Introduction Rahul

7/31/2019 Introduction Rahul

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INTRODUCTION

An organization is a social arrangement which pursue collectivegoals, which controls its

own performance, and which has a boundary separating it from

i tsenv i ronmen t . Organ iza t ion i s the a s soc ia t ion fo rmed by a g roup o f pe

op l e w ho wo rk ed individually or in groups to achieve common set ofgoals.Organizational studies are the study of individual and group dynamics in an

organizationalsetti ng, as well as the nature of the organization themselves.

Whenever people interact in anorganization, many factors come to play. Organizational

studies attempts to understand themand hence it is essential to an MBA program as it helps

them to connect theory with practice.As a part of the MBA program I an

organizational study was conducted at OUSHADHI, toknow about the functions of an

entire organization. The study was conducted for a period of one month. The aim of

the s tudy i s to a cqu i re p rac t i c a l knowledge o f the app l ic a t ion

o f management theories in the functioning of the organization and it also helps in

understandingthe organization structure and functions of various departments in the

organization


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INDUSTRY PROFILEAYURVEDA PHARMACY.The pharmaceutical industry develops, produces, and marketsdrugs

licensedfo r u se a s med ica t ions . Pha rmaceu t ica l compan ie s c an dea l in generica n d o r

brand

medications. They are subject to a variety of laws and regulations regarding the

patenting,testing and marketing of drugs. The earliest drugstoresdate back to the

middle Ages. Thefirst known drugstore was opened by

Arabian pharmacistsinBaghdadin 754

and manymore soon began operating throughout themedieval Islamic worldand eventually medievalEurope. By the 19th century, many of the drug stores in Europe and North Americahadeventually developed into larger pharmaceutical companies. The industry remained

relativelysmall scale until the 1970s when it began to expand at a greater rate The Indian

Pharmaceutical Industry today is in the front rank of Indiass c i e n c e -

b a s e d i n d u s t r i e s w i t h w i d e r a n g i n g c a p a b i l i t i e s i n t h e c o m p l e x f

i e l d o f d r u g manufacture and technology. It ranks very high in the third world,

in terms of technology,quality and range of medicines manufactured. The Indian

Pharmaceutical sector is highl yfragmented with more than 20,000 registered units. It has

expanded drastically in the last twodecades. The leading 250 pharmaceutical companies

control 70% of the market with marketleader holding nearly 7% of the market share.

It is an extremely fragmented market withsevere price competition and government

price control. Ayurvedic Pharmacy (AP) is emerging as an independent science largely duetoglobal acceptance of Ayurveda. Ayurvedic Pharmacy is not new subject and has recentlyit

has faced drastic transition. Ayurvedic Pharmacy has roots in Dravyguna, Ras-Shastra

andBhaishjya Kalpana. Ayurvedic Pharmacy utilizes drugs of composite origin including

plant,animal, mineral and marine sources. Ayurvedic medicines are produced by several

thousandcompanies in India. It is estimated that the total value of products from the entire

Ayurvedic production in India is on the order of one billion dollars. The industry has been

dominated by

6less than a dozen major companies for decades, joined recently by a few others

that havefollowed their lead, so that there are today 30 companies doing a million dollars or
http://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/North_Americahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Islamic_Golden_Agehttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Baghdadhttp://en.wikipedia.org/wiki/Islamic_medicinehttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Pharmacyhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Drug


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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 movingconsumer

goods". Most of the larger Ayurvedic medicine suppliers provide materials

other than Ayurvedic internal medicines, parti cularly in the areas of f oods and

toiletries, wherethere may be some overlap with Ayurveda, such as having

traditional herbal ingredients inthe composition of toiletries. The key suppliersin Ayurveda are Dabur, Baidyanath, andZandu, which together have about 85%

of India's domestic market. Exports of Ayurvedicmedicines have reached a value

of 100 million dollars a year. About 60% of this is crudeherbs, about 30% is

finished product shipped abroad for direct sales to consumers, and theremaining

10% is partially prepared products to be finished in the foreign countries

AYURVEDA: THE SCIENCE OF LIFE.Ayurveda i s a s c ience wh ich inden ted to bene f i t the en t i re wor ld . In

anc ien t In d i a i t was considered as a great science in touch with Indian philosophicalthoughts and its tenets werefound highly beneficial as a system of medicine. Ayurveda aims

physical, psychological andsocial welfare of living being. It envisages the means of

preservation of health, preventionand treatment of various ailments.

Approach of Ayurveda is f ie ld or ien ted , ho l is t ic andfunc t iona l . This

science of life utilizes wealth of nature for increasing the resistance of the bo dy

and t rea t s man a s a who le and use s d rug a s a who le a s we l l . Ayurveda

vi es t ha t successful medical treatments depends upon four factors-the

physic ian drugs or diets, nurseand pat ien ts . The obj ecti ve of the sc i ence of

l i f e i s e s tab l i sh ing the equ i l ib r ium o f

bodye lemen ts . Ayurveda favo rs admin i s t ra t ion o f na tu ra l r aw d rugs and

the i r p repa ra t ion .Gene ra l ly A yurved ic med ic ine s cause no tox ic o rsi de ef fe ct s, no qu es ti on of to le ra nc e, resistance and addiction.

PHARMACEUTICAL SCIENCE OF AYURVEDA.The pharmaceutical science of Ayurveda deals with the preparation of

effectiver e m e d i e s f o r t h e e r a d i c a t i o n o f d i s e a s e s a n d p r e s e r v a t i o n

o f h e a l t h . P h a r m a c e u t i c a l p reparat ions are made with a v iew to make the

drug more potent, preserved and clinicallyeffective. Mode of preparation plays an

important role in the absorption of drugs

SCOPE OF AYURVEDAA y u r v e d a h a s d e a l t w i t h a n a t o m y , p h y s i o l o g y , E t i o l o g y , P a t h o l o

g y , T h e r a p e u t i c s , achievements of good health, hematology including the

stage of the disease,

physicians,t h e r a p i e s i n c l u d i n g w h o l e s o m e l o c a l i t y a n d p r o c e

d u r e . T h e b o d y i s c o m p o s e d o f p a n c h am a h a b oo t h a s a n d d i v i

d e d i n t o s e v e r a l o r g a n s . I t s m u l t i f a r i o u s f u n c t i o n s a r e m aintained

and regulated by the food that one takes. The unwholesome contact with

sense,intellectual blasphemy and seasonal variations constitute the etiology of

the diseases. Thedisturbance of the equilibrium of the dhatus is responsible for

the causation of the diseases.Different seasonal changes and the different stages of the

manifestation of diseases, constitutethe time (Kaala). The procedure of treatment to befollowed depends on the time, the diseaseand the drug.


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AYURVEDA IN INDIA

Native to India, Ayurveda is the ancient medicinal form, developed during the Vedic

times,about 5000 years ago. The word 'Ayur' means life, while 'Veda' means

science. Therefore,Ayurveda literally means the 'Science of Life'. It is not just a

medicinal system, but also away of life. Ayurveda deals with the physical, as well asspiritual health. The medicinal formis governed by the laws of nature, which suggest

that life is a combination o f senses, mind, body and soul. According to the

science of life, the structural aspect of every individualcomprises five elements-

earth, water, fire, air, and space. While giving Ayurvedic treatmentto a person to cure a

particular disease, the ph ysical, m ental, emotional and spiri tual well - being is

taken into consideration. The best part of acquiring an Ayurvedic treatment is that if the

prescribed doses of medicine are taken, the diseases can be cured in the most effect way.The

Ayurvedic medicines generally come in the form of powders, tablets, decoctions,

andmedicated oils, that are prepared from natural herbs, plants and minerals. In

addition,

thed i s e a s e s t r e a t e d a n d c u r e d b y A y u r v e d i c m e d i c i n e s d o n o t c a us e a n y s i d e e f f e c t s . According to Ayurveda, the structural aspect of every individual

is made up of five elements- earth, water, fire, air and space. The functional aspect

of the body is governed by three biological humors. Traditional techniques and

processes are used to prepare the medicines athome, while certain amount of

mechanization is inevitably used for large-scale production.The beauty of the

therapeutics is that they contain the active principles in their natural forms

8and their administration in prescribed dozes does not cause any side effects to

the pat ients.Ayurveda g ives a comple t e look in to the l i f es ty le of ape rson , l ike st a r t ing f rom h i s /he r pe rsona l i ty to the da i ly food hab i t s .

The Science of Life helps us in unders tanding eachindividual a t a very

subtle personal level and giving a detailed description about the diet,daily routine,

lifestyle, actions and activities to be followed. The science teaches how to liveli f e in a

ba lance way . Ayurveda a ims a t hav ing a hea l thy and happy soc ie ty ,

f r ee f r om diseases. India has gained worldwide recognition for its indigenous and extensive

Ayurvedictreatment. Various centers are established throughout the length and

breadth of the country,wherein authentic Ayurvedic treatment is given. Kerala is the hub

of Ayurvedic treatments inIndia. Ayurvedic treatment's soothing effect on the body and soul

has attracted tourists fromdifferent parts of the country as well as from across the

globe. This has proved a boon for touri sm in the s ta tes of Ind ia , espe cia l l yKerala, where Ayurvedic treatment is given atvarious health centers and

tourists resorts


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STATUS OF AYURVEDA IN INDIA

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


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MODERN MARKET DEVELOPMENTS

9TheSAARC- Sou th As ia Assoc ia t ion fo r

R eg io na l Co op er at io n wh i ch i nc lu de In di a, Pakistan, Nepal, Bangladesh, Bhutan,

Maldives, and Sri Lanka- These countries all have beeninfluenced by Ayurvedic

medicine. Trade in Ayurvedic medicines within the SAARC ismostly limited

to raw ma te r ia l s tha t g row in one reg ion (e .g . , h igh moun ta in s ,

northernclimate) and are then exported to other regions. Because of the large

number of very smal l fac tor ies tha t t ry to se rv ice the loca l communi t ies ,

with products labeled with the locallanguage, there is little opportunity for

suppliers in one SAARC country to send finished products to another SAARC or

even abroad. Entrepreneurs in these countries, mainly inIndia, are seeking to

b reak in to the marke t fo r na tu ra l p roduc t s have de te rmined tha t

thedemand fo r t r ad i t iona l s ty le A yurved ic med ic ine s bo th in s ide and ou

t s ide t he r eg ion i s limited. They have aimed to bolster interest by carrying out scientificresearch into promisingherbs and formulas that are based on Ayurveda but not

neces sari ly reflect ing tradi tional practices. Of necessity, such research eventually

focuses on finding of active ingredients, andthis has led to the development of

i so la tes f rom p lan ts tha t a re so ld as "nutr iceu t ica ls"-subs tances no t

registered as drugs, but used like nutritional and dietary supplements. For these,

there is a growing worldwide demand.
http://www.saarc-sec.org/http://www.saarc-sec.org/http://www.saarc-sec.org/http://www.saarc-sec.org/


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COMPANY PROFILEOUSHADHI.

The Pha rmaceu t ica l Corpo ra t ion ( Ind ian Med ic ine s ) Ke ra la L td o r

Oushadhi is a herbalAyurvedic medicines production company under the

direct control of Kerala Government.Directly controlled by Health and Family

Welfare Department of Kerala State Governmentand is governed by a Board ofDirectors, appointed by the Government of Kerala. Originatedas Sree Kerala Varma Govt.

Ayurvedic Pharmacy in 1941 at the instance of His Highness theMaharaja of Cochin, for

the supply of medicines to Govt.Ayurvedic Hospitals in Thrissur ander s twh i l e p r i nce l y

fami ly o f Coch in S ta te . In 1959 i t i s conve r ted and reg i s te red a s Co-

operative Society, and named as Sree Kerala Varma Ayurvedic Co-operative

Pharmacy &Stores Limited, No.4318, Thrissur. On 08.09.1975 incorporated as a

company under theCompanies Act 1956 and renamed as The Pharmaceutical

Corporation (I.M) Kerala Ltd

Thrissur and its operations started on 10.07.76 with the take over of the business ofSKVACPharmacy. The company supplies Ayurvedic medicines to 1000 plus

Ayurvedic treatmentcenters functioning under Kerala Government. Their

med ic ine s a re a l so ava i l ab le in

t hem a r k e t . T h e c o m p a n y a l s o s u p p l i e s m e d i c i n e s t o o t h e r s t a t e

G o v e r n m e n t s i n I n d i a . M a d y a p r a d e s h , R a j a s t a n , H a r y a n a , M a h a r a

s h t r a , P u n j a b , C h a t h i s g a r h , O r i s s a , a n d Pondichery.

LOCATION

Registered Office: Shoranur road, Thrissur, Kerala, South India.Factory: Kuttanellur, 8 Kms

from Thrissur Town.Office: Kuttanellur, 8 Kms East from Thrissur Town.OBJECTIVES

Manufacturing and Marketing of high quality Ayurvedic medicines

Research and Developmental studies on Ayurvedic formulations.

Supply quality ayurveda medicines to all Government dispensaries and

hospitals inthe state at subsidized price.

Promotional activities on medicinal plants Cultivation.

Health Care through Panchakarma therapy and Clinical Research Program.

Implementation of Govt. of Kerala Health Care Programmes.

To act as a price stabilizing


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FEATURES

The company manufactures more than 450 Ayurvedic formulations as per ancient

classical texts, rare combinations of expert, experienced Keralite

authori ties andspec i a l combin a t ions deve lop ed i n th e Res earch wing . The

co mp an y up ho ld s an ci en t traditional methods of manufacturing along with

modern machinery and technology u nder strict quality control measures. The

whole manufactur ing activ ities are under the direc t andexpert supervision by

qualified Ayurvedic Physicians. Quality medicines are made availableto the public at

reasonable price

The company meets the entire medicine requirements of Government Ayurvedic

Hospitalsa n d D i s p e n s a r i e s u n d e r t h e D e p a r t m e n t o f I n d i a n S

y s t e m s o f M e d i c i n e s , K e r a l a . The pharmacy fulfils the demands f rom

Directorate of I.S.M.Bhopal, Jaipur National Instituteof Ayurveda, Government

Hospitals and Dispensaries under Central Government

HealthSchemes, Employees State Insurance Medical Services, Government

Ayurveda Colleges,Tribal Welfare Department, Govt. Ayurvedic MentalHospital, Kottakkal, Government of Kerala ICDS Cell programs. Public demands

are met through a network of 500 exclusiveOushadhi Dealers and Agents. The

organization implements health care projects from Local bodies. Propagat ion of

Ayurveda by establishing specific clinical practices all over

India.A l s o i m p l e m e n t s m e d i c i n a l P l a n t s C u l t i v a t i o n p r o g r a m l i n k

e d w i t h l o c a l b o d i e s a n d e n t r e p r e n eu r s u n d e r b u y -

b a c k a r r a n g e m e n t . T h e r e i s a n u r s e r y d e v e l o p m e n t f o r t h e product

ion of quality seedlings.The annual national conference aimed at education on

medicinal plants is conducted under the aegis of oushadhi. Continuing

Medical Educat ion for Ayurvedic practi tioners is another positive step by the

company. It has a wide product range of more than 450 medicines, 15

of them a re pa ten ted to the company . A n Ayurved ic hosp i t a l w i th panch

aka rma t r ea tment facilities is the latest development by the company.

PANCHAKARMA HOSPITAL & RESEARCH INSTITUTE THRISSUR

The Panchakarma Hospital & Research Institute is situated in Thrissur. The hospital

providesmodern amenit ies l ike luxury furnishing, a ir-

c o nd i t io n in g , s p ec i al t r ea t me n t r o om s e t c. O u s h a d h i P a n c h a k a r m a H o

s p i t a l a n d R e s e a r c h I n s t i t u t e i s f u l l y o w n e d b y K e r a l a G o v e r n m e

n t . A y u r v e d i c t r e a t m e n t i s a t r a d i t i o n a l p h e n o m e n o n o f I n d i a . Ou s h a d h i P a n c h a k a rm a H o s p i t a l a n d R e s ea r c h I n s t i t ut e w i l l b e a n a t t r a ct

i on fo r peop l e becaus ePanchakarma therapies are inseparable part of Ayurvedic

management and can be called theessence of Ayurveda. As a part of diversification program,

Oushadhi has entered in the fieldof health care to provide quality treatment to the public.

Adhering to the traditional

m e t h o d s , O u s h a d h i o f f e r s m o s t m o d e m f a c i l i t i e s f o r h e a l t h c a r e p r a

c t i c e s t h r o u g h O u s h a d h i P a nc h ak a rm a Ho s pi t a l a n d R e se a r ch I ns t i tu t e

a t the hea r t o f Kera la s C ul t u ra l cap i t a l , Thrissur.Global attraction towards

Ayurvedic system of medicine, made hopeful chances toimprove the system.

Panchakarma and related health care practices are the integral part of Ayurvedic

system of medicine.


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12HOSPITAL COMMITTEEA committee to advice Oushadhi on various technical aspects of hospital

administration isconstituted. The committee includes experienced and

respectable Acharyas from

differents y s t e m s o f m e d i c i n e , o f f i c i a l s o f G o v t . d e p a r t m e n t s , e m in e n t p e r s o n s i n t h e f i e l d o f Ayurveda, medical research etcMEDICINAL PLANTS CULTIVATIONThe pharmaceutical corporation functions as a nodal agency of the Govt. of

Kerala for the propagation o f medical plants cultivation. Land available in

factory premises is utilized for nursery development under NMPB fund, cultivation of

species like Ashokam (Saraca indica),Raktachandanam (Pterocarpus santalinus), Vilwam

(aegle marmelos), Amalaki (phyllanthusemblicus) and various projects from Kerala Forest

Department and KFRI. Land available atPariyaram, Kannur District is utilized for

cultivation of tree species and selected herbs andnursery development. Has held

discussions with Aralam farm authorities for leasing 100acres of land for medicinal

plants cultivation. Oushadhi Managing Director holds the chargeof Chief executive Officerfor State Medicinal Plants Board.

Objectives

To meet internal demand.

To establish demonstration garden of rare species and to preserve them from extinction.

To develop nursery of Medical plants, make them available even to small land ownerswhocan cultivate medicinal plants and thus increase their income.visionA Leading world class Ayurveda industry in the country by 2020.Core valuesMutual trust and respect.Customer satisfaction.

13Quality control.Professional ethics.

March with time.StrengthEstablished brand image.

Continuous government support.


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Huge market demand.

Dedicated work force.

Future plans

.

The future plans of the company include modernization of existing unit to improvequality

and to meet the modern market requirement.

Establishing branches in neighboring state to promote oushadhi.

Establishment of export oriented production unit for selected high demanded item.

Computerization of entire business.

Establishment of new processing and value addition units.

Strengthening of quality control and drug testing laboratory.

Development of new drugs in neutraceautical,cosmetic and baby product segments.

Promote medical plant cultivation and conservation.

Purchase of raw materials raised by farmers through oushadhi agents spread all over the

states through an effective buy back arrangement to encourage medicinal plantcultivation byfarmers.


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Page 16


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Newly launched products

Vigor Plus.

Oushadhi Cough Syrup.

Bliss balm.

Sudarsanam tablets.

Psorset oil and ointment.

Shaddharanam tabs.Products in pipeline

Hair die.

Herbal face pack.

Herbal shampoo.


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CHAPTER 2


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DESIGN OF THE STUDYThe information and data were collected from both primary and secondary sources.

19Primary sources

Direct interview with managers.

Direct interview with supervisors and workers.

Through direct observation.

Secondary sources

Published sources of the company.

Official websites of the company.

SIGNIFICANCE OF THE STUDY.

To get a practical experience of working of an organization.

Comparison of theoretical knowledge with practical knowledge.

To know about the application of management studies in an organization.

To know the strength and weakness of the organization.

SCOPE OF THE STUDYThe organization study covers the following aspects:

Present position of the company

Overall functioning of the company

Performance of the company

OBJECTIVES OF THE STUDY

The main objective of the study is to acquire knowledge about the organization structure.

To have a practical knowledge of the application of the management theories.

To know the role played by the company in the industry.

To know the profile of the company.

To study the different departments in the organization.

To study the techniques adopted by the company.


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To analyze the strength and weakness of the company.

To analyze issues of the company and give suggestions.

LIMITATION OF THE STUDY

As time was a major constraint, a research type in depth study could not be made.


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CHAPTER 3


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QUALITATIVE ANALYSIS OF THE COMPANYFINANCE DEPARTMENT.Finance i s the l i f eb lood o f eve ry bus ine s s . The ambi t ious p lan o f a

bus ine s s man wou ld rema in mere d reams

un le s s adequa te money i s ava i l ab le to conve r t them in to rea l i ty .F inanc ia l func t ion ca l l s fo r sk i l l fu l p lann ing and con t ro l o f va r ious f inanc ia l a

c t iv i t i e s .

22Finance department play a vital role for the smooth functioning of the

organization. Thisdepartment is involved in all the activities that take place in

the organization. Marketingdepartment and production department have to greatly

depend on finance department for theavailability of the fund. Financial controller is the head

of the department.Organization structure of the department.

graaaaaaaaaaaaaaaf

23

Finance functions deals with procurement of funds and effective utilization of the fund inthe betterment of the business. Control over expenses is ensured by comparing

actual expenseswith that of budgeted figures. By constantly monitoring various

operational activities

costc o n t r o l a n d c o s t r e d u c t i o n a r e f a c i l i t a t e d . A c c o u n t i n g f u n c t i

o n s i n v o l v e s d a y t o d a y accounting of several transactions relating to purchases,

inventories, production, sales,

other incom es , f i xed as se ts , sa la r i es and wages an d o th er exp enses su ch

as m an ufac tu r i n g , administration, selling and distribution.PREPARATION OF FINANCIAL STATEMENTOne o f the impor tan t r e spons ib i l i t i e s o f t he depa r tmen t i s the p repa ra t i

on o f f i nanc i a l statement in a periodic basis and the interpretation of this statement. Thisis quite helpful for the management in ensuring proper control over the performance of the

company and also toframe up appropriate policy frame works. The finance

department prepares the followingstatements

Profit and Loss Account

Fund Flow Statement

Budget

BOOKS OF ACCOUNTS MAINTAINED BY THE FIRM.


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Cash book

Bank book

Purchases book

Sales book

Journals

General ledger

Fixed assets ledger etc

CASH MANAGEMENT

24C a s h i s n e e d e d b y t h e f i r m t o m e e t i t s t r a n s a c t i o n s p r e c a u t i o n a ry a n d s p e c u l a t i n g requirements. The fund provided by the Government is managed

efficiently by the firm. For this a budget is prepared for the proposed requirements

of fund that will be needed by each department. The goals of the cash management are

To satisfy the day today business requirements

To provide for schedule major payments

To face unexpected cash drains.

To build image of credit worthiness

To build the reservoir for net cash.ALLOCATION OF FUNDS TO VARIOUS DEPARTMENTSFinance functions deals with procurement of funds and effective utilization of the fund in

the betterment of the business. Allocation of funds held in this mil l as per

requirements andavailability. All the funds are allocated to various departments

that is purchase department,store department, production department,

maintenance department, marketing department,and administration department.PAYMENT AND COLLECTION PROCEDURE

The payment and collection of money held in finance department. By constantlymonitoringvarious operational activities cost control and cost reduction are facilitated. The

major supplyof the organization is to government. For a public organization government will

provide fundif they had, and using the fund provided by the government medicines

are produced and amajor portion are sold to government. For sales to agency, cash and

carry system is followed.Credit sales are not allowed. As regarding to purchase of

raw materials, purchases are done by inviting tenders. Annual tender is invited

and a credit period of sixty days are al lowed if immediate payments are not

made. Likewise in the case of installation of machinery also.After installation and

commissioning the payment for machineries are made.

25


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MARKETING DEPARTMENT.Oushadhi is having a strong network of exclusive Oushadhi agents and dealers of about

600.These agencies are exclusive showrooms of oushadhi products. Distribution

centers have been opened in New Delhi, Mumbai, Pondichery etc for catering

outside Kerala

Marke t .Oushadhi i s the Pr inc ipa l suppl ie r o f Ayurvedic Medic ines to Gove rn me nt Ay ur ve di cHospitals and Dispensaries under Indian Systems of

Medicine (Kerala)as well as to someother I S M department of Madhyapradesh

Chattigarh,Rajasthan,Pondichery etc. also

theo rgan iza t ion Supp l ie s med ic ine to in s t i tu t ions

li ke Go vt .A yur ve da Col le ges , Men ta lHospital,Kottakal etc. Supply

of medicines to Government of Kerala Health

Care programsfor conta g ious d iseases . Ext ends s uppl i es to Centr a l G over

nm ent Hea l t h s chemes , ESIdispensaries, ministry of Labour & mining, Tribal

Welfare Department etc.organization structure of the department

.

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Continuous innovation of product

To sell the products through suitable distribution structure.

Pack and sale products in convenient pack and to use and store.

ADVERTISING POLICIES AND PROCEDURESOushadi has created a high brand image that they are not even able to meet the

cus tomer demand . The y s t i ck t o the po l ic y tha t A sa t i s f i ed cus tomer i s t

he be s t ad v er t i semen t . However to educate customers and make them aware

of new product, Oushadhi advertisetheir products through various Medias which

include:

Newspaper

Television channels

FM Radio


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Internet

Tradefair

Exhibition

Customer meet

Medical camp by agents.

Film adAdvertisement for the company is done through various agencies. For this

a paper is calledfor and agencies are invited. The company will interview the

representatives of the agencies.After interview the company will evaluate which

agency can effect ive ly sel l them. A to tal budget of one lakh is allocated for

advertisement. The various cost incurred are for

Payment to agencies

29

Payment to medias

To display Pop materials for purchaser

Shooting ad film etcDISTRIBUTION STRUCTUREDistribution structure involves the channel through which the products

are reaching in thehands of consumers. As Oushadhi is a Government organization, two by

third of the products produced are sold to the Government. The rest of the sales is done

through agencies. Oushadisale its products through six hundred and ten agencies across

Kerala and special outlets in theMetros all over India. These agencies helps the organization

For the forward flow of products from the company to the consumers.

Provide for the successive storage and movement of the product.

Helps for making orders and payments.SALES PROMOTION ACTIVITIESSales promotion activities are conducted to stimulate greater purchase of particular

products by the consumer. Oushadi is as patent producer of Ayurvedic medicine and has

created brandimage since the beginning. The company is having high demand for its products

and is notable to meet the exi sting demand. Hence they do not take too much

effort to promote thei r products. However, to meet the competition and at the time of

introduction of new products,they conduct promotional activity which include

Conducting exhibitions and Trade fair


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Providing free samples

Conducting free medical camp

Consumer contest etc.

30

Meetings, seminars & camps.MARKETING RESEARCHResearch activities are conducted for the introduction of new products. Oushadhi

conductresearch ac t iv i t ies to deve lo p medic i nes tha t can be used for

new deseases. The stepsinvolved while conducting a research include

Define the problem

Develop the research plan

Collect the information

Analyze the information

Present the findings

Making the decisionLar ge sc al e res ea rch act iv it ie s ar e con du ct ed by th e R

& D Oushadhi. If any epidemicshappen to spread all over state, oushadhithrough its research activities will come up withmedicines which can cure such

diseases.

HUMAN RESOURCE DEPARTMENT.

Human Resources and Administration department is one, which facilitates smoot

hworking of the organization by looking into the human resource side and also theoverall

administration of organization

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HR MISSION:

To create HR policies and processes which are employee friendly


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To build a culture which is warm forthcoming and professional with a senseof ownership &

pride.

To encourage innovative thinking.

To encourage transparency & teamwork.

To develop leaders at all levels with general management skills.

To create a learning organization.

To develop competencies & skills through training and development.

To constantly raise levels of employee productivity.

To work towards attaining & sustaining the best employer statusMAJOR FUNCTIONS:a ) R e c r u i t m e n t b ) S e l e c t i o n c ) T r a i n i n g d ) I n d u s t r i a l

R e l a t i o n s e ) W e l f a r e f ) S e c u r i t y a n d S a f e t y g) O t her

A d mi n i st r a ti v e a c ti v i ti e s h ) P e r f o r m a n c e

m a n a g e m e n t i ) E n f o r ce m e n t o f w o r k c u l t u r e .

Page no 34 graaaaaf

RECRUITMENT & SELECTION.Employees in the o rgan iza t ion a re rec ru i t ed a f t e r r ev iewing the

vacancy. Em pl oyees a re selected by the Public Service Commission. Candidates who

are eligible in the test are calledfor interview and based on thei r performance they are

selected. Some times vacancies mayarise in the organization and may need immediate

placement, in such situation employees areselected on temporary basics. Such

employees recruitment is done through advertising thevacancy. Recruitment and

selection include two phases. The first phase includes vacancyreview, after

finding out the vacant position, criteria for selection is formulated. Thensuchvacancies are advertised in Medias. After this a selection panel is organized.

The second phase includes short listing the applicant who matches the

requirement of the organization.Then these applicants are interviewed by the

panel members. After the completion of theinterview the candidates are evaluated.

Based on their performance they are selected.


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Recruitment and selection

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DISCIPLINE.Discipline is used to refer the act of imposing penalties for wrong behavior. If employees

failto observe the rules, they are meted out punishment. Any employee violating the

disciplineinthe o rgan iza t ion wi l l be g iven pun ishmen t . Pun i shmen ts a re ba sed on

t h e depth o f in disciplinary actions committed by the employee.I f an y em plo ye e

commi ts a mino r mis take he ha s to unde rgo sma l l pun i shmen ts

whichinclude:

Suspension,

Charging penalties,

Cutting down the benefits which are expected to receive in future.

Demotion.If the in disc iplinary action of the employee can not be

t ol er at ed , t he y ar e gi v en se ve r e punishments which include:

Dismissal

Restricting scope for promotion in carrier

Cutting down salary of the employee.

S e l e c t i n g p a n e l m e m b e r s S e l e c t i o n d e c i s i o n

34


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All these actions are taken by the M.D. If any employee notices any actions from

their co-workers side which are against the discipline of the company, they can

report to the

M.Dr e g a r d i n g s u c h a c t i o n . T h e y n e e d t o r e p o r t i t t o t h e i r s u p e r i

o r i n a w r i t t e n f o r m . I n disciplinary actions include not doing the assigned job not

respecting supervisors sleeping atworking hours , bribery, not war ring un iforms whil eat work , put in false signatures, leavewithout prior permissions , harassing others,

using drugs in the organization etc.Disciplinary rules of the organization include:

Employees should present in the organization at the correct time.

To ensure they are present at the correct time, punching system is followed.

I f a n y e m p l o y e e c o m e s l a t e f o r o n e h o u r h e c a n n o t j o i n t h e w o r

k w i t h o u t t h e permission of his supervisor.

If the employee continues to come late for more than three days his one day leave for that

month will be cancelled.

If employees absent themselves during the work hours after punching his attitude will be

considered as in disciplinary action.

Employees are asked to carry their identity cards in order to enter to the organization.

Any employee arrested or got imprisoned for any criminal offense for more than fortyeight

hours; he will be suspended for the time for which he was in the custody.

If he proves to be innocent, he can rejoin salary will be provided.

GRIEVANCE HANDLINGEvery employee has certain expectations which he thinks must be fulfill by

theorganization he is working for. When the organization fail to do this he develops a feeling

of discontent. When the employee feels that something is unfair in the organization he is said

toh a v e a g r i e v a n c e . I f a n y e m p l o y e e f e e l s s u c h , h e n e e d s t o r e p o

r t i t t o t h e i m m e d i a t e supervisor. If he is not taking any action within one

month or his actions are unsatisfactory,the employee can report it to the next higher

authority.The grievance if any should be passed through the following channel

TRAINING AND DEVELOPMENT

.

Training is the act of the increasing the knowledge and skills of an employee

fo r pe r fo rming pa r t i cu la r job . T ra in ing i s p rov ided fo r bo th manage rs

and workers, as bothinclude fresh and experienced hands. In Oushadhi

tra ining is provided under the cont rol of HR department to cater the needs of

employees. Both on the job and off- the job training

are provided to the employees . Employees a re asked to par t ic ipa te in th

e training programconducted by the outside trainers like

Kerala Institute of Local Administration (KILA)


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Information Management Group (IMG)

PF

TMA

National productivity council

Institute of Charted Accountant of India. Etc.

W o r k e r s

ForemanSupervisorManager

36The general topics of training include building positive attitude; performance

improvementetc. To ensures versatility of workers job rotation and apprentice

training are given to theemployees. The impact of training will be observed from the

performance of the employees.

36The general topics of training include building positive attitude; performance

improvementetc. To ensures versatility of workers job rotation and apprentice


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training are given to theemployees. The impact of training will be observed from the

performance of the employees.

PERFORMANCE APPRAISAL OF EMPLOYEES.Performance appraisal is done to evaluate how well an employee is performing his job in

theorganization. Based on this compensation decisions, decision on promotion of

employees,need for training and development of employees are decided.Performance is appraised onyearly basics and it will be graded as outstanding,

good, satisfactory & unsatisfactory. Theappraisal is done by top management. The

appraisal form is given to workers and are asked tofill in the details which include

name, job specification, target achieved by the employees,their difficulty in

achieving the target if any etc..

FINANCIAL AND NON FINANCIAL INCENTIVESOushadhi pharmaceuticals provide both financial and non financial benefits to the

employeesin order to retain them and to provide a satisfied work environment.Financial

incentives include:

Bonus,

Extra wages for meritorious performance,

Leave wages etc.

Honora r iums o f Rs1000 a re awarded to the employees who

have extra ordinarycaliber to perform job efficiently and effectively.The various non

financial incentives include:

Providing training facilities to the employees,

Giving suitable promotions to employees.

Employees are allowed to participate in managerial decision making,.

Family get together and

37

holiday trips are conducted by the organization

WELFARE FACILITIES.Welfare facilities are provided for better standard of living of the employees. The intramural

facilities include:

Rest shelters,

Uniform and protective clothing

Subsidized food

medical reimbursement,


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Canteen etc. The extramural facilities include:

transportation facilities

maternity benefits

Social insurance etc.

COMPENSATION PLAN.Sa la r i e s o f the employees a re pa id a s pe r paymen t o f Wages Ac t 1936 .

Salaries to the employees are paid at the end of every month. Special wages

are tothe employees

for s p e c i a l w o r k . P e r s o n a l s a l a r y i s p a i d o n a c c o u n t d e m o t i o n

g i v e n t o t h e e m p l o y e e s . Employees who have extra ordinary caliber are paid with

an honorarium of Rs 1000.

PRODUCTION DEPARTMENT.

38In every department production department plays a very important role. Like wise in

oushadhi pharmaceuticals also. The function of this department is to plan and control the

production of medicines . Product ion manager i s the head of this depar tment .

Oushadhi pharmaceut icals produce around 450 varieti es of medicines. The

functioning of this department has quality because of the supervision of experienced

doctors to supervise production. The production of medicines is as per GMP norms.

Strict quality control procedures are practiced to

ensurequa l i ty of raw mate r ia ls and f in ished produc ts . Modern dosage l ik

e o i n t ment , t ab l e t s , granules, and syrup are introduced.The objective of this department

is:

Achieving high production efficiency

Low costs

Mass distribution

Generl structure

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THE POWERS AND DUTIES OF PRODUCTION MANAGER


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Planning and implementation of production in the Factory on the basis of prefixedtargets.

Ensure that necessary documents, registers and records in relation to production are properly

maintained.

Ensure co-ordination between sections of production.

Maintenance of general discipline in the factory.

Deployment of workers suitably.

Observation of product/process related statutory requirements etc.

PRODUCTION PROCESSProduction process starts with the purchase of raw material. Raw materials

purchased are stored in the raw material stores. These materials needed for production are

collected from all over India. They are purchased after testing the qualityof ma te ri al. The mat er ia l wh ic h matches the pre- determined specifications

is purchased. Each doctors are provided with a raw material come issue note.

They will specify their requirements in the note. These raw materials purchased

are then transferred to pre processing unit. There these materials are transferred

into course powders for preparing medicines. These are then transferred

into processing units where the actual production takes place. These produced products are

then transferred to the quality control section and after checking the quality it is

transferred into prepared medicine stores. .

RECEIVING & PROCESSING ORDERS.As Oushadh i i s a Gove rnmen t unde r tak ing , eve ry yea r Gove rnmen t re le

a se fu nd in t he budget. Production is based on the basis of previous years demand. The th of the products are sold to Government. There is a raw material come issue note

provided to each department an d do ct or s. Th ey wi ll sp ec if y th ei r re qu ir em en ts

and based on this production is done. Usually order is received as per the

demand. Batch processing is done. The total order is

THE POWERS AND DUTIES OF PRODUCTION MANAGER

Planning and implementation of production in the Factory on the basis of prefixedtargets.

Ensure that necessary documents, registers and records in relation to production are properly

maintained.

Ensure co-ordination between sections of production.

Maintenance of general discipline in the factory.

Deployment of workers suitably.

Observation of product/process related statutory requirements etc.


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PRODUCTION PROCESSProduction process starts with the purchase of raw material. Raw materials

purchased arestored in the raw material stores. These materials needed for production are

collected from allov er In di a. The y a re pu rch as ed aft er te st in g t he qu ali ty of

ma te ri al . Th e mat er ia l wh ic h matches the pre- determined specifications is

purchased. Each doctors are provided with araw material come issue note. Theywill specify their requirements in the note. These rawmaterials purchased are

then transferred to pre processing unit. There these materials aretransferred into

course powders for preparing medicines. These are then transferred

into processing units where the actual production takes place. These produced products are

thentransferred to the quality control section and after checking the quality it is

transferred into prepared medicine stores. .

RECEIVING & PROCESSING ORDERS.As Oushadh i i s a Gove rnmen t unde r tak ing , eve ry yea r Gove rnmen t re le

a se fu nd in t he budget. Production is based on the basis of previous years demand. The

th of the productsare sold to Government. There is a raw material come issue note provided

to each departmentand doctors. They will specify their requirements andbased on this production is done.Usually order is received as per the

demand. Batch processing is done. The total order is

40divided into batches and. After production of each batch the quality is tested.

Based on theorder received production is carried out accordingly.

Eg of production process of kashayam:

INVENTORY MANAGEMENT.The Inventory Management system and the Inventory Control Process provides

informationto effic iently manage the f low of materia ls , effectively uti l ize

peop le and equ ipmen t ,

Raw materialsDisintegrationDrugboiler.Evaporating

pan.Addingpreservatives.certificationInprosessqualitycheck.Qualitycheck Qualitycheck Pac

king.


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40divided into batches and. After production of each batch the quality is tested.

Based on theorder received production is carried out accordingly.

Eg of production process of kashayam:

INVENTORY MANAGEMENT.The Inventory Management system and the Inventory Control Process provides

informationto effic iently manage the f low of materia ls , effectively uti l ize

peop le and equ ipmen t ,


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Raw materialsDisintegrationDrugboiler.Evaporating

pan.Addingpreservatives.certificationInprosessqualitycheck.Qualitycheck Qualitycheck Pac

king.


35/38


36/38

41coordinate internal activities, and communicate with customers. Inventory Management

andthe activities of Inventory Control do not make decisions or manage operations; they

providethe information to Managers who make more accurate and timely

decisions to manage their operations. The basic building blocks for the Inventory

Management system and InventoryControl activities are:1. Sales Forecasting or Demand

Management2. Sales and Operations Planning3. Production Planning4. Material

Requirements Planning5. Inventory Reduction

PRODUCTION PLANNING

Production planning is the process of producing a specification or chart of themanufacturingoperations to be performed by different departments over a particular time


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period. Productionscheduling takes account of factors such as the avail abili ty of

plant and materials, customer delivery requirements, and maintenance schedules.

Production plan is prepared as per

thedemand rece ived . A ba tch manufac tu r ing reco rd i s ma in t a ined by the

department. Thematerials required for each bottle of medicines, and also the

quantity needed is specified.Using this total quantity to be produced is calculated andproduction is done on the basics of this information.

Steps in production planning:1. Production planning Verify the annual production demand from marketing section

Convert the annual production demand to batch wise report monthly, weekly, daily Reply to

marketing section I f t h e ac tu a l p ro d u c t io n p lan i s sa t i s fac to ry to th e

ma rke t ing depa r tmen t , i t i s s end to purchase Production target & achievement

details of each section.2. Allocation of man power for each section

Steps in production planning

1.Production planning

Verify the annual production demand from marketing section

Convert the annual production demand to batch wise report monthly, weekly, daily

Reply to marketing section

I f t h e a c t u a l p r o d u c t i o n p l a n i s s a t i s f a c t o r y t o t h e m a r k e t i n g

d e p a r t m e n t , i t i s s e n d t o purchase Production target & achievement details

of each section.

A b s e n t e e i s m o f m a n p o w e r i n e a c h s e c t i o n a n d a l l o c a t i o n o f

reserved man power toconcerned section

2. Allocation of man power for each section

3. Product creation

Check infrastructure availability

Develop raw material indent for a product

Fill in the batch manufacturing record

Record quality checking details

Details of Daily packing (quantity packed, pending, reasons for delay in packing)


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Complete the BMR return to QC lab4. Medicine transfers

Prepare medicine transfer statement

Introduction Rahul

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Transcript of Introduction Rahul