of Shouldice patients said that a friend referred them to that hospital. Only 21% of the patients said a physician referred them. Therefore, Shouldice should attempt to build rapport and develop relationships with primary care physicians. Typically primary care physicians have existing relations with general physicians, who handle hernia operations and do not want to lose business to Toronto. Still there are effective ways in which Shouldice can establish relationships with these primary care physicians. For each Shouldice patient, management at Shouldice could contact that patient’s primary care physician to provide updates of the patient’s status, deliver detailed description of that patient’s recovery process, and continue providing first class support to the primary physicians after the operation. Once a rapport with that physician has been established, Shouldice can then be a better position to ask for referrals from that primary physician.…...

Similar Documents

Free Essay

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 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......

Words: 909 - Pages: 4

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

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

Premium Essay

Shouldice Case

...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 if we consider the transportation charges for patients who came to Shouldice from outside of Canada, it cost them less compared to the operating cost alone at other hospitals. Apart from this, Shouldice has various pre operation procedures that save the customer a lot of money. We can also consider the opportunity cost that the patients have saved as it takes only 4 days to recover at Shouldice rather than 8 to 10 days at other hospitals. Quality: One of the most important factors that have been the backbone for customer satisfaction is the supreme Quality of service. Shouldice hospital has unique operation technique, high success rate of the operations, and professionally designed process from remote examination to Post Operation recovery. For Pre Operation examinations conducted on patients in order to determine if the patient is really suffering from Hernia, If yes, are there any potential risks that the patient might have to face if he undergoes the operation?, Housekeeping......

Words: 1171 - Pages: 5

Premium Essay

Case Study of Shouldice Hospital

... CHRISTABEL APPIAH BBAM/ED/110795 CASE DY STUOF SHOULDICE HOSPITAL 2ND JUNE 2014 INTRODUCTION The Shouldice Hospital, located in Thornhil, Ontario is considered a global leader in hernia repair and recovery. The Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice.   Major Dr. Edward Earl Shouldice saw many men denied enlistment into the army because they were deemed physically unfit to serve due to the need of hernia surgery.   Dr. Shouldice developed an innovative technique to repair hernias during this World War II era and has been known in the medical world for his superior methods ever since.   Shouldice created a method that included factors such as a local anesthetic, the abnormal nature of the surgical procedure itself, encouraging movement following the surgery, and many other postoperative methods used by his team. Using these factors, Dr. Shouldice developed a surgical technique for repairing hernias that were superior and much more efficient than other methodologies. HISTORY Dr. Edward Earle Shouldice graduated from the University of Toronto in 1916. During World War II, he was called to serve on the Medical Examining Board. Dr. Shouldice, a major in the army, found that many young men willing to serve their country had to be denied enlistment. These men needed surgical......

Words: 458 - Pages: 2

Free Essay

Shouldice Case Study

...ldi Case Study 1: Shouldice Hospital Limited 1. What has the leadership of Shouldice been excellent at? Shouldice leadership has been able to develop one of its surgical service lines, inguinal hernia repair, to an “internationally-recognized” brand. This has allowed Shouldice to dominate the market share and create a demand for its specialized services resulting in financial stability. The creation of this brand also has a strong influence with how the organization functions and how it is perceived. Levey (n.d.) reveals why branding creates organizational value. Levey expresses that “from a marketing or consumer perspective, it is the promise and delivery of an experience.” Shouldice leadership has also created an organizational culture that provides employees a sense of purpose, motivation, and opportunity to enhance their skills. Levey (n.d.) adds that a “brand is the greatest asset for uniting employees around a singular culture and mission.” 1. What has the leadership of Shouldice been excellent at? Shouldice leadership has been able to develop one of its surgical service lines, inguinal hernia repair, to an “internationally-recognized” brand. This has allowed Shouldice to dominate the market share and create a demand for its specialized services resulting in financial stability. The creation of this brand also has a strong influence with how the organization functions and how it is perceived. Levey (n.d.) reveals why branding creates......

Words: 385 - Pages: 2

Premium Essay

Shouldice Hospital Case Study

...Case 1: Shouldice Hospital Limited Q1: How does shouldice compete? In other words why do patients come to shouldice hospital? Two main reasons drive customers into choosing Shouldice over other competitors/hospitals. The first is quality, and the other is cost. talking about quality of the Shouldice “product” includes both, quality of the operation, and quality of post operation activities and overall services offered by Shouldice. The Shouldice method is a focused, specified operation that deals with Hernias, with a reputation that has been built throughout the years and is still growing; the hospital doesn’t even use advertisement to attract patients, the “word of mouth” way of advertisement has been doing very well for them so far. The superior quality offered by the Shouldice method, gives the patients a motive to operate at Shouldice for what it gives regarding peace of mind, low risk and low recurrence rates. Away from the in-operation excellence in quality, the services that Shouldice hospital offers are more tempting than other hospitals. Patients do not feel that they are in a hospital; they consider it more like a recovery vacation with an excused absence from work without feeling any guilt in that. Moreover, it gives patients the independence and sense of control and preserves patients’ dignity when it comes to the fast recovery after the operation, and when it comes to the fast ambulation process after the operation, where a patient rises up and walks by......

Words: 1513 - Pages: 7

Premium Essay

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

Premium Essay

Shouldice Case

...Shouldice Hospital: Operations Assessment Shouldice Hospital has been devoted to repairing hernias for over half a century. Although the Shouldice system has led to great competitive positioning, the hospital is falling victim to its own success. Demand for Shouldice services is so much higher than its current capacity of 89 beds that it is in a constant state of operations backlog, which grows by 100 patients every 6 months. Thus, Shouldice needs to find a solution to its single most critical question – how to expand the hospital’s capacity while simultaneously maintaining quality control of service delivery. The analysis below is designed to assess the current operations at the hospital, in addition to explaining our recommendation that Shouldice should invest $4MM in a new unit, which will increase bed capacity by 50% and require its surgeons to perform Saturday surgeries. As the financial analysis shows, this change will allow Shouldice to capture unmet demand without compromising its unique system of patient and employee care. Lastly, our recommendation will be also juxtaposed to other options we evaluated as potential solutions, but that neither make financial sense nor solve the current dilemma for the hospital. Hospital Overview Shouldice Hospital is a “focused factory:” a hospital with a specific area of expertise that gives it competitive strength resulting in lower cost, higher quality service for its patients, and better pay for and......

Words: 2383 - Pages: 10

Premium Essay

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......

Words: 1429 - Pages: 6

Free Essay

Shouldice Case

...Shouldice Hospital Case Assumptions 50 weeks Christmas Eve closed Resources Examination Room - 6 = 6.5*5 +4 = 36.5 Nurse Station- 2 Laboratory – 1 Maximum Bed Capacity-90 (No of days in a week=7 Available bed days =90*7 = 630) Lounge- 1 Common Dining Room -1 operating rooms -5 Recovery room-1 Surgeons (FT) – 12 =12 *35 =420 150/420 =35.7% (PT) -7 =7*17.5 =122.5 operations/surgeon =150/12 =12.5 (12 operations by 1 surgeon approx) operations/operating room = 150/5 =30 7000/50 =140/5 (days a week) = 28 | BEDS REQUIRED | CHECK-IN-DAY | MONDAY | TUESDAY | WEDNESDAY | THURSDAY | FRIDAY | SATURDAY | SUNDAY | Monday | 30 | 30 | 30 | | | | | Tuesday | | 30 | 30 | 30 | | | | Wednesday | | | 30 | 30 | 30 | | | Thursday | | | | 30 | 30 | 30 | | Friday | | | | | | | | Saturday | | | | | | | | Sunday | 30 | 30 | | | | | 30 | Total | 60 | 90 | 90 | 90 | 60 | 30 | 30 | Total =450 and 630 bed days therefore = 450/630 = 71.4 % 69.4% < 71% have to do something to the bottleneck option 1: Add one more day option 2: Increase no. of beds to 135 Option 1:...

Words: 563 - Pages: 3

Premium Essay

Case Shouldice

...Pamantasan ng Lungsod ng Maynila Graduate School of Management Production and Operations Management I Dr. Cecile Santiago Capacity Planning at Shouldice Hospital Submitted by: Caneja, Andrea Nichole Canicosa, Shirly Palma, Nerissa Sajise, Rina Vidallon, Allen TITLE : Capacity Planning at Shouldice Hospital VIEWPOINT : The Hospital Administrator TIME CONTEXT : At Present I. PROBLEM STATEMENT Deciding on ways to meet the unsatisfied demand by expanding the hospital’s capacity, while still maintaining control over the quality of service delivered. How to increase the hospital’s capacity to serve more patients while maintaining control over quality of service delivered as well as sustaining existing high level of employee and patient (customer) satisfaction? II. STATEMENT OF THE OBJECTIVES To clear the backlog by increasing the capacity of hospital services to 20% with no dilution in the quality of services rendered within 8 weeks. III. AREAS OF CONSIDERATION Strengths: 1. Unique and defined surgical procedure 2. Facility that encourages movement 3. Up to date equipment 4. Less time taken for operations as well as for recovery is lower than industry average 5. Full time experienced surgeons 6. Known worldwide for hernia repairs specialization 7. Loyal patients coming from 80 different countries Weaknesses: 1. It only accepts patients with......

Words: 645 - Pages: 3

Premium Essay


...Summary: Shouldice hospital is a specialized hospital for the treatment 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, which yields better medical results as well as a significantly shorter recovery time. Shouldice is operating at its best level of 6850 operations in the year 1982. Over the years the capacity of the hospital is increased from 36 beds to 89 beds. Backlog of scheduled operations of 1200 is a cause of concern even always. Options of Saturday working, increasing an additional floor or new facilities at USA are worked out rigorously and recommended to work on Saturdays (only in peak periods). Total Number of words used : 120 Situation Analysis: Shouldice is a private hospital founded by Dr. Earle Shouldice in Toronto in July 1945. The hospital started out as a six-room nursing home in downtown Toronto. Shouldice offers a new technique to cure the hernia, which is the protrusion of an organ through a weakness in the abdominal wall; this technique was invented by the founder during the World War II. This technique allows the patient to go back to their routine very quickly. Just after four hours of operation patients are encouraged to start walking around the place and feel more comfortable. The typical recurrence rate for the hernia approaches 10%, the gross recurrence rate for all operations performed at Shouldice......

Words: 1833 - Pages: 8

Premium Essay

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

Premium Essay

Shouldice Hospital Case Study

...INTRODUCTION The Shouldice Hospital, located in Thornhil, Ontario is considered a global leader in hernia repair and recovery. The Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice. Major Dr. Edward Earl Shouldice saw many men denied enlistment into the army because they were deemed physically unfit to serve due to the need of hernia surgery. Dr. Shouldice developed an innovative technique to repair hernias during this World War II era and has been known in the medical world for his superior methods ever since. Shouldice created a method that included factors such as a local anesthetic, the abnormal nature of the surgical procedure itself, encouraging movement following the surgery, and many other postoperative methods used by his team. Using these factors, Dr. Shouldice developed a surgical technique for repairing hernias that were superior and much more efficient than other methodologies. SWOT ANALYSIS Strengths Very efficient process Specialized Expertise Culture, atmosphere unlike hospitals Reliable and high quality service Competitive Pricing Minimal overhead Capacity utilization Customer satisfaction Quick recovery time for patient Weaknesses Narrow product line Inability to market due to inability to keep up with potential demand Location (Decrease in demand during winter months) Number of locations Age of some key personnel Opportunities New locations, Possible location in United States Create new market segments...

Words: 2168 - Pages: 9

Cole Sprouse | John Simm | VELCRO® Brand Sticky Back Hook and Loop Self Adhesive Stick On Fastener Tape