case2 - Problem Definition: Steve Mueller, manager of...

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Problem Definition: Steve Mueller, manager of strategic facilities and planning at Eli Lilly, faces a decision about the type of manufacturing plant to build for three of the company’s new pharmaceutical products. The decision has led to much debate in the company due to changing industry and company conditions. Mainly, the decision came down to what type of plants should be used for manufacturing their new products. The debate came down to a strategy of specialized manufacturing plants that Lilly used in the past and a new flexible manufacturing plant. Company Objectives: Lilly management established some company-wide goals: reducing time to market for its products and lowering its manufacturing costs. New product time to market was to be reduced by 50% from 8-12 year current process. The cost of manufacturing was also to be reduced by 25%. The objective is to choose a manufacturing plant that aligns with the companies objectives. 2- Eli Lilly and Company The Flexible Facility Decision: mathematical analysis is required for this case. 1. How has the competitive environment in pharmaceuticals been changing over the past few years? What are the implications for the role of manufacturing within Eli Lilly? In the past few years, many pharmaceutical companies such as Eli Lilly have faced key changes to their competitive environment. Many years up until the early 1990’s pharmaceutical companies were booming, having high profits and growth rates. In the early 1990’s issues arose that changed the environment of the entire industry, including, greater competition, tightened regulatory requirements, higher manufacturing costs, a lower amount of innovation and less price
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case2 - Problem Definition: Steve Mueller, manager of...

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