$3.$ CVS is attempting to quantify the underlying $$PSI Business Case in Numbers$$: if the effort were to be produce results $($a component of upstream thinking$)$the potential impact of PSI on revenues via the estimated defection rates could be significant. Refer to the below quote as the starting point to read, absorb and to estimate the impact via $3$a and $3$b$.[$Answer below questions.$]$

To do this:

$-$You need to distinguish the number of customers versus number of scripts.

$-$The case provides $[$what$-$if$]$ guidelines for minimum and maximum reduction of defections, which you can use to estimate the contributions of PSI. $[$More hints are provided below.$]$

$3$a$.($i$)$ Can CVS easily look up $($not estimate$)$ the Lost Revenue from Defections? $($ii$)$ Why?

$3$b$.($i$)$ What would be the rationale for CVS to develop estimates before implementing the PSI changes? $($ii$)$ Which $1$ of $7$ questions of Upstream Thinking best captures thrust these calculations?

$3$c$.($i$)$ Should you focus on heavy users or light users in making the estimate? $($ii$)$ Why?

$3$d$.$ Before you start your estimation approach: $($i$)$ What is the maximum additional revenue that can be generated based on PSI, theoretically? $($ii$)$ Provide reasoning why this is the maximum?

$3$e$.$ Describe your approach to calculating the revenue gain in a narrative form before attempting the calculations $($before you make your calculations, which is in the next question$).[$This narrative is here to make sure you are not parachuting calculations in$!]$

$3$f$.$ Estimate the potential total $ magnitude of $$impact$$ as improvement in financial contribution to revenues, consistent with explanations of your assumptions and calculations. $[$The survey of customers revealed the potential for defections and preventing defections. Below you should focus on revenue gain from preventing different types of customer defections only due to poor service.$]$

$4.$ Via the Pharmacy Service Initiative$$CVS is trying to do something. $($i$)$ Can we think of PSI CVS as a form of tackling iceberg model syndrome $($organization spends $80\%$ of effort on $20\%$ of challenge$)?$ Provide a sample quote that justifies your answer, explain why it does, $($ii$)$ Also, Starting from $($but not limited to$)$ below quote and linking these quotes and their wider context which $1$ of $3$ barriers captures the CVS situation best, why.

Part II: Specific Process Problem$($s$)$ and Proposed Solution Recommendations etc

$5.$ Refer to the narrative and figure described the CVS case on pages $4-8.$ Remember the top part of the figure shows flow and bottom part shows flow and physical layout $[$then answer below questions.$]$

$5$a$.($i$)$ Provide a simple graphic flowchart or workflow chart before any changes include key steps. Process should be a sequential set of boxes. $($ii$)$ What was the benefit of this to your analysis in terms using Simulation$/$Mapping to clarify the problem at hand?

$5$b$.$ Think of a fundamental symptom appearing at pickup station $($case is clear what this is$)$: $($i$)$ What is the fundamental item triggering this symptom to appear? $($ii$)$ Why is it recurring pattern? $($iii$)$ Can you identify the underlying systems contributing to this?

$5$c$.($i$)$ Based $5$b identify a high impact point $(42$nd Street equivalent$)$ within the workflow? $($ii$)$ Explain why you chose this specific one?

$5$d$.$ CVS PSI has collected a few items of information and data on the above flow. On the surface most of the data appear to contribute to the KEY problem. These may be too obvious $($top of the iceberg$).$ But there are only $2$ probable and feasible non$-$obvious causes of problem $($listed on pages $7-8$ that can be $$real causes$).($i$)$ Identify the $2$ and provide reasons why only these $2$ can be primary factors behind the problem. $($ii$)$ Provide granular$/$specific statistics$/$numbers and behind the choice of these $2$ factors being the only possible non$-$obvious cause of the problem. $($Note there are several problems listed but most can not logically cause the problem and its recurrence$).$

$[$For questions $6$: You MUST NOT propose solutions that are outside CVS organization boundary. $(1)$ For example, MUST NOT propose an electronic prescribing system for CVS that forces doctors to use a system in order to send their prescriptions to CVS$!(2)$ Also avoid any other solutions like it$.(3)$ Also, do not parachute answers that have little logical connection to your prior answers! If you do$,$ you will get zero marks for this question!$]$

$6.$ Think of what exact changes do you recommend to CVS$$s abovementioned process. $[$Answer below questions.$][$Caution$,$ if you parachute in answers they may be discounted.$]$ Please make sure you answer the questions precisely focusing on what is being asked.

$6$a$.$ Provide a simple graphic flowchart or workflow chart of your changed process including its key steps.

$6$b$.($i$)$ Identify if the primary emphasis of your identified $$problem$/$solution$$ as being mainly People$-,$ Process$-$ or Technology$-$based? $($ii$)$ Why?

$6$c$.($i$)$ If applicable, rank$-$order your overall solution$$s components in terms of people, process or technology