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Charles L. Cooney and Donald B. Rosenfield. Haupt, Lynne Felice Leaders for Manufacturing Program. Leaders for Manufacturing Program at MIT Massachusetts Institute of Technology. Department of Mechanical Engineering Sloan School of Management 2006-11-08T16:45:13Z 2006-11-08T16:45:13Z 2005 2005 http://hdl.handle.net/1721.1/34827 61670866 Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2005. Includes bibliographical references (p. 77-78). Biopharmaceutical companies are focusing on operational efficiency more than ever before due to cost pressures, generic competition, complex pricing, regulations, and globalization. Due to the low probabilities of success of drug development and achieving market penetration, it is critical for a company to optimize the sizing of a manufacturing facility to achieve maximum capacity utilization while avoiding or minimizing non-productive, idle capacity. In order to achieve high manufacturing efficiency and minimize capital risks, many firms elect to outsource various phases of the drug development value chain. This thesis investigates the major drivers for vertical integration and outsourcing in the biopharmaceutical industry. This work examines outsourcing and vertical integration decisions including their financial, organizational, and strategic effects on the organization. It presents a methodology and framework for strategic sourcing decisions and includes a set of quantitative tools for assessing outsourcing options and guidelines for selecting, implementing, and managing relationships with contract manufacturers. These frameworks are applied to case studies conducted at the Genzyme Corporation. The strategic sourcing decisions tools developed in this work are highly customizable and can be adopted by other companies in the biopharmaceutical industry. by Lynne Felice Haupt. S.M. M.B.A. 78 p. 4350153 bytes 4353420 bytes application/pdf application/pdf eng Massachusetts Institute of Technology M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 Mechanical Engineering. Sloan School of Management. Leaders for Manufacturing Program. Vertical integration and strategic sourcing in the biopharmaceutical industry Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="960d1d90-aa2f-4bfd-a141-1f412abbc1a2"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>Vertical integration and strategic sourcing in the biopharmaceutical industry</Title> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2005</PublicationDate> <Authors> <Author> <DisplayName>Haupt, Lynne Felice</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Mechanical Engineering.</Keyword> <Keyword>Sloan School of Management.</Keyword> <Keyword>Leaders for Manufacturing Program.</Keyword> <Abstract>Biopharmaceutical companies are focusing on operational efficiency more than ever before due to cost pressures, generic competition, complex pricing, regulations, and globalization. Due to the low probabilities of success of drug development and achieving market penetration, it is critical for a company to optimize the sizing of a manufacturing facility to achieve maximum capacity utilization while avoiding or minimizing non-productive, idle capacity. In order to achieve high manufacturing efficiency and minimize capital risks, many firms elect to outsource various phases of the drug development value chain. This thesis investigates the major drivers for vertical integration and outsourcing in the biopharmaceutical industry. This work examines outsourcing and vertical integration decisions including their financial, organizational, and strategic effects on the organization. It presents a methodology and framework for strategic sourcing decisions and includes a set of quantitative tools for assessing outsourcing options and guidelines for selecting, implementing, and managing relationships with contract manufacturers. These frameworks are applied to case studies conducted at the Genzyme Corporation. The strategic sourcing decisions tools developed in this work are highly customizable and can be adopted by other companies in the biopharmaceutical industry.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>