The University of Minnesota Medical Center, Fairview, undertook process improvement efforts within its in-patient pharmacy with the objectives of enhancing work flow. eliminating non-value-added activities, reducing errors and waste, and creating significant savings. The greatest opportunities for improvement were identified i the sterile products and inventory For the sterile products area, data collected for waste, missing dose, and production e while unnecessary moving activities were also identified. Production errors often required rework such as the return of numerous intravenous doses because of outdating or change in dose. Understanding the root causes allowed some activities to be redesigned or improved while others were eliminated. For the inventory area, installing a double-bin system substantially reduced the time required for the picking activity and also improved the efficiency of the reordering activity. Using first-in, first-out (FIFO) as the inventory flow method for removal and restocking made it easier to reduce waste by avoiding outdated products. The net effect was to produce an estimated annual cost saving of $289,256.