ELI LILY Company Case Study
ELI LILY Company Case Study
ELI LILY Company Case Study
(Manufacturing Strategy)
Submitted by:
27NMP22 Mukesh Kumar Sahu
27NMP43 Amit Gujjewar
27NMP51 Komal Tagra
Company Introduction
Founded in 1876
Second largest Pharmaceutical concern in the US
diminished
Increasing complexity in Government
approval and testing procedure
Slower rates of innovation
Government involvement
More Government intervention
Higher standards of environmental and
product safety
Shorter product life cycle
Intense competition
CREATION OF PHARMACEUTICAL
PRODUCTS
Discovery of chemical compound.
Analysis of chemicals required
Experimental tests conducted on animals
3 phase of clinical trials on humans:
Phase1 : Trials tested whether the drug was safe
Current Strategy
Manufacturings contribution a relatively
STRATEGY DEVELOPMENT
(PROCESS TECHNOLOGY)
Plan 1: Increase the investment to improve
Product Phases
100
Product Phase
1&2
s
Phase
3
Fail in
Phase 3
25Produ
cts
5
Product
s
75Produ
cts
Fail in Phase
1& 2
20
Product
s
In
market
Analysis
Analysis Plan 1
Regular process cost=
$.58Mn
After launch process cost= $1.16Mn
(As process improvement is done after product is
successful in the market)
Only 20% of the product that enter are
launched in the market.
Analysis Plan 2
Cost of Process Improvement in Phase 3=
$1.16Mn
After launch Process Cost=
$.58Mn
20% of the products that enter Phase 3 are
launched in the market.
Analysis Plan 3
Process Improvement Cost in Phase 1=
$1.60Mn
Process Improvement Cost in Phase 2=
$1.60Mn
Process Improvement Cost in Phase 3=
$1.16Mn
After launch process cost=
$.58Mn
Thank You!