Operation Management Shouldice Hospital PDF

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Shouldice Hospital - Analyze Bottleneck, Investment outside of Canada...

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■ Shouldice Hospital – Current Situation ▷ Identifying Bottleneck (Current Capacity) • • • • •

Beds : 30 patients x 5 days = 150 patients/week Surgeons : 4 operations x 12 surgeons x 5 days = 240 patients/week Examination rooms : (6 rooms x 3 hours) / (20 min / patient) x 5 days = 270 patients / week Operation rooms : 7 times x 5 rooms x 5 days = 175 patients / week Nurses : 4 operations x 9 operation teams x 5 days = 180 patients/week Contents

Surgeons

Examination Room

Operation Room

Nurses

Capacity

240

270

175

180

※ Beds Required (Actual Beds No. : 89 beds)

Date In Out Total

Mon 30 30 30

Tue 30 0 60

Sat 0 30 60

Sun 0 30 30

Total 150

■ Shouldice Hospital – Complication ▷ Our Objective • To resolve the current bottleneck • To increase the hospital’s capacity

▷ Our options ① OperatingonSaturday

③ EstablishinganotherhospitaloutsideCanada

■ Shouldice Hospital – Question & Answer ▷ Why should we take the second option? ② Addinganotherfloorofrooms ☞ Tobeabletoexpandthenumberofbedsby50% :(Beds)89→135 ☞ Wecanaccept45patientsforeachdays. :(Patients)max.36→ 45;25%increased Date

Mon

Tue

Wed

Thu

Fri

Sat

Sun

In

45

45

45

45

45

0

0

Out

45

0

0

‐45

‐45

‐45

‐45

No.of Bed

45

90

135

135

135

90

45

Total

225

■ Shouldice Hospital – Question & Answer ▷ Risk Mitigation & Implementation Strategy ExpectedRisk

Mitigation&ImplementationPlan •

WeshouldfinishtheconstructioninlateDecember(closed season)tominimizethelossoftheopportunitycost.

•

Weshould increasetwomoreoperationrooms. :5rooms→7rooms

•

ConstructionPeriod

•

LackofOperation rooms

•

LackofNurses

• Weshould hire6nurses(18operatingnurses→24nurses) • Weshouldtrainnewnurses

•

Shortage ofpatients(customers)

•

Word ofmouth→ActiveMarketing

※ After applying the second option Contents

Beds

Surgeons

Examination Room

Operation Room

Nurses

Capacity

225

240

270

175→245

180→240

■ Shouldice Hospital – Question & Answer ▷ Cost / Revenue analysis

(unit : $million)

Current status (35 patients)

After applying the second option (45 patients)

Revenue

12 ~ 13

16.8 ~ 17.6

Cost

4.8

5.0

Net. Income (average)

7.5 ~ 8.1

11.8 ~ 12.6

(7.8)

(12.2)

Profit increase

4.4

investment

5.0

Return of investment

1.2 year

■ Shouldice Hospital – Question & Answer ▷ Why should we take the second option? ① OperatingonSaturday :would20%increasecapacity(150→180) ☞ Stillhasabottleneck(beds) ☞ Fouroftheolderdoctorswereopposedtoit. ☞ Thisoptioncandisunitethewholeorganization. :RiskofleakingtheImportantmanpower Date In Out No.of Bed

Mon 30 30

Tue 30 30

Wed 30 0

Thu 30 30

Fri 30 30

Sat 30 30

Sun 0 30

60

60

90

90

90

90

60

Total 180

■ Shouldice Hospital – Question & Answer ▷ Why should we take the second option? ③ EstablishinganotherhospitaloutsideCanada :moregenerallyoperateprivatehospital Businessexpansionpossibility ☞ Firstofall,shortoftraineddoctors,nurses(Servicequality) Lossofhospitalexpertise(characteristics) ☞ Weneedalongtermplantostretchoutthebranches. ‐ trainingandhiringmoreHR,preparinghighinvestment, governmentregulationconsideration,etc.

Thank You

■ Shouldice Hospital – Appendix

Increasing the max. number of patients by 25 % Stay

current average profit Stay

Revenue

operation

$3,712,500

Assistant fee

$3,465,000

General anesthet hospital operating cost

$5,128,200

surgical fee

clinic operating

Net. Income

$618,750

$12,305,700

Revenue

surgical fee

$5,062,500

Assistant fee

$4,725,000

General anesthet $12,924,450

$2,800,000 $2,000,000

operation

$4,800,000 $7,505,700 ~ 8,124,450

cost

$6,993,000

$843,750

hospital operating

$2,800,000

clinic operating

$2,000,000

increasing operation room

$60,000

increasing payment of nurse

$120,000

increasing for Cost of foods

$18,480

Net. Income

$16,780,500

$17,624,250

$4,998,480

$11,782,020 ~ 12,625,770...