Operations Management in the Hospital Industry

This document discusses the importance of operations management in the hospital industry and explores topics like total quality management and managing people in operation and supply chain. It highlights the role of operations management in improving efficiency and quality of services in hospitals.

Hospital Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
BRIEF DETAIL ABOUT ORGANISATION.................................................................................3
FIRST CHOICE...............................................................................................................................4
SECOND CHOICE.........................................................................................................................5
TRIPLE BOTTOM LINE................................................................................................................6
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operations Management is one of the most important concept which discusses about the
rules and regulations which are followed by management for the purpose of attaining the goals. It
is defined as the administration within the business organisation for the purpose of creating the
highest level of efficiency within the entity for accomplishing the target. It is mainly related
within the conversion of material as well as labour into finished goods which can be distributed
to the customers for earning profit. It is only possible if an organisation is able to utilise its
resources and technologies in best possible manner (Operations Management, 2019). It is one of
those department which can easily help to determine about the required raw material for
manufacturing any of the product which can directly allow to reduce unnecessary expenses that
occurs on a daily basis. In order to attain the desire result any of the operational manager is
required to use the formula of economic order quantity which can easily allow to determine
about the requirement of inventory which is required to be produced so that target can be
accomplished easily within the specific time period.
BRIEF DETAIL ABOUT ORGANISATION
St. Mary’s Hospital is one of the NHS Hospital which is located in Paddington which is the
in the city of Westminster, London. It was one of the hospital which was founded in the year
1845 but patient was allowed to get treatment since year 1851. It is among one of those hospital
which has a major trauma centres within London. It is among top four trauma centres and other
three are King College Hospital, The Royal London Hospital and St George’s Hospital. It has
been working with Imperial College London. It is one of the service industry where they are
taking care of thousands of patient on a regular basis and trying their best to cure them as soon as
possible. The main aim of the hospital is to improvise the services for patient with the help of
advanced technologies which they can use for obtaining the effective result. In current scenario,
they have been number of services to their patient which allows them to cure themselves in very
short time of duration (St Mary's Hospital, 2020). There are number of number of skills and
training which they are providing to their employees so that they will not have to face any of the
issues in any of the circumstances. In context of the file the two topics which has been chosen is
Total Quality Management and the another one is Managing People in operation and supply

chain. Both of this concept are very useful for the services providing industry like St. Mary’s
Hospital.
FIRST CHOICE
Total Quality Management can be defined as the continual process where organisation is
required to determine about the errors and reduce them in the best possible manner for the
purpose of attaining the goals and target. It is necessary to understand that TQM is one of those
tool which easily allow to bring improvement within the working style of employees which can
allow them to provide qualitative services to each and every person. In context of St. Mary’s
Hospital, TQM is one of those technique which will allow them to uplift their performance
within the market and it will also improve the decision making ability (Schmitt, 2018). One of
the theory which is related with Total Quality Management is Deming’s Theory which is can be
easily help St. Mary’s Hospital. The main importance of this particular theory is that it can easily
allow the organisation to improve the services and bring quality among the employees who are
working within the premises of an organisation. There are number of area which is mainly
focused by Deming Theory is continuous improvement, consumer focus, team involvement and
data driven. All of this aspects can be very effective for the hospital like St. Mary’s. Continuous
Improvement is one of those element of Deming Theory which mainly focuses on the
enhancement of working style among the employees with the help of appropriate skills.
Whenever any of the organisation emphasis on the working style then they can easily allow
themselves to bring much as more effective result. In context of St. Mary’s Hospital, with the
help of continues improvement they will mainly focus on higher efficiency for the purpose of
reducing the defects which is allow them to obtain better result. Also, whenever this particular
theory is applied there is higher possibilities that quality of the services which are being provided
by St. Mary’s Hospital will improve and allow to obtain effective results. The second aspects of
the theory are consumer Focus, where it becomes necessary for the entity to understand that in
any of the situation organisation must be able to provide the services which are required by the
customers. In context of St. Mary’s Hospital, they are one of the service provider in the field of
medical which means they must be able to take correct decision that how any of the patient can
recover from stage of bad health level by providing qualitative services (Eldenburg, Krishnan

and Krishnan, 2017). Here, organisation must be able to focus towards internal as well as
external customers so that problem will not arise in any of the situation. The third aspect is Team
involvement which is plays a crucial role for the purpose of uplifting the performance in any of
the situation. Whenever any of the organisation have effective team then they can provide the
services which are required to be delivered. Talking about St. Mary’s Hospital, it is essential for
them to understand that they are needed to hire those individuals within the organisation who is
capable of dealing with the situation for effective result. For the purpose of improving the
involvement, management of the hospital can provide all of the essential training which can be
beneficial at the time of treating any of the patient. The last aspects of the theory are Data
Driven. It is among one of the important aspects for the purpose of improving the total quality
management within the premises of St. Mary’s Hospital. The main area of focus will on the area
that how any of the area can secure the data which can play the crucial role within the
management system (Dafn, Ho and Lee, 2019). It is essential to understand that the quality
which an hospital is using for the purpose of providing the services must not be shared with any
of the other person in any of the circumstances. It is necessary to understand that if it happens
then legal action can be taken easily. In short, the process of total quality management will be
lengthy for the management of St. Mary’s Hospital but still it is necessary to understand that it is
among one of those source which will directly or indirectly allow to uplift the performance
through which goals can be accomplished easily in very short period of time. Even there is will
be higher possibilities that errors can be reduced which will allow the patient to recover in very
short time of duration. Talking about
SECOND CHOICE
Managing People in Operation and Supply Chain is one of the most important factor in
current scenario which plays the crucial role. The main role which is played here is to observe
and determine about the theories which plays an essential role in current scenario. It is one of the
systematic process which can simply allow the organisation to manage all of the resources
efficiently in best possible manner. It is one of the area where major focus is required to be given
(Hull and Van Dalsem, 2017). It is said that if any of the organisation is able to maintain their
human resource management then they have maximum chances of obtaining the accurate result
which they are willing to obtain. In simple words HRM is a coordination among the top level
management where tries to hire highly skilled employees who can perform better for the entity.

There is different process which is needed to be conducted whenever any of the employee is
required to be hired. In context of St. Mary’s Hospital, it is necessary for the management to
ensure that they will work as per the requirement so that effective services can be provided to the
patient and they can be discharged as soon as possible from the premises of hospital. It is said
that different shifts have been prepared by the management so that 24*7 days’ service can be
provided. The shift of staff has been divided into three category of work each shift will continue
for 8 hours a day which allows the hospital to ensure that required number of staffs are there who
can handle any of the situation. Also, job design is there is very essential in present scenario and
that can easily help the employee to understand about the criteria which they must fulfil. It will
directly or indirectly allow the organisation to meet out its target and accomplish its goals on
specific time period (Joshi, 2019). Talking about the hospital industry, it is one of those industry
where it is necessary to understand that the responsibility which has been delegated must be
completed on specific time period. Looking at the requirement, it is necessary to understand that
the medicine and any other equipment which are essential for dealing with patient must be
available so that any of the problem will not occur in any of the situation. For the purpose of
Managing the people it is necessary to understand that proper guidelines must be provided to
them so that they will not have to face any of the problem in any of the situation. When hospital
like St. Mary’s Hospital will have strong market base then in that respective condition they will
not have to suffer and even their goals can be achieved easily. Here, proper team should be
formed by the organisation where duties must be delegated to each and every person that how
they are required to provide any of the services. The supply chain must be continued because if
in any of the stage proper equipment are not available then in that respective condition,
organisation might have to suffer and even losses may occur. Not only this, but it is also essential
to understand that proper training must be provided so that any of the people will not have to
suffer and even they will have the knowledge regarding the work which they are needed to
conduct any period of the time. In order to manage the supply chain management within the
hospital lie St. Mary’s, their operational manager must be able to divide the work then in second
stage, it is essential to develop the demand forecast which is very essential in present scenario
(Vansant, 2016). Then it is required to understand that differentiation must be done within the
products so that problem will not occur in any of the condition. All of this stage are essential
because it directly or indirectly allow the entity to perform better. Also, supply chain

management will not face any of the problem to deliver all of the essential equipment and
medicines which are essential at the time of treating any of the patient.
TRIPLE BOTTOM LINE
In simple words, Sustainability is explained is that process where major focus is on meeting out
the requirement of the public as per the requirement. It is mainly based on three different pillar
and they are economic, environmental and social. If any of the organisation is willing to sustain
within the market, they must be able to meet out the requirement of customers so that sales can
be increased and tough competition can be given to the rivalry firms (Viswanathan,
MohamedMarzooth and Merlin, 2017). In context of St. Mary’s Hospital, it is necessary for them
to provide effective services within the market if they are willing to sustain within the market for
longer period of time. The three different aspects which are required to be focused is related with
Economic, Environmental and Social Approach. Talking about economic aspects, the major
focus of the people in it is related with the profit. In order to determine the percentage of profit,
all of the expenses are reduced from the total revenue of firm. The report which has been
presented by St. Mary’s Hospital shows that profit percentage has been reduced significantly. In
order to manage all of the expenses, entity is focusing towards the utilisation of resources
properly so that problem will not occur and goals can be accomplished easily. On the other side,
environmental aspect is also one of the important aspects where hospital St. Mary’s has been
focusing. Here, they are mainly trying to find out the best possible way so that unnecessary
equipment will not be required to use and which can easily save the environment. Installation of
those modern equipment which are nature friendly can be helpful for the organisation and even it
can allow to attain the goals in best possible manner. The Social aspects simply explains that in
any of the situation organisation should not try to take any of those decision which are against
the employee as well as patient because it will directly or indirectly create hue impact upon the
organisation. In order to improve the satisfaction level of employees and patient, organisation
must try to motive the employees and on the order this best possible treatment must be provided
with minimum charges so that problem can be sorted out (Salvi, Munshi and Sharma, 2019).
RECOMMENDATION
Looking at the current scenario, it is necessary to understand that improvement is required to
be brought within each and every sector so that effective result can be obtained. In context of St.

Mary’s Hospital, they are mainly required to focus towards total quality management for the
purpose of bring improvement within the organisation. Secondly, it is crucial to understand that
managing people within operation and supply chain can be crucial because it is one of the way
through which unnecessary expenses can be reduced (Warren, 2019). Also, proper training must
be given to employees that how they can effectively manage each and every activity can be the
crucial one in obtaining the goals.
CONCLUSION
From the above discussion, it can be easily concluded that there are different approaches
which easily allow the organisation to uplift their performance. It is necessary to understand that
whenever any of the problem arises, problem can be resolved with the help of qualitative
decision within different theories and concept can play the crucial role in obtaining the goals.

REFERENCES
Books & Journals
Schmitt, M., 2018. Multimarket contact in the hospital industry. American Economic Journal:
Economic Policy, 10(3), pp.361-87.
Eldenburg, L. G., Krishnan, H. A. and Krishnan, R., 2017. Management accounting and control
in the hospital industry: A review. Journal of Governmental & Nonprofit
Accounting, 6(1), pp.52-91.
Dafny, L., Ho, K. and Lee, R. S., 2019. The price effects of cross‐market mergers: theory and
evidence from the hospital industry. The RAND Journal of Economics, 50(2), pp.286-
325.
Hull, R. M. and Van Dalsem, S., 2017. Valuing the hospital industry from a financing efficiency
standpoint.
Joshi, B. S., 2019. Leadership Style Paradigm Shift in Hospital Industry: Need of the Day, in
Comparison with Hospitality Industry. Journal of Health Management, 21(1), pp.141-
153.
Vansant, B., 2016. Institutional pressures to provide social benefits and the earnings management
behavior of nonprofits: Evidence from the US hospital industry. Contemporary
Accounting Research, 33(4), pp.1576-1600.
Viswanathan, S., MohamedMarzooth, I. and Merlin, A., 2017. An exploratory study on quality
improvement and effective management among hospital industry in puducherry
region. Journal of Contemporary Research in Management, 12(3), pp.1-14.
Salvi, S., Munshi, S. and Sharma, K., 2019. Driving Healthcare through Corporate Social
Responsibility: Evidence from Hospital Industry. ANVESHAK-International Journal of
Management, 8(2), pp.57-71.
Warren, R. N., 2019. What About the Patient? The Effects of Mergers and Acquisitions in the
Hospital Industry on Patient Care. SUURJ: Seattle University Undergraduate Research
Journal, 3(1), p.10.
Online
Operations Management. 2019. [Online]. Available Through:
<https://www.investopedia.com/terms/o/operations-management.asp>
St Mary's Hospital. 2020. [Online]. Available Through: <https://www.imperial.nhs.uk/our-
locations/st-marys-hospital>