Eli Lilly Case Questions
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Using the case study Eli Lilly and Company: The Flexible Facility Decision (1993), address the following:
1. Create a process flow diagram outlining the Eli Lilly's traditional product development process activities. Include the approximate timing for each of the processes and note who may be involved in the process. Provide an explanation the possible bottlenecks in this process.
2. Given the design process outlined in the case what are the major manufacturing implications for companies like Eli Lilly and the global pharmaceutical industry? Use the product life cycle in your response (hint: costs, risks and production volumes).
3. In the case two options were considered by Eli Lilly's management for the new facility design. Create a matrix explaining the pros/cons of each decision.
4. Given the facts in the case and your independent research, if you were part of the management team at Eli Lilly in 1993, which facility design option would you have chosen? Is there a third option to consider? Defend your position.
5. It has been twenty years since this case was written. Where is Eli Lilly now in market position, profitability, and operational design? Has the company progressed, stayed the same or slipped over the years? In your opinion, why?
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Table of Contents
Answer 1: 3
Process Flow Diagram: 3
Answer 2: 7
Answer 3: 9
Pros and cons for different options of facility design: 9
Answer 4: 12
References: 13
Answer 1:
Process Flow Diagram:
The process of product development involved different activities which are mainly described with the help of rectangles and relation among different activities are described with the help of arrows. The product development life cycle of the pharmaceutical companies is mainly divided into three stages which are discovery, development, and the launch stage.
(Source: Product Development Association, 2015)
From the above flow diagram, it is cleared that there are different activities and tasks occurred during the process of product development for Eli Lilly pharmaceutical company.
Preparation of first dose for humans (FHD):
This is the starting activity which plans to prepare for the drug administration which involves the healthy volunteers (Raja and Sambandan, 2015). This is the stage which involves different studies as well like adsorption, metabolism, distribution and suitable levels for doses.
Phase I:
This is the stage which involves first trials on clinical basis for which administration of drugs is done on the healthy volunteers. The indication of positive results describes acceptable distribution, elimination patterns or distribution.
Phase II:
The results of phase I are used for administrating the impact of compounds on the human patients. This is the stage which also helps in estimating the required sales. The compounds are returned to phase of discovery for modification if not able to treat the patients or not able to compete the other products at the marketplace.
Phase III:
This is the stage which involves numerous studies of clinical basis on the humans to treat the disease. This stage also identifies the human demographics as well as interactions of drugs with the drugs. This is the most costly phase for developing the products which ultimately requires global coordination as well as cooperation.
Submission for first approval (FSA):
This stage involves information like side effects, toxicology or efficacy and transferred to FDA phase (Jovanović1 and Petrović, 2015). The strategy for marketing is also evolved, negotiations for prices with suppliers or distributors and promotion of materials is also involved during this phase of product development.
Prelaunch activities:
This is one of the last phases before launching the products. FDA gives the approval and a penetration strategy for global is formed. The plant for manufacturing is also built and ...
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