Operations Management Report: Croydon University Hospital Analysis

This report delves into the operations management practices at Croydon University Hospital, a charitable healthcare provider. It begins with an introduction to operations management and logistics, defining key concepts and their impact on efficiency and profitability. The report then introduces Croydon University Hospital, highlighting its services and context. Two primary topics are explored: managing quality and location/layout. The first section focuses on Total Quality Management (TQM), outlining its principles and applying them to the hospital, with specific attention to customer focus, continuous improvement, team involvement, and data-driven decision-making. The second section examines location and layout theories, including the principle of median location and Weber's theory, and how these can be applied to optimize the hospital's operations. The report concludes with recommendations for improving quality and managing facilities within the enterprise.

Operations
Management

Table of Contents
Introduction to Operations Management, logistics................................................................1
Introduction to the company and introducing the two chosen topics- ...................................1
First choice of topic and corresponding theories/concepts.....................................................2
Same for second choice of corresponding theories/concepts.................................................4
Triple bottom line...................................................................................................................5
Recommendation....................................................................................................................6
Conclusion..............................................................................................................................6
REFERENCES................................................................................................................................8

Introduction to Operations Management, logistics
Operation management defined as process in which business practices creates the highest
level of efficiency. This is mainly concerned with converting materials and labour into good and
services as efficiently as possible. Thus, it aids to maximise the profit of an enterprise. Therefore,
this is process that is defined as planning, organising, managing, controlling and supervising the
production and manufacturing process. Furthermore, higher productivity leads to greater profits
for business and also helps to have greater income for business individuals. It is defined as area
of management that is mainly concerned with the process as designing and controlling the
process of production and redesigning business operations.
Basically, it is inclusive of the transformation of inputs into output and then its valued by
customers, logistic and crucial business function that can be full-filled quickly and flexibly.
Logistic is detailed enterprise and it is the management of the flow of things better the point if
origin and to the consumption in order to meet the requirement of customers. Therefore, it is
defined as overall process of planning and executing the efficient transportation and storage of
products and raw material. Thus, mainly it relates with the organising the storage and distribution
of good and services.
Furthermore, report will cover the different theories in order to take production
effectively like total Quality management for the quality and the triple bottom line for economic,
social, environmental approaches and to make better evaluation on the performance of
organisation towards the social responsibility and its sustainability. Lastly, the recommendation
has been given in order to improvise the quality and to manage location and layout facilities
within enterprise.
Introduction to the company and introducing the two chosen topics-
In order to undertake present assignment the selected entity is Croydon University
Hospital, it is charitable enterprise and provides the health services to the needy people. This is
university that is opened on the London road in northern Croydon and purely war memorial
hispital located on the A235. Thus, this is the trust that is formed in 2010 after taking the merger
of Croydon community health services and mayday heath-care NHS trust (Ferlie, 2018).
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Thus, it is the trust that has opened child development centre for their children with
special educational needs and disabilities. This is the hospitality industry that mainly framed out
to provide better services to patients at the affordable rates. Therefore, facilities of hospital are
inclusive of 670 beds, eight operating theatres and overnight facilities for parents. Croydon
Health Services NHS Trust is developing an application for Foundation Trust status (Chauhan,
Singh and Jharkharia, 2018).
In this, the two topic has been selected as Managing quality and location and layout.
Thus, two theories that will be taken to deal with quality management and locations and layout
issues.
First choice of topic and corresponding theories/concepts
Total Quality Management (TQM) is a management approach which mainly focuses on
improving the quality of the organisation's output i.e. products and services. It is the customer
oriented management process with an aim for improving the business operations, TQM includes
the continuous efforts by the employees and management of an organisation in order to ensure
the efficiency of the business which can help the organisation in satisfying the customer need
and can help in achieving the customer's loyalty (Total Quality Management (TQM), 2019).
TQM has got number of principles which can help the organisation in improving the quality of
its products and services. It uses different strategies, data and effective communication which
integrates the quality disciplines in to the activities and culture of an organisation which helps in
improving the total quality of the organisational performance (Proudlove, Samarasinghe and
Walshe, 2018). Total quality management is the quality improvement of the body of
methodologies which are customer based and service oriented. There are various theories or
concepts which are related to TQM which can be applied by Croydon hospital are mentioned
such as Customer Focus As per this theory, Croydon hospital should have the external and
internal customers as a focus. Internal customers of the organisation are the co-workers or the
departments which are accepting the work as it moves through the company. External customers
of the hospital are who want the service form the hospital like patients. So as per this theory each
employee of Croydon hospital must be able to understand and identify its patients and should
determine the best way in order to satisfy their needs. It is not only about the external customers,
patients which employees of the hospital has to identify but they should also be able to their
suppliers and should communicate the quality needs of the hospital to the suppliers. So, by
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applying this theory within the hospital can help in improving the quality and efficiency of the
hospital in providing the services to the patients (Proudlove, Samarasinghe and Walshe, 2018).
By focusing on the patients’ needs and requirements, it will help in delivering the service to the
patients the way in which they want and can also help in satisfying them. Another theory
Continuous improvement, it is the process of improving the performance of the organisation on
the continuous basis so that the overall performance of the organisation is improved (Learn the
Theories of Total Quality Management, 2019). Croydon hospital using the TQM system have to
get in the incremental improvements on the continuous basis which effects the quality of its
service operations. By applying this approach, the employees of Croydon hospital has to perform
their job with less or zero defects and has to improve their efficiency in all the processes of their
organisational functions (Al Khamisi, Khan and Munive-Hernandez, 2018). Croydon hospital
has to identify the areas which require proactive improvements so that areas are improved on the
continuous basis. By applying this theory within the hospital, it can result in the continuous
improvements within the hospital which can help the hospital in decreasing the errors and can
identify the errors and formulate the strategies in order to minimise the errors. By this Croydon
hospital can improve the quality of their organisation and the service rendered to the patients.
However, the theory Team involvement states that teams forms an important part of the hospital
and it cannot function properly without the involvement of a team. As TQM system in an
organisation relies on the team or the people who are working within the hospital which can help
in improving the quality of Croydon hospital. Each and every individual from top level managers
to lower level employees must be involved in the continuous improvement process of an
organisation by using this system. Croydon hospital has to provide the training tools, techniques
and concepts for the quality management system for all the employees who are working in the
hospital. It will help the hospital in improving its quality of performance of both employees and
the overall hospital. Croydon hospital has to create an atmosphere of collaboration, team work
and should empower the employees to take initiatives in order to improve their process and
quality of their performance in the hospital (Deara, Bamber and Elezi,2018). TQM cannot be
implemented within the hospital without the encouragement and involvement of the lower and
upper management. While as Data Driven is another theory which can be applied by the
hospital, Croydon hospital has to use the measurable data in order to make the decisions for the
hospital to improve the efforts. Hospital can use various tools such as statistical process control
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tools, bar graphs, process mapping, etc. which help the management and the employees to
identify various quality issues. It not only helps to identify the quality issues but also helps in
formulating the plan or method in order to measure the successful quality initiative. Croydon
hospital can make use of flow charts which can help the hospital in improving the teams of the
hospital to understand the process of the organisation and identify the weakness in the
performance of the operations in the hospital such it prevents the organisation from duplication
of the steps in the workflow of the organisation. Croydon hospital can use data in order to track
the quality defects also helps in finding the areas which need improvements.
Same for second choice of corresponding theories/concepts.
Location and layout is the most important decision for the organisation as it requires a
huge financial investment which are logically irreversible in nature. Hospital location may be
defined as the choice of a region and selection of a particular place or site in order to set up a
business. But it needs to be noted that the choice should be made by the owners of the business
only after considering the cost and benefits of alternative sites where the business is to be set up.
Layout may be defined as a physical arrangement which is existing or is in the plans of business
facility like the arrangement of processing equipment, arrangement of the machines, various
service departments in order to achieve the coordination and efficiency of the four M's such as
methods, machines, materials and men (Hayes, 2018). There are various theories that are related
to location and layout which can be used by Croydon hospital in order to choose the location of
the hospital and layout of the hospital which are like Principle of median location, According
the principle of location theory it states that an activity which is to be performed will select the
middle point or median point of location when the hospital is selling output to or it is buying
output from. This indicates depending upon the activity of the hospital should locate the median
point which have the equal number of attraction points in any direction rather any arithmetic
average from the distances of the all points. So, the location of the hospital should be such that it
should be able to purchase inputs from various seller and should be equally able to deliver the
services with the equal proportion. Median location of the hospital should be such that half of the
monetary weight should come from one direction and half of should come from another direction
(Slack, 2018). Median location of the hospital will also minimise the transportation cost as the
hospital is located at the median customer.
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Another theory is Weber's theory of location, it is mainly based upon the least cost
principle which is used for the account for the location. This theory has suggested that workforce
of the hospital has fixed locations. Transportation costs for the hospital depends upon the weight
and distance. According to this theory costs will get influenced by the labour cost, agglomeration
factor and transportation costs.
Role of transportation cost it suggests the one market and one raw material can give rise to
three types of situations. One is raw materials available everywhere: For Croydon hospital the
best location in this situation will be the market where the resources are available everywhere.
Second is raw material fixed and pure: Hospital should be located in this case at the market or at
the sources which can be easy for the patients to reach to and will be also easy for the hospital to
buy the resources from and third is raw material fixed and gross (losses weight on processing)
Role of Agglomeration Agglomeration or coming together of different hospitals can result in
the production costs if two or more hospital exists or operates at the same location. When two or
more hospitals will be established at the same location it can cut the cost of services for the
hospital and even will cut the costs for its production or operations (Al Khamisi, Khan and
Hernandez, 2018).
So, these are the theories of location and layout which can be implemented by Croydon
hospital which can help the hospital in choosing and selecting a suitable location which can help
them in decreasing the cost of these operations in future but the costs of investment will remain
unchanged for the hospital. With the help of this Croydon hospital can improve the quality and
performance of the hospital by selecting the layout and location for the hospital (Alferd's Weber's
Theory of Industrial location, 2019).
Triple bottom line
Triple bottom line is a concept which broadens the focus of the business on the functional
bottom line in order to include the environmental and social considerations. Tripple bottom line
will measure the hospital's degree of social responsibility, its environmental impact and its
economic value. Croydon hospital can measure its environmental and social considerations as
Economic measure, The economic value of Croydon hospital has to deal with the bottom line
and flow of money. Croydon hospital has to look for its income or expenditures, business
climate factors, taxes, employment and also the business diversity factors. Hospital have to
measure following factors such as income, employment distribution sector, job growth etc.
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Another way is environmental measures, these are the variables that represent
measurement of natural resources and the potential influences towards the viability. Croydon
hospital has to follow the environmental rules and regulation and has to follow the measure with
which it can add to environmental sustainability (Hussain, Rigoni and Orij, 2018). It has also
take into the considerations for not polluting the environment and has to identify the trends
which will help to frame the policy for environmental protection.
There are different social factors which hospital's has to take care while operating its
business it includes various dimensions of the community or region. It also includes the
measurement of education, access to social resources, providing health and well-being, social
capital and quality of life. So these are the social factors which the Croydon hospital has to take
care of.
By applying TBL by Croydon hospital, it can get motivated by the principles of
economic, environmental and social sustainability but it may differ with the regard the way a
hospital measures the outcome of the three categories (Wilson, 2015).
Recommendation
In order to maintained proper working and efficient task, Company has to develop their
effective management in order to build proper operation management. Facility layout is an
important component for the businesses. In order to build up the best company layout. Croydon
hospital should need to select effective process selection in variety of ways. Consider the process
of sewing a better quality. Besides, Croydon hospital also need to be taken Critical path method
to make effective working goals and target’s
Conclusion
As per the above report it has been analyzed that to maintain the effective performing
management company has to adopt operation management theories. Present study based on the
concepts of total quality management that helps in to improve the organization goals and
objectives in an efficient manner. Overall, study discussed about the organization task in order to
fulfill the company aims. Further study also explained the importance of customer focus to
maintaining the total quality management. Besides, study also described the role of continuous
development process to keep maintained the TQM and company efficient process. Overall study
analyzed the theories of location and layout to perform the productive work within the
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organization. Besides, it also helps to maintained the employee morale and employee productive
performance.
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REFERENCES
Books and Journals
Al Khamisi, Y. N., Khan, M. K. and Hernandez, E. M., 2018. Evaluating healthcare governance
using knowledge-based system to enhance quality management. In Proceedings the World
Congress on Engineering (pp. 426-428).
Chauhan, A., Singh, A. and Jharkharia, S., 2018. Healthcare waste management practices'
identification and evaluation to rank hospitals. International Journal of Operational
Research. 33(3), pp.367-386.
Deara, A., Deara, M., Bamber, C. and Elezi, E., 2018. A comparative analysis of lean
implementations in NHS England hospitals. International Journal of Lean Enterprise
Research, 2(3). pp.218-239.
Ferlie, E., 2018. The professionalization of medical management? The slow and chequered case
of UK health care. In Professionalizing Leadership (pp. 275-292). Palgrave Macmillan, Cham.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Hussain, N., Rigoni, U. and Orij, R. P., 2018. Corporate governance and sustainability
performance: Analysis of triple bottom line performance. Journal of Business
Ethics.149(2). pp.411-432.
Proudlove, N.C., Samarasinghe, B.S. and Walshe, K., 2018. Investigating consistent patterns of
variation in short-notice cancellations of elective operations: The potential for learning and
improvement through multi-site evaluations. Health services management research, 31(3).
pp.111-119.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Wilson, J. P., 2015. The triple bottom line: Undertaking an economic, social, and environmental
retail sustainability strategy. International Journal of Retail & Distribution Management.
43(4/5). pp.432-447.
Online
Alferd's Weber's Theory of Industrial location. 2019. [Online]. Available Through:
<http://www.sjsu.edu/faculty/watkins/weber.htm>.
Learn the Theories of Total Quality Management. 2019. [Online]. Available Through:
<https://www.brighthubpm.com/methods-strategies/72443-theories-in-total-quality-
management-tqm/>.
Total Quality Management (TQM). 2019. [Online]. Available Through:
<https://www.toolshero.com/quality-management/total-quality-management-tqm/>.
Hussain, Rigoni and Orij, 2018. Corporate governance and sustainability performance: Analysis
of triple bottom line performance. Journal of Business Ethics.149(2). pp.411-432.
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Wilson, 2015. The triple bottom line: Undertaking an economic, social, and environmental retail
sustainability strategy. International Journal of Retail & Distribution Management.
43(4/5). pp.432-447.
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