Kerala State Drugs

May 27, 2018 | Author: santhoshchandu.santhoshmohan | Category: Tablet (Pharmacy), Pharmaceutical Drug, Employment, Pharmaceutical Industry, Salary
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OS on KSD...


An Organizational Study at Kerala State Drugs & Pharmaceuticals Ltd

Submitted in partial fulfillment of the requirements for the award of the degree


Submitted by: Enrolment No: Course Code: CC20 Under the guidance of:

Mr.: Shamnath R.S

MG University Off Campus Academic Center Thycaud


I declare that the project report entitled “An organization “An organization study on Kerala State Drugs & Pharmaceutical ltd Submitted by me for the award of Master of Business Administration of M.G University is my own work. The report has not been submitted for the award of any other degree of this university or any university.

Place: Date:


I declare that the project report entitled “An organization “An organization study on Kerala State Drugs & Pharmaceutical ltd Submitted by me for the award of Master of Business Administration of M.G University is my own work. The report has not been submitted for the award of any other degree of this university or any university.

Place: Date:


First of all I wish to express my deep gratitude and thanks to God who helped us in completing the organization study successfully. I shall remain grateful to. Mr.:…………………………BSS IT MISSION THYACDU for his amble guidance and encouragement for completing the organization study. I am also extremely grateful to faculty member for their valuable suggestions and advice regarding this work. I also express my profound gratitude to project guide Sr. ………………. , Manager, HRM for his valuable guidance and timely advice and well-wishers for Encouragement Encouragement given to us during the course of the project. It is my pleasure to express a deep sense of grateful Sr. to

…………………………. ,

Manager, Safety & Environment Department

& MIS without his untiring efforts and tremendous background information

this work would not have materialized. I express my sincere Thanks to all the staff of Kerala State Drugs & Pharmaceutical ltd for their co-operation during my study in the company. Last but not least we thank my parents and for all their moral support and help, they had given to me.


Introduction Industry Profile & Company Profile Product Profile Functional Departments

   


Personnel Department Production Department Commercial Department Civil Department

SWOT Analysis Findings & Suggestions Recommendations Conclusion Appendix   Bibliography


The term ‘organization’ has been defined by many experts of management in different ways, and while defining the term they have put emphasis on its different aspects. This has created a lot of confusion. Generally, organization refers to a group or an association or an institution of individuals working together for achieving predetermined common goals. So an organization is inevitable in those situations where two or more individuals work together to achieve a common objective. It may also defined as a planned unit formed by individuals for pursuing specific goals. The organization may further be viewed as a collective entity of individuals putting in joint effort to seek their common interests. Organizational study is "the examination of how individuals construct organizational structures, processes, and practices and how these, in turn, shape social relations and create institutions that ultimately influence people", organizational studies comprise different areas that deal with the different aspects of the organizations, many of the approaches are functionalist but critical research also provide alternative frame for understanding in the field. Organization is the backbone of management. Without efficient organization, no management can perform its functions smoothly. Sound Organization contributes greatly to the continuity and success of the enterprise. The organizational study undergone during the month of May was for partial fulfillment of the award of degree of Master of Business Administration of Mahatma Gandhi University. It helps to know more about the functions, structure, policies and different procedures undertaken in an organization. The study abridges the gap between theoretical knowledge and practical working condition. The organizational study was conducted at KERALA STATE DRUGS AND PHARMACEUTICALS Ltd which is the only pharmaceutical undertaking of government of Kerala. The study helped me to know the various functions in the organization. Every organization can be conceived as consisting of various subsystem or parts. Effective functioning of each of these parts is essential for effective functioning of the organization. In addition, the coordinated functioning of these subsystems also contributes to organizational effectiveness. For making organizational diagnosis the, strength weakness and potential of each of the subsystem need to be examined, hi addition the various processes that contributes to the effective functioning of the organization as a whole to be examined.

1.2 SCOPE OF THE STUDY The organizational study helps us to familiarize with the practical side of organizational functions. Thus an analysis is made through studies in which the theoretical aspect is compared with the actual situation.

The scopes of the study are:

 

This study aims to acquire an overall knowledge about all the Departments and procedures being carried out in the organization. To have an exposure in working environment of an organization This study help to understand the decision making process in an organization and also to know the organization system.


The organizational study is to familiarize with a business organization and the operation of its departments and also interact with the managers at various levels of the organization hierarchy to acquire awareness about the practical side of the theories. Also the scope of the study covers examination of the structure of the organization, seeking information about the products produced and study on the functions of various departments of the firm.

  

To carry out a departmental study or analysis at Kerala Drugs and Pharmaceuticals LTD. To familiarize with the organizational function. To understand and get familiar with all the activities in the company To understand process flow and management of departments in the company

   

To get acquainted with the policies, procedure, strategies, and programs adopted by the company. To know the inter related department functions of an organization To familiarize with the organizational structure and various departments. To find out the Strength, Weakness, Opportunities& Threats of KSDP To knows the duties and responsibilities of the personnel.

CHAPTER-2 INDUSTRY PROFILE Background The Pharmaceutical Industry today is in th e front rank of India’s science -based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian pharmaceutical sector has come a long way, being almost non-existent before 1970 to a prominent provider of healthcare products, meeting almost 95 per cent of the country's pharmaceuticals needs. The Industry today is in the front rank of India’s science -based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units with severe price competition and government price control. It has expanded drastically in the last two decades. There are about 250 large units that control 70 per cent of the market with market leader holding nearly 7 per cent of the market share and about 8000 Small Scale Units together which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Background The Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian pharmaceutical sector has come a long way, being almost nonexistent before 1970 to a prominent provider of healthcare products, meeting almost 95 per cent of the country's pharmaceuticals needs. The Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units with severe price competition and government price control. It has expanded drastically in the last two decades. There are about 250 large units that control 70

per cent of the market with market leader holding nearly 7 per cent of the market share and about 8000 Small Scale Units together which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations.

Growth Scenario India's pharmaceutical industry is now the third largest in the world in terms of volume. Its rank is 14th in terms of value. Between September 2008 and September 2009, the total turnover of India's pharmaceuticals industry was US$ 21.04 billion. The domestic market was worth US$ 12.26 billion. This was reported by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. As per a report by IMS Health India, the Indian pharmaceutical market reached US$ 10.04 billion in size in July 2010. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent annually 2.3 Domestic Demand The industry has enormous growth potential. Factors listed below determine the rising demand for pharmaceuticals. • The growing population of over of a billion • Increasing income • Demand for quality healthcare service • Changing lifestyle has led to change in disease patterns, and increased demand for new medicines to combat lifestyle related diseases More than 85 per cent of the formulations produced in the country are sold in the domestic market. India is largely self-sufficient in case of formulations. Some lifesaving, new generation under- patent formulations continue to be imported, especially by MNCs, which then market them in India. Overall, the size of the domestic formulations market is around Rs160 billion and it is growing at 9 per cent per annum. 2.4 Future Prospects The Indian pharmaceuticals market is expected to reach US$ 55 billion in 2020 from US$ 12.6 billion in 2009. This was stated in a report title "India Pharma 2020: Propelling access and acceptance, realizing true potential" by McKinsey & Company. In the same report, it was also mentioned that in an aggressive growth scenario, the pharmaceuticals market has the further potential to reach US$ 70 billion by 2020 Due to increase in the population of high income group, there is every likelihood that they will open a potential US$ 8 billion market for multinational companies selling costly drugs by 2015. This was estimated in a report by Ernst & Young. The domestic Pharma market is estimated to touch US$ 20 billion by 2015. The healthcare market in India to reach US$ 31.59 billion by 2020. The sale of all types of pharmaceutical drugs and medicines in the country stands at US$ 9.61 billion, which is expected to reach around US$ 19.22 billion by 2012. Thus India would really become a lucrative destination for clinical trials for global giants. 2.5 Market Share Of Different Pharmaceutical Product Categories Category Market share (%) Value growth (%) Volume growth (%) Anti  – infective 17 4 11 Gastrointestinal 11 8 9 Cardiac 10 18 15 Respiratory 10 9 6 Vitamins/minerals 10 5 5 Pain/analgesic 10 8 9 Dermatological 5 8 4 Gynaecology 5 3 -1 Neuro psychiatry 5 10 6 Antidiabetics 4 11 16 Opthologicals 2 18 16 others

Major Players In The Pharmaceuticals Industry

1. Ranbaxy Laboratories Ltd. 2. Dr. Reddy’s Laboratories 3. Nicholas Piramalindia Ltd 4. Cipla Ltd 5. Biocon Ltd 6. Aurobindo Pharma Ltd. 7. Glaxosmithkline Pharmaceuticals Ltd. 8. Cadila Healthcare Ltd. (Zydus) 9. Sun Pharmaceuticals Industries Ltd. 10. Wockhardt Ltd. 11. Dihman pharmaceuticals Ltd 12. Elder pharmaceuticals Ltd 13. JB pharmaceuticals Ltd 14. Merck pharmaceuticals Ltd 15. Matrix laboratories Ltd

Strengths Of Indian Pharmaceutical Industries 

Competent workforce India has a pool of personnel with high managerial and technical competence as skilled workforce. It has the largest English speaking population in the world. Professional services are easily available. Cost-effective Chemical Synthesis Its track record of development, particularly in the area of improved cost beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

Information & Technology It has a good network of world-class educational institutions and established strengths in Information Technology. Globalization The country is committed to a free market economy and globalization. It has a 70 million middle class market, which is continuously growing

Consolidation The international pharmaceutical industry is finding great opportunities in India as the process of consolidation has started taking place in India.

Low priced products The industry has thrived so far on reverse engineering skills exploiting the lack of process patent in the country. This has resulted in the Indian pharmaceutical players offering their products at some of the lowest prices in the world.

Quality assurance The quality of the products is reflected in the fact that India has the highest number of manufacturing plants approved by US FDA (61 plants), which is next only to that in the US. Dominance in the market Multinational companies have traditionally dominated the industry, which is another trend seeing a reversal. Currently, it is the Indian companies which are dominating the marketplace with the local players dominating a number of key therapeutic segments. Self-reliance Displayed by the production of 70 per cent of bulk drugs and almost the entire requirement of formulations within the country.

Labor force With one of the largest and most genetically diverse populations in any single country, India can recruit for clinical trials more quickly and perform them more cheaply than countries in the West.

Other Strengths Low cost of production, Low R&D costs, Innovative Scientific manpower and Increasing balance of trade in Pharma sector are also significant strengths of the Indian pharmaceutical industry.

Challenges Of Indian Pharmaceutical Industry

Underdeveloped new molecule discovery program The main weakness of the industry is an underdeveloped new molecule discovery program. Even after the increased investment, market leaders such as Ranbaxy and Dr.Reddy’s Laboratories spent only 5 -10 per cent of their revenues on R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last year was greater than the combined revenues of the entire Indian pharmaceutical industry. This disparity is too great to be explained by cost diffentials, and it comes when advances in genomics have made research equipment more expensive than ever.

Hue & cry against exploitation In clinical testing persons from developing countries will be used to generate data about possible effects of a drug. A feeling of unrest among them or some section of society might develop that we are being used as guinea pigs. It might lead to demonstrations or legislations which will hamper the growth of industry.

IP leakage IP leakage is one of the major concerns by companies outsourcing research work to India. So any major incident of IP leakage by Indian company can taint the image of whole industry.

Restricted items There are a lot of items that are restricted under the EXIM policy from free trading. These restrictions are a weakness for the industry and hence pose to be a threat for its development.

Safety concerns With recent high profile product withdrawals, there are also concerns that regulatory agencies will tighten up safety and efficacy testing requirements. A particular

focus will be on the application of pharmacogenomics techniques to improve safety profile, but the advent of such techniques in the long run will improve industry productivity as more pharmacogenomics data is collated.

CHAPTER 3 COMPANY PROFILE Introduction About The Company Kerala State Drugs & Pharmaceuticals Ltd., a Public Sector Undertaking, since its inception in 1974 has been manufacturing and supplying essential and lifesaving medicines to cater the need of the common patients resorting to Hospitals in the State of Kerala. It is situated in Kalavoor, Alappuzha district. The KSDP Ltd. was incorporated as a company on1971 under the companies act,1956 with the main object of meeting the entire demands of drugs and formulation of the State Health Service Department. KSDP Ltd. is a subsidiary of M/S Kerala State Industrial Enterprises Ltd ( KSIE Ltd),Trivandrum. The factory was inaugurated in 12th September, 1974 and started its commercial production, manufacturing and supplying of essential and lifesaving drugs to health service department of the government of Kerala from 1978 onwards. It was started as a “kitchen” to supplying medicines to various government institutions coming under Government of Kerala. The complete shares of the company are taken by the Government. The liability of the members is limited. The slogan of the company is “quality that cures” and the company produces medicines that ‘cures’ rather than treats. The Company has reached glorious heights in its way to thrive in this Hi-Tech era. The Product Development wing of the Company has made all efforts to bring out scores of new products in addition to the existing multiplicity of drug formulations to the tune of hundred odd products. The development work of new generation drugs are in progress. Without any compromise in Quality, KSDP LTD. is shielding itself from the globalization threats and venturing in to commercial trade operations. Now the Company is a major supplier of Quality drugs to Kerala State Medical Service Corporation (KMSCL), Thiruvananthapuram. When multinational companies and other companies in the private sector were supplying medicines at exorbitant prices and reaping high profits, the entity of Government Company in the pharmaceuticals sector became absolutely necessary and hence the honorable minister for industries Sri T.V Thomas decided to set up the plant in an industrially backward district alleppey. The watch word of KSDP is “May all be free from diseases”. KSDP has two units. 1. Formulation division

2. Vitamin division (Now formulation division is only working)

1. Formulation division : The formulation division has different department such as Marketing, Production Purchase, Store, Production Planning, Personnel, Finance, Maintenance and research & development. KSDP started with this formulation division and as far as KSDP is concerned the formulation is very important and now this division is only working. Mainly the company is producing different types of tablets, capsules and powders.

2. Vitamin: a division KSDP started producing vitamin A in the year of 1983 and seized in the year 2004.The company stopped the production of Vitamin A due to heavy loss. The loss of the plant was due to high cost of production and unavailability of raw materials like lemon grass oil.

Vision and Mission Vision To manufacturing and market “quality drugs” at economical rates to the common man and to extend social justice to suit the needs of the common man, moreover to formulate new products through research and development

Mission To undertake manufacture and trading of drugs, pharmaceuticals, Radio  –Pharmaceuticals, Nutriments, Cosmetics and Hospitals equipment To provide financial, technical, marketing development or any other assistance and guidance to any establishment, undertaking or any description what so ever which is likely to facilitate or accelerate the development of industries relating to Drugs, Pharmaceuticals, Radio- Pharmaceuticals, Nutriments, Cosmetics and Hospital equipment. To promote, establish and operate sales offices such as Emporia, showrooms. Publicity offices, Stalls and Centers with the object of improving the marketability of Drugs, Pharmaceuticals Radio  –Pharmaceuticals, Nutrients, Cosmetics and Hospitals equipment.

Specialities Being a pharmaceutical industry, the KSDP has a well maintained animal house to perform toxicity and pyrogen tests on chosen healthy animals. KSDP is very particular about the quality of the raw materials even if the price is high. As per drugs and cosmetic act and rules, the company has to maintain raw materials and finished products. The company is very particular in maintaining each and every aspect.

Costly instruments are used for separate tests for each and every batch. The instruments like ultra violet spectrometer, infrared spectrometer, G C spectrometer and HPCC spectrometer. These instruments cost nearly Rs 10 lakhs. The company has a highly dedicated workforce and professional supervision. The Marketing is mainly under the heading of formulation division. 95 % of the production of formulation division is given to the department of health, government of Kerala. Balance portion i.e. nearly 5 % is sold to other state and central government hospitals.

CHAPTER 4 -PRODUCT PROFILE Capsule 1. Amoxicillin Capsules I.P 2. Ampicillin Capsules I.P 3. Cloxacillin Capsules I.P Tablets 1. Paracetamol Tablets I.P. 2. Cotrimoxazole Tablets I.P 3. Salbutamol Tablets I.P. 4. Citrizine Tablets I.P. 5. Metronidazole Tablets I.P 6. Glibenclamide Tablets I.P 7. Ciprofloxacin Tablets I..P. 8. Erythromycine Stearate Tablets I.P 9. Metochlopromide Tablets I.P. 10. Folic Acid Tablets I.P 11. Acetylsalycylic Acid Tablets I.P 12. Chlorpheneramine Maleate Tablet I.P. 13. Diethyl Carbamazine Citrate Tablets I.P 14. Amitriptyllin Tablets I.P 15. Alprozolam Tablets I.P

16. Frusemide Tablets I.P. 17. Haloperidol Tablets I.P 18. Vitamin - B Compound Tablets I.P. Strong 19. Aluminium Hydroxide Tablets I.P 20. Norfloxacin Tablets I.P. 21. Phenobarbitone Tablets I.P 22. Diazepam Tablets I.P.





























Production department is considered to be the most important and largest department in the organization. The authority of this department is within the hands of production manager. The workers are working sincerely and best of their skills. There are permanent workers, contract workers and trainees in this department. The production department is operating under the directions of marketing and sales divisions, quality control departments, stores and inventory control. The total quantity to manufacture and the denomination of packing is obtained by production planning department and fed to the manufacturing wing .The quality department makes constant watch over the blending standards, packing safety and product hygiene. The inventory control department and packing section takes over the finished products in the predetermined areas. The production department consists of different sections such as tablets, capsules, powders and liquid preparation.

Production Of Tablets Steps involved in the production of tablets are 1. Mixing 2. Drying 3. Powdering 4. Lubrication 5. Compression 6. Coating


In mixing process, necessary ingredients as per the formula required for the formulation of each tablets are mixed together to obtain a wet mass, using a mixer machine. There will be an active ingredient for each tablet. The ingredients within the formula in addition to the active are called excipients. Excipients are needed to make a good quality tablet at the required tablet press speed. They help the flow, compressibility and the ability of the tablet to eject from the tablet press without falling apart. Excipients also enhance the hardness, disintegration, appearance, color, taste, and the overall performance of the tablet. It takes almost 20 minutes for mixing each batch. The common additives or excipients are Binders Disintegrating agents Preservatives Colours Page


The wet mass obtained after the mixing process should be dried using hot air. There are two types of dryers like

Fluid bed dryer

Tray dryer. In fluid bed dryer the wet mass is collected in a machine as bulk and steam is passed through it. Steam is obtained by heating water using electricity. In the case of tray dryer the wet mass is collected in different trays and is dried by placing these trays in a closed container. Hot air is passed through this container to dry the wet mass. In the drying step the wet mass is dried to a predetermined end point, commonly measured with a test called the “LOD” or loss on drying test.


The dried mix consists of lumps. This mix of lumps is powdered in order to To improve powder flow. To improve compressibility To reduce fines. To control the tendency of powders to segregate To control density To capture and fuse small quantities of active material The dried mix consisting of lumps is powdered with the help of a powdering mill and its passed through a sieve to get fine particles of uniform size. The resultant form is subjected to sieving to extract fine powdered materials. Milling equipment is used to improve flow, reduce segregation, enhance drying, and limit wide particle size distribution. There are four standardized tests which are commonly performed on either milled or finished granules:

LOD- water content

Bulk Density, mg/ml

Particle Size Distribution

Angle of Repose, flow gradient. Two of the four tests, Loss on Drying (LOD) and Particle Size Distribution, are commonly performed by operators on the production floor. In some cases, the operator only performs the LOD and the other three tests are performed in the laboratory. The practice varies depending on the situation. MILL APPLICATION: Generally we want to be as gentle with powders as possible. Some powders have high moisture content and they may be subject to compaction within the mill; others are very hard and friable and are subject to producing “fines”. Fines are powders that are very small and “dusty”, whi ch will pass through a 200 mesh screen. Fine dusty particles impede the flow, do not compress well and can become air born. The air born dust can be witnessed on filters, walls, cabinets and machine components. Besides affecting yields, the dust will combine with oil and grease on the tablet press causing the punches to become tight, requiring more frequent cleaning cycles.


The fine granules which obtained after powdering is lubricated using lubricating agents like talc, magnesium stearate, dried starch etc. Lubrication is carried out in a machine called Drum Mixer. It is mainly done to avoid the sticking of the mixture in the machines.


Here the mixture is compressed in a compression machine to form tablets of desired shapes and sizes. The powder is compressed with the help of punches and dyes which can be attached to the compression machine. The size of the punches and dyes varies according to the size of the tablets. The lower and upper punch is pressed to compress the tablets. After compression, the tablets will be released by moving the punches apart. Here double rotary compression machine is used to make 54 tablets [27*2] in one rotation. In this step itself the tablets are turned into finished form with the engravings punched on it. The main steps involved in compression are

Filling the die: first step involved in compression is filling the die with the powdered mixture. To adjust the weight of tablet, volume of filling the power in the die should be adjusted. The tablet should be made available in different weights , say 250 grams, 500 grams etc. Based on this the die should be filled.

Compress the tablet: With the help of upper punch and lower punch the powder is compressed to form the tablet. When it is compressed all air inside the die and between the powder is removed. As binders are added with the mixture the powdered mixture stick to one another and thus tablets are formed in the shape of the dies used.

Eject the tablet: The tablet is pushed from the die. When setting up the tablet press; Adjust Tablet Weight, Adjust Thickness, Balance weight & thickness and machine speed, to get proper Hardness.


Once a good tablet is made, we often need to add a coating. The coating can serve many purposes; it makes the tablet stronger and tougher, improves taste, adds color, and makes the tablet easy to handle and package. There are two types of coating

Sugar coating Thin film coating Sugar coating is used to avoid the bitterness of some tablets. Coating is sprayed as a solution using a spray gun. Water based solution is used for coating. This presents a challenge in applying and quickly removing this water based solution so it does not disrupt the integrity of the tablet. Tablet film coating equipment has evolved to enhance drying capability. Essentially a tablet coating system is much like fancy clothes dryer. The water based solution is sprayed in a very fine mist so as to dry almost immediately as it reaches the tablets. As the water dries it leaves the solids as a thin film on each tablet

The coating system continuously supplies hot air, at the same time pulling air through small holes in the coating drum. The drum is commonly referred to as the coating pan, with small holes called perforations. This process can take as little a 30 minutes or it can take several hours. Tablets must be tough enough to tumble while the solution is added. The solution is distributed from tablet to tablet during the tumbling and drying process. The spraying, distribution and drying all takes place at the same time. Coating system consists of the coating pan, spraying system, air handling unit, dust collector and controls. The coating pan is really a drum within a cabinet, allowing for control of air flow, air temperature and controlled solution application. The spraying system consists of spraying guns, a solution pump, tank & mixer and air lines. The solution is pumped into the guns and the air combines with the solution for atomization into a very fine mist. The air handling unit (AHU) is basically a way of heating and filtering the air. Dehumidification and/or humidification maybe needed depending on your location and application requirements. The Dust Collector collects the dust during the pre heat and tumbling cycles and the Controls connect all of the components creating a complete coating system. Once the production of one batch is finished in its respective section, then they will give intimation to packing section. The labels on the packs are printed by both hand printing and machine printing. Once the packing is completed it will be transferred to stock. It will be accounted to stock register only after getting approval from the quality control department. Different colours of packing are used for different products to identify the products.


The main aim of this department is to supply the products of the company to common man at economic rates. The two ways of marketing are

1. Government sale 2. Open market sale

Government Sales The company enjoys preference in the purchase from the government of Kerala. The company supplies medicines to institutions coming under health and family welfare, community health centers of government of Kerala like primary health center, medical college hospitals, taluk and district hospitals. 60% of demand of health department of Kerala is satisfied by KSDP. KMSCL (Kerala medical service corporation)is authorized to collect and distribute medicines to all the government institutions under health department. The Major Institutions under health department are 1. Institution under director of health service (DHS) 2. Institution under director of medical education (DME)

Institutions coming under DHS are government institutions like Panchayat, consumer fed, hospital under local bodies, cooperative hospitals , district hospitals, taluk hospitals, primary health centers etc. Under the DME come all the government medical colleges of Kerala. Open Market Sales KSDP started open market sales in 1978 initially in Kerala and later on expanded to other states like Tamilnadu, Andhra Pradesh by employing medical representatives in each state and appointing medical officers. At that time there was a separate medical division located in cochin in Kerala, Chennai in Tamilnadu, Hyderabad in Andhra Pradesh and Great kailash in Delhi. 23 products were marketed in various dosage forms. It gradually ceased in 1998 since KSDP does not have the sufficient infrastructure for the prescription drug market. Open market sales involves

1. Institutional sale 2. Prescription sale

In institutional sales, list of products, rate of each product, details about the quality of products and a covering letter is send to various medical institutions. If they are satisfied with the rate and quality of the product, they give purchase order to the company and the product is distributed. The company now is not going for prescribed sales. The price of product is determined by the price fixing committee which consists of top officials of the company. The rate of the medicines in the open market sales will be 5 to 30 % increased rate than for the government sales. The company is not permitted to sell the medicines at same price to open market and government. Branding During 1984,the company had branded products such as supremol tab for co-trimoxazole, Brodilan tab for saltbutamol 2mg +Theophylline 100 mg,kaymox250& 500 mg for Amoxicillin trihydrate,Maxillin 250 mg & 500 mg for Ampicillin trihydrate,Symix 100ml for cough syrup. At present,the company distributes its medicine under trade name as there is only less open market sales in function. Eg:Paracentamol Advertisements And Promotion As the company is not concentrating in open market sales, there is no advertisement and promotional Efforts.


The Personnel Office deals with recruitment. Wage administration, promotion and industrial relations, disciplinary actions etc. The employees are appointed through Pecan employment exchanges. The additional employees required are taken as apprentice or on contract basis. Selected persons could get 6 months training efficiency in concerned on the supreme quality while selecting managerial staffs. Presently there are145 permanent employees including the managers and engineers. Out of which 131employees are presently working and the rest 14 are on deputation and on long leave. The temporary posts consist of more than 100 apprentices and contract based workers. Contract based workers consist of former employees who took VRS from the company and external persons who are expert in this field. The peoples recruited could get training and also various seminars and classes are conducted. Functions

To recruit right kind of persons for the right job at the right time.

To arrange for training programmers.

To evaluate performance of the employees.

To the handle the grievances of the employees.

To provide welfare facilities to the employees.

Provide and maintain safety measures.

Formulating policies

Statutory Labor Welfare Facilities provided (Personnel Office) in KSDP

Canteen Facility

The Company provided a canteen for its members. Here foods are provided at a rate of Rs 8 per day for permanent employees. Working time of canteen is 8 hours.

Rest Rooms & Lunch Rooms

Adequate suitable rest rooms and lunch rooms (with provisions for drinking water) where workers can eat their meals brought by them are provided

Facilities for Sitting

Company offers very good sitting facilities for employees in their working spot

Medical Facility

The company arranges medical checkups for all employees once in a year. Health data cards are then issued to all the employees. The medical facilities are provided to employees as well as his/her family members.

Risk Allowance

When an employee meets with an accident, during employment for the disablement compensation is paid as per the rules of the Workmen Compensation Act. In addition to the KSDP allows an excreta payment of loss of wages i.e., 50% of the (basis DA) due to such accident.

Drinking Water Facility

An effective arrangement of drinking water for the workers in each section or department is available. Also arrangements are made for cold drinking water.

Recreational Facility

Recreational club is organized in the company premises and Rs 10/- per month are revised from each employees. A well functioned time keeping system is used by KSDP Ltd for proper time keeping. For this purpose an electronic punching system is maintained by the Time Office.

Statutory Labor Welfare Facilities Provided (Time Office) in KSDP

Working Hour

a) First Shift6.30 am to 2.30 pm b) Second shift2.30 pm to 10.30 pm c) Third Shift10.30 pm to 6.30 am d) General Shift8.30 am to 5 pm

Overtime Allowance

Overtime will be paid at double the normal wages. (Basic + DA) to all the eligible staff and workers for those who are engaged in overtime

Leave Facilities

a)Casual Leave-15 days in a year b)Earned Leave-30 days in a year c)Medical Leave-7 days

Conveyance Allowance

Officers who have put in a minimum of 15 days attendance in a month will be eligible for getting an conveyance allowance amount of Rs 400/-

First aid Appliances

First aid boxes or cupboards equipped with the prescribed contents is provided and maintained in KSDP. This is readily accessible during all working hours.

Establishment Section

All the wages, salary, administration and labor welfare facilities are controlled by establishment section in KSDP. Statutory Labor Welfare Facilities Provided (Establishment Section) in KSDP

Wages and Salaries

To provide wages and salaries to the employees


The payment of gratuity act 1972 has been amended by the payment of gratuity (amendment) act 1987. This came into force from 01-10-1987. Maximum salary taken will be Rs 3500 for gratuity calculation. In the amendment act of 1987, the maximum amount of gratuity payable to the employees will be Rs 3.5 lakhs. It is given for good faithful service and efficiently rendered to whole time employees of the company.


The employee of the KSDP covered by the ESI Act and contribution is deducted from the employee’s salary since 01-11-1992. Employee’s whose salary does not exceedRs10000/ per month are covered under this act. When employees are registered with ESI, they are entitled to get the following benefits from ESI:-

Sickness Benefit

7 days full pay or 14 days half pay sick leave can be availed by the employees at any time. If more than 30 days leave is required, medical certificate from an authorized medical attendant should be produced.

Disablement Benefit

An injured person is given free medical treatment and all the expenses incurred by him. The total expense in connection with the treatment will be reimbursed.

Dependent Benefit

Legal heirs of the employee get the dependent benefit after his death. Main dependent are  job and compensation.

Maternity Benefit

Women employees shall be allowed maternity leave with full pay for 90 days after the date of confinement. In addition, one month leave with wages is also allowed to the employee who suffers diseases arising out of delivery.

Funeral Benefit

For the funeral of employees, the funeral benefit provided is Rs 1000/-

Provident Fund

According to employees Provident Fund Act 1952, the employees of the company are entitled to contribute a certain percentage of salary or wages to this fund. The rules followed in KSDP are known as “Employees Provident - Fund Rules”. The fund shall deem to have been established on and from 16 th February 1956. A worker is eligible to get Piffle he had completed continuous six months of regular service or 120 days during the period of 12 months. Under this scheme, repayable loans are available to employees in liberal terms. As the scheme is recognized, employees get benefit in income tax also.


Bonus is paid in accordance with the guidelines issued by the government from time to time. An employee whose salary is less than Rs 2500/- per month is eligible to get bonus. 8.33% of the total salary is the minimum bonus to be paid.

House Rent Allowance

House rent allowances are allowed at the following rates.

A) Salary less than Rs 2500/- is eligible to get HRA = RS 145/-

B) Salary less than Rs 3000/- is eligible to get HRA = RS 165/-

C) Salary above Rs 3000/- is eligible to get HRA = RS 185/-Uniform Allowance

Uniform allowance

Provided to workers is Rs 525/-, once in 2 years.

Footwear Allowance

Footwear allowance is provided to the workers in the spot welding shop, paint shop, mechanical maintenance shop etc. is Rs 425/- in every 2 years

FINANCE DEPARTMENT Finance refers to money or funds available to a firm. A business needs at every step to start a business, to operate it and to expand or modernize its operations. Finance is required to bring a business into existence, to keep it alive and to see it growing. The management of finance is essential for the success of the business. Finance manager is the head of the finance department. He looks after the budget, finance posting and audits of accounts. The senior officer accounts takes charge to look into the day today affairs of the financial of the company. The senior officer establishment deals with calculating employee’s wages provide provident fund, ESI etc. The cost section prepares cost sheet and evaluate job card. There is an internal audit section that deals with verification of accounts. The United Electrical Industries Ltd has an initial capital amount t o 4 c r o r e s . I t s products are sold to its main customer KSEB. It also has other domestic customers.

TAX: KSDP Ltd has to pay the following taxes:-

•Income tax. •Sales tax. •Excise duty. •Educational cess.

The sales tax charged per meter in Kerala is at the rate of 12.5%, whereas, if sold to other states outside Kerala, the rate is only 4% per meter (i.e., Central Sales tax). Educational cess is 2% on the excise duty. Presently, the excise duty is 16% on one meter and the educational cess 2% of the 16%.

Job Card:

It is used to calculate the quality of products individual production time. The important registers maintained by the finance are given below:

•Purpose Journal. •Sales Journal. •Payroll.

Sections of Finance Departments: The various sections under finance department are:

    

Book and Budget. Sales Priced Stores Ledger. Costing. Establishment.

Book and Budgets:

Collection of accounts from different sections.

Preparation of trial balance and final accounts.

Coordination with auditors.

Helps statutory auditor.


Invoice generation.



Debtor’s ledger.

Price Store Ledger: This section is responsible for maintaining accounts for the stores in monitory items.

Costing: Each product is having a separate section. It sets the cost of that which issued by commercial group to add profit margin to set the price.

Establishment: This section is responsible for cash disbursements and payment. It handles all the payment said to the employees.

Benefits: Medical reimbursement

Provident Fund


Loans and advances etc.

Bills payable: This section handles the payment to be made to the suppliers once the SRV (Store Receipt Vouchers), PO (Purchase order) and invoice are received, cross verification of the PO terms, quality and quantity assurance with the SRV and invoice. Once all the claims are found satisfactory, the payment is issued as per the terms.

Other Important Functions Payment to establishment



Payment to suppliers

Indigenous Purchase

Important Purchase (Purchase, Bills)

Terms of payment for purchase are

Letter of credit (L/C)

Advance (DD)

Cash and delivery (COD)

Site Draft (SD) (If suppliers are not familiar)

Service Bills This section maintain bills for payment of

Factory service

Maintance (Civil and mechanical)

Internal Audit The main function of internal audit are

Fault recognition

Suggestion for improvement

Assisting working level people

Internal audit conducts site audit, once in a year.


This department deals with the purchase of raw materials from various sources. In Elite, raw materials are purchased through inviting tenders from suppliers 100% of raw materials are purchased from outside suppliers. Production department gives order to the purchase department to purchase raw materials. Purchase Policy: KSDP Ltd has a purchase policy to purchase raw materials in right quantity and quality aright time, at right place from a right source. The source of materials is selected by checking the samples collected from different suppliers. Acceptance of sample can be done as per the recommendations from the quality assurance department. If the samples are qualified, the criteria the suppliers can be included in the list of qualified suppliers. Tenders should be sent to qualified suppliers only. They only have the ability to provide bulk of raw materials of the company. Raw materials required for the company as follows, •

Raw materials.









Capital goods.

Sub assemblies.



Spare parts.

The responsibility of purchasing material rests on the SO purchase. He is responsible for procurement, components and raw materials.

Purchase procedures:

•All the purchase shall be made by purchase department.

•Bill of  materials shall be given by the production department.

•Material intends in forward to purchase department against each projects.

Other items except capital goods required by various departments are intimated to store who prepares purchase intend and forward the same to giving full specification, samples of necessary requirement of capital goods is identified in various departments and set to purchase department often getting approval from the competent authority.

QUALITY CONTROL DEPATMENT This department is concerned with checking the quality of products made in the company. At each and every stage of production, the quality of the product is checked. Before it becomes the final product, it is cross checked.

Quality Policy:

KSDP and its employees are committed to develop, manufacture and market house service energy meters and motor control gears, ensuring customer satisfaction of its products and services through continual improvement of the effectiveness of its OMS achieved by setting and reviewing objectives.

Quality Objectives:

Top management of KSDP establishes implements and communicates operational measureable quality objectives at all relevant functional levels. The achievement of the same is measured monthly through MPRM.

Quality Management Principles:

KSDP has framed its quality policy and manages its quality policy manage its quality system following the eight management principles of ISO: 9000:2000, listed below. 1) Customer Focus: KSDP meets customer requirements and strives continuously to meet customer expectation by determining and reviewing customer requirements and measuring customer satisfaction. 2) Leadership: Top management of KSDP establishes and provides leadership and unity of purpose and direction through management review meetings and provision of resources. 3) Involvement of People:

KSDP believes that involvement of all employees is essential for the better functioning of the organization. This is achieved by planned training as given in the guidelines for training. 4) Process Approach: The departmental guidelines of major functions follow a process approach and include PDCA cycle, which provides proper direction for achieving results when resources are managed as a process. It also helps to provide direction in taking planned corrective actions. 5) Continual Improvement: Continual improvement of QMS is achieved through measurement of quality objectives achieved, measurement of customer satisfaction. 6) Factual Approach in Decision Making: KSDP takes effective decisions based on results of analysis of data. This is achieved through the interactions in the management meeting on the performance of individual departments. 7) Mutually Beneficial Supplier Relationship: KSDP tries to maintain beneficial and a mutual relationship with supplier.

Quality Assurance

The SE Quality Assurance is in charge of quality checking of the raw material samples. The quality assurance department also checks quality of incoming raw materials and the products in process. Inspections of finished goods are done by AE inspection. All meter products in the company are handed over to sales department. The sales returned meters are checked and corrected here’s a commitment toward Total Quality Man agement in line with CII/EFQM guidelines, annual improvement action plans are being implemented involving techniques like • 


Business Process Re-Engineering.

Six sigma.



These are resulting in cycle time reduction for further improvements in delivery and technological process up-gradation, leading to improvement in quality profit to products and enhanced customer focus on a continuous basis. To fulfill its role as a corporate citizen towards protection and conservation of the environment and ensuring that its products and systems also meet such requirements, KSDP has finalized a Corporate Environment management Policy for ISO 14002 Certification. For ISO 9001 certification, the International Audit is done once in six month by the KSDP personnel independent of their functions and External audit is done by Bureau Verities Quality International

Management Responsibilities Regarding Quality

Management must define and document its policy objectives and commitment to • quality. •

Ensure that it is understood and implement at all levels.

Define responsibilities and authorities.

Identify verification and assign to competent personnel with adequate resources.

Appoint management representatives.

Quality System Standards

ISO - International Organization for Standardization’s

Series of Standards. ISO 9000:

ISO 90001:2000.

ISO 90001:

Covers management responsibility, contact review, control of design, purchase, • testing storage, etc.

All units of KSDP are ISO: 9001 certified. Certification Agency BVQ1 (by Bureau • VERITAS Quality International).

International audit once in 6 months

ISO: 9000-2000 Version – Brief Overview:

Revised standard is compatible with principles of ISO 14000 andTQM. It centers on results achieved through P-D-C-A (Plan, Do, Check,Act) and processed approach.

Focus on business needs, continue improvement throughmeasurable performance parameters leading to customer satisfaction.

Mandatory documentation requirements simplified required in 6 o f the following areas:

1) Documentation control. 2) Quality records. 3) Internal audit. 4) Control of non-conforming products. 5) Corrective action. 6) Preventive action.

ISO 14000 (environment management system)


Converts Statutory, Regulatory Acts (pollution, chemical treatment, discharge etc.)

2) Energy consideration, resource utilization.

Quality issues faced by KSDP:



Input to output performance.











Foundation etc.



Incomplete suppliers.

Incomplete finish.

Incomplete spares.

Incomplete tools.

Incomplete documents (drawings, test reports/certificate).

Inadequacy (technical information)

Not clear/legible


Quality documentation.

Inadequacy (technical information)

Not clear/legible.



Not in sequence as required by site/customer.









Ease of handling/maintains.




Response time, behavior and attitude of KSDP personnel towards customers

TQM Model: The Ten Essential Steps:

Management readiness.


Customer –Supplier partnership.

Environment scanning.

Existing system.

Strategic planning

TQM training.

Disciplined system implementation.

Process enhancement.

Performance evaluation.

Continuous improvement.

SWOT ANALYSIS SWOT Analysis of a company reflects the effectiveness of the functions of the company in each and every department. Brainstorming technique was adopted to find the SWOT. It is a group creativity technique designed to generate a large number of ideas from a group of employees. Suggestions are evaluated and the analysis is made. STRENGTH:

Quality of Products: The products of UEI possess high quality. It is an ISO 9001:2000 certified company. The company offers 15 years warranty for its products. Before getting approval. The company products pass through different types of tests.

Customer Focus: The Apex Management Team of UEI shall determine, understand and try to satisfy the needs and expectations of customer with the aim of enhancing customer satisfaction. The Marketing Department has the primary responsibility and Quality control has the secondary responsibility and all other departments have the responsibility for commitments for ensuring customer satisfaction.

Involvement of workers is high: UEI believes that involvement of all employees is essential for the better functioning of the organization. This is achieved by planned training as given in the guidelines for training. Top management of UEI establishes and provides leadership and unity of purpose and direction through Management Review Meetings, Monthly Performance Review Meetings and provision of resources.

Process Approach: The departmental guidelines of major functions follow a process approach and include (PDCA- Plan, Do, Check, Act) cycle, which provides proper direction in taking planned corrective actions.

Continual Improvement: Continual Improvement of Quality Management Systems is achieved through measurement of quality objectives achieved, measurement of customer satisfaction, resolution of departmental non-conformances, implementation of corrective and preventive actions and internal audits. These are reviewed in the management review meetings.

Mutually beneficial supplier relationship: UEI tries to maintain beneficial relationship with suppliers and thereby enhance ability of both to create value. The organization continually measures the performance of supplier sand gives them feedback and possible help to improve performance. It also gives them chance to assess the organization on the above chance. Skillful workforce: UEI shall determine the competency of the personnel performing the work affecting the Quality Management Systems on the basis of assessment done by immediate superior. The identified needs shall be consolidated for preparation of the training plan for satisfying the training needs. A yearly Competence Improvement Plan covering training, exposure visits, self-learning etc. shall be prepared. As a result the workforce has expertise in the respective areas. Good Industrial Relations: The relation with the top management and workers are cordial. Not a single working day was missed due to labor unrest in the past 30 years.


High employee turnover: With the introduction of VRS, the person shaving experience left the company. This resulted in the reduction of experience hand in the company.

Inadequate Performance Appraisal: The prevailing system of performance appraisal is inadequate in the present scenario.

Lack of Motivational Techniques: The Company provides mandatory welfare measures to its employees. But motivational technique like promotion takes too much time. Time consuming policy decisions: UEI is a government company. So the decisions related to policy takes comparatively longer period. Poor financial stability: For years, the company depended on only one customer and the customer gained high bargaining power. The government policies also affected the performance of the company. This lead to financial instability. Inadequate R&D: Due to poor financial stability, company could not set aside much fund for R&D purposes. This prevented the company from introducing new products. Because of this, the competitors which were established after UEI overtook the company in many areas.


New Product Line: The Company will start the repairing of transformers within two months. The procedures foe availing the order from KSEB has been completed. Within one year The Company will start production of transformers.

Raising Demand: Production of electricity has become more expensive which demands careful utilization and accurate measurement. With escalating power demand in Southeast Asia: most countries in the region are demanding novel electricity meters. Moreover, as increasingly more electric utilities install meters at their customers (both small power and large power consumers) site, sales for both single phase and three phase meters are increasing. Hence, the electricity meters market is witnessing stable growth. This is likely to further accelerate with the transition of electromechanical maters to electronic/digital meters in the future. New Markets: The Company has orders from Andhra Pradesh. Talks are going on with West Bengal Government for the supply order of Meters. Efforts are progressing to explore foreign markets for company’s products. The company got enquiries from countries like Nigeria and Srilanka. And talks with Cuban and Venezuelan Ambassadors had been made with a view of getting orders from those countries. Between these, the company has great expectations in Venezuela Threats:

Competitions: the company is facing tough competitions from the private and public sector undertakings Emerging of modern technology: Due to globalization modern technology were available in the market. The competitor make s of that.


The major findings are:

Good reputation of the company: Quality products and the ‘government’ brand name is a major advantage for the company. It as a wide acceptance among the customers since it possesses a good customer handling and great quality products.

Well-disciplined staff and employee: The work force is the strength of the company. All the workers work whole heartedly for the progress of the company even in bad times. There was no labor conflict in the past 30 years.

Hard working skilled labor force: The labor force is very skilled. The company recruit fresh technicians and give extensive training to them.

Good management employee relationship: The grievance re addressable system is very effective in the company. The company believes in the policy “Prevention is better than cure”, and it results in a  good employee employer relationship.

Effective attendance system: The company follows a punch card system. By which, the company can find out the total hours an employee spend in the working place.

Harmonious Industrial Relations: The HR department makes sure that every reasonable need of the employee is met. The company considers employees as their greatest wealth.

Maximum capacity utilization: The company plan their personnel needs very effectively and recruits the correct number of persons. This ensures the maximum utilization of resources.

Regular feedback system: The feedbacks from the customer’s are collected in time with a view to improve the operational efficiency. For this the customers are contacted personally after a certain period of delivery. The company provides feedback forms to the customers.

Good HR planning: HR planning is excellent. The company calculates the personnel requirement well in advance and act accordingly. Most of the time their planning is accurate. This ensures the effective utilization of resources.

Solvency: Solvency of the company is good. It maintains a favorable solvency ratio.


The major suggestions are:

Employee Turnover should be minimized: In the long run, this may seriously affect the company. So the real reasons behind this should be found out and corrective measures should be taken

Performance appraisal system should be improved: At present the company’s performance appraisal system is not up to the mark. The company’s techniques are little outdated. A 360 degree appraisal system can be introduced.

Improve the motivational techniques: The motivational techniques need a revision on the grounds of increased employee turnover. The company should make the employees more loyal to the company. For this timely promotion, incentives and plans like ESOP (Employee Stock Option Program) may be introduced.

More marketing efforts should be made: The new technologies in the information technology can be utilized for that. The website of the company should be converted into an E-commerce portal. All the company’s products should be listed with pictures and all the specifications and facilities for online trade should be made. Infrastructure should be developed for improving the output. Technology transfer should be established with some reputed organization.

Company should appoint marketing executives.


The privileged opportunity of one month organizational study proved out the nature of business firm and it had enabled me to have an exposure to the majority of the topics related to company’s,functioning,structure,policies,promotional,activities,working.environment,organi zational culture etc… The significant of financial analysis in determining the performance is organization was also realized. This organizational study helped me to know about the company, the various departments; the functioning of various departments etc…it also helped me to know the practical applications of the theories in the business studies. The organizational study helped to gain knowledge regarding the functional as well as the managerial aspect of various departments in KSDP. Moreover it helped me to get familiarized with the real world organizational system and understand the decision making process in the organization. Organizational study in KSDP helped me to familiarize with a business organization To familiarize with the different departments in the Organization and their functioning. To enable myself to understand how the key business process are carried out in Organization. To relate theory with practice. To develop my attitude conducive to effective interpersonal relationships.

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