# Shouldice Hospital Case Study Essay

468 Words1 Page

To determine if the hospital can perform this many operations, one should compute the equipment (operating room) and labor (surgeon) requirements per day and compare it to the current equipment and labor capacity per day. Equipment: Given: • Operations start at 7:30am and end at 4pm = 8½ hrs ~ 8 hrs • 1 hr/operation = 8 operations/operating room/day • 5 operating rooms = 40 operations/day Computation and Interpretation: • 45/40 = 1.125 * 5 operating rooms = 5.625 operating rooms ~ 6 operating rooms ∴ Shouldice hospital needs 6 operating rooms to be able to serve the influx of patients from the proposed expansion. With the additional patients, the equipment capacity is not sufficient (120% utilization rate) with a negative capacity cushion of 16.67%. Labor: Given: • 5.625 operating rooms (from computation above) • 12 surgeons • 1 surgeon per operation …show more content…

Shouldice hospital will only be able to perform 40 operations per day. Adding a new floor to Shouldice’s current facility will increase the number of available beds by 45. This could be easily controlled as well as it will certainly help Shouldice to maintain their quality. An addition of a new floor such as this would increase Shouldice’s total capacity, causing a need for more surgeons, as well as staff, thus increasing costs. The construction of the floor alone involves a significant investments and considerable time. Construction will also cause a disruption to the quality and atmosphere of the hospital. Therefore, the plant has limited flexibility. For establishing a new facility, Shouldice could strategically place their new location in an area closer to the customers, for instance, the USA. This allows them to improve their competitive position and increase profits. However, this requires a significant investment. Also, Shouldice could find it difficult to create the same culture and atmosphere as their original