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Operations Management


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09-01-2012 Case study on a Hospital operations management

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Authorised: Dean of School Owner: Dean of School Approved by: SQC Revised: Ref: UWBS038b Assessment Feedback UWBS038b Assessment Feedback Coursework Number or Reference Student Name Marking Moderation Dr Gurmak Singh Provisional Grade: A B C A D E Fail F Fail 7IB002 Operations Management Subject Area Finance, Accounting and Business (FAB)

Application and evaluation of information management on X operations functions. Application and critical evaluation of management systems on X operations functions. Critical evaluation of the importance of project management to X given business situations. Critical evaluation of how the changes in role of business or X the use of technology has impacted the function of the operations manager. X Excellent fluid writing style, virtually free from grammatical and spelling errors. Format wholly appropriate for task and audience. X Excellent range of reading – well beyond recommended reading list. All references complete, accurate and up-to-date. A very good overview of the key operations management concepts for the case organization has been discussed. Each of the relevant operations management concepts have been discussed in good detail. You have supported these sections with relevant reference sources. These concepts have been applied to the case organization to analyse the problems. There is a clear link between theory and practice. You have used the operations management concepts discussed in the previous section and used these to analyse your case organization. Additionally your recommendations are drawn from possible areas for improvement within the case organization. The recommendations are closely linked to the operations management concepts. Key discussions, analysis and recommendations have been supported with relevant source material. There are discussions on the role of project management and management systems in relation to the case organization. There is a theoretical discussion on the role of operations manager. You have used a comprehensive and relevant source material. All the requirements of the assignment have been met, overall a very good assignment – well done. Tutor’s signature: Dr Gurmak Singh Date:


12 13 . Synopsis 3.10 10 . Role of operations manager 10.21 21 .22 22 23 . Quality management and its implications 7.15 15 . Conclusion 11. Lean management and its implications 5. Analysis of Information systems 9.CONTENTS PAGE NUMBERS 1. Analysis of project management 8. Reference list 3 3 4-7 8 . Analysis of Inventory management 6. Analysis and approaches to capacity planning 4.17 18 .25 3 . Introduction 2.

Due to that. management is showing keen interest to gain competitive advantage by improving the quality of services. 2.8 million/year. by reducing waste. laboratory. INTRODUCTION This report is on a 25 bedded small private medical hospital located at the Ongole town in India. and a USG scan room. On Sundays the provision is only foremergency cases.physiotherapy services. Patients are complaining about the longer waiting times at the pharmacy. maternity care. Along with round the clock emergency services it provides in-patient services and feminine care. SYNOPSIS This case analysis is on a hospital which is planning to increase the turnover by maximizing the efficiency of the services. except at the pharmacy and laboratory. To maximizethe capacity of the hospital. surgical care. After analyzing all theoperations of the hospital. The hospital turnover is $1. a laboratory. management is focusing on thecapacity management issues. paediatric care and care for other minor ailments. and allocating staff for different location became an additional cost to the management. and by cutting costs so they are analyzing lean management. Each day nearly 80 patients visit the hospital‟s out-patient ward from Monday to Saturday in between 9am to 2pm and 6pm to 10pm. Sometimes patients are shifted to another location for post-operative care due to the shortage of beds. ECG and X-ray room. inventory management and quality management issues. doctors and staff are moving here and there. and scan rooms and 4 .In this hospital each department uses computers to record the patient information electronically.It has a small café. management is considering the ways to improve the capacity of the hospital.1. In those situations.It also has a pharmacy.

Capacity might be increased by tactical and operational decisions like renting extra space.Furthermore. Hill. the hospital is using computers which were not networked. the aim of capacity planning is to match the available capacity to forecast demand over the long.Such demand can be met by changing the number of shifts. 1999. In addition. Bicheno and Elliott. Achieving the appropriate balance between capacity and demand can generate optimum profits and the wrong balance can lead to wastage and missed opportunities or dissatisfied customers. 1999. Heizer and Render. 2000). So it is concentrating on lean management. 2004. The hospital is seeking to upgrade IT services. flexible capacity 5 . appointing temporary labour or by adjusting the existing staff to workovertime.(Waters. inventory managementand quality management issues. so information was not accessible to all departments simultaneously. 2004). Currently.sometimes patients are not getting the right amount of drugs as prescribed by the doctors. or by working overtime for a period etc.Traditionally people come to the hospital without appointments. scheduling work patterns and so on. and few other hospitals are offering the same services in that area. To cope with the demand at peak times‟ capacity adjustment can be done by.(Waters. medium and short periods. (Vonderembse and White. Usually the total workforce available at any time varies with demand. 1997). supporting staff are complaining about the inadequacy of stock they needed in time. ANALYSIS AND APPROACHES TO CAPACITY PLANNING Balancing the firm‟s combined resources with that of demand for its products and services in a timely manner is called as capacity planning and control. Capacity planning is largely a strategic function and capacity of a process might be increased or decreased by building another facility or changing the process. 3.

1999. 2004). In independent demand.it is a form of discriminating among many items of inventory according to value.g. it is due to uncertainty of number of orders to be received. (e. Thebest example for that is JIT (Just In Time) approach. or uncertainty about the amount of resources required for the satisfaction of particular customer orders. machines. He explained the types of demand and classified them according to their value and usage. 2004). and discussed the cause of uncertainty of demand. Slack et al.(Samuel. the core principle of this is to cut inventories between a pair of processes until the user process sometimes run out of work (a stock out).Heizer and Render.. In this demand from customers is 6 . services or equipment repairs. one is dependent demand and another is independent demand. Butthe advantage is providing efficient adjustment or variation of system capacity (including materials. In dependent demand. Heizer and Render. or fast foods). Capacity policies work best when they are in place before they are needed.helps to change capacity within the limits of the plan or to alter the facility to reflect the needs of both a business and its customers. Knod (2001) also supported the above concepts and he further explained the capacity planning.. demand for one product is not related to the demand for another product. (Hill. The main objective of capacity planning is to match the level of operations to the level of the demand. (2008. 2009). (2008. In this most factors are well known and relatively predictable and the process focuses on the consequences of demand. Slack et al. the demand for one product is related to the demand for another product. usually system capacity can be changed with in certain limit. It helps in determining purchasing policies. The idea is to create bottle-neck. 2009) classified the demand into two types. labour).. for instance ABC demand. Capacity can be best maintained if the right amounts of resources are available at the right time and right place. though not a severe or permanent one. emergency medical treatments. 2000. And the emphasis is on capacity allocation.

Create/ make-to-order: Product or service partly produced prior to order.The main advantage of this is no left over inventory. (Make-to-stock). it results in loss of business and competitors can take it as advantage so hospital is followingthe Infinite loading. Application of capacity planning to the Hospital case report Currently the hospital is following finite loading concept to allocate the work limit to all the ward nurses.it is increasing efficiency of their work and their observation on in-patients. & control and decision is based on based on past experience. If work limit is allocated. 2009).not known and operations takes planning. and only completed when customer order confirmed. and dependent demand items are stocked prior to the time they will be needed in the surgery process.Resource-toorder: In this practice product or service produced only when the customer order confirmed. The response to customer demand can be achieved in following ways. and work over the limit is not accepted that is called finite loading. Cachon and Terwiesch(2009) states that.and opposite is called as infinite loading. (Resource-to-order). To increase the efficiency of work. And the main disadvantage is never able to satisfy customer demands immediately. If out-patient care is restricted to timings.To get the laboratory services.Slack et al.Hospital is using create/ make7 . (Hill. the amount of work allocated to unit/individual is important. 2000. If loading was restricted it results in loss of business. patients are paying the bill for the investigations at the cash counter and then the patient is redirected to the laboratory through a series of processes..In this hospital surgical equipment ready for future operation. Make-to-stock: Product or service is produced and then customers purchase them. the patients coming to the hospital are not limited to the scheduled time. make-to-order can eliminate the entire mismatch cost associated with make-to-stock. Though the hospital out-patient ward opening hours are 9am to 2pm and 6pm to 10pm. ward boys and porters in in-patient ward.

Sometimes to meet varying requirements in line. In this hospital.Occasionally. The hospital is using JIT approach for physiotherapy ward. surgical instruments. hiring the existingstaff for overtime is convenient than hiring the temporary staff.efficient allocation of resources in the hospital improves hospital efficiency. and other accessories necessary for surgeries are sterilized frequently to give effective health care. Hospital capacity is not sufficient to meet the demand of patients. When one doctor takes vacation. (2001) states. (Waters. for on demand sales and services. management is hiring part-time and temporary labour. emergency medical treatments. the management can pay for over-time to existing staff. And the recommendation is to capacity allocation (e.Management can introduce appointment system for patients to avoid waiting times. the other doctors share that work. at those timesthe hospital is losing its marginal profits. They can 8 .. emergency rooms. There will be no need of training for the existing staff.to-order policy.Due to that patientsare waiting for the longer times or going elsewhere. and inventory to do business. and they were usually trained to do so. the capacity plan aims at providing the right amount of space. The hospital is shifting patients to another location due to the inadequate number of beds. the number of patients was less and the number of staff was more. from hospital reception to housekeeping everything is ready before the patient arrives the hospital. To manage with excess demand. or they can arrange shift patterns instead of hiring part-time employees for a short time. staff switches from one department to another. 2000). when patient pays for that service. the corresponding doctor was informed and he gives his services just in time. It is allocating staff for them. (2000) suggested that. equipment.The regular patients were familiar with the existingstaff.Hill. services or equipment repairs). labor.g. (Maketo-stock). 1999.Knod et al. Recommendation: To cope with the demand. Hill. the capacity indicator of a hospital is its beds.

2009). nurses.Lean reduces costs. 2004). and the drive for continuous improvement. Application of lean management to the Hospital Presently. (Cachon and Terwiesch. (Bicheno and Elliott. (Slack et al. more dependable to produce higher quality products and services and above all operating at low cost. total maintenance and total quality.(Slack et al. and involves every employee and continuous improvement in operations. elimination of non-value added activities. lean operations are strongly associated with both waste elimination and continuous improvement.So the 9 . improves quality and efficiency of work.that will lead tocompetitive advantage. some lean techniques are not specific to lean operations or to JIT. Elimination of waste can be achieved by reducing overproduction of goods/services... by reducing unnecessary transport and by correcting unnecessary motion etc. they are associated with demand management. doctors. For example. (Slack et al.. 1997). 2004). (Bicheno and Elliott. the hospital is using some lean management principles. the hospitalnurses were needed to wash their hands frequently for a variety of reasons. Lean is anything that does not add value to the external customer. 2004). 1997). the involvement of staff in the operation. Advantages of lean management are: It identifies waste. and support staff required at different times) to meet the demand of the patients.Lean operations in turn underpin the techniques of Just In Time (JIT): the elimination of waste. Disadvantages of lean management are: It can be achieved only through involvement of all the staff and their response to changes might be different from individual to individual. by decreasing waiting times. LEAN MANAGEMENT AND ITS IMPLICATIONS The principle of lean operations is the elimination of all waste in order to develop an operation faster. eliminates waste.increase the hospital capacity (in relation to beds. 4.

administration advised them. and passed on to the next step of the process without any delay. and improving communication measures between units help to avoid unnecessarywaiting times. 2009. patients who need to be admitted into the hospital are waiting. 2009). 2009). they can move to another patient more quickly. not before and not after demand. They are waiting for the signature of the discharge coordinator. people waiting at USG scan rooms was horrible because most of the patients were asked to drink large amounts of water for getting scanned. to wear disposable gloves and to use antiseptic sprays to reduce unnecessary movement of nurses and to save time. team work.Lean allows continuous improvement and improves quality. (Bicheno and Holweg. where each patient is worked with one unit at a time. Therefore.There the patient transport process was one of the most delay factors. Already due to the inadequate number of beds. nurses are not having right information about the patient discharge when patient was readied for discharge. And standardizing the process in line with demand. training the staff. Consequently.These recommendations help in avoiding queues at the scan room and pharmacy as well. Unnecessary 10 . On the other hand. Recommendation Lean management recommends flow improvement (Bicheno and Holweg. The bed allocation in the hospital is usually to urgent priority.At the pharmacy. the pharmacy is not selling some medicines until expiry date. Frequently. (Cachon and Terwiesch. Bicheno and Holweg. some services shifted to another location.Particularly. Furthermore. in in-patient wards patients are placing by clinical similarity to avoid unnecessary movement of doctors.That processis taking longer time and patients are asking for quicker response. on one hand customers are waiting longer times and sometimes not getting the right amount of medicines. doctors are waiting for the patient clinical information from other departments.It is leading to waste of money and medicines.2009).

. 1998). It represents the highest value items as „A‟ class. Bicheno and Holweg. 1997. The main disadvantage of this system is the. (Hill. D for less essential items and V for large stock of inventory items. nurses and administration. In many instances the inventory is used to buffer against uncertainty. 2009). Inventory can also help a company to respond to customers more quickly. Inventory items can be classified as ABC items based on Pareto principle..moving of materials does not add value. 2004). 2009. so that they can sell old medicines first. (2009) explained VED analysis: E for essential items. ABC analysis helps in reducing the inventory levels and costs. medium value items as „B‟ class. and furthermore it can hide problems. (Bicheno and Elliott. they can place the newest deliveries of drugs at the back of the queue... 2004). not to the high importance of items. ANALYSIS OF INVENTORY MANAGEMENT Inventory management concerns the management and control of the materials that to go into the products and services at different points in the conversion process. (Heizer and Render. 2000). 2004. 5. 2004). Lambert et al. Bisen et al. (Slack et al. Bicheno and Elliott. and lowest value items as „C‟ class which requires little management. So that nurses can discharge the patient exactly when the patient needed. (Slack et al. These lean principles recommend the hospital.In the pharmacy. Cachon and Terwiesch.These small operational changes with the existing resources will avoid the wastage of medicines... without waiting for the information/process/signature of corresponding people. value was given to high usage. to meet expected demand and to take advantage of quantity discounts etc. (Mangan et al.and it can resolve the bed occupancy problem as well. 11 . to coordinate all the activities of doctors. (Vonderembse and White. changing and bringing the processes together can help to improve the process and to reduce waste. 1997. 2008).

Inventory can be managed by. (Hill. In order to maintain the inventory the principles of dependent demand and independent demand are also useful. The Continuous/perpetual inventory system offers the advantage of constant inventory levels at any point in time. they are combining old stocks and new stocks. 2000). (Vonderembse and White. (Krajewski and Ritzman. 2004. in response to the customer. Continuous inventory systems: Inventory levels are continuously monitored. 2004). 2004).e. the gap between the orders will vary in line with different levels of demand. Application of Inventory management to the Hospital The hospital pharmacy is using the manual process to find the inventory levels in it. Slack et al. computer based systems. 2000. In a continuous inventory system the stock position is monitored after each transaction i. Hill. 2000). 3.. (Vonderembse and White. 2004). Just in time approach is a pull based system. (Slack et al. this system encourages just in case approach rather than just in time approach. 2002. old stocksare leading to expiry. Single bin inventory system: In this stock is replaced when the maximum level of stock was lowered than it. goods are only produced when they are needed. Heizer and Render. “Inventory control models assume that the demand for an item is either independent of or dependent on the demand for other items”. (Heizer and Render. 2004). Due to the periodic checking low inventories will be possible. but monitoring and checking inventory levels continuously is time consuming and expensive even when using suitable. Periodic or bin inventory system: Inventory levels can be checked at a specific time that leads to the variable ordering of new stock. 2. 2004). when the inventory level drops below a certain level they are replaced. 2004). the inventory level is set to cover the demand until the next periodic review plus the delivery lead time. 1.. Pharmacist is not distributing medicines according to the expiry dates of medicines.Management is frustrating with the 12 .Inventory is related to the relative rates of demand and supply. (Hill. continuously. (Hill. Often.

It helps them in keeping the right amount of inventory at right times. Inpatient case sheet templates. 2004. The hospital is using the continuous inventory system for items such as vital medicines. Sometimes the housekeeping staff are complaining about the materials they needed in time. Heizer and Render. increased availability of drugs. laboratory essentials. 2004). Inpatient case sheet templates.medicines wastage. The hospital can use the periodic inventory system for housekeeping materials. Though the continuous inventory system is time consuming and expensive. and the right amount of drugs at right times. 13 . oxygen cylinders and other surgical items such as linen etc. 2004). the hospital is following single bin inventory system for health information leaflets. fruits and other snacks. In addition. The periodic bin inventory helps in lowering inventory levels. „A‟ class items should have tighter physical inventory control and records should be verified more frequently.(Vonderembse and White. Because it offers the advantage of constant inventory levels at any point in time. housekeeping materials. Slack et al. it is helpful in case of inventory of emergency medicines and other vital tools. Recommendation: The hospital can use the ABC analysis system. (Heizer and Render. and maintaining inventory at right time. Sometimes regular medicines are not meeting the demand of patients. 2004. sugar. 2004). for high usage medicines as „A‟ class items. They should verify the records more frequently because most of the items in hospitals are vital and lifesaving. The hospital is using JIT approachin the café for managing milk. prescription pads etc. (Vonderembse and White.. prescription pads etc. The management is seeking for the improved service delivery.

2000). 1994). Hoyle. (Dilworth. its aim is to gain confidence in operations. (Waters. 2000). 2000). 1994).. They are: devolving responsibility to lower levels of the 14 . Quality assurance activities do not control quality. (Slack et al. TQM is a way of conducting business with the involvement of each employee and aimed at providing high satisfaction to customers. TQM gives importance to preventing defects (Waters. quality control is operational techniques and activities that are used to fulfill requirements for quality. with zero defects. 1999). (Waters. Hill. It inspects in two ways: one is detection of defects at the end of the operation and another is prevention of faults at the end of operation. 1999. 2000. (Hoyle. (Dilworth. Dilworth. The ISO definition states that. and Dilworth. 1994). Advantages of TQM include: the whole organization works together to guarantee and systematically improve the product quality. 2000. Slack et al. However. Quality improvement is anything which causes a beneficial change in quality performance. 2004.. (Hoyle. 1994). Slack et al. (Hoyle. 2000). TQM has some disadvantages as well.. quality assurance is the all the planned and systematic actions necessary to provide adequate confidence that an entity will fulfill requirements for quality. 2000.6. quality improvement. The evolution of quality management is stimulated by the impact of the demand by customers for higher quality conformance levels and the increasing competitiveness in world markets resulted in Total Quality management (TQM) (Hill. QUALITY MANAGEMENT AND ITS IMPLICATIONS Methods to improve quality such as quality control. Quality control uses a series of inspections and tests to check that planned quality is actually achieved or not. it assesses the organization‟s products or services against prescribed standards to establish capability to meet them. 2000). 1999). and quality assurance are collectively known as quality management. TQM believes leadership is vital to a high quality effort. Continuous improvement is part of TQM (Hill. 2004.

). All these issues provoked administrators for continuous improvement of quality of the hospital to get competitive advantage. Recommendation: The hospital can follow TQM approach to improve its quality of care. assigning teams to identify areas of improvement etc. laboratory equipment etc. 1999. Teamwork and communication can solve the problems of waiting times at diagnostic centers. Vonderembse and White. it always keeps the surgery theatres and equipment and other resources to deal with emergency situations. The communication between the departments is poor. The allocated staff periodically checks the equipment to prevent hazards (ex. The quality control was inspected by the hospital manager regularly. The hospital staff are qualified and well trained to meet the standards of the hospital. Checks oxygen cylinders. The staff is more attentive to patient demands. when changes were being unpopular and managers being satisfied with small improvements. 2004). when every employee not involved.workforce can lead to problems. it may fail along the way if the top level management lacks commitment and planning. To hold the quality responsibility at 15 . TQM involves standardizing the document procedures. individual departments are not takingthe responsibility for quality. (Vonderembse and White. due to reciprocal interdependence of therapeutic and diagnostic services the waiting times at the scan rooms and laboratory are frustrating issues to patients. Application of quality management to the hospital At present the hospital is dedicated to health and safety regulations to provide quality care to the patients. (Waters. 2004). The hospital keeps stock of rare medicines and emergency tools to serve the patient immediately. The hospital has effective housekeeping services to prevent and control infections. Because demand for health services is volatile and unpredictable.

measurement and feedback to recognize employee achievements (Hill. Because the employee has authority to investigate faults and to ensure avoiding in the future. Vonderembse and White. it gives the details of each task time.departmental level. (Koster. (Waters. It involves the coordination and balancing of cost. quality and time. 1997. 2004. personnel. minimum failure costs occur. If patients were intimated with information about the duration of diagnostic services. scheduling and controlling all the resources required for completion of a project while meeting the technical. financial and time constraints required (Bicheno and Elliott. 2000). the quality of the business. and material needed to complete the project. 2004). it takes time and resources to implement (Vonderembse and White. one popular project scheduling approach is the Gantt chart. It gives the list of resources required including money. Slack et al. It defines each activity and break down each activity into manageable parts through work break down structure. informed and timely communication affects.Attitude. TQM is not a quick fix. 7. teamwork. 1999). 2004). employee involvement.. 2010). (Gatiss. it may prepare them psychologically. Project scheduling involves sequencing and allotting time to all project activities. 2004). and time estimation to perform each activity. how many people and resources are needed at each stage of activity. 2004). Project planning gives the information about the objectives to be done. (Heizer and Render. equipment. TQM recommends education and training of employees. 16 . it is widely used non mathematical simple to use visual technique. ANALYSIS OF PROJECT MANAGEMENT Project management is the process of planning. Project management takes a strategic approach to reduce complexity and ensure efficiency. 1996). employee training and involvement in the whole process is recommended which helps in devolved decision making. (Heizer and Render.

. Scan machine Installation. ignorance of legal or environmental conditions. 2010.Project control helps in close monitoring of resources. Application of Project management concept to the hospital Hospital management is planning to buy another automatic report generating USG scan machine because the patients are frequently complaining about the queues at the scan room. The work breakdown structure of the project was as follows. 1997). inaccurate time estimation. Purchasing furniture and 4. 2004). (Koster. rushed decision making. monitor and control the project. Factors causing the project failure are: lack of support from senior management.The project requires these activities: 1. Task 2 17 . AOA technique (Activity On Arrow). For large and complex projects to schedule. and PNT (Project Network Techniques) were in use. 2004). (Heizer and Render. Control also helps by using a feedback loop to revise the project plan and make able to shift resources to where they are needed most. Task1 can be done in three stages: Requesting for equipment quotation. costs. the techniques like PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method). Analyzing the price quotes. Buying another scan machine can reduce the waiting times at the scan room. Pregnant women are feeling theinconvenience in waiting at the scan room for longer times. It can improve the quality of the service and provides competitive advantage to the hospital. with an agreed quality level. 2. Purchasing USG scan machine. Ordering the equipment. Preparing scan room for equipment installation. The benefits of project management are: deliver the projects on time. 3. within budget. This project needs to be executed smoothly without interrupting the day-to day activities of the hospital as patient care is paramount. poor communication. Heizer and Render. quality and budgets. too many significant changes during the project and lack of managerial control etc.(Bicheno and Elliott.

Appointing a contractor to do all the work needed. Task 4 starts and ends on the day 10. the USG scan machine. The activities are scheduled in sequence and parallel. The risks associated with the project are: 1. a carpenter (1 day * 8 hours). Task 3 starts and finishes on the same day3. Project control and monitoring is very important due to the size and nature of the project (project association with patient services).5 day * 8 hours). Building work.can be done as follows: a. Painting work. an electrician (1 day * 8 hours). Cleaning the room. The resources required for the project are: a plumber (1 day * 8 hours). building. The estimated project completion time is 10 man days.The mitigation plan for the smooth execution of the projectis:alternative resources should be arranged by the contractor if allocated resources are absent. project costs may increase. 18 . 4. e.The allocated budget for the project is $8000. worker‟s illness or absence. a builder(1 day * 8 hours).f. c. Project completedwithin budget and time with accepted quality. painting and cleaning materials. 3. plumbing. workers may not have insurance and 5. patient services may affect. delay in materials and equipment delivery may affect schedule. Project daily status meetings are scheduled and progress was reported to the hospital director. a painter (1 day * 8 hours). d. 2. furniture. electrical. a cleaner (0. Electrical work. task 1 and 2 activities can start asparallel. Plumbing work. the contractor is responsible for workers‟ insurance and should verify it before commencing work and reviewing all the activities at the end of the day.b. hospital management made a contract with the contractor not to do work at the peak hours of the hospital for continuity of the patient services. Carpenter work and g. The task 1 finishes on day 3 and the task 2 continues until the day 8. On day 1.

Middle management needs MIS to deal with monitoring. generates demand reports at the request of the user. payroll etc. 2006. The principal purpose of the TPS is tracking the flow of daily transactions necessary to conduct the business. firms need TPS to monitor the status of internal operations and the firm‟s relations with the external environment. Failure of TPS for a few hours can lead to loss of that business and other businesses linked to it. (Davies. Laudon and Laudon. such as employee record keeping. accounts payable and stock control systems. decision making. Kelly cited in Shajahan. MIS generates reports on the organization‟s current performance which can also help in predicting firm future performance. 2002. 2004). 2004). and administrative activities. In general information systems may classify along. controlling. (Laudon and Laudon. 2002). (Davies. This data is essential to support the day-to-day operations that help a company add value to its products and services. and vertical dimension in terms of three levels of human activity and decision making that information systems support. MIS are not flexible and have little analytical capability. 2006). a horizontal dimension based on types of organization using information systems. Transaction processing systems are operational information systems of the organization such as order entry. MIS generates scheduled reports on prearranged information regularly. mostly use simple routines such as summaries and comparisons. and generates 19 . management information systems (MIS). and executive information system/decision support system (EIS/DSS).8.(Davies. processing. ANALYSIS OF INFORMATION SYSTEMS Information system (IS) is a system of communication between people. Shajahan.MIS enables managers to drill down to see daily hourly data if required. 2002. involved in gathering. Vertical layers of the Information system are Transaction processing system (TPS). distribution and use of information. The field of MIS promotes solutions to real world problems.

2007). (Stair and Reynolds. Process technologies depending on their inputs. (O‟Brien and Marakas. (Laudon and Laudon. body scanners. (O‟Brien and Marakas. compress. Healthcare organizations have begun to use Web technology to access patients‟ insurance eligibility and other information held in databases to cut patient costs. 2003. and often bring information from external sources. 20 . automatic vending machines etc. 2003). 2008). EIS draw summarized information from internal MIS and DSS. DSS use internal information from TPS and MIS. renal dialysis systems etc. (Davies. (Slack and Lewis. (Stair and Reynolds. (Curtis and Cobham. 2007). medical diagnostic equipment. generates reports on selective information to the manager‟s networked workstation by using webcasting software. DSS focus on unique and rapidly changing procedures and helps middle management in non-routine decision making. 2008). management information systems. O‟Brien and Marakas. Decision support/executive information systems are generally expected to support longer-term strategic decision making. 2006). EIS provides information to drill down quickly to lower levels of detail in areas of particular interest to the executives. the ability to respond to local information requirements has been both an attraction to their users and a threat to the power and importance of the centralized computing resource. Traditional MIS is centralized. Customer processing technologies include surgical equipment. ESS filter. 2006). (Laudon and Laudon. and track critical data and display most important data to senior managers. Material processing technologies include baking ovens. DSS/EIS utilize data generated by MIS to generate policy decisions in the area of business strategy. search engines of the internet etc. 2002). process the information necessary for the day-to-day operations of the work. 2007). Information processing technologies include optical character recognition machines. MIS push reports.exception reports showing the list of tasks that do not meet the predetermined set of settings.

The pharmacists are facing difficulties in checking the stock levels. It is using personal computers at the reception to record patient details and at the cash counter to generate bills. and to bill 21 . and it is cheap and easy to implement and use. information systems are providing support to clinical decisions. and to evaluate clinical performance against standards. access to more accurate information. it is helping them to look at the patient‟s medical history in diagnosing the disease. helping to monitor clinical performance. 2002). It is consuming time and increasing patient waiting times. Recommendation: Information systems recommend this hospital to use TPS and MIS throughintranet web application byintegrating various parts of operations.The data is duplicated across different systems in the hospital due to stand alone computers. better coordination and collaboration. (Davies. It facilitates better communication. in NHS. Doctors are also using personal computers to record patient information electronically. That is customer processing technology helping in diagnosing illness and to plan medical treatment. (2002) also stated that. to plan medical treatment. Often they are not maintaining the right amount of stocks. for example. medical diagnostic equipment and body scanners. The problem is the hospital is not using computers at the pharmacy and laboratory. The hospital is using Transaction processing system (TPS) partially. They are entering all the transactions manually. Healthcare organizations use information systems to diagnose illness.Application of information systems to the hospital The hospital is currently using information technology in the areas of surgical equipment. Moving data manually from one department to another is consuming doctor‟s time and reducing the efficiency of the operation. The Hospital is losing marginal benefits at the pharmacy. Davies.

Laboratory shouldrecord patients‟ investigation reports electronically which help them to generate reports easily and to use them in the future whenever the correlation of data is necessary.patients. (Curtis and Cobham. 2010). and it is a way to achieve competitive advantage. 2004). the pressures of environmental protection. socially and environmentally 22 . he ensures the operation‟s relative achievement in each dimension of performance driven by the requirements of the market to improve the competitiveness of organizations. 2008. to monitor stock levels frequently and to order the future stocks. the need for technology awareness and knowledge management. Furthermore. 9. Organizations will interpret broader responsibilities in different ways such as the effects of globalization. ROLE OF OPERATIONS MANAGER Operations managerrole is to develop a vision in translating the organization‟s goals.e. and thus benefit the national economy. the role of operations manager include corporate social responsibility i. Information systems help to record each transaction electronically. 2003). the increasing relevance of social responsibility. 2004). Vonderembse and White.(Stair and Reynolds. In the current techno-economic era operations manager‟s role is to streamline all the operations. (Vonderembse and White. (Slack et al. Applying IT technology to service operations enhance decision making and improve control by integrating various parts of operations..He minimizes the total cost of inventory.He help the organization flow in order to meet customer‟s varied demand with respect to quality and time. a company‟s commitment to operating in an economically. to maximize the utilization and the optimum arrangement of all the firm‟s available resources. Information systems also recommend the hospital pharmacy and laboratory to use personal computers. So they can maintain the right amount of stocks at the right time which improves the quality of the services.Hehas a set of general principles to guide strategic decision making towards the organization‟s long term goals.

business regulations and legal requirements.sustainable manner whilst balancing the interests of diverse stakeholders. In addition. Staffing and bed allocation issues were resolved by capacity planning. CONCLUSION Operations management concepts helped the hospital to improve its operations ability and efficiency. The quality of care was improved by quality management. Project management helped to install the new scan machine within budget. An operation manager ensures the business ethics. Unnecessary waiting times between the departments and wastage of medicines at the pharmacy was eliminated by lean management. 10. he plays a key role in change management during restructuring of organizations. The case analysis is revealing that operations management is the heart of the organization‟s activities.operations manager communicates and educates the employees. (Slack et al. The hospital pharmacy is able to maintain the right amount of drugs at right time with the application of inventory management.. 2007). 23 . And information systems helped integrate and collaborate all the operations of the hospital.

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