Cincinnati Childrens Hospital Medical Center Video Supplement 2012 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Cincinnati Children's Hospital Medical Center

Question 01: What are the key differences between process improvements in healthcare organizations versus manufacturing organizations?

hmc case solution

Every business has a particular process to perform its tasks and drive end results, which are beneficial for the company. These processes consist of different steps and if any step is missed, then the whole process suffers. Companies should be very careful while making changes in their process. There are several reasons to make changes in the process. Some companies have intention to reduce cost while some companies want to improve quality of their products. There are two types of industries. One type of industry is the manufacturing industry and the second type is the service industry or healthcare organizations. Both industries have different sectors and in each sector companies may have a different process. In some cases it may be possible that companies from different sectors have the same process.

In the manufacturing industry, companies produce goods. These goods are consumed by customers. These goods can be seen and are tangible products. Quality of goods is very important; hence, a manufacturing firm will want to improve the quality of its goods. Manufacturing firm will possibly use latest technology or machines to improve the quality of their products. But in the case of healthcare industry, healthcare services cannot be seen as they are intangible. In the service industry goods are not produced but this industry provides services to its patients. Healthcare industry will try to improve its services by improving the quality of its services. In manufacturing industry, goods are transferred to the warehouse. Extra cost is incurred, however, organizations can improve their processes by keeping low inventory. They may improve their processes by following the just-in-time concept. In the case of healthcare industry, they do not keep inventory but they have number of beds for patients. They have rooms that may incur some cost. Healthcare industry can improve its services by keeping few rooms and increase turnover ratio of patients. Manufacturing firms mostly rely and compete with other firms on the level of quality produced and economies of scale. On the other hand health care organizations look to improve its process by assuring to serve each patient with complete dedication and attention. The process can improve in a healthcare firm by delivering complete support and personalized medication to each patient. This is the best way to produce optimum quality in its processes. Both the industries are different and perform under total contrast because one is a service industry and the other one operates in product industry. Therefore, the two industries and organizations are performing under extremely different rules and regulations.

In the manufacturing industry, goods are produced on a large scale. Large number of people consumes products. In many cases manufacturing firms do not interact with customers. They can enhance their services by following the forward integration strategy. In the case of healthcare industry, organization interacts directly with customers. Services are provided according to their requirement and in a customized manner. It helps the healthcare industry to make strong relationship with their customers. In manufacturing industry, goods are produced with the help of labor. In order to provide better quality products to their customers, training should be given to all employees including the labor. It will help the organization to improve their process. In the case of healthcare industry, doctors, nurses and technicians play a very important role in the delivery of quality service. This process can be improved by giving more technical training to doctors, nurses and technicians. It has been cleared that the process of manufacturing and healthcare industry are same but there are ways to enhance their processes. The ultimate difference between the two industries or organizations is the level of seriousness associated with each industry.

Question 02: How did these differences impact CCHMC’s approach to improving quality?

The various steps taken by CCHMC to improve upon its quality to serve the kids were aligned to better serve customers or patients. Prior to the quality improvement steps at CCHMC, the concept of the hospital was to make sure the beds within ICU and other departments of the hospital were occupied for longer period and the hospital could make excessive amount of money through the patients. However, the approach of hospital changed from being profit oriented to service oriented when the hospital came under the leadership of Uma Kotagel, who transformed the organization into a customer satifying healthcare organization. Under the new system, the healthcare organization was keen to induct the patient in ICU at the initial stage, once the disease of the patient was diagnosed then the patient would be sent to specific department after the initial treatment. This practice under the new and improved system was to entertain maximum patients with best healthcare facilities.....................

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Comment by case characters, Uma Kotagal, James Anderson, Lee Carter, and Maria Britto. They discuss the key events that motivated them to start (CCHMC) improved Cincinnati Children's Hospital Medical Center journey, challenges faced along the way, and upgrade program for cystic fibrosis and continuity of the hospital. "Hide
by Anita Tucker, Amy C. Edmondson Source: Supplement 10 minutes of video. Publication Date: February 21, 2013. Prod. #: 613710-VID-ENG