Page 63 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes services, during and after the product is purchased and consumed. Above this level, there is a
great service provider in the form of government and governmental departments affecting all
aspects of our life. Private non-profit sectors like non-governmental agencies, religious and
educational institutions, foundations, hospitals are also a part of the social sector. Business
sectors include airlines, financial services, banks, insurance and merchant banking organizations;
law firms, management and process consultants, entertainment companies, hotels and hospital
industries constitute another sector of services.

Self Assessment

Fill in the blanks:

14. Deregulation, economic liberalization and rising expectations of consumers have made
managers to apply managerial skills, practices and ……………… to satisfy customers.
15. Due to increase in competition, manufacturers started ……………… the product offer
through quality of service delivered to customers.



Case Study Apollo Hospitals

he Chief Executive of Apollo Hospitals is attempting to determine the capacity of
their outpatients department. The flow of people to the hospital follows this
Tsequence. People arrive at the hospital and park their cars. From records that the
hospital keeps, 40 per cent of the guests who come in are visitors to the in-patients wards.
The remaining 60 per cent of the arrivals go to the out patients area.
Table 1: Resources in the Outpatient Department

Department/Area Capacity/Size Service /Rate
Parking Area 500 Spaces 2.2 persons per car
Registration Area 3 Attendants 5 minutes per patient
Seating Area 6000 sq. ft. Waiting time 60 minutes
No. of Doctors 30 10 minutes per patient

According to standards that management has developed over the years, 50 per cent of the
patients require registering and it takes about five minutes at the registration desk. After
that, the patient goes to the specific outpatients department and requires six square feet of
seating space including infrastructure. Table 1 depicts the resources of the hospital.

On the average 2.2 people arrive per car; only 90 per cent of the seats in the waiting area
are normally available because sometimes patients come in wheel chairs and stretchers.
The average stay is sixty minutes. Of the 2.2 people who come in a car, only one person is
a patient. There are 30 doctors to attend to the patients. The management anted to know
the capacity of the system.

To begin, the capacity of each area can be calculated in terms of persons served per hour.
To calculate the capacity of the system and determine the bottleneck department in this
case, we can start by inspecting the department capacities. It is clear that the system’s
capacity cannot exceed 180 patients/hour because that is the capacity of the number of
patients the doctors can treat. This is also the optimum capacity. We start looking at the
service capacity of each department. The results are shown in Table 2.
Contd...

58 LOVELY PROFESSIONAL UNIVERSITY