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Costco Pharmacy POM Audit Team 7

Executive Summary Design of Goods and Services- Costco can be seen to be in their maturity stages of their life. Therefore, it is recommended for Costco to expand its Pharmacy department by at least 50%.
Process Design-Costco processes prescriptions and provides the prescribed drugs to customers. For each prescription, pharmacists carefully review the dosage along with other drugs you may be taking in order to prevent any chance of medications interacting with each other. They also ensure you do not receive any medication which could result in an allergic reaction. It is recommended to introduce E-prescribing in the near future as it would reduce the duration for each prescription process.
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Queue Management - The pharmacy uses a multi-channel multi-phase system. The first phase is when customers drop off their prescription. Costco has two stations for this phase. The next phase is when customers pick it up and pay for it; this phase also has two stations. Costco has recently added an additional service station to decrease wait times during peak hours.
Conclusion- After weeks of research the POM audit project was successfully completed with the use of applying the production and operations management effectively. It was successful because the management employees gave us sufficient amount of information while completing the project. Overall, the weeks of auditing allowed the individuals to strength management and communication skills while completing this challenge multi-stage project.

Table of Contents Introduction 5 Design of Goods/Service 8 Process Design 13 Layout 17 Capacity 24 Productivity 30 Location Planning 36 Queue Management 40 Appendix 45 Gantt Chart 58 References 60

Costco Mission Statement Costco's mission is to “continually provide our members with quality goods and services at the lowest possible prices (Costco Wholesale Mission Statement - Profits and Prices Revolve Around Ethics, 2013) Costco targets their goods

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