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MGT606: Operations Management- II

CASE: MEMORIAL HOSPITAL

Section A,Group-1
Vivek Singh
Sakshi Daral
Prashant Arora
Sanchit Singhal
Vishal Gohel
Aditya Ghotane

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119278017
119278111
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Introduction
We have created a simple aggregate staffing plan for the nurses of Memorial Hospital with their
objectives and assumptions in mind. While developing the staffing plan, we let these three
main objectives lead our efforts: increase customer satisfaction through maximization of
customer service within the wards, keep costs low, and maintain a stable work-force. There
was also a list of assumptions that we had to incorporate. No changes were to be made to the
number of nurses in the surgical ward. Also, the nurses are deemed to be dedicated to their
respective wards
Recommended Plan and Justification
We looked at the following case scenarios:
1.
2.
3.

All nurses are full time and work overtime.


All nurses are full time and work regular hours.
Full time regular hires supplemented by temporary staff

Upon doing the Cost analysis, we came to the conclusion that hiring a mixed staff of full time
regular staff working regular hours each day and temporary staff working on hourly charges.
We are using the hybrid strategy because it minimizes work-force fluctuations and increases
customer satisfaction. Building the nursing staff early in the year helps achieve the above
mentioned objectives. Additionally this adheres to the challenge of finding qualified nurses.
Because of the difficulty and high expenses in hiring new nurses, we would not use the purechase strategy since it would incur greater overall expense. By adding the additional staff early
in the year this would allow adequate time for training and tenure for the nurses which ensure
overall customer satisfaction.

Case 1 : All nurses are full time and work over time
Overtime Requirement
Round up (Minimum Nurses)
Regular hours
Overtime hours
Total Cost for work
Hiring Cost
Firing Cost
Total Cost Per Month (with no part time nurses)
Case 2 : All nurses are full time and work regular hours
Regular Hours Requirement
Round Up (Maximum Nurses)
Total Cost for working hours
Hiring Cost
Firing Cost
Total cost per month (with no part time nurses)
Case 3: Full time regular + temp
Regulars
Temps
Cost
Temps
Hiring
Firing

102.4347826 96.66667 95.81818 93.91304 108.5 78.26087 94.34783 94.34783


100 88.95652 105.7143 98.63636
103
97
96
94
109
79
95
95
100
89
106
99
19570 16490 15360 16920 19620 12640 18050 16150 17000 16910 16960 17820
8702
7870
9936
9000
6420
8960
7990
9890
8200
7642
9680
8220
2435800 2106200 2222400 2253600 2211600 1907200 2243000 2281000 2180000 2117000 2324800 2247600
300000
320000
100000
340000
52500 45000
7500 15000
225000
0
0
82500
52500
2488300 2151200 2229900 2268600 2511600 2132200 2563000 2281000 2280000 2199500 2664800 2300100 28070200

148.8 143.2941 158.1


144 144.6667
135 137.0526 153.1765 148.2353 129.2211 166.5 144.6667
149
144
159
144
145
135
138
154
149
130
167
145
2261760 1948800 2023680 2073600 2083200 1728000 2083200 2083200 2016000 1964160 2131200 2083200
780000
300000
20000
60000 320000
740000
37500
112500
75000
37500 142500
165000
3041760 1986300 2323680 2186100 2103200 1803000 2143200 2403200 2053500 2106660 2871200 2248200 27270000
129.5652174 125.2174 138.2609 125.2174 126.087 117.3913
120 133.913 129.5652
130
126
139
126
126
118
120
134
130
19
18
20
18
19
17
18
20
19
1976000 1713600 1779200 1814400 1814400 1510400 1824000 1822400 1768000
324900 275400 288000 291600 307800 244800 324900 306000 290700
400000
260000
40000 280000
30000
97500
0 60000
30000

113.0435 145.2174 126.087


113
146
126
17
21
19
1717600 1868800 1814400
290700 302400 307800
660000
127500
150000 27113200