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Presented by:
Group No: 10
Kashish Goyal
Padia Archin Ramakant
Parminder Singh
Rohit Goyal
Saurabh Arora
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CASE BACKGROUND
Dr. Earle Shouldice was the
founder of the Shouldice Hospital
By 1940s he began to develop a
surgical technique for repairing
Hernias
He created new facilities by
buying a 130-acre estate with a
17000 square foot main house in
the Toronto suburb of Tornhill
Dr. Shouldice died in 1965
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ROLE OF MANAGING DIRECTOR
Alen ODell was the managing director
Addressing people needs
Maintaining the work culture Addressing employee issues
Imparting training to secretaries
Generating a culture of cross training withoutthe aid of organizational chart
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TEAM OF DOCTORS
10 Full time surgeons
8 part time assistant surgeons
2 Anesthetists Each operating team required a surgeon, an
assistant surgeon, a scrub nurse and a
circulating nurse Operating load was 30-36 operations per day
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TASKS PERFORMED BY DOCTORS
Patient Examination
Administering anesthetics
Assisting patients
Performing Operations
Post-operation counseling
Examining Patients
Consulting other surgeons
Chief surgeon assigned surgeons to various operatingrooms
Senior surgeons imparted training to new recruiteddoctors
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TEAM OF NURSES
34 full time- equivalent nurses staffedShouldice for 24 hour period
6 full time equivalent nurses were on premises
during non-operating hours Nurses to Patient ratio was 1:15
Low ratio from average ratio in acute-care
hospitals Spent large proportion of time in counselling
activities
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TASKS PERFORMED BY NURSES
Explaining the incoming patients about What
to expect , Need of exercise after the
operation and daily routine
Emphasizing the importance of attending the
dinner and recreation session
Encouraging patients for social interaction
Taking patients to the pre-operating room
Nurses administered analgestics
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ROLE OF OTHER STAFF
Administrative Roles
Housekeeping services
Preparation of food in the kitchen Staff members picked up food from a cafeteria
line placed in the center of the kitchen
providing opportunity for interaction
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Core Competency(Shouldice Method
and Program)
Removal of misconceptions about Herniaoperations
Program devised because of high RecurrenceRate
Surgeons at Shouldice Hospital performs 750operations as compared to 50 by other surgeons.
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High
Level of customer participation
Diagnosed by mail using Medical Information Questionnaire.
Risk and type of hernia decided on the basis of responses.
Weight loosing program prior to operation, if needed.
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Examination time dependent on level of anxiety mentioned inquestionnaire
Person was sent home after examination, if over weight orno hernia problem
Patients room was allocated on the basis of occupation,background and interests.
Interaction among patients who had their operations
earlier the same day at dinner time.
Exercises later on and change in daily routine after the operation.
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Exercise immediately after the operation
encouraged by nurses.
Patients attitude was most important to take
complete advantage of shouldice program.
Learned about hospital from previous shouldicepatients.
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Succession of Dr. Degani
Grooming has been started
Decision on Saturday operation as hes opposing it.
Improvement on certain successful procedures
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Competitors Advertisement(Pg. 673)
Alternatives available
Scope of Improvement in current portfolio
Core Competency being emulated by others
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Service Quality
Reliability Extensive research by Dr. Shouldice
Highly trained and experienced surgeons (600 Hernia operations)
Well aligned patient needs and service offered
Assurance
Complicationfree experience
High amount of time for counseling Crash cart at every floor in case of emergencies like
heart strokes.
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Empathy Use of local anesthetics, pre-operative sedatives to
minimize any discomfort
Sedatives for rapid recovery Nurses/doctors encourage to talk with other patients
Carpeting to reduce hospital feeling and fear of fall
Prelim-diagnosis by mails for out of town patients
Parents of children being operated can stay freeResponsiveness
Admission by appointment: scheduled service
Easier to estimate the service time
Orientation provided for incoming patients. Walk-in patients or local residents on waiting list to make
up cancelled reservation
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Tangibles
Acres of gardens to encourage exercise & rapid recovery
Minimize hospital feeling (carpeting & odorless
disinfectant etc)
Stairways are designed for patients to use after operations
No TVs and Telephones in rooms to encourage walking
Patients encouraged to explore premises
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G M d l
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Gap Model
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Gap 1
Nurse orientation to patients regarding need of exercise, routine etc
Large time on counseling
Operation procedure
Short waiting period
Discharge period
Opportunity to interact
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Gap 2
Well specified process time limits for every
activity
Scheduled dinner time, recreational & tea breaks
34 full time nurses
Well defined schedules of surgeons are followed
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Gap 3
Adherence to Shouldice technique
Average Nurses to Patients ratio is 1:15
Fresh food
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Gap 4
Word of mouth advertising
Reasonable rates( half of other hospitals)
Welcoming, supportive atmosphere(website)
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Gap 5
Patients sometimes ask to stay an extra day
Expectations shaped from word of mouth are
well met by the hospital services
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Managing capacity & demand
Admission by appointment: scheduled service
Screening patients: easier to estimate theservice time
walk-in patients or local residents on waitinglist to make up cancelled reservation
Medical Information questionnaire
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Capacity planning
Hernia operations are elective procedures, patients can bescheduled in batches to fill the operating time available
Capacity can be utilized to its maximum
The facility is intentionally designed to encourage exerciseand rapid recovery within four days, which isapproximately one-half the time at traditional hospitals.
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320 * 4 + 650 +300 = 2230
(Per Day Stay
charge*4 +Surgical Fee +
AnesthesiaFees)
Total capacity
that can beused
Operations =180/week
(36(No ofOperations)*5(NO. of Days))
Total capacity
that is beingused
Operations =148/week
89(No. of
Beds)*5(No. ofDays) /3(No of
a days apatient stays)
Yield
Calculations
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Actual Revenue = Actual Capacity *Price
Potential Revenue = Total Capacity *
Price
Yield = ActualRevenue /Potential
Revenue
Yield = 148*2230/180*2230 = 82.22 %
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Annual Alumni Reunion Leads to
Continuingrelationship
of thehospital with
its patient.
Keep alumniinformed
Gathercustomerfeedbacks
Loyalcustomer
base
Effectiveword-of-mouth
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Analysis of Reunion Data
More than 50% of patients came though referral or word of mouth fromfriend.
More than 78% of patients feel food service to be important
97% said operation procedure is important
65% said nurses care and guidance was very important
89% said the shouldice hardly seemed like a hospital
91% said that friendship and acquaintance with other patients was
important.
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Analysis of Reunion Data
Hospital should concentrate more on happy customers as majorcustomers come through referrals
Hospital should maintain its good quality food as it is valuedby patients
Nurse care and guidance is important so should be kept atsame level or could be increased
Friendship with other patients should be continued andencouraged
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Invitecompetition
CauseShouldice toloss market
share
Failingwhich Upset the
existingwork force
Lowerservicequality
-veImpact
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Can satisfymore
demand
MoreRevenue for
Company
IncreaseCapacity by
20%
No AdditionalInvestment
Support ofyoung
Doctors
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Difficult tomaintain same
working relations
Staff is notpleased
6 Surgeons & otherstaff have to work
on Saturday
Dr. Degani wontbe there to
control
Opposition bythe senior
doctors
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1 Need to hire new surgeons, nurses and staff
2 Improve its competitive position and increase its profits
3 Existing staff can be helpful in teaching and encouraging new ones
4. New Opportunities for existing personnel (like promotions)
5 Requires a significant investment and Quality Control
6 difficult to create the same culture and country club atmosphere
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Keeping staff happy by
profit sharing policy Less working load on
staffs
weekends off
Internal Marketing
(Employees)
enables people tospend time with theirfamily
Happy Employees Less Turnover
Employee satisfaction More People wants to
join
keeps customerHappy
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Product Surgery
Service Expertise of Doctors, dedication of staff, overall feel of place
Target Niche Market to low risk hernia operations
USP Good Quality Service at low price
Word of Mouth Publicity
Concept of Alumni Meet helps in spread the good word about service
There operating capacity is close to 100% so, they just need to focus onmaintaining the Quality of service