Project_Management_Performance

Project Management Performance OPS/HC 571 March 12, 2012 Christopher Madden Project Management Performance Hospitals continually have to “tighten their belts” and operate on smaller budgets. This has caused operational managers to discover ways to reduce operating cost and “manage productivity across all areas and job categories” (Langabeer, 2008, 129). Hospital foodservices can reduce cost and make the service profitable, if managed properly. To operate efficiently, it is essential for foodservice to enhance and retain better control over the many variables that exist. Organizations can reduce bottom-line cost, manage expenses, and advance employee productivity by developing and implementing effective labor management programs. A major factor is that management must focus on promoting professional labor practices without any workforce reductions. Trinity General Hospital is seeking to improve the foodservices process and a solution to labor management. The foodservice department has a total of six cashiers, four food preps, three cooks, and two supervisors. Each employee works an average eight hours day and paid $7 per hour. The food supply expenses are $500 per day and serves more than 1400 patient and guest meals (Langabeer, 2008). There are many factors examined prior to any plans implementation regarding a productivity solution. These factors involve identifying those areas of improvement using benchmarking data, measuring productivity performances against department and organizations goals, and increasing productivity, and performance with increased training and support. Once data is collected and evaluated plans are implemented that will aid in controlling labor costs and improving workforce productivity. Identifying Constraints Present When Measuring Productivity “In most industries the quantity of labor input in production is measured by hours worked and its price by average compensation per hour” (Steiger, 2009, p. 730). Measuring productivity is essential to an operations manager because the goal is to improve productivity. This is mainly done by monitoring productivity metrics (using trend analysis), external benchmarks, and other targets (Langabeer, 2008). Langabeer states that the two main constraints when measuring productivity take place because of the lack of verifiable information and published research and second the opinion that health care is “different” and does not use productivity monitoring (Langabeer, 2008). Operations managers can reduce those constraints by suggesting that “What gets measured gets done.” When the measurement and importance of productivity is emphasized, improvements can be made over-time (Langabeer, 2008). Describe what project management application you might use to measure and improve the performance. Management can create increased productivity by reducing inputs and increasing outputs, one at a time or by doing both at the same time. Including the following project management applications into the operational process can significantly increase productivity while reducing labor costs and maintaining quality, The staffing model: is used to drive full-time employees by skill. The labor model: is used to manage nonproductive time and implement part-time labor. The single and multi-factor productivity ratios: are used to measure, monitor, and rate efficiency variances. Benchmarking is used to compare services against a competitor in the same market. Langabeer states that “A breakeven analysis analyzes cost structures and volumes to identify what point total returns equal total costs” (Langabeer, 2008, p. 181). Projects that can also help to improve performance would be to expanding and improving the service lines. Also implementing projects that can improve the working environment, like rewarding employees with a job well done by giving half a day off, tickets to a movie for the family. Benefits like these would be hard to measure financially but will be seen in the increase of productivity in the employees. Full-time Employees and Skill Levels Skilled full-time employees are the backbone of the food service department and are essential to completing the projected workload. Management must monitor frequently the workload and make schedule adjustments to match the high and low-demand periods. Management must be careful with reducing employee hours, this can and usually will lead to low morale and decreased productivity. At the same time, a manager must have enough staff on hand to ensure that no one employee is overworked, which may lead to jobs not being completed and quality of customer service is decreased. Productivity, financial, and quality impacts of the number of full-time employees for each period can be identified and evaluated in the labor plan. Management can use the provided information to make cost and productivity adjustments in the number of employees to be used prior to encountering serious productivity or quality issues. The variation in demand will be reflected in the supply of the schedule of skilled employees. Management cannot look at productivity metrics alone when determining employment decisions. Tepper notes that “As a result, using demand analysis and benchmarking aids in good decision-making when measuring productivity” (Tepper, 2002, p. 49). Breakeven Analysis “Break-even analysis is one of the most popular analytical tools utilized in real-world business decision-making” (Yunker, 2006, p. 161). Foodservice managers can calculate a breakeven point to determine the required sales that the department must reach to see profit. The breakeven analysis method can suggest to management the different levels of cost to determine the range of possible outcomes. Breakeven Point for Trinity Hospital The fixed costs (FC) for food are $150,000. The variable cost (VC) per meal is $1. The price (P) of each meal is $4 per meal. The breakeven point is calculated by the following formula: breakeven= FC/ (P-VC). This is figured by the using the following: 150,000/4-1= 50,000. Trinity Hospital’s food service department must serve 50,000 meals to breakeven. Any meals that will be served after the 50,000 will be considered profit for Trinity Hospital. Tools Frontline Managers Can Use It is essential for operation managers to be aware of productivity management metrics available to them. Managers can offer a cross training program that will improve moral and employee skill sets. It is very important that employees have an understanding of productivity concepts and the organizations goals. Performance indicators must be identified, monitored, and developed to make sure established goals are met. Neely notes that “Managers must equip employees with the right tools to improve their productivity to make a positive impact on the organization” (Neely & Strategies, 2003, p. 5). Conclusion Operational managers must seek continually ways in reducing costs and improving productivity within the organization. Operational managers must have basic project management skills and use these skills to bring about changes that will increase productivity and efficiency. Once a project has been started, managers must continually monitor all processes with tools available to him or her to ensure that productivity flows effortlessly. Trinity Hospital can cut costs and improve productivity in the foodservice department by applying the tools and processes available to them. References Langabeer, J. R. (2008). Health Care Operations Management: A Quantitative Approach To Business and Logistics. Sudbury, MA: Jones and Bartlett. Neely, J., & Strategies, M. (2003). Workforce training: Are you equipping staff with the skills necessary for fiscal success'. Getting Paid in Behavioral Healthcare, 8(12), 1-7. Retrieved from EBSCOhost on March 10,2012. Steiger, H. (2009, July). Measuring our work: Scenarios to value productivity in health care. Acta Neurochirurgica. pp. 729-732. doi:10.1007/s00701-009-0345-y. Retrieved from EBSCOhost on March 10, 2012. Tepper, D. (2002). Benchmarking: measuring productivity & outcomes. PT: Magazine of Physical Therapy, 10(1), 48-52. Retrieved from EBSCOhost on March 10, 2012. Yunker, J. A. (2006). Incorporating Stochastic Demand into Breakeven Analysis: A Practical Guide. Engineering Economist, 51(2), 161-193. doi:10.1080/00137910600695692. Retrieved from EBSCOhost on March 10, 2012. .