How Successful Is the Shouldice Hospital? Generate a Profit & Loss Statement Using Available Information from the Case. Treat Each of the Two Operations - Hospital and the Surgery - Separately

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for each step in the process to determine the capacity of each step. Where is the bottleneck?

Note: I’m still working on find capacity value. In order to find capacity, you need to look at day 1 up to 2pm and for day 2, you go up to 8am. Capacity is 60 minutes divided by the time it’s required to complete the task. Once, completed, then a process flow needs to be drafted. I’ll work on this after work tomorrow.

Day 1

1-3pm: Patient Arrives

1:00pm: Waiting Room - 20minutes

1:20pm: Surgeon Examination -17.5minutes

Max: 6 examination rooms

1:37.5pm Waiting Room - 10minutes

1:47.5pm Insurance Check - 10minutes

1: 57.5pm Nurse - 7.5minutes

2:05-5:00pm - Unpacking, getting acquainted, prepping – 3 hours

Max: 89 beds

5:00pm: Orientation - 30minutes

5:30pm: Dinner - 30minutes

6pm-10pm - Recreation/Bedtime

Day 2

5:30am: Wake up and get dressed - 30minutes

7:15am: Demerol -15minutes

7:30am: Novocain - 30minutes

8:00am: Operation - 45minutes

Max: 5 operating rooms

Day 3 and Day 4

Exercise and rest

Discharge

The bottle neck is the 89 beds in the hospital for Day 1. The hospital cannot accept more than 30 patients per day because it needs to be able to house each patient for 3.5 days. The most that the hospital can accept in one day is 29 patients assuming that these patients stay the full time. These 29 patients are prepped for surgery for the next day.

Since there are 5 operating rooms and each surgery takes at least an hour, the maximum number of patients that can be seen on the day of surgery is 40 patients assuming that a doctor works 8 hour shifts from 8-4pm. Hence, the hospital would benefit by increasing their bed count to 40. Adding more than 40 beds will require adding more operating rooms and making other adjustments to the patient’s hospital stay.

4. Do a detailed analysis of potential on-site capacity expansion alternatives (on a per week basis). Assume an average of 3.5 days stay at the hospital for each patient, including surgery, and Sunday admits. This means that half the patients spend three days while the other half spend four days.

It may help to use an exhibit similar to the following to do this analysis.

Current Max Beds: 89

Item Sun Mon Tue Wed Thu Fri Sat Sun Mon

Admits 26 26 26 24 26 0 0 25 13

Operations 26 26 26 24 26 0 0

Departures 0 0 0 13 26 26 25 13 0

No. of beds in use 26 52 78 89 89 63 38 39 52

Total no. of beds available 63 37 11 0 0 26 51

Alternative Option -- Max Beds: 133

Item Sun Mon Tue Wed Thu Fri Sat Sun Mon

Admits 38 38 38 38 38 0 0 38 38

Operations 38 38 38 38 0 0 0

Departures 19 0 0 19 38 38 38 19 38

No. of beds in use 76 76 114 133 133 95 57 76 76

Total no. of beds available 0 0 26 51

• With 133 beds available, 38 new patients can be accommodated per day, thus 38 operations can be performed per