Case Summary of Shouldice Hospital Ltd. Shouldice Hospital is a “focused factory:” a hospital with a specific area of expertise that gives it competitive strength resulting in lower cost‚ higher quality service for its patients‚ and better pay for and loyalty from its employees. Specializing in external abdominal
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3/26/2013 Shouldice Hospital Limited (Abridged) Summary of case discussion Indicators of success • Profits – Revenue = 7600 * (320*4 + 650 + 300*20%) = $15 mil. – Costs = $8.5 mil for hospital + $3.5 for clinic $ $ – Profits = $3 mil • Word‐of‐mouth advertising – Afraid of advertising for fear of generating too much demand • Backlog of demand – Currently 2400‚ growing at 100 / 6 mo. • High percentage of doctors as patients • L Low recurrence – 0.8% vs. 10% at other hospitals • Patients reunions
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Case Study Shouldice Hospital Limited 09. November 2011 1. How does Shouldice compete? Identify at least three characteristics of Shouldice´s operations that contribute to its competitiveness. The four most important influences on competiveness in a company are cost‚ time (speed)‚ flexibility and quality. Cost and time should be held as small as possible‚ flexibility and quality as high as possible. In the Shouldice case we added another category: customer service. For the categories
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Issues/BackgroundShouldice Hospital limited was started in 1940 by Dr. Earle Shouldice for treating Hernia. The method of surgery adopted by Shouldice Hospital was unique in a sense that it introduced the concept of flow shop in carrying out surgeries alongwith simplicity in surgery. Because of this uniqueness and simplicity‚ the demand for surgeries at Shouldice increased and Shouldice has reached a point where it has to increase its capacity to reduce the wait times being faced by the patients
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of Situation and Identification of Problems 1.1 Service The Shouldice Hospital competitive advantage is that it only conducts external hernia operations and is specifically designed and operated to provide the highest probabilities for successful treatment with “country club like” patient service. Hernia operations typically have a 90% success rate‚ with Shouldice hernia operations boasting over a 99% success rate. The Shouldice competitive advantage can be summarized into: Surgical technique:
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1. How well is the hospital currently utilizing its beds? (60+90+90+90+60+30+30)/ (90*7) =450/630=71.4% The hospital is currently utilizing 71.4% its beds 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 Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday 30 30 30
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New Balance is the big five sneaker companies in the world. Comparing to other big five‚ including Nike‚ Adidas‚ and Reebok‚ it has its specific operations strategy. In fact‚ the idea of ‘Keeping unique’ is what they insist from the day one of its business. New balance emphasize on values of fit‚ performance‚ and manufacturing. It builds a distinct culture in its network internally and externally. The owners of New Balance would like to differentiate from their competitors. It includes the following
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To: Alan O’Dell – Hospital Administrator Date: 18 September 2013 Subject: Sustainable Growth Strategy As consultants for Shouldice Hospital Limited‚ we see that the major problems confronting the hospital are capacity management while maintaining quality‚ technique being copied by other doctors and succession planning. Although the hospital has good reputation and quality service‚ it is not able to service customers due to lack of capacity as well as conflicts among doctors
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study‚ one problem can obviously been observed- paradox of change. Shouldice is operating at its "best operating level"(as we can see from the case)‚ a specialized work force but it is failing to meet all the demand for its chosen market niche. Adding additional capacity to meet market need may upset the existing work force and lower quality of operations. Failing to meet market requirements may cause competition that would lead hospital to loss market share. I make a SWOT analysis for better understanding
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1. Model Shouldice Hospital as a processing operation with products‚ attributes‚ and resources. A. Process Structure: a. Input: Approved patient entering the clinic the day before operation b. Output: Successful patient leaving the facility c. Flow Unit: The patient going through the surgery process d. Network of activities and buffers (not sure?): The whole process with its wait times. Waiting room (20min wait time)‚ examination (15-20min)‚ waiting room for accounting office (5-15min)‚ accounting
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