Tom week3 mt07

889 views

Published on

Published in: Health & Medicine, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
889
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
27
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Tom week3 mt07

  1. 1. Technology andOperations Management Week 3 Michaelmas term 2007
  2. 2. Course Outline Week 1: Lessons from Mars Week 2: Managing Quality Week 3: Managing Front Office Operations Week 4: Managing Back Office Operations Week 5: Managing the Supply Chain Week 6: Managing Innovation Week 7: ‘Discovery’ Exercise Week 8: Managing Projects and Programmes
  3. 3. Service in Shouldice What is the service concept of Shouldice Hospital? What would a patient typically say about it after the experience?
  4. 4. A Stitch in Time: Shouldice Hospital
  5. 5. Evidence of success at Shouldice (1)Evidence of service success: i.e. achieving satisfaction The reunion The recommendation to others The extended orderbook The position of potential expansion The profitability of the hospital The value to patients The motivation of the employees
  6. 6. Evidence of success at Shouldice (2)Evidence of profitability For the Hospital: Revenues: 4 days x $111 x 6850 patients = $3,040,000 Costs (p.10) = $2,800,000 Profit = $ 240,000 For the Clinic: Revenues: $510 x 6850 + 20% anaesthetic ($75 x 6850) = $3,596,000 Cost (p.10) = $2,000,000 Profit = $1,596,000
  7. 7. Evidence of success at Shouldice (3)Cost to patients Shouldice Other hospitalsOperating cost (p.13) $95 $2000 – 4000Transportation 200 – 600Time lost from work at Hospital (p.7) 5 days 10 daysTime lost from work recovering 5 days 10 daysValue @ 50 to 500 / day $1,600 - $6050 $2,250 - $11,500Recurrence 0.8% 10%Weighted cost $15 – 20 $275 – $1,150Total all costs $1,615 - $6,100 $3,025 - $12,650
  8. 8. Evidence of success at Shouldice (4)Fulfilling the service concept What is the service concept of the hospital?  To the patient:  Peace of mind  A holiday experience  New friends – a fraternity  You are special but treatment is standard  To the employee:  A direct professional contribution  A team and a place in the team
  9. 9. Methods used at Shouldice (1)Standardisation: screening of patientsParticipation: patients do much of the workWork environment: staff freed from usual disagreeable workEconomics: sharing of expensive servicesBest practice: interaction of surgeonsMotivation: all employees interface with the customer
  10. 10. Methods used at Shouldice (2)Facilities for patients: Avoidance of hospital atmosphere Use of TVs, ‘phones The Schedule and Programme (keep moving!) Stairways Operating rooms in semi-circle
  11. 11. Future expansion options (1) Capacity at present: 6850 operations/50 weeks = 137 patients/week Examination Room 270 patients / week Admitting Procedure 240 patients / week Nurses’ Station 240 patients / week Operating Room 188 patients / week Doctors 178 patients / week Rooms 89 = 134 patients / week 103 = 148 patients / week Bottleneck: number of rooms
  12. 12. Future expansion options (2) Add a floor (45 more beds)  29% increase, $930,000/year, i.e. 45% return on investment Add a Saturday shift  148 to 177 patients/week = $627,000 /year Develop another facility Replicate Shouldice on new specialty BUT: when will service system break down?  for patients  for individual employees  for team and concept
  13. 13. Explaining success of Shouldice Every employee has a role Every employee interfaces with ‘customer’ Control of customer input Necessary flexibility to keep to schedule Small enough to work; big enough to be known
  14. 14. SummaryShouldice is an effective integrated system Represented by theproblems it does not have!!Financial Operations  Profitability  Breakdowns & absenteeism  Budget failure  Yield on resource activities  No future orderbook  Failure on customer expectation  Unexplained  Delays & unexplained bottlenecks overhead costs Marketing People  Undefined product/service  Lack of commitment  Unforecastable demand  Lack of cooperation & flexibility  Unspecified requirements  Exclusivity of customers  Interfaces between functions
  15. 15. Creating an effective and manageable service system Consider the operations as a customer processing system, rather than a product processing system Recognise the total design of the service system as the basis for inspection – not customer questionnaires (as proof of the service concept) Separate the profitability for the customer and profitability for the provider Value employees in terms of consistency, standards and individuality Protect the customer from queues inside the organisation Create an image, and experience, of the facilities as an expression of marketing statements

×