Case study on Outsourcing Hospitals/ Operations Management

A case study on

Outsourcing of Hospitals

Submitted by: Sadikchya Acharya

MBA III(R)

KINGS College

MGT 620 Operations Management & Supply Chain

International American University

Introduction

There are numerous strategies which are used to design to gain operation excellence and to gain competitive advantage through price cut and minimizing other operations cost also adding product value is one of them. Outsourcing can also be the process or people and supply chain that gives and addition to the competitive advantage of the organization which proves to be operational excellence. as we can say outsourcing gives us a lot of benefits like it helps us to reduce the cost, reorganizing the staffs and manpower, it can also build the office morale, it can help the efficiency of the organization, quality of the product can be enormously improved as long as we have advantages we also have to face some of the disadvantages which can be like too much dependence on another party to perform certain type of work that may create the odd situation sometimes, it also add some of the risk to the project, confidentiality of the product could be down and which further could lead to the conflict in the environment of the organization which is a very negative thing to develop, retain the image of the company.

I suggest would like to state that before any company would go for the outsourcing the firm or the company should consider some of the important functions.

While in the case of the hospital there is given too situations where hospital can be benefited of outsourcing as well as there are some added negative of outsourcing too. Looking at the case they have been success to the cafeteria outsourcing but while of housekeeping they just got some of the difficulties which made them to rehire employees for housekeeping and in the case of laundry they again have outsource just due to the flood of financial pressure to the hospitals.  (Stevenson, 10th (2009))

Case analysis and findings

Over viewing the case as they have done outsourcing to the food service they have extended their services in many locations, while in others it takes place inside the organization and outside too.

There are different advantages of outsourced work in the hospitals some of them are it can help hospitals to reduce their operational cost it also helps to build the efficiency of the organization, if they will go for the hiring specialized outsource agents.

when the hospital will outsource the food service they rae giving to the people but also they decided to be in the house and perform through their own place the possible reason could be the staffs working around the organization will make them comfortable.even the employee of the hospitals will take them as their part and which will maintain the balance between the external environment and the organization that will obviously lead them to perform in the very good manner it also reduces the cost through outsourcing.

When they were doing housekeeping company got feedback so again with the change they have decided to hire new employees which does not allow them to forget about outsoaring. Before going through any outsourcing agreement on product or the service the organization should process preliminary study of how it is and how we can perform the advantages and disadvantages of the outsourcing what are the key for the benefits and what are the main achievable points for the company. As company got benefitted by the cafeterias it necessarily depends upon the situation company thinking of one system is failed for to other it also won’t  do will be a foolish thing to do. It does not mean one idea gets failed to one place that means it will fail to other too. (jacobs & Aquilano, 12th (2009))

It is a open market and competition is very tough, we the company should not anly look to the strength of competitors field they should also go through the strength of their firms, what are our Sop’s should be find out by the company itself. While in the case hospital have outsources laundry service to competitor hospital because of the cost of laundry could be lower than operating to their own.

Conclusion

Then, outsourcing has its own pros and cons. if the outsourcing is done through the study by finding out the strength and the weakness of the product and the competitor knowledge then the cafeteria would also be ended like laundry service. Because of not evaluating properly they have been through the failure of the outsoaring cafeteria. Thus, to get the best an organization should always go through the feasibility study for the project to be feasible or not. They must find out whether the outsourcing product can reduce its cost or not, or it can gain some of the competitive advantage or not, even operational excellence will build up or not.

References

jacobs, c., & Aquilano. (12th (2009)). Operations and Supply Management. McGraw-Hill Irwin.

Stevenson, W. (10th (2009)). Operations Management. McGraw-Hill Irwin.