The document discusses Shouldice Hospital Limited, a specialty hospital known for its hernia repair surgery. It provides an overview of hernias, the history and model of Shouldice Hospital, and what makes their approach unique. This includes their 4-day patient treatment model, focus on a relaxing environment, team-based care, and profit sharing. The document also analyzes problems like capacity constraints and regulatory challenges, and recommends expanding the existing facility and patenting their surgical method.
Operation Management:-Systematic direction, control, and evaluation of the entire range of processes that transform inputs into finished goods or services.
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Operation Management:-Systematic direction, control, and evaluation of the entire range of processes that transform inputs into finished goods or services.
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This is a case study of cottle taylor discussed in a management class. In this case study , all efforts are being made to solve the case study and all the questions are answered. Hope this would be useful to management students.
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3. AGENDA
1 HERNIA Overview
2 Background of SHOULDICE HOSPITAL LTD.
3 SHOULDICE Service Model
SHOULDICE Service Model
4 What makes Shouldice different ?
5 Market overview
6 Problem Analysis
7 Recommendations
5. HERNIA
A hernia is a sac formed by the lining of the abdominal cavity (peritoneum).
The sac comes through a hole or weak area in the fascia, the strong layer of
the abdominal wall that surrounds the muscle.
The types of hernias are based on where they occur:
Femoral hernia appears as a bulge in the upper thigh, just below the
groin. This type is more common in women than men.
Hiatal hernia occurs in the upper part of the stomach. In this hernia,
part of the upper stomach pushes into the chest.
Incisional hernia can occur through a scar if you have had abdominal
surgery in the past.
Inguinal hernia appears as a bulge in the groin. This type is more
common in men than women. The bulge may go all the way down into
the scrotum.
Umbilical hernia appears as a bulge around the belly button. It occurs
when the muscle around the navel doesn't close completely.
6. Lets have an overview of
Shouldice Hospital Limited
• Shouldice_exp.flv
8. Why SHOULDICE Hospital?
• The facility was subject of a 1983 business case by
the Harvard Business School. Written by professor
James Heskett, the report is currently the school's
fourth-best-selling business case, selling nearly
260,000 copies. Twenty thousand students at 500
universities worldwide read about the centre annually,
as part of their curriculum.
9. Background
Founder: Dr. Edward Earle Shouldice graduated
from the University of Toronto in 1916.
Corporate Name: Shouldice Hospital Limited
Established: 1945
Location: The hospital was located in Toronto in
the southern part of Canada.
Specialty: Abdominal Wall Hernia Repairs
Dr. Edward Earle Shouldice
10. Shouldice Service Model
Shouldice Service Model
4 Day Lead Time
4 Day Lead Time
Day 1 If not OK…
If OK: Explain Tea &
30/36 Check by
Check-in & Blood Dinner cookies
Arrivals MD process
1–3 pm
(15 mins) admin test steps
at 6 pm at 9 pm
Day 2
Local
Rest in room
Start
Dinner Tea &
anaesthesia Surgery eating &
(40 mins) (2-3hrs) at 6 pm cookies
(-20mins) moving at 9 pm
Day 3
Tea &
Loosen Walk, play, & eat with Dinner cookies
stitches your buddies at 6 pm at 9 pm
Day 4: Remove stitches, walk, play, eat, check out
11. Expectations ???
What do you expect when you visit a
Hospital?
Or
What service do you expect from an
excellent Hospital?
12. What makes Shouldice different
from other Hospitals?
• Shouldice Method
• Peace of Mind/ low risk/ low recurrence
• Friendly, social, homely and relaxing environment
• No competition among doctors
• More of a vacation rather than treatment
• Parents gets free accommodation at Shouldice so that the
cost of nursing is saved and can take better care of their
offspring.
• Careful recruitment of employees
13. What makes Shouldice different
from other Hospitals?
• Doctors and nurses are highly trained to help and
counsel patients
• No one is fired! Turnover is low
• Staff is non-union
• Pay scale is higher than the competition
• Profit sharing plans are in place for doctors and staff
• Cross-training & teamwork are strong
• Managing director stays late one night per week to
interact with patients and staff
14. What makes Shouldice different
from other Hospitals?
• Rooms are not equipped with phone or TV.
• Patients must travel to make a phone call, watch
TV,socialize, eat, etc.
• Small rise stairways make it easier on patients who have
just completed surgery.
• Carpeting makes it feel warm and comfortable.
• Patients and staff eat together in the cafeteria.
• Foods are all fresh ingredients and prepared from
scratch.
15. MARKET OVERVIEW
• Relies entirely on word-of-mouth advertising.
• Rates are reasonable
~ $2230 compared to $5240 elsewhere
• Annual checkups are provided for alumni free of
charge.
• Annual reunion of patients draws about 1000.
16. PROBLEM ANALYSIS
• Unable to capitalize upon the huge demand for
their service
• Concerns have been expressed about others using
the Shouldice name while not performing the
Shouldice procedures
• Confusing regarding its expansion in U.S
• Problems regarding its operation on Saturday
17. PROBLEM ANALYSIS
• Concerns have been expressed about the
regulatory environment in Toronto
• A negative or conflicting regulatory environment
can dramatically impact the operation & future of
the organization
• Problems regarding its expansion with in Toronto
due to Canadian Govt. regulations
19. RECOMMENDATION
• Add another floor to the existing hospital facility
• Operating on Saturday
• Not to Expand in US
• Patent the Shouldice method
• Proper succession planning of doctors
• Better not to diversify from its core competency
(Hernia)
• Higher more nurses