Shouldice Hospital- A Cut Above

Shouldice Hospital- A Cut Above - Shouldice Hospital A Cut...

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Shouldice Hospital- A Cut Above BUSN 6110: Operations & Project Management Table of Contents I. Abstract Page 3
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SHOULDICE HOSPITAL- A CUT ABOVE II. Introduction Page 3 III. Analysis Page 4 IV. Recommendations and Rationale Page 7 V. References Page 8 Abstract Shouldice Hospital is a hospital with an explicit area of expertise. This expertise Shouldice many strengths resulting in lower cost, higher quality service for its patients, and better pay for and loyalty from its employees. Many would consider Shouldice a “focused factory”. Specializing in external abdominal hernias, Shouldice doctors execute the “Shouldice Technique” developed by
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SHOULDICE HOSPITAL- A CUT ABOVE founder Dr. Edward Earle Shouldice. This precise technique has resulted in early ambulation and higher success rates (greater than 99%) for Shouldice patients for over 55 years. However, what makes Shouldice so successful is that it is not just a hernia-healing hospital, it is an experience. Due to Shouldice’s success, they are seeing an increase in clients. This paper explores Shouldice’s issue with functioning at nearly full capacity, by recommending alternative solutions for them to consider. Shouldice Hospital- A Cut Above Introduction The Shouldice Hospital was and is a highly focused institution. It does one thing well: It fixes one type of hernia experienced predominantly by men, the inguinal hernia. And it does it with a recurrence rate that is about one-twelfth the rate of the average of North American hospital. It has come to represent the apotheosis of a social “focused factory,” using a term from the production management literature to denote an organization, process, or facility designed to do one thing very well. (3) When the issue of meeting market demand arises, Shouldice finds itself asking the question whether to increase capacity or not? The problem is that Shouldice is facing a paradox of change. Shouldice is operating at its “best operating level” for a hospital with limited flexibility in its facility, and a specialized work force. Unfortunately, this is causing them to fail to meet all the demand for its chosen market niche. If Shouldice were to add additional capacity to meet the unmet market demand there may be an upset in the existing work force and lower service quality, but failing to meet the market demand may invite competition that could eventually cause Shouldice to lose clientele and end up with excess capacity.
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