A

Summer Internship Project Report on

Supply chain management

At

Submitted to :

SOMLALIT INSTITUTE OF BUSINESS MANAGEMENT,

AHMEDABAD

Affiliated to :

GUJARAT TECHNOLOGY UNIVERSITY, AHMEDABAD

In partial fulfillment of theRequirement for the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by :

Sanke ts inh R. Ra thod

Somla l i t Ins t i tu te o f Bus iness Management

MBA Programme

JUN – JULY – 2011

DeclarationI Sanketsinh Rathod, hereby declare that the report on Summer Internship and project

work entitled “ SUPPLY CHAIN MANAGEMENT ” is a result of our own work & our

indebtedness to other work/publications, if any, have been duly acknowledged.

Place : AhmedabadDate : 10/07/2011 (SANKETSINHH RATHOD)

Acknowledgement

“Try, try and try till the goal is not achieved”

These were the words which were said by the great idol Swami Vivekanand. These

words have helped us to move ahead in our life and now have helped in our life. The

project on SUPPLY CHAIN MANAGEMENT AT SUN PHARMACEUTICAL

INDUSTRIES LTD. It has been a very interesting project for me.

we would like to thank all the people who helped me in entire period of our summer

project duration without the efforts of whom the project would not have been possible.

Now I would like to thank Mr.patil (G.M),Mr. Rohit (HR Manager) for their guidance and

co-operation and allowing us to undertake this project work.

PREFACE

Practical knowledge in student’s life is very important. It helps a student to know the real

life situation and problems of life. Same is the case with the corporate world. Theoretical

knowledge is very much needed but practical knowledge is equally important. This

practical knowledge to a student is given in a form of specialization project undertaken

by student before becoming a Master of Management.

It helps a student to explore the depth of a subject. Here, the student learns how to

apply the theoretical knowledge in practice.

Being a student of MBA it was a very valuable and memorable experience of studying

the SUPPLY CHAIN MANAGEMENT.

The project was undertaken during the period of Jun-July 2011, during the second

semester of MBA Programme, SLIBM for the specialization of MARKETING in the

academic year of 2011-2012.

We have tried our level best to construct this report.

Table of Contents

Sr. NoChapter

Page no.

i.Declaration

ii.Acknowledgement

iii.Preface

iv.Executive Summary

1.Introduction

2.Objectives & Hypothesis

3.Literature Review

4.Methodology of the study

5.Data Interpretation and Analysis

6.Findings

7.Recommendation

8.Conclusion

9.Bibliography

v.Annexures

Synopsis

List of companies in BSE Sensex

LIST OF TABLES

LIST OF GRAPHS

Sr.No. Graph Page No.

G.1Average dividend paid by each sector of BSE Sensex in the last five years

G.2Average dividend paid by companies of BSE in the last five years

G.3Average dividend paid by companies of BSE

Year wise

G.4Growth rate of DP,EPS,TA and DER

Company wise Average

G.5Average growth rate in terms of dividend paid

Company wise

G.6Scatter Diagram

G.7Average correlation of DP with EPS,TA and DER

G.7Regression Analysis

Sr. NoChapter

Page no.

i.Declaration

ii.Acknowledgement

iii.Preface

iv.Executive Summary

1.Introduction

2.Objectives & Hypothesis

3.Literature Review

4.Methodology of the study

5.Data Interpretation and Analysis

6.Findings

7.Recommendation

8.Conclusion

9.Bibliography

v.Annexures

Synopsis

List of companies in BSE Sensex

Sr.No. Table Page No.

T.1Dividend paid sector wise

T.2Average dividend paid by all companies of the study

T.3Growth rate of DP, EPS, TA and DER

T.4Descriptive Statistics

T.5 Correlation of dividend paid with other variables - Companywise

T.6Correlation of dividend paid with other variables – BSE Sensex

T.7Regression Analysis

EXECUTIVE SUMMARY

This study examines the system of SUPPLY CHAIN MANAGEMENT at Sun

pharmaceutical industries ltd.

This study proposes to analyze the system of marketing at sun pharmaceutical

industries ltd. The study also proposes to see the practical work of an organisation. To

do a detailed study of audit we taken information from the departments.

.

K.C.Mehta (chartered accountant) do the internal audit for them and check the detail of

all three departments. If there are some queries they identify it and send report to the

company, gives suggestions too and after that department solve the query and inform to

the auditors through report.

CHAPTER – 1

OVERVIEW OF SUN PHARMACEUTICAL INDUSTRIES LTD.

INTRODUCTION :

Name of Industry: Sun Pharmaceutical Industries Ltd.

Location(API): Sun Pharma Plot No. 25, GIDC, Phase-IV, Panoli - 395 116.

Sun Pharma A-7 & A-8, MIDC Industrial Area, Ahmednagar - 414 111.

Sun Pharma Sathammai Village, Karunkuzhi Post, Maduranthakam T.K., Kanchipuran District, Tamil Nadu - 603 303.

Sun Pharma Plot No. 4708, GIDC, Ankleshwar - 393 002. Sun Pharma 817/A, Karkhadi, Ta Padra, Dist. Vadodara - 391 450.

ICN HUNGARY CO., LTD. H-4440 Tiszavasvari, Kabay Janos u. 29. Hungary.

Registered Office: SPARC, Tandalja, Baroda – 390020,Gujarat

Year of establishment: 1985

No. of workers employed: 243 Male – 240 Female - 3

BACKGROUND OF THE COMPANY

Sun Pharma began in 1983 with just 5 products to treat psychiatry ailments. Sales were initially limited to two states in Eastern India. Sales were rolled out natiowide in 1985. Products for cardiology were introduced in 1987, and Monotrate, one of the first products launched then, countinues to be sold even today. Important products in Cardiology were later added; several of these introduced for the first time in India, and these brought patients the latest

treatments at a sensible cost, a belief we've always lived by. Realizing the fact that research is a critical growth driver, we established our  first research center, SPARC, in 1993 and this created the base for strong product and process development that enabled growth in the subsequent years. 

Sun Pharma was listed on the main stock exchanges in India in 1994; and the Rs. 55 crore issue of a Rs. 10 face value equity share offered at a premium of Rs. 140/-, was oversubscribed 55 times. The minimum 25% that was required under the regulations then for listing was offered to the public, the founder's family continues to hold a majority stake in Sun Pharma.

We used this money to build a greenfield site for API manufacture, as well as for acquisitions. For allowed acquisitions, typically companies or assets that allowed us entry into a new market or therapy area, assets that could be turned around and  brought on track were identified.

Our first API manufacturing plant was built in Panoli in 1995, for access to high quality actives ahead of competition, and in order to tap the vast international opportunity for speciality APIs.

Another API plant, our Ahmednagar plant, was acquired from the multinational Knoll Pharmaceuticals in 1996, and expanded and substantially upgraded for regulated markets, with capacity addition over the years across differentiated API lines such as anticancers and peptides. This was the first several sensibly priced acquisitions, each of which would bring important parts to our long-term strategy.

In 1997, our headquarters shifted to Mumbai, India's commercial capital. We

began the first of our international acquisitions with an initial $7.5 million investment in Caraco, Detroit. By 2000, we had completed 8 acquisitions, each such move adding new therapy areas or offering an entry to important international markets. A new research center was set up in Mumbai for generic product development for the US market. In India, as new therapy areas were entered into post acquisition; customer attention, product selection and focused marketing helped us gain a foothold in areas like orthopedics, gynecology, oncology, etc. From a ranking at 38th in 1994, by 2000 we were ranked 5th with a leadership in 8 of the 11 therapy areas that we are present in. The year 2000 was the year of turnaround at the US subsidiary, Caraco, as it began to receive approvals after successful inspection by the USFDA.

In December 2004, a research center spread over 16 acres was inaugurated by the President of India, with special lab space for drug discovery and innovation. The post 2005 years have witnessed important acquisitions to strengthen our US business- the purchase of manufacturing assets for controlled substances in Cranbury,NJ; that of a site to make creams and lotions in Bryan, that of

Alkaloida, a Hungary based API and dosage form manufacturer , and, Chattem Ltd., a Tennessee-based controlled substance API manufacturer.

In September 2010 acquisition of Taro Pharmaceuticals doubled the size of our US business and brought us a range of generics including a strong line of dermatologicals. Taro's manufacturing facilities in Israel and Canada substantially add to our production capacity.

The tally at the end of 2010:

23 manufacturing plants in 3 continents 9000  employees 4 World class research centers Brand in markets worldwide A strong presence in the US generic market Increasing research investments Over 58% of sales from international markets

VISION & MISSION STATEMENT

VISION

The Sun Pharma of tomorrow will have brands registered in major markets of the world, and in most markets, promoted by a high quality field force. With a strong network and

established company equity, we would be an excellent partner for a company seeking to license out products across markets

MISSION

We are an international specialty pharma company, with a presence in 30 markets. We also make active pharmaceutical ingredients. In branded markets, our products are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory. In the time since, we have crossed several milestones to emerge as an important specialty pharma company with technically complex products in global markets, and a leading pharma company in India.

We are leader in each of the therapy areas that we operate in, and are rated among the leading companies by key customers. Strengthening market share and keeping this customer focus remains a high priority area for the company

MILESTONES SINCE INCEPTION

YEAR MILESTONE

1983 Sun Pharma began operations in Kolkata with five psychiatry - based products, first with two people and then with a ten employee team. Year 1

turnover - Rs. 1 million. Within a year, the marketing effort expand to cover all the eastern states of India. A compact manufacturing facility for tablets/capsules was set up at Vapi.

1986 Administrative office was set up in Mumbai. Customer coverage was extended to select cities in Western India.

1987 Marketing operations were rolled out nation-wide.

1988 With the introduction of Monotrate and Angizem, the first few cardiology products were launched. We featured for the first time in a market audit by the prescription tracking company, ORG (later IMS ORG) at rank 107th with 0.1% market share.

1989 The corporate office moved to Baroda, Gujarat. Products used in gastroenterology were introduced. Exports to neighboring countries began.

1991 Construction began at the first research center SPARC (Sun Pharma Advanced Research center), with 46,000 sq ft of research space, and investments of almost the size of that year's profits. The company's turnover was Rs. 9.74 cr, and market rank 70th.

1993 SPARC, the first research center, was inaugurated by His Excellency Shri K. R. Narayanan, the Vice President of India. An office began operations in Moscow. Products were registered across 10 markets in all.

1994 After our IPO in October, we were listed on the major stock exchanges in India. The offering was oversubscribed 55 times. A dosage form plant at Silvassa started production. Major expansion at the plant was Vapi was completed. For the first time, a brand from the company, Monotrate, featured among the top 250 pharma brands in the Indian market. A separate division, Synergy, was carved out to market Psychiatry/ Neurology products, the first of focused marketing divisions.

1995 Our first API plant at Panoli started production. A new division, Azura, was begun for cardiology products. Inca, a new division to market critical care medication to intensive care units began operations. International marketing was strengthened with offices in Ukraine and Belarus.

1996 An API-manufacturing unit at Ahmednagar, the first of the our acquisitions, was bought from Knoll Pharma. An equity stake was also picked up in Gujarat Lyka Organics Ltd., a manufacturer of Cephalexin Active with a USFDA approval for the intermediate, 7ADCA. At the close of the year, we ranked 27th with 2 products among the country's top selling 300 pharma brands. Product registrations were in place across 24 countries.

1997 We began the first of our international acquisitions. As part of a technology-for-equity agreement, a stake was acquired in a generic dosage form manufacturer; the Detroit-based Caraco Pharm Labs. An equity stake was taken in MJ Pharma, a manufacturer of several dosage form lines with UK MHRA approval for Cephalexin capsules. TDPL, a company with an extensive product offering (oncology, fertility, anesthesiology, pain management) was acquired, and its portfolio streamlined. TDPL's products offered a ready entry with known brands and customer equity in new high growth therapy areas like oncology and gynecology. Marketing was reorganized into 6 speciality-focused divisions. A research and development facility over 6,000 sq ft in Mumbai, our second research site, was set up to make dosage forms and create supporting technical documentation for the generic markets in North America and Europe.

1998 A basket of products, including several respiratory/asthma brands were acquired from Natco Pharma. Our new formulation plant at Silvassa commenced operations.

1999 Rank moved within the top 10 in the domestic market. An ophthalmology products company, Milmet Labs, was acquired Cephalexin API manufacturer Gujarat Lyka Organics was merged with Sun Pharma. 6 brands featured among the leading 300 prescription pharma brands in India.

2000 Ranked 5th among all companies in the domestic market. Pradeep Drug company, a Chennai based API manufacturer was acquired.

2001 A new formulation plant was built in Dadra. This new plant, spread over a 5-acre site with built up area of 120,000-sq. ft. was designed and built to comply with international regulatory requirements, such as the UKMHRA and USFDA. The erstwhile TDPL division was renamed Spectra. A new division, Arian, targeting cardiologists/physicians and diabetologists, was launched.

2002 Forbes Global ranked Sun Pharma in the list of best small 200 companies for 2002 (turnover less than $500 million). Sun Pharma was selected as the best company by Express Pharma Pulse, for overall performance for 2002 (in the category A - market share over 2.5%). 4 manufacturing sites won the prestigious IDMA awards. Work commenced on a new, state-of-the-art drug discovery campus in Baroda; this 16-acre site, with space for 600+ scientists, would be commissioned over the next two years. Work began on a new R&D center in Mumbai, with 50,000 sq. ft. floor area for product development for the North American and European markets.

2003 Forbes Global ranked Sun Pharma in the list of the best small 200 companies for 2003 (turnover less than $500million) Sun Pharma was rated amongst the best-managed companies for 2003 across all sectors. (Business Today-AT Kearney study of best-managed companies)

2004 We acquired common stock and options from 2 large shareholders of Caraco, increasing stake to over 60% from 44% at a total outlay of about $42 million. The upgraded and expanded formulation site in Halol, India (the erstwhile MJ Pharma site) received approval from USFDA, UK MHRA, South African MCC, Brazilian ANVISA and Columbian INVIMA. The BT Stern Stewart survey placed Sun Pharma among the top 20 wealth creators in India and among the top 3 wealth creators in the pharma sector. Construction at a formulation manufacturing site at Jammu was completed. Our first joint venture manufacturing unit, in Dhaka, Bangladesh was commissioned. Two of our API factories received USFDA approval, taking the total number of US FDA approved sites to three. We acquired a Cephalosporin Active manufacturer, Phlox Pharma, with European approval for cefuroxime axetil amorphous. Niche brands Ortho-Estin (estropipate) and antimigraine preparation Midrin were bought from the San Diego, US based Women-s First Healthcare. (WFHC, not listed). Forbes Global ranked Sun Pharma in the list of most valuable companies for 2004 (turnover less than $2bill).

2005 We bought a plant in Bryan, Ohio, US and the business of ICN, Hungary from Valeant Pharma. We acquired the intellectual property and assets of Able Labs from the US District Bankruptcy court in New Jersey in December 2005. Dilip Shanghvi, our CMD, received the E&Y Entrepreneur of the Year award in healthcare and life sciences for 2005. Sun Pharma was selected by Forbes amongst the best 200 companies (sales less than USD 1 billion) in Asia.

2006 We announced the demerger of innovative research and business with pipelines, people, equipment and funding, into a new company.

2007 We completed the demerger of the innovative business, with requisite legal and regulatory approvals. SPARC Ltd, the new company, was listed on the stock exchanges in India, the first pure research company to be so listed. In May 2007, we, along with our subsidiaries, signed definitive agreements to acquire Taro Pharmaceutical Industries Ltd., (TAROF, Pink Sheets), a multinational generic manufacturer with established subsidiaries, manufacturing and products across the U.S., Israel, Canada for $454 mill. This all-cash deal was subject to Taro shareholder approval and requisite regulatory clearances.

2008 In November 2008, we along with our subsidiaries acquired 100% ownership of Chattem Chemicals, Inc., a narcotic raw material importer and manufacturer of controlled substances with an approved API facility in Tennessee. This offers vertical integration for our controlled substance dosage form business in the US.

2010 In the first week of September, the Supreme Court of Israel unanimously

dismissed the appeal by Taro of the previous ruling by the Tel-Aviv District Court holding that the Israeli special tender offer (STO) rules do not apply to the Tender Offer by Suns subsidiary, Alkaloida, to purchase all outstanding Ordinary Shares of Taro. In the last week of September: we completed the acquisition of a controlling stake in Taro and increased economic interest and their voting rights. This doubles the size of our US business.

2011 Dilip Shanghvi, our CMD, received the E&Y Entrepreneur of the Year Award for 2010. (ORG - Operations Research Group Audit of Retail Chemist Sales, later renamed the IMS - ORG Retail Store Audit. Both ORG and IMS are the trademarks of their registered owners)

PRESENT PROFILE

We are an international speciality pharma company, with a large presence in the US and India,  and a footprint across  40 other markets.    

In the US, which is our largest market, we have built a strong  pipeline of generics, directly and through our subsidiaries Caraco and Sun Pharmaceutical Inc. Taro adds strong dermatology range to this portfolio.

In India and rest of the world markets, our brands are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology etc. We are market leaders in speciality therapy areas in India.

We retain the drive for growth that marked our early days, when we had. begun in 1983 with just 5 products. Since then, we have crossed several milestones to emerge as a leading pharma company in India where we are the 6th  largest by prescription sales, a rank that we have retained over a decade. (IMS ORG Stockist Audit, Sept. 2010) Since the mid- nineties, we have used a combination of growth and acquisition to drive growth. important acquisitions have included those of the US, detroit-based Caraco Parma Labs and a plant at Halol which now holds UKMHRA and USFDA approvals. The 2010 acquisition of Taro Pharmaceuticals doubles our US business and brings us strengths in dermatology and pediatrics.

FUTURE EXPANSION PLAN

While we have been becoming more international and formulations-driven over the past decade, the acquisition of Taro in 2010 places us firmly on a new growth orbital, with over half our sales now coming from North America.

We are well on our way to the future, with brands registered in major branded generic markets of the world, and in most of these markets, promoted by a high quality field force.

In the high value US generics market we are working to become a trusted, high quality generic company, with a balanced portfolio comprising both of complex and simple-to-file generics including injectables, controlled substances and dermatologicals. As we build this part of our business, our insistence on technology and the cost advantage will remain unchanged. We are open to acquisitions in the US generic space.

In India, where we are built leadership in chronic therapy areas over the last 25 years, we will be working hard to retain leadership and add to prescription share.

In key international markets across Asia, South East Asia, Russia, China, the Middle East, Latam and Africa where we have a footprint firmly in place, we will continue to build prescription driven sales and customer share of mind. Backed with a strong

network and established company equity, we would be an excellent partner for a company seeking to license out products across markets.

TYPES OF COMMUNICATION CHANNEL

This company is having a communication channel flow according to the hierarchy structure.

The tools used for communication are as follows.

LAN network Internet Telephone

PRESENT PRODUCT MIX

Azatadine Clomipramine Hcl Flurbipurfen Gabapanten Irebesartan Metaprolo tartrate Metaxalone Oxcarbamazepine Pentoxifyline – 1st stage (crude) Topiramate Ropinirol Rofexoxibe Theobromine

COMPETITIVE SCENARIO

1.Indian Market:

Ranbaxy With a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales, Ranbaxy is the largest pharmaceutical company in India.

Dr Reddy's Laboratories With the turnover of Rs 4,162.25 crore (Rs 41.622 billion), Dr Reddy's Laboratories is the second largest pharmaceutical company in India.

Cipla With the revenue of Rs 3,763.72 crore (Rs 37.637 billion) Cipla is the third largest pharmaceutical company in India.

Lupin Labs Lupin Labs has the total revenue of Rs 2,215.52 crore (Rs 22.155 billion)

Aurobindo Pharma Sales revenues stood at Rs 2,080.19 crore (Rs 20.801 billion) makes it the sixth largest pharmaceutical company in India.

GlaxoSmithKline Pharma (GSK)

GSK is the seventh largest pharma company with the total sales revenue of Rs 1,773.41 crore (Rs 17.734 billion)

Cadila Healthcare Eight largest company has the total sale revenue at Rs 1,613.00 crore (Rs 16.13 billion)

Aventis Pharma Aventis Pharma has the revenue of Rs 983.80 crore (Rs 9.838 billion) and the ninth largest pharmaceutical company in India.

Ipca Laboratories Revenue of Rs 980.44 crore (Rs 9.804 billion) makes Ipca India's 10th largest pharma firm by sales.

HR DEPARTMENT DEPARTMENTAL STRUCTURE

FUNCTION OF TIME OFFICE

Attendance Overtime Bonus Absence notice Leave records

FACTORY MANAGER

MANAGERP & A

SR.OFFICER OFFICEROFFICERSR.OFFICER

Contract labour attendance P.F.

Punching machine is connected with the ERP system and all records are maintain in ERP.

DETAILS IN EMPLOYEES PERSONAL FILE

Full Name Age Maritual status Native place Date of birth Bio-data Medical report Certificates Past records Offer letter Experience certificates Appointment letters Promotional letters Interview evaluation information

HUMAN RESOURCE PLANNING

HRP is done as per the requirement of all the departments. and for fulfillment of the requirement they approach contract labour.

RECRUITMENT

1. Aims Place right person at the right place, at the right time. To ensure that recruitment processes are fit for purpose. To ensure equality of opportunity for all applicants.

2. Preparation stage

The recruitment and selection process should not commence until a full evaluation of the need for the role against the area’s stratetgic plans and budget has been completed by the HR and concerned departmental head. Criteria like education, qualilfication, experience etc.of the candidate will be decided by the HR and concerned departmental head for recruitment in officer grade , the concerned departmental head should prepare job specification.

No recruitment will be done if the vacancy can be filled up through normal promotion of own employees or by training own employees .

HR head will decide salary criteria for the new recruitment on the basis of salary of existing employee in the parallel grade.

After deciding eligibility condition HR department will collect data by following method :-

A. Through personal contact.

SELECTION PROCESS

Once the screening process has been completed by HR Manager, the name of the selected candidate will be returned to the office of Human Resources .Notification to such applicant will be made by the HR department and schedule of the interview will be made.

Evaluation of certificate and testimonials of selected candidate will be done by HR department before final interview. HR head will mention the salary offered to the candidate on the evaluation sheet.

Each applicant will be considered on the basis of his/her abilities, skills, knowledge and behavioural attributes like positive attitude, enthusiasm , team management interpersonal skill etc.

Performance appraisal

Performance appraisal is linked with salary. Increment is given if performance increases.

Performance appraisal is based on the rating which is given based on the Key Result Area (KRA)

Performance appraisal is done every year. Beginning of the financial year.

TRAINING AND DEVELOPMENT ACTIVITIES

Purpose of training

To identify the training needs of those personnel whose work affects quality.

To provide training to the new employee.

To establish the effectiveness of training.

TYPES OF TRAINING PROGRAMMES FOR EMPLOYEES

Fire & safety training On the job training In house training External training

Average training days are 30 days. and records also maintain by HR Department. Feedback procedure also done and if they found something is still lacking then they give retraining to that particular employee.

PROMOTION POLICY

If an employee’s job performance is above standard, the supervisor may determine that in the best interest of the organization, the employee should be promoted.

Promotion is a managerial initiated change of assignment for an employee to a job at a higher level within the same unit of the organization.

The new job normally provides an increase in pay and status and demands more skill or carries more responsibility.

No promotion shall become effective until approved by the G.M.

WELFARE ACTIVITIES

Uniform Canteen Hand gloves Safety shoes Picnic Silver jubilee celebration

INDUSTRIAL RELATIONS ENVIRONMENT

The different types of industrial relations environment are as follows:

Union for worker only Workers committee meeting

COMPUTER SOFTWARE’S USED TO ASSIST IN HR MANAGEMENT FUNCTION

ERP software is used for it.

PRODUCTION DEPARTMENT

DEPARTMENTAL STRUCTURE

TYPE OF PRODUCTS

API (Active Pharmaceutical Ingredients)

Azatadine Clomipramine Hcl Flurbipurfen Gabapantene Irebesartan Metaprolo tartrate Metaxalone Oxcarbamazepine Pentoxifylline Topiramate Ropinirol Rofexoxib Theobromine

TYPE OF RAW MATERIALS

Methanol Ethyl alcohol Toluene Methylene dichloride Hydrochloric acid Nitric acid Sodium hydroxide Potassium carbonate Potassium hydroxide

Production process

Reactors

Reaction

Filtration

Distillation

Crystalisation

Filtration/wet mat.

Drying

Milling

Shifting

Blanding

Packing

Type of material handling equipments used

Reactor Centrifrige Dryer Shifter Multimill Blender Micronizer

Packing

FINANCE DEPARTMENT

DEPARTMENTAL STRUCTURE

FUNCTIONS OF EXECUTIVE

FUNCTIONS OF SENIOR OFFICER

Budgetary control system

Budget period:

Budget is prepared for short term period i.e. one year. And review on monthly basis.

Long term source of finance

Equity shares Preference shares

Taxes

Central excise duty Sale tax Vat

Meetings

AGM (Annual General Meeting)

Monthly meeting(maintenance)

Weekly meeting(for production)

Daily meeting(for dispatch)

PURCHASE AND STORES

DEPARTMENTAL STRUCTURE

PURCHASE PROCEDURE INCLUDING VENDOR SELECTION

Monthly requirement sheet is made.

Process of purchase begins with the mail, purchase & stores department head sends mail to the party.

Purchase order is made with GMI No.

Material is send to the QC Department for approval.

If material is approved then Invoice is made.

If material is not approved then it is send back to the vendor.

Vendor selection is done based on Rate, Quality, Packing, etc.

Role played by different person

Location Head:

Production planning and approval. Control and review of stocks. Review of inventory. Review of dispatch to the customer. Order review. Approval of the purchase order.

Officer I & II :

Receipt, storage & issue of the raw material. Labelling of the raw material. Maintenance of the records. Maintenance of the tests status of the raw material. To transfer the raw material in to other departments of the company. Return & disposal of the rejected raw material. Conducting of training programme as per schedule date.

SOP(Standard operating procedure)

1. Dispensing of RM.2. Dispatch of FP.3. Dispatch of process waste.4. Quarantine of material.5. Receipt of RM & Packaging material.6. Purchase of material.7. Area monitoring.8. Receipt, handling, storage, & issue of gas cylinders.9. Goods inward memo handling procedure.10. Handling and disposal of empty container.11. Handling and disposal of rejected RM.12. Cleaning of RM & FP storage area.13. Handling of solvents received through tankers.14. Spillage handling.15. Receipt of finished product.16. Cleaning procedure for packaging and dispensing area.17. Colour code on solvent drums.18. Locator code in the warehouse.19. Cleaning of dispensing equipment.

20. Operation and cleaning of vacuum cleaner.21. Deviation from the ERP System.22. Handling of corrosive & hazardous materials.23. Re- labelling of raw material in warehouse.24. Repacking of raw material in warehouse.25. Receipt and control of material returned from production.26. Assigning expiry and retest date and handling of expired material.

QUALITY CONTROL DEPARTMENT

DEPARTMENTAL STRUCTURE

TYPE OF INSTRUMENTS USED

Balance U.V.Visible spectrophotometer FITR PH Meter Tytro meter HPLC Gastrometograph Bulk density Moisture analyzer Oven Muffle furnish Hyumidity control oven

Method of calibration

Different method for all the instruments as per frequency. For example:

PH Meter:Range between 1 to 7Acid = less than 7Basic=More than 7Water=around 7

Parameters tested in the lab

Parameters like colour, smell, etc are tested in the lab.

ENGINEERING DEPARTMENT

DEPARTMENTAL STRUCTURE

CIVIL

ELEC.

MECH.

INSTRUMNTSN

ACTIVITY

The main activity of the engineering department is maintenance and projects for prevention of errors. And to install instrument .

Engineering have to take care of infrastructural activity. They are connected with all the departments.

INTRODUCTION:

Supply Chains – the ideal strategy

There are two types of supply chains: efficient and responsive. As you can probably guess, efficient chains are

applied to functional products and responsive to innovative. Let us see why.

A supply chain performs two different functions: a physical function and a market mediation function. Each

of the two functions incurs costs. Physical costs are these of production, transportation and inventory storage.

Market mediation costs arise when supplies do not match with the demand.

The predictable demand of functional products makes physical costs much more crucial than market mediation

costs. Applying carefully forecast methods you can achieve service level grater than 95%. As a consequence

market mediation costs are hold back. So, your primary concern is the physical function costs. To that end, the

stable production rate allows the companies to employ MRP software which organizes and supervises the

ordering, production and delivery of supplies. As a result, inventory is minimized and production efficiency is

maximized. The important flow of information is within the chain in order to satisfy the demand at the lowest

cost. Suppliers are chosen for their low cost and not for their flexibility

On the contrary, this approach is completely wrong for innovative products. On this occasion market

mediation costs are the most important. This does not mean that there are not any physical costs, but compared

to market mediation costs are less significant. It is very important for an innovative product to establish market

share at the beginning of its life, a fact that leads to the increase of the cost of shortages. Also, the short life

cycle increases the risk of obsolesce due to excess supplies. That’s why market mediation costs are so crucial

in that case. The important flow of information is not only within the chain but it also is from the market to the

chain. It is also desirable, for the coordination of the chain, all the partners receive real time information from

the market. Finally, suppliers are not chosen for their low cost, but for their agile production and their short

lead times which allow them to respond quickly to the market’s unpredictable demand.

OBJECTIVE OF THE STUDY:

The objective of the study is to understand the supply chain management in the sunpharma

industries at Ankleshwar as Supply Chain Management is an integrating function with primary

responsibility for linking major business functions and business processes within and across

companies into a cohesive and high-performing business model. It includes all of the logistics

management activities noted above, as well as manufacturing operations, and it drives

coordination of processes and activities with and across marketing, sales, product design, finance

and information technology.