Professional Documents
Culture Documents
DECLARATION
I the undersigned, Mr. Malaviya Jayesh & Kukadiya Hitesh that this project report entitled A study on management of Asfa is result of my own training work carried out during may-June 2006 and has not been previously submitted to any other university or institution for any other examination and for any other purpose by any other person. I will not use this project report in future to use as submission to any other university, institutes or any other published without written permission of any guide. I also promise not to allow/ permit any other person to copy from this report in any form. If I am found/change a defaulter of above declaration. I know that my present or future submission may become invalid, and / or I may be permitted to appear in the final exam.
ACKNOWLEDGEMENT
We would like to express our most heartfelt thanks to Shri Swami Atmanand Sarswati Ayurvedic Co-operative Pharmacy Limited (ASFA) for providing us an opportunity to take training to their organization. We are also thankful to director and over professors for provide us guidance. We would like to pay our kind acknowledgement to Mrs. Swati (Managing Director of Asfa) for providing her practical knowledge and we heartly thanks to our training guide Mr. Paresh Patel (Assistant General Manager). We express our thanks to Mr. Paresh Patel for providing finance data and other information and we are also thankful of those people and workers who are directly or indirectly helped us in our training project work.
INTRODUCTION OF AYURVEDA
Ayurveda is a holistic system of medicine from India that uses a constitutional model. Its aim is to provide guidance regarding food and lifestyle so that healthy people can stay healthy and folks with health challenges can improve their health. There are several aspects to Ayurveda that are quite unique: Its recommendations will often be different for each person regarding which foods and which lifestyle they should follow in order to be completely healthy. This is due to its use of a constitutional model. Everything in Ayurveda is validated by observation, inquiry, direct examination and knowledge derived from the ancient texts. It understands that there are energetic forces that influence nature and human beings. These forces are called the Tridoshas. Because Ayurveda sees a strong connection between the mind and the body, a huge amount of information is available regarding this relationship. Theory of Tridosha Ayurvedic practitioners take into consideration the body constitution of a patient before prescribing any medicine, for the medicine, which suits a vatiya (vata) constitution, will not help a patient having shleshmic (kapha) constitution. Tridosha its types and correlation with Panchmahabhoota VATA Organ in which situated Dominant Mahabhoota Prana Murdha (palate) jala Samana Koshtha (stomach) Agni
5 Vyana Sarva sharer (whole body) vayu Apana Muladhara (genitourinary tract) prithvi Udana Urh Pradesh (chest) akasha PITTA Aalochak Netra (eye) Agni Sadhak Hridaya (heart) aakash Pachak Koshtha (stomach) prithvi Ranjak Yakrit, pleeha (liver, spleen) jala Bhrajak Tvak (skin) vayu KAPHA Bodhak Jivha (tongue) Agni Kledak Amashaya (stomach) jala Avlambak Hridaya (heart) prithvi Tarpak Indriya (sense organs) akasha Shleshak Sandhi (joints) vayu
Principal of Ayurveda
According to ayurvedic philosophy an individual bundle of `spirit, desirous of expressing itself, uses subjective consciousness or Satwa to manifest sense organs and a mind. Spirit and mind then project themselves into a physical body, created from the five (Pancha) great (maha) eternal elements (bhutas) together called the Panchamahabhutas which arise from Tamas. The sense organs then using Rajas to project from the body into the external world to experience their objects. The body becoming the minds vehicle, its physical instrument for sense gratification. The Bhutas combine into "Tridoshas" or bioenergetics forces that govern and determine our health or physical condition. While the three gunas (Rajas or activity, Tamas or inertia and Satwa, which balances the first two) or psychic forces determine our mental and spiritual health. Ayurveda is thus a holistic system of health care that teaches us to balance these energies in order to achieve optimum health and well being
The Panchamahabhutas Akash Jal According to Ayurveda everything in life is composed of the Vayu Agni Prithvi
Panchamahabhutas Akash (Space), Vayu (Air), Jal (Water), Agni (Fire) and Prithvi (Earth). Omnipresent, they are mixed in an infinite variety of relative proportions such that each form of matter is distinctly unique. Although each element has a range of attributes, only some get evident in particular situations. Constantly changing and interacting with each other, they create a situation of dynamic flux that keeps the world going. Within a simple, single living cell for example the earth element predominates by giving structure to the cell. The water element is present in the cytoplasm or the liquid within the cell membrane. The fire element regulates the metabolic processes regulating the cell. While the air element predominates the gases therein. The space occupied by the cell denoting the last of the elements. In the case of a complex, multi-cellular organism as a human being for instance, akash corresponds to spaces within the body (mouth, nostrils, abdomen etc.); vayu denotes the movement (essentially muscular); agni controls the functioning of enzymes (intelligence, digestive system, metabolism); jal is in all body fluids (as plasma, saliva, digestive juices); and prithvi manifests itself in the solid structure of the body (bones, teeth, flesh, hair et al).
Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest.
The Indian government and non-government organizations have been collecting statistics on the Ayurvedic system in India and these data about the manpower and institutional aspects of Ayurveda have emerged: Number of registered medical practitioners: 366,812 Number of dispensaries: 22,100 Number of hospitals: 2,189 Number of hospital beds: 33,145 Number of teaching institutions (undergraduate): 187 Number of upgraded postgraduate departments: 51 Number of specialties in postgraduate medical training: 16 Number of pharmacies manufacturing Ayurvedic medicines: 8,400 In India, 60% of registered physicians are involved in non-allopathic systems of medicine. In addition to the nearly 400,000 Ayurvedic practitioners, there are over 170,000 homeopathic physicians; India has about 500,000 medical doctors (similar to the number in the U.S., but serving nearly 4 times as many people). Reliance on Ayurvedic medicine is heavy in certain regions of India, such as Kerala in the Southwest. Many Ayurvedic practitioners in small villages are not registered. One of the famous clinics of India is described in Appendix 2 and a new clinic complex is serving visitors from abroad is mentioned in Appendix 3.
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Asfa has its head office at chowta pool and it has a factory at Varachha road in Surat. Asfa also expanded its production capacity and established one more factory at Navagam. Asfa has about 4000 members now but when it was started it has only 70 members to operate various activities.
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By showing the above mentioned figure we can say that Asfa is very rapidly grow and expand in whole Gujarat. It has opened branches at Valsad, Baroda, Ahemdabad, Bardoli and Bharuch etc. It has also work as a consulting in Valsad and Surat. It established a consulting clinic in Valsad where the information about various ayurvedic medicines is provided to people without taking any pay. Asfa sold its product in most of cities of Gujarat and Mumbai through its dealers. Asfa has widely distributed dealer network. Asfa produce qualitative product, by reason of that a slogan Aushadho to Asfa nij. Asfa get a certificate of GMP (Good Manufacturing Practice) from Gujarat state food and medicine Control Corporation. Asfa is a first Pharmacy which is gets this type of certificate. Asfa get GMP certificate in 2004 and also get ISO 9001 in 2005 and laboratory of Asfa get permission from food and medicines commissioners office, Gandhinagar.
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LIST OF DEALERS
There are 66 dealers of Asfa in whole Gujarat. Here represent only name of cities in which Asfa has dealers. The cities are Ankleshwer(3), Ahemadabad(7), Amod(1), Mahuva(1), Bharuch(2), Bilimora(4), Bardoli(1), Chikhali(2), Godhara(1), Gandevi(1), Gandhinagar(1), Junagarh(2), Kathor(1), Kapadvanj(1), Kamrej(1), kilapadi(1), Mumbai(1), Mandavi(1), Amran(1), Navasari(4), Porbandar(1), Surat(14), Rajkot(3),Rajpipala(1), Surendranagar(2), Umargam(1), Vyara(2), Vapi(1), Vadodara(2), Viramgam(1), Vidhyanagar(1). Location of Factory and Branches Factory of Asfa 1. Near Panini taki, Varachha road, Surat-395006 Phone no. (0261-648092, 644410) 2. 17, 18, Navagam Udhyognagar Co-operative Sangh Navagam, District: Kamrej, Surat, Phone no: (02621-252440) Branches: 1. Near Bank of Baroda, Chouta pool, Surat, Phone no: 0261-426413
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2. Ayurvedic Hospital Compound, Station road, Surat. 3. Dhanasutar Ni Poll, Relief road, Ahemadabad. 4. Balavant Building, Kharivav road, Baroda. 5. 8, Navrang Shopping Center, Panch Bati, Bharuch. 6. 3,Amar Chambers, Near the lal school, Valsad. 7. Hirachand Nagar, Station road, Bardoly.
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BOARD OF DIRECTORS
CHAIRMAN
VICE PRESEDENT
SECRETORY
GENERAL MANAGER PRODUCTION DEPARTMENT ASSISTANT PRO. MANAGER ADMINISTRATION DEPT. PRODUCTION DEPARTMENT ASSISTANT PRO. MANAGER
ACCOUNTANT
SUPERVISOR
CASHIER
SUPERVISOR
WORKERS
SENIOR CLERK
WORKERS
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INTRODUCTION
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Market: The common usage of market means a place where goods are bought or sold. In its strict meaning market need not necessarily mean a place of exchange.
Marketing: Marketing is concerned with selling but now a day the concept has enlarged its meaning. We know that a product is provided with the aim of sale. The aim producer totally depends on marketing. Without marketing no unit can run. It covers marketing research, new product development and so many other important functions. Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand.
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Rasa
Sutshekhar rasa Vaat chintamani rasa Vasant kusumakar Jawahar mohra rasa Chandramrut rasa
Bhasma
Akeeka bhasma Mandoor bhasma Yashad bhasma Raupya bhasma Shankh bhasma
Sogothi
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Churna
Arjuna churna Kuberax churna Nagkeshar churna Markandi churna Sarpgandha churna
Gugal
Dantmanjan
Syrup
Taila
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Malam
Avaleh
Sales Volume
Year 2000.2001 2001-2002 2002-2003 2003-2004 2004-2005 Sales 2,21,85,378 2,24,22,359 2,41,67,604 2,55,34,444 2,74,90,720
Asfa produce 288 medicines or many other products. Asfa produce medicines in various categories like asav, aristas, syrups, churns, avlehas
22 etc. and all of them have different unique features but Asfa products main feature is Better Quality in Lower Price. We have a variety of asavs and aristas that are prepared on the time tested principle of ayurveda. Our products in asavs and aristas are of high medicinal value then that of others. Asfas syrups are meant for overall growth, stimulated appetite, correct digestive system and cough & respiration disorders. Asfa have prepared a variety of churns through constant research and experiments and that have been highly effective to cure digestive problems, skin digests, joint pain, cold & cough and many others. Asfas avlehas are prepared from the herbs which rare to found which wasnt made by others. These avlehas are costly because of special herbs are used for it. Asfa use some time the ancient recipes for prepare medicines. Asfa have also patent right of some medicines which are made by scientist of Asfas laboratory.
23 examining demographic, psychographic, and behavioral differences among buyers. Asfa make segments by geographic and demographic variables. Geographic variables such as region, city, climate etc. Asfa select western India region for selling its medicines and Surat city for production. Demographic variables are age, gender, income, education etc. Asfa produce medicines for Childs, younger and old people. Also, Asfa produce medicines as per the dieses so it differentiates in medicines for men and women in some special dieses. Asfa have no target market for last some years and it only concentrate on qualitative production but now Asfa want to produce cosmetic items and select it as a target market. Asfa produce only ayurvedic medicines but now it is also planning for produce ayurvedic cosmetic items for women and men.
DISTRIBUTION NETWORK
Distribution network can be define as a set of interdependent institutions participating in the marketing activities involved in the flow of goods and services from manufacturer to customer.
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Asfa have well developed distribution network for marketing activities. Asfa have 60 dealers for selling its medicines. Asfa have own distribution network. Asfa sell its medicines by own stores and these stores are created in whole Gujarat state such as in Surat, Ahmedabad, Ankles war, Anand, Navsari, Vadodara and in many other cities of Gujarat. Asfa use zero level and one level channel for distribution. Asfa provide medicines to its retail store as per their requirement and that stores sales medicines direct to customers so customer get medicines in less price than competitors. Asfa have also a store at outside the pharmacy from where anyone can get medicines easily.
SALES PROCEDURE
The steps of sales procedure of Asfa are as follows.
25 1. First step is to get raw-material and send in production department for process. 2. Production department prepare finished product, packed and after testing send it to dispatch department. 3. Dispatch department receives the order from Asfas stores. 4. According to order dispatch department send the medicines to various store by pharmacys own vehicle. 5. Retail stores send the material receipt note. 6. Retail stores are selling that medicines to customers and send the copy of bills of selling medicines with payment. 7. Asfa receive copy of bills and note in sales documents and collect payment. 8. If any dealer or customer has complaint against medicines than Asfa takes their complaint and take corrective actions for that.
26 Asfa mostly does not take orders from customers for medicines but it takes order for Chavanyaprasha, Gullkand and some other products. The steps of order processing are as under: 1. Asfa receive the order from customer. 2. Asfa collect the information about order such as quantity, quality, packing weight etc. 3. Asfa also clear the payment conditions and terms of payments with customer. 4. Asfa check availability of raw-material of that product and if it is not in stock give order to suppliers. 5. Asfa send material to production department for further process. 6. Asfa send finished products for quality checking in laboratory. Products are of quality than thats packed in packing department and send to dispatch department. 7. A dispatch makes entry and sends to customers home or at which placed he want. 8. Asfa collect payment from customer and if order is large than provide some discount to customer.
DETAILS OF COMPETITORS
27 Asfa is a co-operative pharmacy working with the objective of survives people. Asfa produces ayurvedic medicines. Asfa produces more than 288 types of products which other companies do not produce. Asfa sales its product in Gujarat and other nearer states and there is no other companies with so large production in Gujarat but than also Asfa have competition from the national and international companies like Zandu, Himalaya, Dabur, Baidyanath, Charak etc. and also from state level companies like Puja pharmacy, Gujarat Ayurved Vikas Mandal, Ban pharmacy etc. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. Dabur India Ltd. (1884) is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. Zandu (1919) focuses preliminary on ayurvedic medicines but it produce chemical and cosmetic products also. Himalaya is established in 1939 in Bangalore and has business about 500 million dollar. Vicco (1958) produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product. Asfa has main competition from Baidyanath and Charak. Sri Baidyanath Ayurvedic Bhawan Ltd. was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines. The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies.
28 Marketing mix is the policy adopted by the manufacturers to get success in the field of marketing. Those days, when goods were matched with the market have gone. Marketing mix is the term used to describe the combination of 4 inputs which constitute the core of companys marketing system the product, the price structure, the promotional activities and the distribution (place) system. These are popularly known as, 4ps. A brief description of four elements of marketing mix of Asfa is:
Product
Promotion
Marketing mix
Price
Place
Product A product is any thing that can be offered to a market that might satisfy a want or need. Asfa produce 288 medicines for its customer. Other companies do not have so large range of product width and length. Asfa use rarely found able herbs in its medicines which make difference from competitors. Asfa produce more qualitative products than the competitors. Asfa also research and produce new medicines and patent them. Such medicines like Asfa haemetone, Reducid, Asfalax, Gasowin, Asfa-tone. Price The marked or announced amount of money asked from a buyer is known as basic price of a product. Asfa use value pricing method for its products. In
29 this method, Asfa charging fairly low price for highly qualitative product , which its competitor can not done. Asfa charged low price than its competitors because Asfa less expense in promotional activity and for distribution. Asfa charged low price because it is co-operative pharmacy and its main objective is provide medicines at fair price, not to earn profit. Promotion Marketing communication consist of communication marketing activities through various forms of promotion that is personal selling, advertising, publicity and public relationship, sales promotion etc. together called promotion mix. Asfa does not do more expenditure for promotional activities like other companies. Asfa do zero level marketing than also Asfa easily sale its medicine and its dealer largely expand in all Gujarat. Place Place means the decision by which company transfers their product, location, inventory handling, warehousing, storage facility, transportation etc. Asfa has a big location for plant at bank of river tapi. Asfa is located near the nation high way so it can transport and get material easily. Asfa has own retail store in various cities so it can easily provide medicines to customers than its competitors. Competitors like Pooja, Zandu, Himalaya, Dabour etc. have not so widely develop distribution network in Gujarat.
30 Asfa systematically do forecasting and prepare sales plan on base of forecasting. Forecasting is done by showing total demand of ayurvedic medicines in the market and expected demand for Asfas medicines. Asfas dealers send the detail about the demand of Asfas products in market and these information uses for forecasting. Asfa also consider the past years sales data and from it Asfa forecast the demand for its products in market for the current year or next years. Sales plan is prepared by analyzing the forecasting data. Sales plan is prepare by discussing with heads of all department. While preparing some questions like how much production is do for meet demand, how much material require for production, decisions about its quality and quantity, various expenses related with production and sales etc. are arisen and decisions about them is taken with agreement of all department.
PRICING POLICIES
31 The marked or announced amount of money asked from a buyer is known as basic price-value placed on a product. Price is the one element of the marketing mix that produces revenue. Prices are the easiest marketing mix element to adjust; product features, channels, and even promotion take more time. There can be competition between price-quality segments. The below diagram shows nine price-quality strategies. PRICE High Q High U A L Medium I T Y Low Medium Low 3. Super-value strategy 6. Good-value strategy 9. Economy strategy
1. Premium 2. High-value strategy strategy 4. Overcharging 5. Medium-value strategy strategy 7. Rip-off strategy 8. False economy strategy
Asfa has super-value strategy for its products. Asfa provides medicines at low price with high quality. Asfa set price for its products by taking care of the below matters.
Asfa set price with considering its objective of provide medicines at fairly
price with good quality.
Asfa Also considered the price of competitors and try to set less price
than competitors.
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Asfa is a co-operative pharmacy. It was set up by Shree Swami Atmanand Saraswati. They set up the pharmacy for reduce the pain of people and make them strong and healthy. They decide to provide medicines at fair price so poor people also get medicines easily. Asfa have main objective of provide service not to earn profit. Therefore, Asfa do not do marketing and save money so it can provide medicines at low price. Asfa does not use advertising and less use promotional activities. Asfa do promotion by public relations. Asfa made aware people about its medicines by public relations. Public relation is informal channel of marketing. People who use Asfas medicines are tell others about it and so on. Asfa have well developed dealer network in Gujarat which play important roll for promotion of Asfa. Asfa become popular in Gujarat and its near states because of its high qualitative medicines and fairly low prices than others.
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Effective control system is necessary for successfully run business. Control system is needed for control the employees of organization. Asfa has also some rules and regulations for its sales employees. Asfa does not do marketing so it have not sales men but Asfa have sales executives who sale Asfas medicines at Asfas stores. Sales executives have to open the stores regularly. They have special uniforms which they have to wear while work at the stores. Sales executives have to behave politely and mannerly with customers and listen their complaints. If anyone do not do job effectively than Asfa resign them.
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PRODUCTION MANAGEMENT
Production is the process of converting the raw materials and other inputs into the products for further production or the finished goods or services so that the utility of inputs is created or enhanced and the needs of the consumers are satisfied. That is consumer goods, industrial goods, services of transport, medical treatment, education, banking, post and telegraphs, insurance etc. so in simple meaning the management of the production process is called as production management. Production management means creating and maintaining an environment in which individuals working together in groups willingly contribute their best to produce the specified goods and services by optimum utilization of raw materials and other inputs so as to timely satisfy the needs of the customers. Good Production management is essential for every organization and it is important in following ways, It helps to satisfy the need of customer timely. It increases the productivity of organization. It gives better satisfaction to the employees. It satisfies the investors by increasing return on investment and capital appreciation. It satisfies the community by welfare and development activities. It satisfies the suppliers. It benefits to whole nation.
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Supervisor Supervisor
Workers Workers
Workers Workers
Workers Workers
Workers Workers
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PRODUCTION PLANNING
Production planning is that function of management which decides about the resources that will be required for future manufacturing operations and of allocating these resources to produce the desired output at right time, in right amount, of required quality and at minimum cost. Production planning is the planning of how much produce, Requirement of human resource and finance. It is also planning of quality standard and raw materials requirement etc. production plan is preparation of guiding plan before starting production plan involve when, what, how and why to produce goods. In Asfa, normally production plan is prepared from the sales or demand for the product of company. Starting point of production planning is dispatch department. Dispatch department supply various products of Asfa to the dealers. When stock of medicine is remain of only three months they inform production department about requirement of medicine. From the information of dispatch department, production department decides about manufacture various products as per requirement and for this they prepare production plan. In Asfa, production planning is include planning of material requirement, requirement of manpower, capacity requirement etc.
Manpower planning
38 For achieving successful result of production planning, it is advisable to make manpower planning in advance. In Asfa first they decided how much labour required producing desirable quantity. If there is shortage of manpower, they hire casual or part time labour.
Inventory control
Since entire material requirement planning is done on the basis of production plan, ultimately inventory level depends on accuracy of production plan. In this industry, they use first in first out method for inventory control.
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40 Bills of material shows each of the materials, parts or sub assemblies by unique part number, which facilitate processing by in to price and also contents the quality of parts or material require per unit of end product. Bills of material have a series of level each of represents a stage in the manufacture of the end product. Level 1: Representing final assembly or end product. Level 2: Shows parts and sub assemblies when end product is the first desmemtated. Level 3: Result of desmentating the sub assemblies of level 1 in form of part and father sub assemblies.
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Availability of labour
The availability of skilled and unskilled manpower, a prevailing wage pattern, living costs and the industrial relations situation influence the location. Manager chooses the location of Asfa at varachha road where both type of manpower available easily at lower wages.
Transportation facilities
Adequate transportation facilities are essential for the economic operation of a production system. Many facilities or plants are located along river banks. Asfa is also located along river bank and near national highway so there is good transportation facilities are available. There are some other functions which also affect selection of plant location are as follows: Markets Power Climate and fuel Legislation and taxation Community facilities Waste disposal Site size Land costs
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44 depending on an operation sequence. There are two type of product lay-out first line processing lay-out and second flow type of lay-out. In Asfa, there is a line processing lay-out. There is sequence of operations from raw material department to packing department.
45 There are three categories according to this method of classification. First, fully automatic handling equipments like robots. Second, semi automatic handling system like conveyer belt. Third, manual system like hand carts. Asfa uses only third category which is manual system.
Classification on the basis of source of power Equipments can be electrically powered, powered be any fuel and manually. Asfa uses all these type of equipments such as boiler and machines are electrically powered, truck are use diesel and hand carts are manually powered.
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INVENTORY UNIT Inventory unit shows the unit, which is explained in kilo gram, liter, meter etc. ORDER CODE Order codes represent the following results if items are 0, 1, 29. 0 = for firm planning of main items, which are to be dispatched without any further process (final products)
47 1 = for manual planning, material requirement planning off switch for case: the item is in short but similar item with some another code is available in stock. It is planning can be stopped off. 2 = material requirement planning on switch for the item. 3 = material requirement planning on with instruction to check and plan for sales order requirement. 4 = reserved for EDP department to freeze the planning released and to keep the action in abeyance for one or another reason. BYPASS CODE Bypass code denotes 0 is for component and 1 is for phantom items. Bypass code is used to bypass the item for convenience. INSPECTION CODE Inspection code denotes Y/N i.e. yes or no whether the item to be inspected or not. Asfa usually check the entire item in B.M; hence, it is always Y. SCRAP Scrap means the waste of material arising during manufacturing process. Scrap found in Asfa Company in the last 5 year and hence, it has to purchase material in excess. It is 10% of purchased raw-material as per last five years record. WEIGHT This is always in kgs indicating net or gross weight that is suppose any item is packed. The gross weight of item is equal to net weight + weight of box. NET WEIGHT= GROSS WEIGHT BOX WEIGHT. FIX LOT It refers to single character Y/N- for specifying whether the order to be released for a single lot or not.
48 EX: Lot is 500 and order quantity is 2500. If Y is given MRP will print 5 lines and if N is given then it will print in a single line for a single order and single schedule time. LEAD TIME For making any job available the company has to release the order to vender then after the vender will take a sometime to deliver the material. Finally the material will be inspected and will be made available at work place. The total time taken is called Lead Time. This is always in weeks.
LOT SIZE Lot size is the quantity of order at which the total ordering cost and inventory carrying cost will be the minimum. Lot size decided on the following basis. Requirement for a specific time span. Economic order quantity calculated based on cost of production and requirement. Minimum order quantity specified by vender. Fix packing offered by supplies etc.
The company has to define lot size in relevant unit of measuring such as box, packet, liter or tones. EX: The company need 70 units of leaning but the supplier does not supply less than 100 units so that size will be 1 box = 100 leanings. SAFETY STOCK It is the stock or inventory maintaining to meet unforeseen situation such as variation in demand, variation in supply of quantity by supplier and variation in lead time of supply etc. so it use in emergency. ACCUMULATED LEAD TIME It is the total time taken in procuring the time after identification of its need and releasing orders. (From placing to receipt of the item)
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STOCK There are several types of stock which are explained below. 1. Vender stock: vender stock has two type of stock. First is the labour and other is repairing. Some items are given to vender for repairing are known as repairing stock. 2. Store stock: The items, which have been stored by the company, are known as store stock. 3. Repairing stock: some items are given for repairing because of, it may store from long time or may be for any damage or corrosion is called repairing stock. 4. Short stock: The stock, which is in short, is called short stock and negative sign defines it. 5. Committed quantity: Committed quantity is the quantity, which is issued against work. 6. Available quantity: Available order = floor stock + store stock + repairing stock (short stock + committed quantity). 7. Sales order quantity: the quantities, which are issued against sales order is known as sales order quantity. 8. Order quantity: the order quantity is the sum of purchase order and work order quantity. ORDER QUANTITY = PURCHASE ORDER + WORKING ORDER. 9. Indent quantity: The item is in short and the work order has been made. After the purchase item has to be made and purchase that item from vender, this quantity known as indent quantity.
50 valuation, which will solute with industry condition. The methods of inventory valuation are as follows: 1. FIFO method (first in first out) 2. LIFO method (last in first out) 3. HIFO method (highest in first out) 4. Average cost method 5. Market price method 6. Standard cost method 7. Base stock method Asfa use FIFO method for inventory valuation.
ABC ANALYSIS
Abc analysis is analysis according to the value of items. In Asfa, the inventory consists of hundreds of items and many employee are controlled them. For this company do lot of expenses. In order to affect economy in controlling such large inventory Asfa use a system known as ABC ( Always Better Control) analysis. It has been found from the experience that all items included in inventory are not of equal importance. A few items in the inventory represent a large proportion of total value of inventory. Hence, more attention must be devoted to the control of such items. All the items are divided into three categories. A Category It includes those items which are very important and of high value but forms only a small proportion of total quantity of inventory. In Asfa, there are 30 items which are comes in category A and they represents as much as 74% of value of inventories. Strict control over receipt, storage and issue should be exercised over these items such as Abhraka bhasma shataputi, makardhwaja vati sataguna, bruhat vasant kusumakar rasa, etc. B Category
51 Items included in category B are not as important as those in category A, but are important enough for its proper records to be maintained. They constitute 70 items of total number of items, but represent 18% of total value of inventory of Asfa. These items are Brahmi vati, makardwaja vati, ashvgandha, mahasudershan shurna etc. C Category The remaining items must be placed in category C. they are not so important form the view point of maintaining control over the receipt and consumption such items constitute 65% of the total number of items but they represent 8% of total value. ABC analysis of Asfa Category A B C No. of items(in % of total Value of items ( in % of number of items) 10 25 65 total value of inventory) 74 18 8
100 92 18% 74 C
B A
74%
10
35
100
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VED ANALYSIS
The possible consequences of material stock outs when demand arises from the basis of VED analysis. The cost of shortage depends upon the seriousness of the situation. Items are grouped as V (Vital), E (Essential) and D (Desirable). This classification of inventory is based on importance and application of different items in production process. According to this classification there are three categories of item VED. Vital items are those items without which production will instantly stock all main raw materials are obviously vital items. Similarly, there can be some another low value items which are absolutely necessary for production process. As explained above, spar parts of machines like power generator or boiler become vital items. Essential items are those items without which efficiency of production process will reduce. Absence of these items may not cause total stoppage of production but rate of production may go down or wastage of material may increase. Example: In chemical industry, manufacturing can be carried out without an item which is working as catalyst but speed of chemical reaction and hence, output of the production process may reduce considerably.
53 Desirable items are those items, without which it will be inconvenient to do production operation. Without these items, production is not going to stop or slow down. Example: measuring instruments, small tool of safety devises are such desirable items. In Asfa, there is no system like VED analysis but by doing VED analysis those who are responsible for availability of various raw material and items may know which items are important for production process.
No. of material
Inspection report No. Bought of Purchase order no. Material receipt report no.
54 Date Item no. Code no. particular Quantity Quantity period on order received rejecte d Remarks
55
56 store keeper along with the goods received and they attach green color accept card with materials. Received material is store in various containers by store department and issue when they get order.
57
DOCUMENTS OF PURCHASING
Purchase request
Asfa pharmacy Ltd. Surat. Request for quotation Tender no. . Date . To, (Name and Address of Supplier) Sir, Please let us have your best offer for the supply of the following items. The items should be delivered F.O. R. Surat. The tender closes on (date) at (time) and will be opened at (time) on the following day. The first copy of tender should be dispatched to us duly filled in before the close of the tender. Serial no. Description of Items quality quantity Terms of delivery
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Your faith fully, For Asfa pharmacy ltd. Purchase officer
Comparison statements
Asfa Pharmacy Surat Tender no Comparative statement of quotations Opened on quantity price Duties and taxes Terms of delivery remarks
Entered by.
Checked by.
Purchase order
Asfa Ayurvedic Co-operative Pharmacy Near Panini taki, Varachha Road, Surat-395006 Phone no: 648092, 644410 PURCHASE ORDER Purchase Order No: Supplier Quotation:
Please supply the following items on the terms and condition mentioned below. Sl No Description Material code size Qty. Price Amount Delivery date
PURCHASE PROCESS
The process describes the sequence of steps leading to the completion of an identified specific task. Thus, purchasing process describes the sequence of steps by which purchase function is carried through from its inception to it completion. The steps of process are as follows: A) Receive requisitions The requisition includes information like how many items wanted, when they should be available, quantity in hand, who is making the request etc. In Asfa, who requires raw materials or other things, they give purchase requisition slip to production department. B) Review requisitions The review of requisition is necessary. This is done to answer questions like: (1) Can a less expensive material serve purpose? (2) Can it be eliminated? (3) Can another item serve the same function? (4) Can a supplier reduce price by revise specification? C) Select suppliers Asfa is co-operative pharmacy and for purchase they invite quotation from various suppliers. After getting quotations and by comparing them Asfa select the suppliers. Asfa is not giving so much important to price but give important to quality.
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D) Place orders Orders are placed to selected suppliers. For order placing to selected suppliers, Asfa prepare a purchase order and send to suppliers. Purchase order includes specific quantity and quality of material at stipulated terms and material send period and placed mentioned in it.
E) Monitor orders If placed order is for long time then it is necessary to monitor those orders. Asfa also monitor these types of orders because lengthy orders are checked to determine whether anticipated deliveries are on schedule. F) Receive orders The purchase transaction is complete only after receiving the order quantity in an acceptable condition. When material is comes in Asfa, it is checked for quality in Asfas laboratory. If qualities acceptable then only material is send to store department with material inward receipt.
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QUALITY CONTROL
Quality is measure of characteristic of a product or service which impart it functional or aesthetic value so as to satisfy the needs of and users for a given price paid by them. Quality control is a system of policies, procedures and guidelines which established and maintained the specifies standard of quality. It includes all aspects of quality such as research and development, design parameters, inspection, measurement and analysis of current quality levels, future trends and also competitors quality level, feedback from field performance of quality, choice of machines, tools, processes etc., selection and training of production and inspection staff, corrective actions and follow up etc. Asfas objective of quality control Asfas main objective is to produce cost effective quality ayurvedic medicine. The other objectives are as follows: To give qualitative products to customers To see whether the medicines are confirms to pre-determine standers. To reduce wastage To develop quality consciousness To assess the quality
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63 In Asfa, there is systematic and scientific approaches for quality control they follow some standardize rules and regulation for quality control. Asfa check quality of Raw material, in process goods and finished product. For raw material they check the quality of item of various levels such as scientific name, family, description (macro and micro scope). After checking the items at micro and macro level then they check its identity. By purity Foreign matter Total ash Acid By strength Alcohols Water For In process goods and finish product they check integration of various item checks that quality of product will much with company standard.
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Hoagland says, Financial management is concerned mainly with such matters as, how a business corporation raises its finance and how it makes use of it.
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GENERAL MANAGER
ACCOUNTANT MANAGER
CASHIER
SENIOR CLERK
BANKING OPERATOR
SALES DEPARTME NT
CLERKS
WORKERS
WORKERS
WORKERS
67
68
COSTING METHODS
The methods to be used for the ascertainment of cost of production differ from industry to industry. It primarily depends upon the manufacturing process and also on the methods of measuring the departmental and finished products. There are various methods of costing are as follows: Job costing Contract costing Batch costing Process costing One operation costing Service costing Multiple operations costing Asfa use batch costing and multiple operation costing methods. Asfa use these methods because Asfa produce its products in batch and multiple operations are proceeding at a time in Asfa. A batch may represent a number of small orders passed through the pharmacy in batch. Each batch is treated as a unit of cost and separately
69 costed. The cost per unit is determined by dividing the cost of the batch by number of units produced in a batch. Multiple operation method of manufacturing consists of a number of distinct operations. It refers a cost of converting the raw material into finished goods. Pharmacy also considers the rejections in each operation also for costing of products.
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71
Particular Raw materials Opening stock Add: purchasing Less: closing stock Labour Direct expenses Prime cost Factory overhead Factory expenses Fuel and power Carriage inward Indirect wages Depreciation and repairs Rent and taxes Insurance stationary Works cost Office and administration overheads Office expenses Director fees Rent, rates Office salaries Sundry expenses Stationary Depreciation of office furniture Office cost Selling and distribution expenses Travelers expenses and salaries Packing expenses Stationary Bad debt Cost of sales profit Selling price
Amount
Amount
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The term working capital refers to that part of capital which is not tied up in fixed assets but is used to meet the day-to-day requirements of business, which changes from day-to-day, and which is converted into cash continuously. Working capital management includes the management of Working capital finance Management of receivable Management of inventory Management of cash WORKING CAPITAL FINANCE Asfa uses the sources for working capital are as follows: Long Term Sources of Working Capital Equity shares Preference shares Long term loans Short Term Sources of Working Capital Short term loans Bank overdraft Trade credit Commercial papers
73 MANAGEMENT OF RECEIVABLES Receivables are assets accounts representing amount owed to the firm as a result of sale of goods in the ordinary courses of business. Management of receivables is depending upon the credit policy of company. Asfa has the credit policy as under. Asfa has too strict or too liberal credit policy Asfas credit standards are clearly specified in policy and strict for customers Asfa give cash discount on bulky purchase Asfa give goods only on one month credit period. Asfa timely collect and get its receivables
MANAGEMENT OF INVENTORY Inventory control means the decision of the firm as to the extent to which inventories can be economically stored. Asfas main objectives of inventory control are: To maintain investment in inventory at the lowest level To supply the products to its user as per their requirement at right time. To keep inactive, waste, scrape and obsolete items at the minimum level. To minimize holding, replacement and shortage cost of inventory at minimum level. To maximize the efficiency in production.
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MANAGEMENT OF CASH
Cash is the medium of exchange which allows management to carry on the various activities of the business on day to day basis. Cash management involves the following four factors: Ascertainment of the minimum cash balance and controlling the level of cash Controlling cash inflows Controlling cash outflows Optimum investment of surplus cash
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Sources and Application of Funds 1. Sources: (A) Funds from business operations (B) Sales of non current assets (C) Issue of share capital (D) Long term borrowings Total (1) 2. Applications: (A) Purchase of non current assets (B) Redemption of debentures (C) Repayment of other long term liabilities (D) Buy back of shares (E) Redemption of preference shares (F) Payment of income tax (G) Distribution of cash dividend Total (2) 3. Changes in working capital (1- 2)
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ACCOUNTING POLICIES
Accounting policies are defined as, the specific principles, bases, conventions, rules and practices adopted by an enterprise in preparing and presenting financial statements. Accounting policies for various matters of Asfa are as follows: Debit and Credit Debit and credit are shown as on rules of accounting of debit an asset account increase by carrying amount and debit liability account decrease and credit as vise-versa. Fixed assets All fixed assets are shown at actual cost and depreciation is less from it as per straight line depreciation method. Inventories The stock of inventories such as finished, processed and raw material are valued by its cost or net realizable value. General accounting The accounts are prepared on historical cost basis and accounting principle of going concern concept.
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78 The net realizable values is defining as the current output price less than the current value of additional anticipated incremental costs and express relating to the completion of sales and delivery of the merchandise. Input value As an alternative to output values inventories are generally valuated at inputs. Input value may be defined as measurement of resources used to bring the inventory, its present condition and location. When inventory are purchased for cash or its equivalent, the interpretation is simple. Historical cost Historical costs are measured by the monitory payment made in the past or to make in the future in the acquisition of goods or services. Historical cost generally means considerations paid in the acquisition or production of merchandise including all those services necessary in obtaining the merchandise goods in a saleable state.
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DEPRICIATION
Depreciation is the process of allocating the acquisition cost of the tangible asset less salvage value, if any, in a systematic and a rational manner, over the estimated useful life of the asset. Asfa use two methods for calculate depreciation first is straight line method and second is written down value method. Depreciation on plant and machinery is provided on straight line method. Depreciation on other assets is provided on written down value method. The applicable rates are as specialized in schedule 14 of the act. Depreciation in respect to revalued assets is recouped from revaluation reserved. Depreciation in addition from fixed assets is provided on production data bases from/up to the date of such addition/deletion as the case may be. Depreciation in addition assets due to exchange variation, forward over premium changes etc. is provided over the remaining useful life the assets.
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81 decrease Fixed assets Factory Machinery Electric equipment Electric fittings Furniture Library Total fixed asset Deposits & advances Current assets Cash balance Debtors Closing stock Cash at bank Total current assets Total assets Capital and internal liabilities Opening capital Net profit after interest and taxes Depreciation fund Reserves Navagam development reserve Creditors & liabilities Total liabilities 441439.13 2481937.75 1321467.15 931647 2465606.06 7642097.09 357709.10 506822.16 2895152.7 5 953630.15 931647 1559487.8 6 7204449.0 2 +357709.10 100% +65383.03 12.9% +413215 -367837 0 -906118.2 -437648.07 14.3% 38.6% 0% 58.1% 6.07% 3303354.71 1460891.50 165940.00 131100.80 386127.50 2395.00 5449809.51 57600.00 1032.39 1294090.00 790105.00 8605.92 2093832.58 7543642.09 3303354.7 1 1859954.5 0 165940.00 131100.80 397502.50 2395.00 5860247.5 1 57600.00 1772.59 0 1233718.0 0 5580.92 1241071.5 1 7101319.0 2 0 +399063 0 0 +11375 0 410438 0 +740.2 -1294090 +443613 -3025 -852761.07 -442323.07 (%) 0% 21.45% 0% 0% 2.85% 0% 7% 0% 41.75% 100% 36% 54% 68% 6.22%
82 Particular Sales Purchase Manufacturing expenses Manufacturing salary Direct cost of production Add: opening stock Less: closing stock Cost of sales Gross margin Operating income Dividend Other income Profit from navagam Total operating income (A) Operating expenses Office salary Office admi. Expenses Transportation expenses Other expenses Maintenance expenses Account related expenses Depreciation expenses Donation Sales tax Valsad admi. expenses Total operating expenses (B) (A-B) net profit Year 2005(%) sales 100 38.19 10.87 11.12 60.18 26 86.17 30.31 55.86 45.06 0.43 0.09 2.15 47.73 16.27 8.05 1.33 1.44 6.04 0.07 4.38 0.005 6.33 0.55 44.47 3.26 Year 2006(%) sales 100 33 11.89 10.18 55.69 29.24 84.93 27.37 57.55 42.45 0.38 0.05 2.48 45.28 16.88 7.77 1.47 1.43 2.95 0.16 4.44 0.005 6.57 0.48 42.16 3.13
83 7 8626754.0 4 653667.83
9112388.83 667700.65
44.47 3.25
42.15 3.19
BALANCE SHEET
Common size balance sheet of the Asfa at the end of year 2005-2006 particular Fixed assets Factory Machinery Electric equipment Year 2005 3303354.71 1460891.50 165940.00 % 43.78 19.36 2.20 Year 2006 3303354.7 1 1859954.5 0 165940.00 % 46.51 2.62 2.34
84 Electric fittings Furniture Library Total fixed asset Deposits & advances Current assets Cash balance Debtors Closing stock Cash at bank Total current assets Total assets Capital and internal liabilities Opening capital Net profit after interest and taxes Depreciation fund Reserves Navagam development reserve Creditors & liabilities Total liabilities 441439.13 2481937.75 1321467.15 931647 2465606.06 7642097.09 357709.10 506822.16 2895152.7 5 953630.15 931647 1559487.8 6 7204449.0 2 4.97 7.03 40.20 13.24 12.3 21.65 131100.80 386127.50 2395.00 5449809.51 57600.00 1032.39 1294090.00 790105.00 8605.92 2093832.58 7543642.09 1.74 5.12 0.003 72.24 0.76 0.014 17.15 10.47 0.11 27.75 131100.80 397502.50 2395.00 5860247.5 1 57600.00 1772.59 0 1233718.0 0 5580.92 1241071.5 1 7101319.0 2 1.84 5.60 0.003 82.52 0.81 0.02 0 17.37 0.08 17.48
RATIO ANALYSIS
A ration is only a comparison of the numerator with the denominator. The term ratio refers to the numerical or quantitative relationship between two figures. A ratio is the relationship between two figures, and obtained by dividing the former by the latter. Ratios are design to show how one number is related to another.
85 Ratio analysis is an important and age old technique of financial analysis. The data given in the financial statement in absolute form are dump and are unable to communicate any thing. Ratios are relative form of financial data and very useful technique to check upon the efficiency of a firm. Ratio analysis is extremely helpful in providing valuable insight into a companys financial picture. Ratio normally pinpoints a business strength and weakness.
CURRENT RATIO
Current Ratio 2 1.5 1 0.5 0 2002-03 2003-04 2004-05 2005-06 0.85 0.8
percentage
1.8 1.6
Year
Interpretation: In inter firm comparison the firm with higher current ratio has better liquidity or short term solvency. Here, in Asfa current ratio is reducing every year is not good for pharmacy. In first two years it is some satisfactory but in last two years less than 1 (0.85 & 0.80) is certainly be undesirable for pharmacy.
Net Profit Ratio 3.3 3.25 3.2 3.15 3.1 3.05 3 2.95 2.9 2.85 3.26 3.19 3.07 3.01
Interpretation: The net profit ratio measures the efficiency of management in generating additional revenue over and above the total cost of production. The net profit ratio in Asfa increases first three years which shows increased efficiency of pharmacy but it decrease slight in 2005-06 with decreased in sales and net profit which shows some problem in efficiency and effective management of pharmacy.
percentage
2002-03
2003-04
2004-05
2005-06
Year
Return on Assets Ratio 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0.13 0.11 0.09 0.09
Interpretation: Return on assets ratio indicates the effective utilization of assets in generating revenue for firm. In Asfa the ratio decreased every year which shows the ineffective use and inefficiency of management.
percentage
2002-03
2003-04
2004-05
2005-06
Year
OPERATING RATIO
Operating Ratio
0.5 0.48
percentage
0.49
0.44 0.42
2004-05
2005-06
Year
Interpretation: Operating ratio shows operational efficiency of the firm. Lower the ratio, higher the operating profit and higher the ratio, lower the operating profit. In Asfa the ratio decline in years 2003-04 & 2005-06 but the ratio is low every year which shows higher operating profit and efficiency of operations.
CONCLUSION:
After comparing all the ratio of past years with current year, we can say that pharmacys efficiency and the managements effectiveness is decreased in current year. Pharmacys current liability increase from some years and current assets does not satisfy the requirement of liability which is not good for pharmacy. Also pharmacy loses sales and net profit in current which indicates pharmacy should need to increase its efficiency.
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91
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In Asfa, human resource planning process is done by following steps: 1. Organizations objectives and policies Human resource plan needs to be based on organizations objectives that means objective of human resource must be derived from organizations objectives. Specific requirement in terms of number and characteristics of employee should be derived from these objectives. Asfa take care of organization objectives and policies while recruit employees. Asfa also take care of such questions like whether organization should fill vacancies by internal promotion or hiring from out side, which type of training and development program are needed, what policies are needed to handle staff unit, how to understand employee job etc. 2. Human resource demand forecast Human resource forecasting is the process of estimating the future quality and quantity of people require. The basis of forecast is annual budget and long term plans of Asfa, which are translated into activity level for each function and department. Base on this information the number of hours to be worked by each skilled man power in a given period of time should be calculated. Once the hours are available the next logical step is to find out the quantity and quality of personnel. The human resource forecasting is done by various techniques like managerial judgment trend analysis, Delphi method, flow models and work study method and many others. Asfa use managerial judgment technique for its human resource forecasting because it is very simple technique. In this techniques asfas managers are sit together, discuss and decide the future demand for labour. 3. Human resource supply forecast
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Personnel demand analysis provides the manager with number and quality of employee that to be require. Next logical step for manager is to find out the number of people likely to be available form within and outside of an organization. The supply forecast covers the existing human resources, internal source of supply and external source of supply. Asfa use the analysis of present employee human resource audit summaries, each employee skill and ability for understanding capability available in organizations work force. It also forecast the internal source or supply. Managers are calculating the available supply of manpower within the organization. Asfa also calculate how many employees are available in market or outside the organization whose are take responsibilities of job. 4. Human resource programming Once, an organizations personnel demand and supply are estimated or forecasted by the managers, then they take care of the balancing between them. The balancing is needed in order to fill the vacancies by the right employees at right time. So human resource programming has greater important in planning process. 5. Human resource plan implementation Implementation require converting human resource plan into action, such human resource plan includes recruitment, selection, placement, training, development, retraining and redevelopment, Asfa use various plans like retention plan, down sizing plan and succession plan. Asfa does not use control and evaluation for human resource planning.
RECRUITMENT
In simple term, recruitment is understood as the process of searching for and obtaining application for jobs, from among whom the right people can be selected.
95 According to Edurin B. Flippo, Recruitment is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.
RECRUITMENT PROCESS OF ASFA The recruitment process of Asfa pharmacy starts with personal planning of General Manager. When there is an any sit become vacant or a new employee is or are require, General Manager first plan how many employees are require and of what qualification. General Manager decides which type of people is requiring means which type of skills an employee have need for recruitment in pharmacy. For example, quality laboratory technician require qualification B.Sc. (Micro) and DMLT. Managers are requiring qualification of MBA. So the first step of recruitment process of Asfa pharmacy is set a standard for recruitment. The second step is searching for employees. General Manager decides from where, the employees are recruit and by which source. The middle level of employees and workers are mostly recruiting from city or areas which are near to pharmacy. In source for recruiting, General Manager uses both internal and external source of recruitment. Manager use internal source such as: Relatives of present employee Promotion and transfer Former employees Internal source are use when more employees are required. Asfa use external sources such as: Advertisement in news paper College campus recruitment Employment exchange
96 The third step is screening of collected applications. Applications received in response to advertisement are screened and only eligible applicants are called for an interview. Here the recruitment process is ends and the selection process begins.
SOURCES OF RECRUITMENT
Asfa use both internal and external sources which are as follow in detail. Internal source Asfa uses internal source when they need more employees in short period of time. Relative of present employees It is important internal source of Asfa. Asfa use this source when it requires argent employees for production at low cost. A major concern with employee recommendation is that the referred individuals are likely to be similar in type to those who are already working for the company. Promotion and transfer This Pharmacy often uses promotion and transfer for vacant sits. This is a good source of internal recruitment. Promotions to hire positions are advantagable for pharmacy by various kinds. Another way to recruit from preset employee is transfer without promotion. Pharmacy uses it when other branch has required skill and experienced employee.
Former employee Former employees are also an internal source of applicants. Some retired employees may be willing to come back to work on part time bases or may recommend someone would be interested in working for the pharmacy. External sources
97 External sources far outnumber the internal methods. Specifically, sources external to a pharmacy are: Advertisement This is the common source of recruitment. All types of organizations are using it for recruitment. Asfa use most of time this source for recruitment. It gives advertisement in local and stat level news paper. Asfa take care that advertisement must be effectively drafted before publishing. Employment exchange Employment exchanges have been setup all over the country in difference to in provisions of the Employment Exchanges Act, 1959. The act requires the entire industrial establishment to notify the vacancies before they are filled. Asfa also notify its vacancies and take employees from employment exchange. Campus recruitment Colleges, universities and institutes are fertile ground for recruiters. Asfa also recruit it employee from colleges and universities campuses. Employee of pharmacy go to various B Pharm colleges and meets its principals and teachers take information about students from them then meet those students and give job offer to them.
SELECTION
Selection is the process by which candidates for employment are divided into class- those who will be offered employment and those who will not. Thus, the selection process is a tool in the hand of the management to differentiate
98 the qualified and unqualified applicants by applying various techniques such as interviews, tests.
PROCESS OF SELECTION
Selection process starts when recruitment process ends. The steps of selection process are as follows. 1. The first of selection process is receipt of applications. Applications are screened then after and only those are selected whose are matched with require specifications and attributes. 2. The next step taken by pharmacy is preliminary interview. In this only general questions are asked and some information about pharmacy and of job is given to applicants. 3. The third step is selection test. Pharmacy takes written selection test in which they ask questions on ayurvedic medicines. This test is taken only for middle level. 4. For worker and top level test is not taken. They call for interview. Interview is taken by managers and the applicants who are passed from this are selected for job. 5. Job is offered to selected applicants by giving appointment later and information of pharmacy, job and his co-workers.
JOB DESCRIPTION
Job description is a written statement of what the job holder does, how it is done, under what condition it is done and why it is done. It describes what the job is all about, throwing light on job content, environment and condition
99 of employment. It is descriptive in nature and defines the purpose and scope of job. The job description of Asfa pharmacy is involving the following information. Job descriptions of Asfa pharmacy for top and middle level include same information as follows. Information about pharmacy Job title Designation of job holder Job summary Job duties and responsibilities Working conditions Relationship and behavior
JOB SPECIFICATION
Job specification summaries the human characteristics needed for satisfactory job completion. It tries to describe the key qualification someone
100 needs to perform the job successfully. It spells out important attributes of a person in terms of education, experience, skills, knowledge and abilities to perform a particular job. Asfas job specification for top level or managers is including the following things: Post graduation degree 2-3 years experience Age Intelligence and power of decision making Various skills Behavior and personal attributes. Asfas job specification for middle level includes all above matters with some change in education and skills.
PERFORMANCE APPRAISAL
Performance appraisal is the process of systematic, periodic and impartial, estimating or judging the value, excellence, qualities or status and thereby
101 evaluating the performance or qualification of a person, things or object in terms of requirement of the job for which he is employed. Asfa have no performance appraisal system but Asfa can effectively measure the performance of its workers. Asfa may use this appraised report for promotion, transfer, statutory requirement, training and development and for providing incentives. Asfa can easily measure the performance of its workers on time base method because in Asfa all worker has a card for attendance and work hours are easily calculated from that card. Asfa also the record the time of completion of job. There are many medicines are prepared by Asfa at the same time. Medicine prepared in various departments and the time of processing in each department is record by Asfa and from that time it can measure performance of workers of every department.
PROMOTION
102 Promotion refers to upward movement of an employee form current job to another which commands better prestige, higher responsibility and authority, higher challenges, better working condition, hours of work and higher rank. Promotion policy of Asfa pharmacy Promotion policy of Asfa is clear in whether to fill up higher positions by internal promotions the recruit people from outside. Asfa give promotion on the basis of both seniority and merits so it can take advantages of both. It is clear about policy of promotion is whether to promote employees against vacancies or non-vacancies. Asfa establish a well define promotion chart showing who can go up to what level in the pharmacy. Asfa give promotion to any employee only one in a year. The promotion policy is prepared by discussion with managers and other staff. Promotion is not be forced on reluctant employees.
DEMOTION
103 Demotion implies the assignment of an employee to a job of lower rank with lower pay. It refers to downward movement of an employee in the organizational hierarchy with lower status and lower salary. Demotion policy of Asfa Asfa mostly dose not give demotion to any employee but it give demotion only 3 times in its life. Asfa give demotion only when employee is not regular, do not work sincerely or employees behavior in organization not good. In above cases, sometime Asfa left the employee from Pharmacy. The policy is fair and equal for all level of pharmacy. The circumstances under which employees can be demoted is clearly specified and made known to employees.
WELFARE ACTIVITIES
104 Labour welfare means anything done for the comfort and improvement. Intellectual or social of the employees over and above the wage paid which is not a necessity of the industry. Employee welfare or labour welfare means, The efforts to make life worth living for workmen.
105 Communication facility Security Training and development programs Welfare activity for society Provide employment Provide ayurvedic medicines at fair price Effective waste disposal system Effective use of resources of society
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107
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INDUCTION TRAINING
Induction is the process of receiving and welcoming an employee when he first joins a company and giving him the basic information which he needs to settle down quickly and happily and start work. In the pharmacy, induction training is given to all new joiners in Asfa. Asfa provide induction training with objective of reduce insecurity, anxiety, exploitation etc. from the mind of new joiner and he/she can work easily and with skills. Asfa have formal induction program. All details are providing by pharmacy to new employee. Asfas content of induction program includes the following matters: History of Asfa Objectives of pharmacy Name and designation of managers Employees designation and responsibility Layout of pharmacy Production and other processes of pharmacy Job duties, location, tasks, objectives etc Safety steps Employee benefits such as pays, holidays, welfare activities Introduction to superiors, coworkers and other staff
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110
111 Note: There is no trade union in Asfa pharmacy. But the employees can get many benefits if they make the union in pharmacy such increase in salary, protect themselves form exploitation, freeze benefits, etc.
112
113
CONCLUSION
The Asfa Pharmacy completed 56 years. During these periods Pharmacy achieve many progressive stages. This Pharmacy has a head office and other five branches. At this way its branches are spreading in different area of all Gujarat state. From the study of last 2 years Pharmacys financial report, we can say that rate of progress of Pharmacy is very good. Asfa is co-operative pharmacy and since its establishment it is never done loss but Asfa sale its medicines at low price so that its profit is less compare to other Pharmacies. Pharmacys Sales and Profit is decrease in current year to compare past years. For the duration of our training in Asfa, we found that the workers and managerial staff are good and the management of all departments is efficient. Workers are fully satisfied with their work. This Pharmacys aim is not only do profit but also work for employee welfare and societal welfare.
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Budget Fix Variable Total Variance Expenditure Volume Calendar Efficiency Capacity
115
Actual
116
SHRI SWAMI ATMANAND SARSVATI AYURVEDIC CO- OPERATIVE PHARMACY LTD. VARACHHA ROAD, SURAT 395006 RAW MATERIAL TEST REPORT
Sample received date: Sample name: Botanical name: Sample weight: Partys name: Net weight: Sample testing date: Control number: Family: Test as per: Bill no and date: Batch number:
Test Identity (A) Microscope 1. Structure 2. Color 3. Order 4. Test (B) Microscope (C) TLC test purity: 1. Total ash 2. Acid Insoluble ash 3. Foreign matter 4. loss on drying
Result
Limit
SHRI SWAMI ATMANAND SARSVATI AYURVEDIC CO- OPERATIVE PHARMACY LTD. B. R. C. M. College of Business Administration
117
Test Identity (D) Microscope 5. Structure 6. Color 7. Order 8. Test (E) Microscope (F) TLC test purity: 5. Total ash 6. Acid Insoluble ash 7. Foreign matter 8. loss on drying
Result
Limit
118
PURCHASE REQUISITION FORM ASFA AYURVEDIC CO- OPERATIVE PHARMACY Near panini taki, Varachha road, Surat-395006 Phone no : 648092, 644410
Sl. no. Material code Date Place No. Rate Supplier description Size Qty Job/dept delivery Date: Purchase order
Authorized Signature
119
ASFA AYURVEDIC CO- OPERATIVE PHARMACY Near panini taki, Varachha road, Surat-395006 Phone no : 648092, 644410
Job no. Job starting date Job finishing date Sl. Material description No. code Size Qty Issue Particulars Date Qty. Rate Amount Sl. no. Date:
Purchase dept.
Stores dept.
Costing debt.
120
ASFA AYURVEDIC CO- OPERATIVE PHARMACY Near panini taki, Varachha road, Surat-395006 Phone no : 648092, 644410
Folio No: Material Code: Material Description: Date Receipt GRN Qty Rate No No Rs Minimum Level Re-order Level Maximum Level issues Qty Rate Amout Qty Rs Rs Balance Rate Amount Rs Rs.
Amount Rs
BIN CARD ASFA AYURVEDIC CO- OPERATIVE PHARMACY B. R. C. M. College of Business Administration
121
Date
Quality