One of only six hospitals in U.S specialized in health
care for women and children. Patient from 50 states and more than 100 countries. Focuses is delivery of babies. Capacity per year is 6,500 births with 281 beds.
Arnold Palmer Hospital
Demand increased steadily and achieved 14,634 birth on
2008. 35 Planning Teams study on capacity expansion included: 1) 2) 3) 4) 5) 6) 7)
Specific forecasts Service transfer to new facility Service remain in existing facility Staffing needs Capital equipment Proforma accounting data Regulatory requirement
Q1: Given the capacity planning discussion in the text (see Figure S7.6) what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand? Answer: The approach that is being taken toward matching capacity to demanding is the Leading Strategy Management leads capacity incrementally Management could also add new capacity which allow it to stay ahead of demand
New Capacity Demand
1 2 3 Time (periods)
Q3:Use regression analysis to forecast the point at which Swanson needs to "build out" the top two floors of the new building, namely, when demand will exceed 16,000 births.
Y(Year)=a +b(x) Y=1987.8356+0.0014x(16000)
Conclusion, regression analysis show 2010 Swanson able achieve 16,000 births and 2011 demand will exceed 16,000 births.
How we get the calculation? Next slide regression analysis ..
Regression Analysis Y(Year)=a +b(x)
r2=0.9720 show the relationship between birth & year show a strong
So, change of year will give a positive impact on total of births or vice versa. Intercept(a) Births(b) Coefficients Standard Error 1,987.8356 0.6971 0.0014 0.0001 t Stat 2,851.4554 20.4132 P-value 0.0000 0.0000 Lower 95% 1,986.3167 0.0013 Upper 95% Lower 95.0% Upper 95.0% 1,989.3545 1,986.3167 1,989.3545 0.0016 0.0013 0.0016
x=16,000; a=1987.8356;b=0.0014 Y=2010.34
a is a constant ,b is the slope (also...