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Midco Pharmaceuticals

In: Business and Management

Submitted By moostone
Words 351
Pages 2
Title: Midco Pharmaceuticals (Moo Suk Lee)

Q1. What does Midco need to be successful? What symptoms are there of problems?
Even though Midco Pharmaceuticals is a leading manufacturer of store brand over the counter drugs and vitamins, competition is fierce in this industry. Therefore Midco needs to launch new products continuously in a timely fashion. However, now Midco has some problems to launch new products in time, which means that Midco has long product average development time, 380 days with a standard deviation of 124 days, and has many low contribution products in portfolio.
Q2. Why does the new product development process take so long?
Difference between the critical path (155 days) and actual average project length (380 days) is come from lots of slacks in process. For example, distribution part of Midco has to be slack for 89 days to produce marketing samples after finishing packaging task until development part finishes formula stability test. Also, external lab test and manufacturing capacity analysis has slack time for 56 days and 51 days to issue preliminary card due to wait time for formula stability test. Lastly, operation has slack time for 5 days to wait distributing marketing samples.
Q3. What steps would you recommend Midco take to reduce their product development times?
To solve this problem, Midco has to remove bottleneck, especially in time of formula stability test. As the article says, in the formula stability testing, compounds that survive for two weeks will pass the full test 90% of the time. If Midco changes essential period time for stability test to issue preliminary card from 70 days to 2 weeks, it will reduce slack time for packaging, manufacturing capacity analysis and packaging. However, before commercialize products, Midco has to fulfill the stability test period for more 56 days after issuing preliminary card because

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