QSO 690 Topics in Operations Management
Pharmacy Service Improvement at CVS (A)
General Guidelines
Notes:
This case is in PDF attached to the Learning Module page. Read the case
carefully, at least twice.
This case was written in 2005. You are welcome to use any additional
information on the performance of CVS since 2005 in answering the questions.
In case you have been a customer of CVS, you are also welcome to use your
own personal experience in answering the questions. For additional information
on the company, you can visit their website at www.cvs.com.
This is the cover page of your case report. Word-process your case report within
this template. Do not change the header or footer. They contain course number,
term, name of case, and page number, which are all required.
Use 12-point regular Times Roman font and 1.5-line spacing.
Use Equation Editor (Insert/ Object/ Microsoft Equation) to word-process
formulas, if required for the case.
Use Excel for graphs and Drawing Tool in Word for diagrams, if required for the
case.
Do minimal rounding at intermediate steps (use at least four significant digits).
Round off the final answers appropriately.
Create a single Word document by pasting all your Excel work into this Word
document.
Answer the questions given below in preparing your report for the case. Do not
use the questions given at the end of the case.
Your comments must relate directly to the case. General comments are not
expected.
Easter Gear, Inc. Case Page 2
CVS is the largest pharmacy retail company in the United States. This organization
operates more than 6100 specialty and retail stores nationwide and boasts of having more than
170,000 employees (CVS/pharmacy and IBM sign 10-year human resources services agreement,
2007). CVS was in need of new employees to fill the positions of the stores acquired through the
acquisitions of stores such as Eckerd Drugs, Revco and Long’s Drugs. CVS Chief Executive,
Tom Ryan, stated in regards to the acquisitions “It’s breaking new ground. It’s never been done, so
it‘s harder for the financial community to understand it, but we will reshape and lead the market.”
(Abelson, 2007)
Recommendations and Improved process
I suggest to implement a system that focuses on the day’s procedures and alters the drop-off,
data entry, and production steps, therefore ideally reducing the number of problems that occur and
must be resolved during the pick-up stage at CVS. With some additional changes made to the
pick-up procedure, I feel CVS will be able to better their customer service and increase customer
satisfaction while keeping the safety of its shoppers the company’s number one priority.
The following data flow diagram represents the day-to-day operations of the plans I
suggest for CVS Pharmacy
Easter Gear, Inc. Case Page 3
1. Drop-offs
1a. Constantly Monitoring the Drop-Off Station
In the past, CVS has noted that there has been a problem keeping an available employee at the
drop-off window of its pharmacies. Our new operation plans include a strong focus on the drop–
off stage of filling prescriptions, and the first step to making this happen is to ensure that a
