Abstract
Ziqitza Healthcare Limited: Challenge of Scaling up Emergency Medical Services (EMS) in India using Public-Private Partnership (PPP) Mode
Abstract
Ziqitza Healthcare Limited (ZHL) launched Dial 1298 ambulance services in Mumbai (India) in 2005 to provide quality and timely emergency medical services (EMS). They adopted tiered pricing strategy based on cross-subsidy model to make their services widely available to all sections of society and make the venture financially sustainable. With funding support from Acumen Fund, ZHL quickly expanded its operations within Mumbai but wanted to expand their reach across India to make a larger social impact. Recognizing the commitment and work of ZHL and the pressing need for quality and affordable emergency medical services, many state governments showed interest in partnering with ZHL. Experts suggested Public-Private Partnership (PPP) mode as a way forward to improve the quality and expand the reach of these services. It was in this back drop that ZHL was awarded a three year contract by the Rajasthan Government in 2010 to operate their fleet of more than 300 medical ambulances. ZHL saw it as an opportunity to fulfill its social mission and expand its footprints. However, the founders were apprehensive of working with the government and unsure whether this should be the next step to expand the reach of EMS across India at an affordable price.
Keywords
Emergency medical services, Cross-subsidy, Public-Private Partnership, tiered pricing, scaling-up.
Discussion Questions
How can a social venture be distinguished from a for-profit enterprise? What is likely to happen when the distinction between the two gets blurred?
Discuss the difficult balance faced by a social enterprise in achieving the twin goals of economic sustainability and social value creation. How can ZHL maintain this balance?
Explain what is a Public-Private Partnership (PPP) model? What is its significance in the Indian context?
In the light of their experiences with the Rajasthan government, what growth strategies should ZHL pursue? Also discuss the key enablers for a successful PPP.
Analyze critically the triple bottom-line concept for ZHL, and show the financial impact it creates on major stake holders.
How does the BOP concept impact ZHL’s business model and what are the critical factors that can make this business model sustainable?
Packages Ltd, Capacity Addition in Carton Line: Riviera vs. Austin
Abstract
The case is about choice of new technology. One option (Riviera) is more expensive, but has better after sales service, better reputation, better process capability, and lower capacity utilization. The choice of technology requires looking into the changes in the market, existing capabilities, company strategy and projections about the future. This case can be taught in ‘capacity analysis’ module in operations management, or in a course on Management of Technology.
Keywords
Technology choice, expansion strategy, capacity enhancement
Discussion Questions
Calculate the Breakeven period, IRR, NPV and capacity utilization for the two machines.
As Amer, what other factors would you consider and why?
As Mujeeb, are your priorities any different? Which machine would you choose? And why?
Software Technology Park: Selecting the Contract Type and Contractor
Abstract
The Punjab Information Technology Board (PITB) had been given the task of constructing a Software Technology Park (STP) by the Chief Minister of Punjab. The STP was a project of national importance with a budgeted cost of PKR 3.42 billion (USD 57 million), a seventeen storey tower and an aggressive construction timeline of eighteen months due to the national elections to be held in November 2007. The Chief Minister wanted to build a robust infrastructure and create a success story in the IT sector for the next elections. Upcoming elections also created a sense of urgency within the Punjab government to build an IT infrastructure in Punjab and show progress to the IT industry as well as the general public. Therefore, the Chairman PITB had to make two quick decisions if he wanted to meet the demanding schedule of the project. The decisions included: the selection of the contract type and the contractor for construction of the seventeen storey STP.
Keywords
Public sector project procurement, contracts, procurement management, PC-I, and PC-II
Discussion Questions
What phase of the project management cycle should the decisions of the contract type and construction be made? What are the pre-requisites of making these two decisions?
Was the project scope clear?
Considering all the contract types discussed in the case, what contract type would you recommend to PITB? What were the risks associated with each contract type?
Considering the contractor options discussed in the case, what type of contractor would you recommend to PITB? And why?
What could be the implications of these two decisions (contract type and contractor) now, and at a later stage?
What was the significance of PC-I and PC-II documents?
Software Technology Park: Contract Management
Abstract
The construction contract for the seventeen-storey STP building was awarded to China State Construction & Engineering Corporation (CSCEC) as it was the lowest and technically qualified bidder. The contract was awarded for a fixed fee of PKR 2.99 billion ($49.83 million USD) with a completion timeline of 18 months. However, after nine months of construction, the contractor approached PITB and asked for relaxation on high value items like elevators, escalators, and building glass. The CSCEC asked PITB to allow them to change the country of origin (manufacturing) and brand name on these items while they ensured that all technical specifications would be met and there would be no compromise on quality. The dilemma Jasem faced was whether to allow CSCEC’s request or not. He also had to understand the consequences of whatever decision he made.
Keywords
Public sector project procurement, contracts, procurement management
Discussion Questions
Would the modification to the contract agreement be considered re-scoping and what are the implications of such a decision?
What should be the process of approving such modifications to the contract agreement in reference to the relevant PPRA SOPs?
Would it become a transparency issue and lead to lawsuits from other vendors?
How would the national media portray this issue of modification to the original contract agreement?
Could public money be really saved without compromising quality and what were the risks associated with his decision?
Should Jasem accept or reject the contractor’s value engineering proposal of substituting glass, elevators, and escalators with the ones manufactured in China?