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Schedule Saturday as an Operating Day Use 89 + 14 rooms, 3.5 average stay Total number of patents per week = 180 137 current throughput/148 theoretical = x / 180 theoretical New throughput = 180 x (137/148)= 167 patients / week Additional patients per year=(167-137) x 50= 1450 additional revenue for the clinic = 1450 x (450+0.20 x 75) = $674,250 Less cost 124,250 Net increase in profit: 550,000 for no additional investment * 精品课件资料 Schedule Saturday as an Operating Day Disadvantages Require to schedule 23-25 operations on Saturday Six surgeons and a supervising surgeon have to work on Saturdays Additional other personnel Violates the implied contract that Shouldice has with its surgeons, strong opposition by the senior doctors Operating close the the theoretical capacity of the facility Advantages No investment is needed Can still maintain quality * 精品课件资料 精品课件资料 DSE7100 Managing Service Operations Discussion of Shouldice Hospital Limited Case * 精品课件资料 Assignment #2: Questions for Shouldice Hospital Limited How Successful is the Shouldice Hospital? How do you account for the success of the hospital? What is the strategic service concept of Shoudice Hospital? How are the elements in the service systems designed and managed to support the strategic service concept? As Dr. Shouldice, what actions, if any, would you take to expand the hospital’s capacity? How would you implement changes you propose? * 精品课件资料 Patents do not feel that that are staying in hospital Patients are taking a vocation This is a club Focused How is Shoudice different from other Hospitals? * 精品课件资料 How Successful is Shouldice Hospital? 140,000 highly satisfied “Alumni”(past patients) 1,200 backlog of scheduled operations Demand appears to expand with supply Superior quality Shouldice Method of Hernia operation imitated by competitor Low recurrence rate, 0.80% vs 10% High degree of employee satisfaction * 精品课件资料 Cost Comparison: Shouldices vs. Other Hospitals Shouldice Oth
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