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shouldice
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 office (10min), nurse station for blood check (5-10min), surgery (45min), recovery (3days)
B. Product:
a. This hospital can be characterized as a service sector as the tangible product is its patient coupled with its intangible product the exemplary service provided for patient to tell others (Shouldice business is based on word of mouth of its existing patients vs. marketing).
C. Product Attributes:
a. Cost: The Shouldice hospital cost for a patient is ~$1,029 ($444 stay fee, $450 surgery fee, $60 assistant surgeon fee, $75 optional general anesthetic fee) vs. $2,000 - $4,000 at other Hospitals.
b. Delivery Time: Shouldice patient can return to less strenuous work in a week or 4 weeks if strenuous vs. hospital patients return to less strenuous work in two weeks or 8 weeks if strenuous work.
c. Variety: Patients only with external abdominal hernia can have surgery and that are fit vs. hospitals can do both external and internal and no requirement on weight.
d. Quality: The quality of Shouldice is very high as evidencied by these factors: 1. Shouldice primarily marketing is by its existing patients’ word of mouth, 2. the recurrence rate of its operations is 0.8% vs. United States recurrence rate of 10% indicating the reliability is high, and 3. Shouldice gives free check ups to its alumni and offer free stay to parents and children of the patient indicating serviceability is high.
D. Process Attributes:
a. Cost: Based on the 1983 budget, costs for

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