Kaiser Permanente is America’s largest not-for-profit health maintenance organization, serving 8.1 million members in 9 states and the District of Columbia.

Kaiser Permanente is America’s largest not-for-profit health maintenance organization, serving 8.1 million members in 9 states and the District of Columbia. An integrated health delivery system, Kaiser Permanente organizes and provides or coordinates members’ care, including preventive care such as well-baby and prenatal care, immunizations, and screening diagnostics; hospital and medical services; and pharmacy services.

As a not-for-profit organization, Kaiser is driven by the needs of its members and the social obligation to provide benefit for the communities in which we operate, rather than the needs of shareholders. Social benefit activities include assistance to the uninsured and special populations; training new health professionals; introducing new delivery and financing methods into the health care arena at large; and through Kaiser’s clinical research efforts, developing and sharing better ways to care for patients.

Suzanne Archibald, a Specialist of Kaiser’s Operations Consulting Division, is requested by senior management to review Kaiser’s current operational strategy and important operations management decisions of Kaiser’s operation in some suburban areas, such as Stockton or Tracy in California. Those areas are facing growing population and existing facility and operation strategies may not be sufficient in a near future.

You are approached by Suzanne to help prepare an analysis on Kaiser’s future operations in those changing suburban area. In this report you need to identify and explain the following questions:

Part-2 Question:

  1. What’s Kaiser’s mission statement to the communities in those areas? (5%)
  2. Define and explain Kaiser’s operational strategy to reach a sustainable competitive advantage. (15%)
  3. Develop and explain the 10 OM decisions (i.e., service/product design, quality, process design, location, layout design, HR and job design, supply management, inventory, scheduling, maintenance) to improve Kaiser’s future operations in those areas. (80%)

Part-2 Assignment Guidelines:
Please provide a title when address each question. In Question 3, subtitle of each decision will be needed when discuss each of the 10 OM decision. A suggested format (total 4~6 pages, excluding table, figure, or chart) may be:
• 0.5 page: Describe the proper mission statement of Kaiser Permanente
o May refer to kp.org websites
• 0.5~1 page: Discuss the feasible operations strategies of Kaiser Permanente
o Refer to textbook p27~29. Identify the most important competitive dimensions to KP and describe how to establish competitive advantages in these most important dimensions.
• For Question 3, about 1 or 2 paragraphs (with subtitle) on each of the 10 OM decisions (together in 3~5 pages)
o Service/product design
o Quality
o Process design
o Location
o Layout design
o HR and job design
o Supply management
o Inventory
o Scheduling
o Maintenance
There is no limit on font or font size (recommend 1.5 line spacing).