<a href="/keyword/shouldice-hospital/" >shouldice hospital</a> Case Presented By: Monji Batmunkh Karina Ayu Putri Samantha Dermawan Teresa Man Yousif Al Qassar Introduction It was founded by Dr. Earle Shouldice in 1945 and located in It is known for the `Shouldice Method' which is a Hernia surgery characterized by its simplicity. The uniqueness in the facility is its ability to deliver a comfy environment for its patients. The surgery performed is low-priced when compared to other hospitals giving <a href="/keyword/shouldice-hospital/" >shouldice hospital</a> a competitive advantage. <a href="/keyword/shouldice-hospital/" >shouldice hospital</a> Resources Patient Examination Room Total: 6 examination rooms Each examination take no more than 20 minutes Rooms available for 2 hours Work in Process = 6 patients Throughput Time = 20 minutes Throughput Rate = WIP Throughput Rate = 6 patients Throughput Time 20 minutes = 0.3 patients per minute 36 X 5 = 180 patients per week 0.3 patients/min X 120 min = 36 patients per day Hospital Beds Total 89 beds Half patients stay 3 nights and other half stays 4 nights Work in Process = 89 beds Throughput Time = 4 days Throughput Rate = WIP Throughput Time Throughput Rate= 89 4 = 22 patients/day or 22 X 7=154 patient per week Slowest Resource = Bottleneck Operation Rooms There are total 5 rooms 4 operations until 12:30 pm and 2 operations until 4:00 pm. Total: 6 surgeries in each room Capacity = 30 operations per day or 150 operations per week 7:30 AM 8:30 AM 9:30 AM 10:45 AM 1st Operation 8:15 AM 2nd Operation 9:15 AM 3rd Operation 10:15 AM 4th Operation 12:30 PM Surgeons 10 surgeons All can operate 4 surgeries before 12:30 Afternoon: 6 in examination room Afternoon:4 can operate 2 more operations Total Capacity: 48 operations per day or 240 operation per week (5 days) Nurses Total: 34 nurses and 6 during non operating hours Nurse to patients ratio 1:15 6 nurses for 90 patients 2 nurses per each operation team 14 teams can perform 84 surgeries per day Adding New Floor Increase 89 beds to 133 beds New Throughput Rate = 133 4 New capacity: 33 patients/day Beds are NOT bottleneck anymore Operation Room Capacity: 30 operations/Day Surgeries on Saturday Hospital operates 5 days per week Add 1 day increase 20% capacity? Surgeons oppose the idea of working on weekends NOPE! Hospital beds are bottleneck! The Success of <a href="/keyword/shouldice-hospital/" >shouldice hospital</a> Quality service at an affordable price Low employment turnover rate Increasing number in customers Time for expansion Risks and Challenges of Franchising or Opening a New Unit 1. Quality control training new doctors direct supervision by senior surgeons 2. Earning back large investment higher rates equally reasonable rates = Shouldice's main attraction higher rates might drive away patients Risks 1. Competing with wellestablished hospitals originating from Canada, Shouldice is an &quot;outsider&quot; loyal local patients 2. No prior experience in expansion errors unsuccessful franchise Recommendations Despite its risks and challenges... 1.Business point of view increase income better facility increase quality 2. Doctors point of view responsibility to help others in the society 3. Advertising patients to patients connection word of mouth advertising Ultimately, <a href="/keyword/shouldice-hospital/" >shouldice hospital</a> should open a new franchise