shouldice hospital limited (abridged) (1)

8/10/2019 Shouldice Hospital Limited (Abridged) (1)

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Shouldice HospitaLIBIRAN. MINDANAO. TORMO.


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BackgroundFounder: Dr. Edward Earle Shouldice graduated from theUniversity of Toronto in 1916.

Corporate Name: Shouldice Hospital Limited

Established: 1945

Location: The hospital was located in Toronto in the southern partof Canada.

Specialty: Abdominal Wall Hernia Repairs


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BackgroundSmall facility (89 beds)

Built on a 130-acre estate

Hospital specializes in hernia repair surgery

Currently facilitates 7,000 surgeries per year

Effective operations with quick turn-around

Patients subject to early ambulation, which promotes healing

Friendly, social, homely and relaxing environment

Hospital only accepts patients with uncomplicated external hernias and in good hea


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Statement of the ProblemHow does Shouldice accommodate the increasing demand of hernias (rupture) opeoutperform the competition?


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ObjectivesTo identify possible options on how Shouldice can utilize their service in order to inhospital productivity.


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Target Market and SegmentFocus on a narrow segment of potential patients who have hernia

Predominantly male, older in age, essentially in good health

Target market potential: 1,000,000 operations in U.S. in 2000


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Areas of Consideration/MajorAssumptionsWe take the POV of Allan ODell (Hospital Managing Director) in determining the mway to increase the hospital capacity without sacrificing the quality of service they o


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SWOT: WeaknessesOperate only Hernias

Retirement of senior doctors specifically to Dr. Degani

Inaccessible location to the most of their patients

Emulating of competitors to the Shouldice Method


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SWOT: OpportunitiesIncreasing demand of Hernias operation

Medical innovation in treating illnesses


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SWOT: ThreatsMedical innovation in treating illnesses

Government regulations to investing


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Theoretical Framework

Monitoring

Analysis

ModelingOptimizing

ChangeInitiation


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Theoretical FrameworkMONITORING and ANALYSIS

Analyze demand patterns

Cyclical variations (employment schedules, occurrence of holidays, school hours and vac

Random variations(day-to-day changes in weather, accidents, natural disasters)

Market segment variations

MODELING and OPTIMIZING

Predicting the behavior of services under a given volume and variety of work


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Theoretical FrameworkCHANGE INITIATION

Managing capacity

Streching or shrinking capacity (using facilities for longer periods, reducing slack time)

Adjusting capacity to match demand (cross-training employees, asking customers to shaextra facilities and equipments)

Managing demand (can be reshaped using marketing strategies4Ps)

Take no action

Reduce demand

Increase demand

Inventory demand by reservation system

Inventory demand by formalized queuing


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Alternative Courses of Action1: Add Saturday operations, charge more during peak periods

Advantages Disadvantages

No investment necessary 23 to 25 operations on Saturday

Maintain quality 6 surgeons and 1 supervising surgeo

have to work on a Saturday

Add additional personnel

Short term fix; staff are more likely thave concerns about having regular

Saturday operations


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Alternative Courses of Action2: Add a new floor (45 more hospital beds)

Total no. of rooms: 89 + 45 = 134


Easy to control and maintain quality Require to schedule doctors to the f

capacity of 5 days per week

Retain the culture and environment Increase work load on admissions,

kitchen, laundry, housekeeping, andaccounting

Overwhelming meal hours for patie

(100 seat dining room)

Disturbance during construction


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Alternative Courses of Action3: Establish a new facility for hernia


New location close to the customers Requires investment

Improve its competitive position and

increase profits

Control of quality

Operate in a less restrictive

environment

Difficult to maintain the same cultur

and atmosphere New opportunities for existing

personnel

Cannibalism, competition with the

existing facility

Transfer knowledge and expertise to

the new facilities

May potentially diminish the brand

image


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RecommendationAlternative Course of Actions 1 and 3

Start operations of Saturday, charge more during peak periods

No investment required

Can maintain quality

New surgeons not required

short term solution

Offer the service to customers at a new location

long term solution

increase profits

making the Shouldice method available to a wider audience

operating in a less restrictive environment


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ActionPlan

ACA 1. Start operations of Saturday, charge more during peak

1stquarter

of 2015

2ndquarter of 2015 3rdquarter of 201

Change initiation

Conduct a meeting with the board of

directors proposing the advantages of

additional operating day.

Discuss the changes to the employees.

Monitoring and analysis

Create a system that will determine the

employment schedules routinely.

Monitor and analyse the hospital

quality of service.

Monitor and analyse the hospital profit.

Modelling and optimizing

Ask for feedback regarding the

addition of Saturday operations to the

employees and patients so the hospital

can enhance the shouldice experience

to their employee and patients.

For ACA 3 For ACA 3 Select a new location as far away as possible to the existing facility in Toronto


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For ACA 3, For ACA 3. Select a new location as far away as possible to the existing facility in Toronto

1st half of 2015 2ndhalf of 2015 1sthalf of 2016

Planning

Determine possible new location for Shouldice in the

United States.

Determine the necessary investment needed to this

expansion.

Organizing

Delegate authority that will be in-charge in the expansion.

Look for possible contractors that will construct the new

facility.

Implementation

Award the project of new Shouldice hospital to the

contractor.

Discuss with the contractor the timetable of the project.Construct the new Shouldice facility(preferably as far as

possible to the existing facility in Toronto)

Controlling

The authority in-charge will monitor the progress of the

construction and might as well look for possible

employees of the new facility.

Develop a training program to the employee to assure the

quality of service the Shouldice offer.

Implement an immersion program between the Shouldice

hospitals and facilities.

shouldice hospital limited (abridged) (1)

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