Business Analysis Modelling and Design

School of Computing and Information Systems

Business Analysis Modelling and Design ISYS90049

Raffaele Conforti & Marcello La Rosa © University of Melbourne 2018 Semester 2, 2018 1

ISYS90049 Business Analysis Modelling

and Design

Individual Assignment Scenario Critical Review

Advanced Business Process Modelling Semester 2, 2018

School of Computing and Information Systems

Business Analysis Modelling and Design ISYS90049

Raffaele Conforti & Marcello La Rosa © University of Melbourne 2018 Semester 2, 2018 2

Background HealthCareOnDemand is a small company with 300 employees. HealthCareOnDemand counts 10,000+ clients from the city of Melbourne. The company offers a variety of services and products in the context of health care, to name some they offer video consultation services, online pharmacy and prescription services, and online medical certificate. A core process at HealthCareOnDemand is its prescription fulfillment process. Over the last year, complains about the efficiency of the process and in particular to the inability of the company to fulfill orders within the agreed timeframe have been raised. Timothy Safe, as CEO of HealthCareOnDemand, is concerned that the number of complains may increase causing serious financial losses for the company. To address this problem, he asked the Business Analysis team of HealthCareOnDemand to conduct a comprehensive process analysis of the entire prescription fulfillment process. Aware of your skills as business analysis, Timothy would like to have your feedbacks on their report. In addition to their report, he also provides you with the following information to have a better understanding of the process.

The Prescription Fulfillment Process The process handles order submitted by client via an online system. To do submit an order, a customer fills in an online form including credit card number, medicare number, medical insurance number, shipping address, and preferred delivery date.

When an order is received, a data entry officer enters the order details into the order management system. An order may refer to several items and after the creation of the order, the data entry officer will have to input each item in the order one at the time. Data entry usually takes 20 minutes per order, including the 5 minutes required to create the entry. The order is then forwarded to one of the three distribution centers where a pharmacist will check if the order contains any prescription drug (operation requiring on average 20 minutes per order). The relevant distribution center is selected based on the proximity of the center to the shipping address.

Here, each item in the order is checked individually and if a prescription is required the entire order is suspended and the customer is informed using a standard email that the order will be cancelled if the relevant prescription is not provided. Informing the customer takes on average 2 minutes and if the prescription is not received within 2 business days the order is cancelled. When a prescription is received, in general within 2 hours from the request, the pharmacist checks its validity (5 minutes on average) and in case of a positive outcome the order is resumed. Once all items are checked and all required prescriptions provided and validated, the order is marked as “approved” (1 minute on average) and moves forward in the process. At this stage and only 15 out of 100 orders require a medical prescription which is generally a valid prescription and provided on time.

Next, the order is passed to a warehouse officer. Two days before the preferred delivery date, the warehouse officer will collect each item and prepare the package for collection. This operation takes

School of Computing and Information Systems

Business Analysis Modelling and Design ISYS90049

Raffaele Conforti & Marcello La Rosa © University of Melbourne 2018 Semester 2, 2018 3

on average 30 minutes including the 5 minutes requited to prepare the package. To ensure high quality standards the content of the packed is subsequently checked by a senior warehouse officer who will assess if the package has been filled correctly and will produce a package content report. In case of missing or wrong items, the package is sent back to the warehouse officer who using the package content report will address the problem. The operations may be repeated several times, as in general 10% of the packages are filled incorrectly.

Simultaneously, an accounts officer will issue the invoice for the customer. The preparation of the invoice requires to check if any of the items in the order is covered by the Pharmaceutical Benefits Scheme (PBS) or by the insurance. If the customer is insured, items covered by the medical insurance of the client will be charged to the insurance company, which will be issued with an invoice (generating the invoice is a standard procedure taking in general only a couple of minutes, while the delivery is almost instantaneous as the invoice is sent via email). For items covered by PBS, the accounts officer has to check if the customer has reached the Safety Net threshold. If the customer has reached the Safety Net threshold, he will be entitled of having the drugs for free, otherwise the accounts officer will have to update the PBS entry record of the customer, which takes on average 2 minutes. Finally, items not covered by PBS or the medical insurance as well as shipping costs will be charged on the credit card customer (5 minutes).

Once the invoice is ready it is forwarded to the warehouse officer who will include it into the package, and mark the package as “ready to be shipped” (2 minutes). At 8:00 am of the following day, all packages marked as “ready to be shipped” are collected by a delivery clerk and sent to their respective customers. This operation requires on average 10 minutes per packages.

Sometimes, when charging the credit card of a customer the transaction is rejected. In this case, the accounts officer will wait for 60 minutes before attempting a second time, for a maximum of 3 times (the check is partially automated by IT system which substantially reduce the amount of time required to only 30 seconds) after which the order is cancelled and the customer notified (sending the notification will required in general 5 minutes). Moreover, there are rare circumstances when a customer will cancel an order. In both cases, if the credit card or the insurance company have been charged a refund well be issued, similarly if the PBS entry record of the customer has been updated it will need to be amended.

In general operations when not explicitly stated takes on average 5 minutes.

On a weekly basis the company receives around 500 orders, among which 400 are from customers with a medical insurance. In general, when considering the items requested as part of an order, in 50% of the cases items are covered by the insurance, 30% by the PBS, and only 20% need to be fully charged to the customer. When considering items covered by the PBS, only 40% of the customer are charged as in general they have already reached the Safety Net Threshold.

The company employs all its employees on a full-time contract. The employment contact requires a full-time employee to works 8 hours a day. The process involves a total of four data entry officers and three accounts officers are at the headquarters. Additionally, each distribution center has two warehouse officers, one senior warehouse officer, two pharmacists, and one delivery clerk.

School of Computing and Information Systems

Business Analysis Modelling and Design ISYS90049

Raffaele Conforti & Marcello La Rosa © University of Melbourne 2018 Semester 2, 2018 4

Your Challenge You are requested to produce a short review (around 1000 words), which should cover the following points:

• Correctness of the Process Architecture: this section will provide a critique of the proposed process architecture assessing its management, support, and core processes. A correct process architecture must be provided if the original one is incorrect.

• Correctness of the Value Chain: this section will provide a critique of the proposed value chain. A correct value chain must be provided if the original one is incorrect.

• Correctness of the BPMN Model: this section will provide a critique of the proposed BPMN with respect to syntactical and semantical correctness. A correct BPMN model must be provided if the original one is incorrect.

• Correctness of the Process Analysis: this section will discuss if the assumptions and results of the process analysis are correct. A correct process analysis must be conducted if the original one is incorrect or based on wrong assumptions.