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Shouldice Hospital Case Solution. Problem Definition To increase the capacity of the hospital to cater to the ever increasing backlog of operations and at the same time maintain the quality of service delivered.

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Operations Management Case 1: Shouldice Hospital Limited Submitted to Prof. Janat Shah Indian Institute of Management Bangalore By: Group Number 13 Arun Singh 0511153 Mohan Lal 0511171 Mahesh S 0411106 Rajkamal Narasimhan 0411114 Situation Analysis The Shouldice center employs its own technique, called the Shouldice method for repair of hernias. Only external types of hernias are treated. Approximately 82% of surgeries are primaries, requiring 45 minutes. The rest 18% involve recurrence of hernias repaired elsewhere. These are more complex, requiring 90 minutes. Due to the efficacy of the Shouldice method, recurrence rate for all operations at Shouldice is 0.8%, compared to 10% in the Unites States. Moreover, the Shouldice method allows immediate patient ambulation and rapid recovery. Most patients are ready for discharge by the fourth morning. The Hospital has a capacity of 89 beds. There are 5 operating rooms where 33 to 36 operations are performed on an average day. No operations are performed over the weekend. The Hospital employs 12 full-time surgeons, 7 part-time assistant surgeons, and one anesthetist. The nursing staff consists of 22 full-time and 18 part-time members. An operating team consists of a Surgeon, an assistant surgeon, a scrub nurse, and a circulating nurse. A surgeon's typical day begins at 7:30 A.M. and ends by 4:00 P.M. Each surgeon typically performs 3 to 4 operations each day. ...read more.


There's no organization chart and there is a profit sharing plan for the employees. This has resulted in absence of union and low turn over of the administration staff. All the unique operation management of Shouldice Hospital has resulted in value for the patient. The patient gets expert and complete attention, saves in hospital stay time and is charged much lower as compared to other hospitals. During the stay in the hospital also, patients are given full support and assurance through counseling and mixing with other patients. They feel comfortable to stay in the hospital during the procedure. The general environment of the hospital is congenial and homely. The hospital relies only on word of mouth advertisement and even then the backlog is increasing every year. This shows the popularity and goodwill of Shouldice Hospital in the market. The layout of the hospital is quite spartan. No attention is paid to the d�cor of rooms and all the rooms are equipped only with minimum requirements. The rooms are made for two patients and food facilities are self service based. They have their own style in hernia operations. And they think that some of the other centers are trying to imitate their style. But to avoid from bad word of mouth, the founders of the hospital try to eliminate this kind of information theft. ...read more.


Calculations from the above table Operating Rooms Operations 30 5 Oper/Room 6 Surgeons 12 Oper/Surg 2.5 Cost of expansion Beds 30 Cost/Bed $100,000 Total $3,000,000 Incremental Revenue Rev/Oper $1,300 Surgeon $600 Incr Rev $700 Additional Oper/Week 35 Rev/Week $45,500 Payback 65.9 Rev/yr $2,366,000 Profit = 2.366-2=0.366 million . V. OPERATION THEATER CAPACITY UTILIZATION 7:30 AM 8:30 9:30 10:30 11:30 12:30 1:00 2:00 3:00 4:00 PM 7:30 AM 9:00 10:30 12:00 1:00 2:30 4:00 PM The number of operation performed in 1982 = 6850 operations Assuming the same for the current year, the number of operations per day = 6850/(52*5) = 27 (approx) Number of critical operations = 18% of total operations = 5 per day (approx) Number of operation theaters = 5 Number of operation theater hours available = 8 hours [from 7:30 to 12:30 and from 1:00 to 4:00] Maximum utilization of the OT occurs when all critical operations are performed in one OT and the rest 4 OT are used for normal operations. Time taken for a normal operation = 1 hour Time taken for a critical operation = 1 to 1 and a half hour (as given in case) = 1 and a half hour (keeping max value) Number of normal operations in this way = 8x4 = 32 Number of critical operations in this way = 5 Total = 37 operations Therefore the 5 OT's can be used to perform a maximum of 37 operations. ?? ?? ?? ?? Group 13 Indian Institute of management, Bangalore Page 1 of 12 ...read more.

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