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Managing Operational Improvement – Hemas Hospitals


Managing Operational Improvement – Hemas Hospitals

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  •  Does the organization’s operational strategy align with its operational efficiency?
  • Identify three (3) operational areas that do not align with the operational strategy.
  • What are the weaknesses that are evident in each area?
  • Formulate a new operations strategy for the selected organization based on the four (4) competitive priorities (i.e., cost, quality, time, and flexibility)

Additional information

Table of Contents

Table of Contents

Executive Summary
1. Introduction
2. Business strategy of Hemas Hospitals
3. Operation Strategy and operational efficiency
4. Operational areas that do not align with the operation strategy
4.1 Long waiting time in queue for payment and laboratory reports.
Identified weaknesses caused to delays
4.2 Higher energy consumption
Identified weaknesses caused to energy cost increase
4.3 Inefficiencies in supply chain process
4.4 Identified weaknesses caused to stock returns and delays
5. Improvements need to be done in operation strategy
5.1 Cost
5.2 Time
5.3 Flexibility
5.4 Quality


Executive Summary

Hemas Hospitals is one of leading hospital chain in Sri Lanka which has three hospitals in Wattala, Thalawathugoda and Galle. Year 2016 was challenging year for Hemas and also every hospital chain in Sri Lanka due to VAT regulation changes affect to healthcare sector. Further high competition level in Healthcare sector also negatively affect to Hemas Hospitals. Therefore this situation has led to review the operation strategy and operation efficiency of the business.
This report will comprehensively analysis operation strategy of Hemas Hospitals and how it link with business strategy of the Hemas Hospitals. Operation strategy will be analyzed mainly based on operational efficiency, supply change management and quality management. Further report will critically analysis how operational efficiency, supply chain management and quality management systems support to Hemas operation strategy and business strategy. This will identify the weaknesses in each areas and recommend a new operation strategy to eliminate the weaknesses and enhance the company performance.

1. Introduction

Hemas Hospitals has three hospital in Wattala, Galle and Talawathugoda and our first hospital started in 2008 in Wattala and Galle and Thalawathugoda hospitals started respectively in 2009 and 2013. Hemas Hospitals vision is to be Sri Lanka’s most respected healthcare provider and brand of choice for healthcare professionals, touching 5 million lives island wide by 2020. Our mission is to take our unique hospital model to even more suburban cities by starting several more hospitals in next 7 years. We expect to bring quality and affordable healthcare facility to developing cities of all over the Sri Lanka.
However data on laboratory test, admissions, channel appointments, customer feedback shows slight decline on performance in last two years. This situation could negatively affect to achieve our 2020 vision. This situation led us to review our current operation strategy and operational efficiency with organization business strategy. In this report we have focus on four elements organization current business strategy, operation strategy, supply chain and quality management. This report will identify the problematic areas in operational process and the weaknesses which caused to issues. Then this report will highlight the corrective actions to improve the current operation strategy and operational efficiency.