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40 views20 pagesProcess Design - 2
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© © All Rights Reserved
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/ 20
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Lesley wondered iff Greaves should change to
«a sever-laycr pallet if an automatic palletizer were
purchased, but was not sure how to quantify the
advantages and disadvantages of such a move, In
any case, Lesley wanted to find the best system
possible for handling finished goods. Lesley lacked
{aanilirity with this kind of equipment, but real-
Sized that help was not easly available elsewhere. It
had been standard practice at Greaves Brewery to
Process Design © 57
justify certain investments on the basis of meeting
furure demand. These investments Would also have
to show a reasonable return in the Jong ran,
Note
1. All prices quoted represent landed cost to
Greaves, including freight and duty but not including
installation,
Quinte MRI
Prepared by David Wright and Kevin
Saskiw under the supervision of Professors
Carol Prahinski and John Haywood-Farmer
Copyright © 2002, Ivey Management Services
On Tune 12, 2002, David Wright and his
colleague, Kevin Saskiw, business develop-
‘ment co-ordinators at Quinte MRI in Belleville,
‘Ontario, were trying to decide what to propose
regarding the magnetic resonance imaging
(MRI facility at Benton-Cooper Medical Center
(BCMC) in Palmer, New York. Both men were
frustrated and confused, Although the BCMC
facility was only six weeks old, it already had
‘a waiting list of 14 days for MRI scans, Because
of this backlog, physicians had begun to refer
their patients to competing MRI clinics, Dr. Syed
Haider, Quinte MRI's chief executive officer,
expected Wright’s and Saskiw's recommenda-
tions and action plan in two days,
Quire MRI
Quinte MRI, Ine. was a small (annual revenues
of $1.5 million),' but growing, intemational ser-
vice provider specializing in medical diagnostic
technologies, including MRI, nuclear medicine,
ultrasound, ‘computerized tomography (CT)
seanning, bone densitometry, mammography
Version: (A) 2003-06-16
and teleradiology services. The company helped
design, install and operate scanning centres, and
provided continued training and support for data
interpretation, It maintained a variety of exclusive
or partnership business arrangements with both
fixed-site and mobile service tumkey operations.
Quinte MRV’s equipment and components were
from many leading manufacturers
Quinte MRI's founder, Dr. Syed Haider,
received his PHD in electron spin resonance and
nuclear magnetic resonance from the University
‘of Wales. After a short time as professor at the
University of Guelpi, he became a physics and
chemistry teacher at Centennial Secondary
School in Belleville, Ontario, in 1968. When he
retired 30 years later, he started Quinte MRI.
Heider firmly believed that the residents of small
‘communities deserved the same level of health
services as residents of large urban centres.
However, MRI systems in small communities
were rare, Haider’s first attempt to establish an
MBI facility (in Belleville) was unsuecessful
because Canadian regulations prohibited private-
sector MRI. Thus, he turned to the Caribbean and
the United States,
f
!
|
| 58 + CASES IN OPERATIONS MANAGEMENT
Quinte MRI had established facilities. in
five locations: the company headquarters in
Belleville: a partnership arrangement with 2
radiologist in Laval, Quebec; and. private MRI
clinics in St. Lonis, Missouri the Cayman Islands,
and Palmer, New York. With the exception of the
Palmer facility, Quinte MRI held an interest of
Tess than 20 per cent in each clinic. In June 2002,
the company employed a total of about 20 people.
Quinte MRI served three distinct client
‘groups:
1. Hospitals seeking to outsource their diagnostic
imaging services were particularly interested
in service reliability, access to the diagnostic
‘equipment 2 hours per day, seven days per
week and reasonable cost
2. Physicians wanting to be partners ia an inde-
pendent disgnostic imaging centre saw cash
flow, accessibility 10 the equipment and the
strength ofthe relationship with their diagnos-
‘ic imaging partner as major exteria,
3, Individuals wanting to operate their own diag-
nostic imaging centee, using Quinte MRI as a
consultant in developing and carrying out the
necessary steps to establish the clinic, wanted
freedom from the hassles involved with estab-
lishing the business and were willing to pay a
10 per cent project development fee
Scannine TrcHNoLoy?
Various scanning technologies produced high
quality images of the human body. The most
obvious imaging technique was to use a camera
to capture a visual image on photographic film,
Although this technology was simple, it could be
invasive, as surgery or probes were required for
images of internal tissues, and it was normally
limited to the wavelength range of visible light,
Modern scanning began in 1895 with the
discovery that tissues absorbed X-rays. Although
X-ray technology was relatively easy to use
and gave high-resolution scans, the rays were
penctrating and potentially dangerous,” and gave
unclear images of some body features. They
were patticularly suited for examining tissue
abnormalities, such as fractures, malignant
tumors and respiratory diseases.
‘The 1970s saw the first of an explosion in
‘maging tochniques, all of which retied on com-
puters to help gather and analyse scanning data
in electtonic form. Computerized tomography
(CT) relied on a series of X-rays from various
angles that were combined to provide a three~
dimensional picture from which two-dimensional
images from any angle and at any depth could be