# Justify Expansion over 5 Years

Topics: Capacity utilization, Harshad number, Shouldice Hernia Centre Pages: 2 (510 words) Published: August 1, 2011
CASE ANALYSIS: SHOULDICE HOSPITAL LIMITED
Shouldice Hospital Case

Question #1: How well is the hospital currently utilizing its bed? 90 beds x 7 days/ week = 630 beds available in a week
30 patients x 3 days x 5 days per week = 450 beds utilized
450 beds utilized / 630 availble beds = 71.43%
The hospital is currently utilizing 71.43% of their beds, this is actually an ideal operating point. To increase its rate of utilization might decrease the service quality. Question #2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day). How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients? Check-in day| Mon| Tue| Wed| Thu| Fri| Sat| Sun|

Mon| 30| 30| 30| | | | |
Tue| | 30| 30| 30| | | |
Wed| | | 30| 30| 30| | |
Thu| | | | 30| 30| 30| |
Fri| | | | | | | |
Sat| 30| | | | | 30| 30|
Sun| 30| 30| | | | | 30|
Total| 90| 90| 90| 90| 60| 60| 60|

The total beds used if the hospital adds operations on Saturday: 540 beds The utilization rate = 540/650 = 85.71%
So with the addition of one more day operation will increase the utilization of bed capacity. With this rate of capacity utilization, it will be risky for the hospital in coping with the immediate changes in demand. With this adding one day operation, but without increasing facilities and labor, the capacity is less likely sufficient for additional patients. Question #3: Now look at the effect of increasing the number of beds by 50%. How many operations could the hospital perform per day before running out of bed capacity? (Assume operations are performed 05 days per week, with the same number performed on each day). How well would the new resources be utilized relative to the current operations? Could the hospital really perform this many operations? Why? * In case of...