Eli Lilly Case Study

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Case Analysis Eli Lilly and Company: The Flexible Facility Decision (1993) Komal Kishore ID#: 0576950 Instructor: Nabil S. Rageh OP300 The case fixates on an arduous decision, which is faced by Steve Mueller, manager of strategic facilities and planning at Eli Lilly, a pharmaceutical company about the type of manufacturing facility to construct for the three incipient pharmaceutical products that the company is orchestrating to launch in 1966. Developing industry and competition have been coercing them to lessen expenses in order to generate profit and therefore, Eli Lilly and Company has to determine the most cost effective manufacturing facilities to be built. The organization started to comprehend the benefit of getting another compound to market as fast as could be allowed, ideally before contenders. This is because of the increased competition where other companies come up with generically products. The competition also resulted in shorter period of market exclusivity which not only meant lower sales but allowed less time for a company to recover the cost incurred in R&D. Furthermore, the government has also announced the price regulation policy with which all the companies have to comply with. In order to create an edge, the organization did outline flexible plant some time recently, however as the organization's products achieve their peak demand, the administration need to adjust and change the plant to meet the desired output. This ultimately results in changing the process from flexible to specialized process system. The outline and development of the production framework adscititiously require consequential time and therefore, creates a shortage of time on the grounds until the administration analyze the future productivity of the products. The company now has three products to manufacture, and to increase productivity, management is

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