CVS Case Study
Analyze the firm's performance relative to each item in the "Cycle of Capablity." Identify appropriate areas for improvement.
"Well, we can't have 67 solutions for the 67 problems indentified."
CVS has a difficult environment in which it must operate -- literally people's lives may be on the line. Some drug-to-drug interactions can have serious consequences for their consumers. Furthermore, customers typically do not like to wait long for their prescriptions to be filled. Therefore, CVS's fulfillment must be flawless and efficient. The company was losing customers because they were having significant services problems. For example, during an eight hour shift, 40% of customers voiced a complaint and approximately 16% of customers had some problem with their pickup. One of the biggest challenges was to conduct the insurance check and data entry that slowed the fulfillment process.
Utilizing the service issues identified in Exhibit #2, please construct a Pareto chart of the most frequent customer concerns.
CVS Fullfillment
Area of concern
Drop Off
5
5.00%
DUR
10
10.00%
Insurance Check
40
40.00%
Production
5
5.00%
Pickup
40
40.00%
3. For the most frequent complaint item, as identified in the Pareto chart, develop a cause-and-effect or "fishbone" diagram.
4. Based upon the process outlined in the case study, please create a service blueprint or flow-chart of the current prescription fulfillment process.
Drop-off
Data Entry
DUR
Insurance Check
Production and QA
Pickup
5. Identify the bottlenecks in the process (from the flow-chart developed above).
The primary bottlenecks appear to be in the beginning of the flow. Once the order is processed it seems that production, QA, and pickup can operate relatively efficiently....
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