Harvard Case - Donatus Pharmacy: Personnel Scheduling with Employee Preferences
"Donatus Pharmacy: Personnel Scheduling with Employee Preferences" Harvard business case study is written by Christoph Haehling von Lanzenauer, Olaf Pohl. It deals with the challenges in the field of Operations Management. The case study is 11 page(s) long and it was first published on : Nov 30, 2018
At Fern Fort University, we recommend Donatus Pharmacy implement a comprehensive workforce scheduling system that integrates employee preferences with operational needs. This system should leverage technology and analytics to optimize staffing levels, minimize labor costs, and enhance employee satisfaction.
2. Background
Donatus Pharmacy is a small, independent pharmacy facing challenges with staff scheduling. The current manual process relies heavily on owner intuition and lacks a structured approach to consider employee preferences and operational demands. This leads to inconsistent staffing levels, employee dissatisfaction, and potential service disruptions.
The main protagonists are:
- Donatus: The owner and pharmacist, struggling to balance operational efficiency with employee satisfaction.
- Employees: A diverse group with varying schedules and preferences, seeking flexibility and work-life balance.
- Customers: Expecting consistent service and timely medication fulfillment.
3. Analysis of the Case Study
The case highlights the need for a more strategic approach to personnel scheduling, aligning with Donatus's overall operations strategy. We can analyze the situation using the following frameworks:
Operations Strategy:
- Lean Manufacturing: Donatus can adopt lean principles to eliminate waste in staffing, reduce unnecessary overtime, and improve efficiency.
- Six Sigma: Implementing Six Sigma methodologies can help Donatus identify and eliminate scheduling inefficiencies, leading to improved customer service and reduced labor costs.
- Theory of Constraints: By identifying and addressing the bottleneck in the scheduling process (e.g., lack of clear communication, inflexible scheduling system), Donatus can improve overall operational efficiency.
Information Systems:
- Enterprise Resource Planning (ERP): Implementing an ERP system can streamline scheduling, integrate with other pharmacy operations, and provide real-time data for informed decision-making.
- Technology and Analytics: Leveraging scheduling software with advanced analytics can help Donatus predict demand fluctuations, optimize staffing levels, and identify employee availability patterns.
Human Resources:
- Employee Engagement: A well-designed scheduling system that considers employee preferences can boost morale and reduce employee turnover.
- Work-Life Balance: Offering flexible scheduling options can attract and retain employees, particularly those with family commitments.
4. Recommendations
Implement a Scheduling Software: Donatus should invest in a scheduling software specifically designed for pharmacies. This software should allow for:
- Employee Self-Scheduling: Employees can choose shifts based on their availability and preferences, promoting autonomy and engagement.
- Automated Scheduling: The software can automatically generate schedules based on predefined rules, considering peak demand periods, employee skills, and availability.
- Real-Time Tracking: The system should provide real-time insights into staffing levels, allowing Donatus to adjust schedules proactively.
Develop a Clear Scheduling Policy: Donatus should create a written scheduling policy outlining:
- Shift Types: Define different shift types (e.g., morning, evening, weekend) and their corresponding pay rates.
- Minimum Staffing Requirements: Establish minimum staffing levels for different days and times based on historical demand data.
- Employee Request Process: Define a clear process for employees to submit scheduling requests and for Donatus to respond.
Utilize Data Analytics: Donatus should leverage historical data on customer traffic, prescription volume, and employee availability to:
- Forecast Demand: Predict future demand fluctuations to optimize staffing levels.
- Identify Staffing Patterns: Analyze historical data to identify recurring staffing needs and optimize scheduling accordingly.
- Measure Performance: Track key performance indicators (KPIs) like employee satisfaction, customer wait times, and labor costs to assess the effectiveness of the new scheduling system.
Embrace Continuous Improvement: Donatus should regularly review the scheduling process and make adjustments based on feedback from employees, customers, and data analysis. This continuous improvement approach will ensure the system remains effective and adaptable to changing needs.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: The proposed solution aligns with Donatus's core competency of providing high-quality pharmacy services by ensuring adequate staffing levels and minimizing service disruptions.
- External Customers: The recommendations prioritize customer satisfaction by ensuring consistent service and timely medication fulfillment.
- Internal Clients: The proposed system addresses employee concerns by providing flexibility and control over their schedules, leading to increased job satisfaction and reduced turnover.
- Competitors: Implementing a modern scheduling system can help Donatus stay competitive by attracting and retaining skilled employees and offering a more efficient service.
- Attractiveness: The proposed solution offers a positive return on investment by reducing labor costs, improving employee retention, and enhancing customer satisfaction.
6. Conclusion
By implementing a comprehensive scheduling system that integrates employee preferences with operational needs, Donatus Pharmacy can significantly improve its workforce management, enhance employee satisfaction, and optimize operational efficiency. This approach will position Donatus for sustainable growth and success in a competitive market.
7. Discussion
Alternatives:
- Maintaining the status quo: This option carries significant risks, including employee dissatisfaction, reduced productivity, and potential service disruptions.
- Outsourcing scheduling: While outsourcing can provide expertise, it may not fully address employee preferences and could lead to increased costs.
Risks:
- Employee resistance: Employees may resist changes to the scheduling process.
- Software implementation challenges: Implementing new software can be complex and time-consuming.
- Data accuracy: Accurate data is crucial for effective scheduling.
Key Assumptions:
- Donatus is willing to invest in scheduling software.
- Employees are open to using a self-scheduling system.
- Donatus has access to reliable data on customer demand and employee availability.
8. Next Steps
- Pilot Program: Implement the scheduling software on a pilot basis with a select group of employees.
- Training and Support: Provide comprehensive training to employees on how to use the new system.
- Regular Review and Adjustment: Continuously monitor the system's performance and make adjustments as needed.
- Communication and Feedback: Maintain open communication with employees and solicit feedback to ensure the system meets their needs.
By following these steps, Donatus Pharmacy can successfully implement a new scheduling system that optimizes staffing levels, enhances employee satisfaction, and improves overall operational efficiency.
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Case Description
In March 2017, a pharmacy in Berlin encountered a personnel scheduling problem. The pharmacy's key activity was serving customers in-store with ready-made medication. These services had to be offered during regular opening hours, on occasional Sundays, and during pre-assigned emergency-service shifts. In addition, customer-specific formulations had to be prepared, and certain office duties had to be performed. A particular aspect of the problem was that, in addition to differences in the employment contracts, the employees' preferred attendance times had to be considered. Although the issue was presented as an operational problem, long-term considerations of determining the cornerstones of the employment contracts could be addressed.
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