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CVS case
1. CVS/PHARMACY
Case Analysis for Team 5 Class 2 Fudan-MIT IMBA
Operation Li Songping Yin Xiaojun Yang Xi Yu Qian Peter
Management
2. Problem Diagnostic
7.2 million regular pharmacy customers left CVS during the
year
$2.5 million loss of revenue
Non satisfying customer service
Pick up: dissatisfied & angry customer, and stressed sales
people
Malfunctioned Process
3. Problem Diagnostic (Cont.)
Drop Off
No one manning drop-off station
Data Entry
No refills allowed on script (6%)
DUR hard stop (20%)
Insurance problems (17%)
Production
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
4. Original Process Flowchart
Drop
Scrip Pick up
t
Invisible Line
Put
Hard Packag
in
Stop e
slot
Data Insurance Producti
Refill DUR QA
Entry Check on
Dr. Call Ask for Dr. Denial
bin approval Box
Reach Dr.?
Dr. Call
Back
Bin
5. Recommendations to CVS
Principles Improvements
Doesn’t degrade safety at all Drop off, data entry,
Decreases waiting time insurance check – all done
while customer is present.
Improves customer
satisfaction Call center & Action note
Information System Building Compliance
Design Be simple
Standardization Be Intuitive
Monitoring Make sense
6. Recommendations to CVS
(Cont.)
More processes in the Drop Off stage and over the visible
line
Invisible Line
Data entry Inscurance check Refill check
7. New Process Flowchart
Drop
Custome
Scrip Pick up
r Leave
t
Action
Consultation note
Data Insurance
Refill
Entry Check
Invisible Line
Dr. Call Packag
Reach Dr.? DUR
bin e
Dr. Call
Back Ask for Hard
approval QA
Bin Stop
Dr.
Productio
Denia
l n
8. 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