Business Process Management

Homework 3
Performed by Dmitri Nikulin (A81933)

Exercise 6.7 Step Send prescription Recieve customer prescription Enter prescription details DUR check Check insurance Additional check Confirm prescription Confirm prescription Get Insurance results Drug replacement Confirm drug replacement Collect drugs Final prescription check Reject prescription Inform customer Performer Customer Technical Technical System System Pharmacist Pharmacist Doctor System Pharmacist Doctor Technical Pharmacist System Technical Classification NVA NVA BVA BVA BVA VA VA VA BVA VA VA VA BVA BVA VA

Note. In this solution I treat the entire pharmacy prescription fulfillment process as BVA, but then problems occure (like DUR check) I think that we start dealing with VA procesess, because they try to satisfy customer requirements.

Exercise 6.9 Issue 1: Drug absence on the stock Priority: 3 Description: Sometimes, a prescription cannot be filled because one or more drugs in the prescription are not in stock. The customer only learns this when they come to pick up their prescription. Assumption: Sometimes means 5% of all prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.05 = 200 000 - impact on prescriptions 200 000 / 5 = 40 000 - customers buy drugs every year 0.2 * (50 * 40000) = 400 000 EUR - possible lose of money Issue 2: Insurance policy does not cover drug cost Priority: 1 Description: Offentimes, when the customer arrives to pick up the drugs, they find out htat they have to pay more than what they expected bacause their insurance policy does not cover the drug price. Assumption: Offentimes means 20% of all prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.2 = 800 000 - impact on prescriptions 800 000 / 5 = 160 000 - customers buy drugs every year 0.2 * (50 * 160 000) = 1 600 000 EUR - possible lose of money

Issue 3: Dangerouse interaction between drugs Priority: 6 Description: In a very small number of cases, the prescription cannot be filled because there is a potentially dangerouse interaction between one of the drugs in the prescription. Assumption: Very small number of cases means 1% of prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.01 = 40 000 - impact on prescriptions 40 000 / 5 = 8 000 - customers buy drugs every year 0.2 * (50 * 8 000) = 80 000 EUR - possible lose of money Issue 4: Refill prescriptions limit number Priority: 4 Description: Prescriptions can be filled multiple times, however the number of prescription refill times is limited. When this happens the prescription is then left unfilled. Assumption: Sometimes means 5% of all prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.05 = 200 000 - impact on prescriptions 200 000 / 5 = 40 000 - customers buy drugs every year 0.2 * (50 * 40000) = 400 000 EUR - possible lose of money Issue 5: Big queues during pick-up time Priority: 2 Description: Offentimes, customers have to wait for more than 10 min to pick-up their

prescription due to queues. This is anoying because customers have to come twice to the pharmacy. Assumption: Offentimes means 20% of all prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.2 = 800 000 - impact on prescriptions 800 000 / 5 = 160 000 - customers buy drugs every year 0.2 * (50 * 160 000) = 1 600 000 EUR - possible lose of money Solution is to hire more technicals, but this will course additional costs Issue 6: Delay in prescription fill process Priority: 5 Description: Customer arrives at scheduled time, but due to delays the prescription is not yet filled. Assumption: Sometimes means 5% of all prescriptions. All pharmacies serve 4 million prescriptions a year and the revenue is 200 million EUR a year. If average customer is dissatisfied, it is 20% that he/she will not come back and each customer requires about 5 prescriptions per year. Qualitative impact: Bad impact on customers. This disturbs their motivation for further use of this drug production. Quantitative impact: 200 000 000 / 4 000 000 = 50 EUR - customer pays for one prescription 4 000 000 * 0.05 = 200 000 - impact on prescriptions 200 000 / 5 = 40 000 - customers buy drugs every year 0.2 * (50 * 40000) = 400 000 EUR - possible lose of money

Prescription fulfillment process damage

1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 Insurance Big queues Drug absence policy does not during pick-up on the stock cover drug cost time Refill Delay in Dangerouse prescriptions prescription fill interaction limit number process between drugs

Exercise 6.11 I used why-why diagram as nested bullet-point list Issue 1. Sometimes, the customer arrives at the scheduled time, but the prescription is not yet filled due to delays in the prescption fulfillment process. Why? Drug Utilization Review (DUR) takes more time than expected. Why? - DUR check has determined that the prescription contains drugs that are incompatible with other drugs or incompatible with the customer himself - additional through check is performed by pharmacist. This takes time too. Why? pharmacist has to call the doctor to confirm the order. This can take many time. Why? o Doctor may be busy and would not answer the phone. - insurance company will not pay or pay partly for customer's drugs. Why?

every insurance company has different rules and in some cases current insurance company does not cover one or several specific drugs, but the drug can be replaced. This process takes time too. Why? o pharmacist calls the doctor to determine if it is possible to perform a replacement. Doctor sometimes cannot be reached.

Technical guy does not have enough drugs on shelves. Why? - required drugs were completely sold out