Eli_Lilly_and_Co_The_Flexible_Facility_Decision-2

Eli_Lilly_and_Co_The_Flexible_Facility_Decision-2 - Eli...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Flexible Facility Decision (1993)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Case Context Set in 1993, the case focuses on a difficult decision faced by Steve Mueller, manager of strategic facilities and planning at Eli Lilly, about the type of manufacturing facility to construct for the three new pharmaceutical products that the company plans to launch in 1996. A number of growing industry and company specific conditions have made this decision particularly relevant and have sparked debate with management and throughout the company. In response to these conditions, Lilly management decided to establish a set of company-wide goals that focused on improving time to market for its products in development and a reduction of manufacturing costs. Specifically, these goals were: 1. Reduced new product time to market by 50% from the current 8 -12 year process 2. Reduce the cost of manufacturing by (25%) The key to achieving these goals was Mueller’s decision of what kind of manufacturing facilities should be used to produce the new products. This equated to a debate between a strategy of “specialized” manufacturing plant which had worked well for Lilly in the past, and a proposed strategy of building “flexible” manufacturing facilities that could accommodate almost any of the company’s new products. It was required that whichever facilities strategy chosen must align with the two company goals listed above. Our Recommendation Based on our analysis of the situation and the assumptions outlined in this report, we recommend that Steve Mueller decide to that was proposed under Option 2 in the case. This would entail building multiple Flexible facilities that would serve as “launch plants” to produce the new drugs in the company’s pipeline, as well as complementary
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2010 for the course MGT 6772 taught by Professor Burgess during the Spring '09 term at Georgia Institute of Technology.

Page1 / 4

Eli_Lilly_and_Co_The_Flexible_Facility_Decision-2 - Eli...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online