CVS/PHARMACY

Case Analysis for

Operation
Management

Team 5 Class 2 Fudan-MIT IMBA

Li Songping Yin Xiaojun Yang Xi Yu Qian Peter

Problem Diagnostic
7.2 million regular pharmacy customers left CVS
$2.5

during the year

million loss of revenue

Non satisfying customer service

Pick up: dissatisfied & angry customer, and stressed

sales people

Malfunctioned Process

Problem Diagnostic (Cont.)

Drop Of

Data Entry

No refills allowed on script (6%)

DUR hard stop (20%)
Insurance problems (17%)

Production

No one manning drop-off station

Insufficient inventory

Quality Assurance (None Identified)

Pick up

Unauthorized refill
Script not ready
Script not covered by insurance
Long lines of angry customers in rush hour

Original Process Flowchart

Drop
Scri
pt

Pick up

Invisible Line

Put
in
slot
Data
Entr
y

Packag
e

Hard
Stop

Refill

DUR

Dr. Call
bin

Ask for
approval

Reach Dr.?
Dr. Call
Back
Bin

Insurance
Check

Producti
on

QA

Dr.
Denial
Box

Recommendations to CVS
Principles

Doesnt degrade safety at

all

Decreases waiting time

Improves customer
satisfaction

Information System

Improvements

Drop of, data entry,

insurance check all
done while customer is
present.

Call center & Action note

Building Compliance

Design

Be simple

Standardization

Be Intuitive

Monitoring

Make sense

Recommendations to CVS (Cont.)

More processes in the Drop Off stage and over the
visible line

Invisible Line
Data entry

Inscurance check

Refill check

New Process Flowchart

Drop
Scri
pt

Custom
er
Leave

Pick up

Consultation

Action
note

Data
Entr
y

Insurance
Check

nvisible Line
Reach Dr.?
Dr. Call
Back
Bin

Refill

Dr. Call
bin

DUR

Packag
e

Ask for
approval

Hard
Stop

QA

Dr.
Deni
al

Producti
on

Other necessary support

Two counters at the drop off zone:

Drop off counter

Customer service counter

More tech at the drop off zone,

especially in rush hours
Improving cooperation with doctors and
inscurance
Improving call center

Thank You!
Q&A