Eli Lilly and Co.: The Flexible Facility Decision--1993

Gary P. Pisano

Case | HBS Case Collection | March 1994 (Revised April 1994)

Eli Lilly and Co.: The Flexible Facility Decision--1993

Abstract

In 1993, Eli Lilly is preparing to build manufacturing capacity for three new pharmaceutical products that it expects to launch in 1996. Management wrestles with a decision of whether to add specialized manufacturing capacity or flexible capacity. This question touches off a broad debate within the company about which strategy to follow for future facilities decisions. This case presents two alternatives (flexible and specialized plants) and describes the benefits and costs associated with each.

Keywords: Debates; Cost vs Benefits; Decisions; Investment; Goals and Objectives; Product Launch; Production; Corporate Strategy; Pharmaceutical Industry;

Format: Print

19 pages

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Citation:

Pisano, Gary P. "Eli Lilly and Co.: The Flexible Facility Decision--1993." Harvard Business School Case 694-074, March 1994. (Revised April 1994.)

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Eli Lilly and Co.: The Flexible Facility Decision--1993

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