Download - 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
Advantages Disadvantages
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
Advantages Disadvantages
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.