MIS General Pharma

7/30/2019 MIS General Pharma

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Contents1.0 INTRODUCTION ..................................................................................... 2

1.1 Purpose ............................................................................................. 2

1.2 Company Background .......................................................................... 2

1.3 Scope ................................................................................................ 3

2.0 CURRENT SYSTEM ................................................................................. 4

2.1 Process Model..................................................................................... 4

2.2 Performance Parameter ..................................................................... 13

2.3 Role of System Components ............................................................... 16

2.4 Relationships of Components Roles to Performance Parameters ............. 20

2.5 OPTIMUM ROLES FOR SYSTEM COMPONENTS ....................................... 23

3.0 ENVISIONED SYSTEM ........................................................................... 30

3.1 New Process Model ............................................................................ 30

3.2 New Performance Parameters ............................................................. 37

3.4 Relationships of components roles to parameters .................................. 44

4.0 NEW POLICY, PROCEDURE & STANDARD ................................................ 47

5.0 ROLE OF ENVISIONED SOFTWARE ......................................................... 49

6.0 EVALUATION OF THE ENVISIONED SYSTEM ............................................ 50

7.0 CONCLUSION ...................................................................................... 52

8.0 APPENDIX .............................................................................................. I


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1.0 INTRODUCTION

1.1 Purpose

The report aims to present a systematic investigation of the selling and distribution

process of General Pharmaceuticals in order to advocate an enhanced Information

System that would bring improvement to the performance parameters.

1.2 Company Background

General Pharmaceuticals Ltd. (GPL) was incorporated as a Private Limited Company in

1984 and stepped into the manufacturing of drugs in 1987, offering only 7 products

with minimal manpower at that time. At present, it offers a total of 222 dosage forms

for marketing within Bangladesh. It has a total of around 2000 employees and a

distribution network that spreads across Dhaka, Chittagong, Khulna, Comilla, Rajshahi,

Dinajpur, Coxs Bazaar, Jessore, Barisal, Bogra, Chandpur, Noakhali, Kushtia and other

important districts of the country. In recent years GPL has entered into export fields by

registering its products in countries like Viet Nam, Kenya, Hong Kong, Mauritius,

Myanmar, Sri Lanka, etc.

The Head office, located in Dhanmondi 11/A, has six departments: Sales, Marketing,

International Marketing, Product Management, Management of Information Services

and Administration Department. The MIS department is only involved in marketing

intelligence activities and provides the company with information on the market

scenario. The head office oversees the operations of the Factory, Central Distribution

and the Sales Depots. The factory, located in Gazipur, has a production floor of about

70,000 Sq.ft and a production capacity of US$ 25 million per annum. The central

distribution situated in Khilgao has an inventory system and its own fleet of transports.

It normally sends stocks to the depot every 15 days based on their demand. General

Pharma has a team of 475 Medical Promotion Officers and another 400 distributions

personnel working in 19 sales depots situated in various district head quarters of the

country. The Dhaka Sales Depot, situated in Dhanmondi alone provides work for a sales

force of over 200 employees. It is considered the most important sales office,


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generating more revenue than any of the other depots. The distribution span of the

Dhaka sales office also includes greater Dhaka, extending upto Narayanganj.

General Pharmaceuticals has maintained a stable position in the market since its

inception and currently holds a 2.5percent share of the total pharmaceutical market. In2007, it earned a revenue of 150 crore, 4.5 percent of which was exhausted on

distribution costs. The company exceeded the industry standards in this case by paying

out a substantial 2.2 percent of the annual revenue solely for the conveyance charges

and fuel costs. The higher distribution cost is accrued as a result of frequent trips to the

same destination. The high extent of goods returned arising out of the failure to deliver

the orders in time forms the major selling and distribution hurdle for the Company.

1.3 Scope

The report delves into the selling and distribution procedures of the Dhaka Sales Depot

and thereby proposes an enhanced Information System based on the case study of the

Dhaka sales office. Although employees from different tiers are involved in the

distribution process, we have considered only those employees who are directly related

in the process. In this regard, the roles of these employees have not been distinguished

from the role of the Depot manager. The performance parameters have been dissected

based on the total orders received by an MPO per day. For this purpose, we have

captured the job description of an MPO serving the concentration of Doctor Chambers

and Pharmacies in a particular segment of Gulshan and Banani area (covering Lab Aid

and Prescription Point). Thus, conveyance cost and traveling time in all the relevant

instances have been confined to this presumed standard. This distinction is necessitated

by the fact that the delivery span ranges by a very large extent, the large deviation

declining the prospect of using an aggregate average. For calculation and estimation

purposes, this study considers Van delivery alone, although the Company also uses Man

Delivery in many cases. Finally, the report focuses on the general systematic

procedures and not on the special procedures that apply only for emergencies.


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2.0 CURRENT SYSTEM

2.1 Process Model

The head office fixes the overall sales target for each year based on the market

information provided by the MIS department. Next it decides on individual sales target

for each sales depot, depending on their capacity and strategic location. The Depot

Manager of each sales depot sets monthly targets for the MPOs working under them.

After receiving the target, each MPO devises his daily target and his specific sales

strategies to meet the companys sales objective. A MPO roams around in two shifts a

day in different hospitals, pharmacies and doctors chambers located in his fixed

geographical region. These geographical regions are generally characterized by a large

hospital along with a high concentration of pharmacies in the vicinity. The MPO

convinces the doctors to prescribe the drugs produced by General Pharma. He informs

the doctors about the different drug offers made by the Company related to the

Doctors area of specialization. Apart from these appointments, the MPO also gives daily

rounds to the pharmacies. He carries a detailed list of products and prices and collects

orders from all those sources. The order sheet, which also contains the delivery

requirements, comes in three copies. One copy is given to the Chemist along with the

MPOs signature, one copy is retained by the MPO and the last copy is reserved for the

purpose of creating invoices. After returning home, the MPO sorts out and compile the

detail of all the orders along with information on how far they have reached their

target. This report is known as the Daily call report.

Next day (2nd day) the MPO submits that report to the sales depot, collects his

conveyance for previous day and again starts his everyday routine. After the

submission of all daily call report by all the MPOs, invoices are prepared by entering the

data into the software, which then generates all the invoices for that particular day.

Depot manager gives these invoices to the salesmen based on the MPOs they have

been assigned serve. Normally, a salesman is assigned for delivering the orders of four

MPOs who have to meet targets of 2 lakhs per month. This varies according to the sales

target set for the MPOs whereby a salesman could be assigned only for two MPOs with

targets of 6 lakh per month each. The job duty of a salesman includes whose duties are

to sort out medicine according to each order and to get those packaged. The store man

keeps track of all the medicines being packed by the salesman. The depot manager


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then devises a route plan for the delivery purpose and assigns the responsibility

packets of medicine to the drivers of medicine delivery vans. Each driver is

accompanied by two or three salesman. The van carries medicine to all those

pharmacies who have asked for delivery on a specific time of that day. The salesman

bears the responsibility of collecting payments from chemists. Chemists check the

deliveries and makes payment if the delivered medicine fully meets his specified

criterion. Salesman hands over an invoice to the chemist after getting paid. If any

medicine is undelivered due to any fault, the medicines are kept under the

responsibility of the salesman for that night and returned the day after that.

Next morning (3rd day) the salesman delivers all cash payments to the cashier. The

cashier in return issues a memo to each salesman as a proof of getting the specified

amount of money. Then the cashier puts entry of all payment in the software and notesany discrepancy. The assistant cashier also prepares manual record of all these cash

transactions.


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Current Process Model

Day 1 Day 2

Collection of

conveyancefee

Invoice

creation

VerificaTargetsetting

ConvincingDoctors

Push selling &

taking orderfrom the

chemists

Compiling

Orders &writing

report

Day 2

Delegation

of job to

salesman

]PackagingCash

collection/

return

Getting the

signature of

recipient

Reaching the

destination &

handover of

responsibilty

Transportation

Plan

Day 3

Reporting

the Return

Depositing

Money

Invoice no,

customer

ID,MOD


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Convincing

DoctorsPush selling &

taking order from

the chemistsPurpose

Input

Step II

Medicine Info

& Orders

Prescription

GenerationOrder Shee

fill up

PurposeInput Output

Price List

Step IIIOutputInput

Performance

Convincing the physicians about the

effectiveness of the drug and offering them

various promotional offers is crucial for creating

demand for the medicines. On an average the

MPO gets about 20 minutes to convince each

doctor and thereby devotes around 4 and half

hours every day for this purpose. In this regard,

the time elapsed in waiting for the meeting is

also taken into account. The major cost in thissection constitutes of the salary and conveyance

of the MPO. Quality is largely dependent on the

persuasive and marketing abilities of the MPO

under consideration. The Company is satisfied

with the human element involved in this stage

since they prefer personal one to one

communication.

The MPO tries to convince the chem

hoard up stocks of the new medicin

engaging in push selling. The MPO also

on daily visits to all the pharmacies

allotted geographical area to take bac

order. The MPO carries a price list and fi

the delivery schedule, which includes a

product, payment, and delivery r

information for the order placed by

pharmacy. On an average the MPO ta

hours to do round checks on all its ass

pharmacies. This time frame also include

time taken to travel from one pharma

another. The quality in this stage i

satisfactory since there is a large scop

making errors in filling out the de

schedule. Poorly stated and wrong order

drive up the costs.

Performanc

Step I

Purpose

Performance

Output

ased on the targets set for each sales

epot by the head office, monthly targets

re generated for each MPO. The Division

manager communicates individual targets to

he MPOs. Upon communication, the MPOs

alculate daily targets to meet their

bjectives in an organized manner. This

rocess takes up around 1hr per month for

ach MPO and therefore 2.5 minutes per day

n an average. Part of the salaries of the

Division Manager and MPOs are included in

he cost. The quality is satisfactory since thearget is set with the help of a market

ntelligence software program and is based

n market opportunities and previous sales

rends. When the need arises, the Divisional

manager to keep them at an attainable level

earranges the individual targets.

Info from thehead office

Targetsetting

Daily targets

for MPO


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Input

Step V

Purpose

Performance

OutputInput

Input

The next day when the MPO submits the

daily call report, he makes a claim for

his conveyance charges. The cashier

dispenses the amount if it is below the

daily limit set by the management. It

takes about 4mins for the cashier to

complete all the paper work and

verification checks which ensues. The

cashier's salary is considered as the

only cost in this stage. The quality is not

up to the mark since the process is

carried out manually and is later

updated in the database. Therefore it

has a chance of error, takes up

unnecessary time and processing

hassles.

Daily call

report

Collection of

conveyance fee

Cash

dispensed to

the MPOs

Step IV

Purpose

Performance

Output

The Daily call report and all the delivery schedules

submitted to the sales office the next day in

morning. The IT personnel is responsible for ente

all the information from the delivery schedule in

database. Every single order takes 2 to 3 minutes t

entered as inputs. It takes about 20 minutes to m

data entry for all the orders brought by the MPOday before. Invoices are issued only for the delive

that are due on the same date. The other or

remain as pending invoices in the database.

inventory is deducted based on the quantities state

the invoice orders. The data is also used to facil

MPO performance review. The software generates

copies of the invoice. The cost associated in this ste

confined to the salary of the IT personnel. The qu

in this stage is deemed to be poor since there is a l

time gap between the taking of orders and

submission of these orders to the office on the

day.

Daily call

report &

delivery

schedules

Invoice

creation

Invoice with

2 copies

Step IV

Purpose

Performance

Output

en the MPO returns home from work at

t, he has to sort out and compile all the

ers he has received throughout the day. He

ulates the extent to which the revenue

erated from these orders would meet his

et and lists down the names of the Doctors

has talked to during the day. This report

wn as the daily Call report takes 1 hour to

pare and contains all the specifications of the

vidual orders. Only MPO's salary is included

he cost incurred in this stage. The quality is

satisfactory since the report is prone tor, subjectivity and concealment of facts. In

tion, all the compiling activity is regarded as

day end activity that can be seen as a

rance.

Order sheet

& Delivery

Schedule

Compiling Orders

& writing report

Daily call report


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Input

Step VIII

Purpose

Performance

OutputInput

Input

The invoices are sorted out for delivery by

each individual salesman. Records for each

salesman are kept manually, listing all the

invoice numbers they are assigned to

deliver. Depot Manager explains the duties

to respective salesman stating the

requirements of the particular orders. Each

salesman is normally assigned to deliver

the orders of four MPOs who are operating

in particular geographical areas. Time taken

for the Depot manager to delegate and

explain the orders take 5 minutes on

average. The costs included in this stage

are a portion of the salaries of the

salesman and the Depot manager. The

quality is not satisfactory since manual

interpretation, delegation of job sometimes

leads to mishap, and mayhem follows.

Authorized

invoice

Delegation of job

to salesman

Packaging and

Delivery

Step IX

Purpose

Performance

Output

The salesman prepares the order package

loading the medicines as stated in the orders

time taken by a salesman to pack the orders

individual MPO is not more than 25 minutes

store man supervises and assists the salesm

the packaging process. He also keeps a ma

record of all the medicines leaving the depotcosts included in this stage are a portion o

salaries of the salesman and the store man

physical stock counting takes place at the e

every month. The packaging and countin

medicines is done without any IT support.

quality in this step is unsatisfactory. There

high chance of error in this step since

salesman sometimes packs the wrong medi

and in wrong quantities at the negligence o

store man who has to supervise mu

packaging orders at the same time.

Packaging

orders Price

List

Packaging

Packaged

Orders

Step VII

Purpose

Performance

Output

he invoice has to be verified for any error in

icing and quantity and is signed by the depot

anager. The order sheet is compared with the

enerated invoice. Approximately 8 minutes are

quired for all the orders of a particular

mployee to be verified, assuming that the MPO

ings along orders from 7 to 9 pharmacies.

nce complete human attention is required,

lary cost is included in the cost calculation of

is stage. The quality of job in this stage is not

tisfactory since the verification process is not

aid much attention and thereby possesses a

gh chance of error.

Invoice

Verification

Authorized

invoice


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Input

Step XI

Purpose

Performance

OutputInput

Input

Upon reaching the desired destination, the

driver entrusts the responsibility of the

packages to the sales man. The salesman is

required to sign in a register. On an average it

takes the driver 2 hours to reach the

destination, i.e. the gulshan1-Banani area and

return back to the depot. Within these 2 hours

the driver manages to reach all the pharmacies

which need to be visited if all the orders brought

by the MPO has to be met. The salary of the

Driver and Salesman is taken into account for

calculating the cost. In cases when the

salesman has to reach the destination on his

own and not by the delivery van, the

conveyance charges of the salesman are also

taken in to account. The quality in this stage is

fairly satisfactory since the current system itself

ensures that the goods are tracked down till

delivery.

Packages

released

Reaching the

destination &

handover of

responsibilty

Packages

ready to be

dispensed

Step XII

Purpose

Performance

Outpu

The salesman delivers the packages t

pharmacy premises and gets the in

signed by the recipient. Before signin

invoice, the Chemist checks whether a

requirements in the order have been me

whether all the specified medicines have

supplied in the stated quantity. On an av

the salesman has to spend about 15 mi

per day to get all the individual inv

signed as per orders taken by a part

MPO. Some cost in the form of staff sal

involved since the salesman is allotting

from a part of his paid job to carry ou

duty. The quality of job in this lev

satisfactory.

Invoice

Getting the

signature of

recipient

Invoic

signed by

recipien

Step X

Purpose

Performance

Output

he Depot Manager decides on the appropriate

ode of transport for delivering the product.

his decision is based on the size of the orders,

e number of orders in a particular route and

e delivery time of the other orders. Since the

an at any particular time carries the order

eliveries of several MPOs and salesmen, all the

oods in the van are officially kept under the

ustody of the driver. The transportation plan is

ormally devised within 5 to 8 minutes for all

e deliveries instigated by a certain MPO. The

epot Manager explains the transportation plan the Driver and the packages are loaded in the

an. The salary of the Depot Manager forms the

nly cost to be accounted for in this case. The

uality in this stage is not satisfactory since it

cks proper management thereby failing to

inimize cost. A structured track of the delivery

me and destination of all orders need to be

aintained since the orders are returned when

ey fail to be delivered on time. Thus a major

cope for quality improvement lies in this stage.

Authorized

invoice

Transportation

Plan

Medium of

transport


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Input

Step XIV

Purpose

Performance

OutputInput

Input

The part of the orders which are returned are

taken back to the depot if its fairly early or

remains in the custody of the sales man

overnight. The salesman has to report this

incident to the Depot Manager, who orders the

IT employees to take corrective actions to add

back the returned inventory in the sales

program software and to adjust the accounts

payable. The depot manager also tries to track

down the reason for the delivery failure and

keeps a note on the performance of the

salesman and the MPO involved in the deal.

Reporting to the supervisor could take around

15 minutes per day. This stage is nonexistent in

case the salesman succeeds in returning without

any rejected orders. The quality is not

satisfactory since return inwards is a grave

matter of concern and proper investigation

needs to be carried out to dig out any inherent

problem and discrepancy in the system apart

from identifying any lack of diligence on the

salesman's part.

Returned

Packages

Reporting the

Return

Adjusted

Inventory

Step XV

Purpose

Performance

Output

At the beginning of the day the salesma

required to present to the cashier all

money he has collected on the previous

After counting the money and checkin

the invoices, the cashier issues a mem

the salesman stating the amount that he

received. The cashier takes arounminutes to complete this job. The cash

salary forms the major cost in this s

since it is a part of his job duty. The qu

is not up to the mark since the ca

makes the process tedious in case the

any discrepancy. The memo is not given

complete clearance and thus there is a s

for improvement in this stage.

Cash from

transaction

Depositing

Money

Memo fo

salespe

Step XIII

Purpose

Performance

Output

cording to the terms of payment, the

hemist pays the specified amount of money

the salesman. This step involves the manual

unting of money. Any medicines which were

t demanded by the Pharmacy are returned

the salesman. In the event that the whole

der is returned due to a failure to deliver on

me, the salesman brings back the complete

ckage and does not involve any cash

ansaction. This step involves counting the

oney manually, which takes about 1 minuter order. Overall it takes 8 minutes per day.

e salary of the salesman is considered as a

st in this stage. The quality of work in this

eration is fairly satisfactory if cost

fectiveness is taken into account.

Orders as

stated in

Cash

collection/return

Orders as statedin the invoice


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Input

Step XVI

Purpose

Performance

Output

The cashier makes the cash entries in the

appropriate accounts by entering the Invoice no,

customer ID, etc. The assistant cashier also

needs to keep a manual record and he reports

any discrepancy in the payment settlements to

the authorities. Since this step has been partly

automated it takes around 11 minutes to make

entries for the transaction records instigated by

a particular MPO per day. Again the salary of the

cashier and the assistant cashier is considered

as the prime costs incurred in this step. The

quality is satisfactory although typing the dataentry is sometimes prone to error.

Invoice no,

customer

ID,MOD

Invoice no,

customer

ID,MOD

Completed

transaction

Figure 2: Breakdown of the current process

model


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2.2 Performance Parameter

Three criteria have been used as performance parameters- time, quality and

costs.

2.2.1Time

Here is the stepwise breakdown of time required to complete a job by an MPO:

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Target setting Convincing

Doctors

Push selling and

taking orders

Compiling

Orders and

writing report

collection of

conveyance fee

Invoice creation

Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min

3

min

2.5

min

1.5

min

5

hrs

4.5

hrs

4

hrs

6

hrs

5

hrs

4

hrs

1.5

hrs

1

hrs

50

min

5

min

4

min

3

min

25

min

20

min

14

min

Step 7 Step 8 Step 9 Step 10 Step 11

Verification Delegation of job to

salesman

Packaging Transportation Plan Reaching the destination

and handover of

responsibilty

Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min

10

min

8

min

4 min 35

min

20

min

15

min

25

min

20

min

15

min

8

min

6

min

5 min 4

hrs

2

hrs

1 hrs 15 min

Step 12 Step 13 Step 14 Step 15 Step 16

getting the signature

of recipient

cash

collection/return

inward

Reporting the

Return Inwards

Depositing

Money

Cash Entry in the

database

Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min

20min

15min 10

min

10

min

9min 7 25

min

15

min

0

min

8

min

5

min

3min 15

min

11

min

10

min


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2.2.2Costs

MPO Salary

Monthly Daily

Individual Salary 10,000 10,000/25=400

IT Support

Sales Man

Monthly Daily

Individual Salary 4,000

No of MPOs 1 sales man

serves

4

Cost per MPO 4,000/4=1,000 1,000/25=40

Driver Salary

Monthly Daily


Number of MPO 100

Number of working days 25

Monthly Daily

No of people 4

Individual salary 8,000

Total Cost 4x8,000=32,000

Cost per MPO 320 320/25=12.8


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No of MPO's 1 driver serves 4

Cost per MPO 5,000/4=1,250 1,250/25=50

Depot Manager

Monthly Daily


No of Depot Manager 1

Total Cost 18,000x1=18,000

Cost per MPO 18,000/100=180 180/25=7.2

Cashier

Monthly Daily


No of Cashier 1

Total Cost 10,000x1=10,000

Cost per MPO 10,000/100=100 100/25=4

Assistant Cashier

Monthly Daily


No of Cashier 1

Total Cost 6,000x1=6,000

Cost per MPO 6,000/100=60 60/25=2.4


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MPO Conveyance

Monthly Daily

Daily Conveyance 100x25=2,500 100

Fuel Cost

Monthly Daily

Fuel 100x25=2,500 100

Hardware

Cost per computer (monitor, keyboard, CPU, printer) 27,500

No of computers 3

Total cost 27,500x3=82,500

Cost per MPO 825

***The hardware cost cannot be divided on a daily basis as it occurs once the

components are bought

2.3 Role of System Components

Followings are the roles played by the system components:

2.3.1People

A. Medical Promotion Officer (MPO)

The MPO is a marketing representative who has to meet targets specified by

division managers. The main responsibility of an MPO is to visit doctors in a

certain area and convince them to prescribe General Pharmaceuticals medicines.

The MPO is actively involved in promoting the companys medicines. As a part of

his job description, the MPO visits the chemists near his designated area and is

involved in push selling. He carries a price list with product name and code. He


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takes orders from the chemist. The order sheet includes all the payment and

delivery specifications. At the end of the day the MPO compiles all the orders and

prepares a daily call report. The report contains detailed information about the

orders and the targets met.

B. IT Personnel

The IT personnels responsibility is to enter order related data and print the

invoices. He also circulates auto-generated reports to assist management in

making crucial decision.

C. Depot Manager

The depot manager verifies and signs the invoice orders and instructs the

salesmen about their duties. He also oversees the transportation plans for the

delivery of the medicines. In the event when packages are returned the depot

manager orders the IT employees to take corrective actions to add back the

inventory in the software. He also tries to track down the reason for the delivery

failure and keeps a note on the performance of the salesman and the MPO

involved in the deal.

D. Salesman

The depot manager gives the sales officer a briefing about the pending delivery

and gives him a copy of the invoice. He then packages the medicines according

to the orders and takes them for delivery to his designated area. One sales man

usually delivers the orders of about 3-4 MPOs. The sales man collects money at

the point of delivery and brings back any unclaimed or returned medicines to the

depot. He also provides the client with a copy of the invoice. On the following

day, he gives the money to the cashier and receives a memo in return.

E. Driver

The driver carries the order of multiple sales men in his van. His main

responsibility is to handover the respective packages to the designated sales

men upon reaching the destination.

F. Cashier

The sales staff deposits money to the cashier and he counts the cash. He

eliminates any fraudulent practices by using the software. He also reimburses

the MPOs for their conveyance and gives memos to the sales men after collection

of money.


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G. Assistant Cashier

The main responsibility of the assistant cashier is to keep manual records of all

transaction related information.

H. Store man

In each depot, one store man supervises and assists the salesman in the

packaging process. He also keeps a manual record of all the medicines that are

leaving the depot. At times he has to supervise multiple packaging orders at the

same time.

2.3.2Machine/Tools

2.3.2.1 Software

The software used in Marketing and Distribution is Sales Program. This software

helps to keep track of modes of payment, delivery dates, inventory levels, cash

transactions, MPO performance, invoice generation and can create auto-

generated reports. It provides an interface between the marketing and

distribution department. It manages and controls sales and marketing

operations.

2.3.2.2 Database

The database stores general information about their clients, MPOs, products,sales men, etc. It also stores transaction data for cash, inventory levels, etc.

2.3.2.3 Hardware

2.3.2.3.1 Computing

The depot has monitors, CPU, mouse, keyboard and printers.

2.3.2.3.2 Non-Computing

Cash counter, paper, cartons, foil, ropes, etc

2.3.2.4 Communication Network


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The computers in the depot are connected through LAN. However, there is an

absence of WAN networking system. General Pharmaceutical does not have its

own sever and uses yahoo mail to communicate with other departments.


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2.4 Relationships of Components Roles to Performance Parameters (time)

People Software Hardware Database Network

p Total time Role PP Role PP Role PP Role PP Role

get setting 2.5 mins Division manager communicates

individual targets to the MPOs and

MPOs calculate daily targets to meet

their objectives in an organized

manner

2

min

Process Query 5.0

secs

Takes the query,

sends signal to

database & display

info

10

sec

searches

data & load

info

5.0

secs

communicates

data over

network

vincing

tors

4.5 hrs Convincing the physicians about the

effectiveness of the drug and offering

them various promotional offers

h selling and

ng order

m the

mists

5 hrs MPO tries to convince the chemist to

purchase stocks of the new medicine

by engaging in push selling. MPO fills

out the delivery schedule which

includes product, payment and

delivery related information for the

order placed by the pharmacy

mpiling

ers and

ting report

1 hr MPO has to sort out and compile all

the orders he has received throughout

the day and calculates the extent to

which the revenue generated from

these orders meets his target. Thisreport known as the daily Call report

ection of

veyance fee

4 mins MPO makes a claim for his conveyance

charges and the cashier dispenses the

amount

3

min

40

sec

Processes

Query,

Balances A/C

4

secs

Takes the query,

sends signal to

database & display

info

2

sec

Searches

info &

makes

adjustments

2

secs

Communicates

data from the

database

oice creation 20 mins IT personnel enters all the information

from the delivery schedule in the data

base and prints the invoice

19

min

18

secs

Processes A/C

balances &

request for

inventory

check up

15

secs

Take the invoice

info & gets the

print out

40

secs

retrieves

data

15

secs

Communicates

data from the

database


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People Software Hardware Database Netwo


ification 8 mins Depot manager verifies the invoice for

any error in pricing and quantity and

signs it

egation of

to salesman

20 mins The invoices are sorted out for delivery

by each individual salesman. Records

for each salesman are kept manually,

listing all the invoice numbers they are

assigned to deliver. Depot Mananger

explains the duties to respective

salesmen stating the requirements of

the particular orders

kaging 20 mins Salesman prepares the order packages

by loading the medicines as stated in

the orders. The store man supervises

and assists the salesman in the

packaging process

nsportation

n

6 mins Depot Manager decides on the

appropriate mode of transport for

delivery and explains the

transportation plan to the Driver

ching the

tination anddover of

ponsibility

2 hrs Driver gives the responsibility of the

packages to the sales man. Thesalesman gives his signature in the

register

ting the

nature of

pient

15 mins Salesman delivers the packages to the

pharmacy premises and gets the

invoice signed by the recipient


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People Software Hardware Database Netwo


h

ection/return

ard

8 mins Chemist pays the specified amount of

money to the salesman who manually

counts the money. Any medicines

which were not demanded by the

Pharmacy is returned to the salesman

porting the

urn Inwards

15 mins Salesman reports back any incident of

goods returned to the Depot Manager,who orders the IT employees to take

corrective actions to add back the

returned inventory in the sales

program software and to adjust the

accounts payable. The depot manager

also tries to track down the reason for

the delivery failure and keeps a note

on the performance of the salesman

and the MPO involved in the deal

14

mins18

secs

Balances the

A/Cs and theinventory data

10

secs

Takes the inward

transaction reportand sends signal

to database

4

secs

gets the

input &makes

adjustments

4

secs

Communicates

to thedatabase

positing

ney

5 mins Salesman submits all the money

collected on the previous day to the

cashier. After counting the money and

checking all the invoice, the cashier

issues a memo to the salesman

h Entry in the

abase

11 mins Cashier makes the cash entries in the

appropriate accounts by entering the

Invoice no, customer ID, etc. The

assistant cashier also needs to keep a

manual record and he reports any

discrepancy in the payment

settlements to the authorities.

10

mins

40

secs

Balances cash

& A/C

receivables

5

secs

Stores info

& adjusts

data

5

secs

communicates

to the

database


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2.5 OPTIMUM ROLES FOR SYSTEM COMPONENTS

Notations

* In Current System plays roleX In Current System Does not play role

+ In Optimized system plays role

^ In optimized system doesnt play role

Roles People Software Hardware DatabaseCommunication

Network

Target setting

* * * * * Current

+ + + + + Envisione

The current system uses all the IS components. However it can be

improved to serve the needs of the MPOs so that they do not have

to make daily call reports. In the envisioned system, each MPO can

view updated information related to the achievement of their sales

target. This eliminates the risk of error associated with the daily call

report.

Convincing

Doctors

* X X X X Current

+ ^ ^ ^ ^ Envisione

The current system is

optimized.

Push selling

and taking

* X X X X Current


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order from the

chemists+ + ^ + + Envisione

The system can be optimized by sending the orders directly via

sms, by typing down all the order related information in a specifiedformat to the depot software. As soon as it receives the sms, the

software will automatically record and process all the information

along with the MPO's ID. The software uses the product ID and the

quantity information to automatically record the amount to be paid.

The system will also update the pending revenues from each MPO

which will be further updated upon the collection of money. There is

also a provision for sending emergency orders whereby the depot

software displays as an alert signal for immediate action.

Collection of

conveyance

* X X X X Current

^ ^ ^ ^ ^ Envisione

The current system of giving out the conveyance fee every day

after checking the daily call report is very time consuming. It slows

down the whole process by tying down the cashier who could

otherwise collect the sales proceeds from the salesmen. Therefore

the optimal solution would be removing this day to day process

from the overall system and keeping a provision for monthly

allowance for the MPOs. Allowance ranges will be set for the MPOs

based on the data of their previous day to day payments and their

scope of operation. This is a job of the admin department of the

head office.

Invoice

creation* * * * * Current


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^ + + + + Envisione

In order to optimize the current system, human involvement will be

removed from the process of creating invoice. The order relateddata sent via the sms will contain all the details needed to create

invoices, including the customer name, delivery time, etc. The

software will automatically process and generate invoices which

need to be delivered on that day. The invoices that require delivery

on later dates will remain pending in the software and will be

printed out in the due time. The invoices will be issued after

checking whether the inventory is available. The software will

automatically send an auto generated email to the central

distribution if the inventories fall short. The MPOs will provide the

hard copies of the order sheet during their reporting time.

Verification

* X X X X Current

+ + + + + Envisione

In the optimized system the IT employee will be stationed next to

the depot manager and a computer will be assigned for managerial

purposes. After the verification and signing of all the invoices, the

software will prepare a transport plan based on the delivery

destination, route and the size of the orders. The computer will also

share a network link with a terminal confined for Packaging

Department.

Delegation of

job to

salesman

* X X X X Current

+ + + + + Envisione


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| 26

The system is not optimized since help is not sought from the

software to make the delegation process more organized and cost

effective. The company already keeps a manual record of the

salesmen assigned for delivering the orders of the MPOs. If this

information is kept in the computer database, the software can sort

out the invoice orders for all the salesmen available in the depot.

The Depot manager can rearrange the tasks to balance the work

load based on the availability of manpower. Records for each

salesman and the list of the invoices they are assigned to deliver

will be available in the database. Thus delegation of work will be

faster and free of hassles.

Packaging

* X X X X Current

+ + + + + Envisione

In the optimized system, medicine requirements from the verified

invoices will be sent to the Packaging terminal. The packaging

department will employ staff to pack the orders. Computer

generated labels will be attached to the packages. The optimized

system will have to employ a few more packaging staffs. This will

make the process more organized and reduce the requirement for

the number of salesman and improve the overall time

managements. The system will also keep a record of the vans in

which the packages have been loaded. The system will keep a

record of the inventories dispatched from the depot. It will display

an alert signal in the Depot Manager's terminal and send an

automated email to the central distribution when the stock of any

particular drug falls below a minimum level.

Transportation

Plan

* X X X X Current

^ ^ + + + Envisione


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In the optimized system, the drivers will be provided with a

computer generated schedule containing the destination time, place

and the name of the salesman the corresponding packages should

be handed over to. The software generated transportation plan will

ensure proper utilization of vehicles, reduce transport costs and

ensure faster delivery.

Reaching the

destination

and handoverof

responsibilty

* X X X X Current

+ ^ ^ ^ ^ Envisione

According to the transportation plan, the drivers will be provided

with a computer generated schedule containing the destination

time, place and the name of the salesman the corresponding

packages should be handed over to. The salesman is required to

sign the schedule once the package has been dispatched from the

van. The destination route will be more organized and more orders

can be delivered within fewer trips. Therefore the average traveling

time per order will also fall.

Getting the

signature of

recipient

* X X X X Current

+ ^ + ^ ^ Envisione

The quality in this step can be improved by ensuring that the

Chemist does not have to check all the contents before signing the

invoice. The computer printed labels on the packages will display a

list of the name and quantity of all the enclosed drugs. This will

reduce the waiting time since it will act as a reassurance from the

packaging department that the packaging has been given a lot of

attention.

Collecting the

money/Return

Inwards.

* X X X X Current

+ ^ ^ ^ ^ Envisione


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The current system is optimized since people intervention to count

the money is required in this step. The company policy permits the

salesman to submit the cash on the following day to reduce the

working hours of the cashier and the salesmen as well as the

transportation costs. The policy is perceived to rear greater

commitment from the salesmen in return of the trust that the

company has showed on them. Since the envisioned system will

reduce the total time for operations and the job specifications of the

salesman, the salesman can present the money to the cashier on

the same day if he finishes work early. The screening and recruiting

of salesmen should be made more stringent to minimize human

errors in all the steps involved.

Reporting the

Return

Inwards

* * * * * Current

+ + + + + Envisione

In the current system the inventory adjustment from any return

inwards are carried out on the next day. Thus it may so happen

that a particular stock of drugs is only present in the depot in the

form of returned goods. During the time lag in inventory

adjustment, the system will show that the stock is not available andtherefore invoice will not be created for an order demanding that

drug. In the optimized system the inventory account is updated on

the same day to eliminate this possibility. In the optimized system,

the invoice records will be updated to reflect the actual amount of

money due after the Return Inwards on the same day. Through the

LAN, the updated data currently goes from the IT computers to the

cashier's terminal. Although the system adjusts the amount of

inventory in the IT computers, the Packaging Terminal needs to be

connected to the LAN for inventory updates.

Depositing* X X X X Current


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Money + + + + + Envisione

A few additional operations carried out by the software can optimize

the system. In the optimized system, upon entering the salesman's

ID, the software will calculate the total amount due from the

salesman by automatically checking the list of invoice orders that

he was assigned to deliver. After counting the money, all the

relevant invoice accounts can be settled with just one click. The

cashier can also identify any discrepancy immediately. This enables

the cashier to issue the memo as a full clearance. This helps the

cashier by getting rid of the intermediary manual stage where the

money is collected and manually matched with the invoices. If a

certain pharmacy fails to provide immediate payment (or

installment as per the payment schedule), the salesman will have

to report the discrepancy first so that the system gets updated by

increasing the accounts payable. The system also updates the

targets reached by MPO after the money has been collected.

Cash Entry in

the database

* * * * * Current

^ ^ ^ ^ ^ Envisione

In the optimized system, individual cash entry to all the accounts is

deemed to be unnecessary.


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3.0 ENVISIONED SYSTEM

3.1 New Process Model

Through the new process, MPOs monthly as well as daily target will be generated with

the help of the software. Therefore the need of MPOs measuring daily target and

preparing daily call report will be eliminated. An MPO can start the day by checking his

daily target from the terminal and then commence his regular visits to hospitals,

medicine shops, doctors chambers within his specified geographical region to collect

orders. After getting orders, the MPO will give one copy of the order sheet to the

Chemist and retain the other copy. He will then type out all the order related

information in a specified format provided beforehand by his office and will send it

through short message service (sms) to the depot software. The software upon

receiving the sms will automatically record and process all the information along with

the MPO's ID. The software will use the customer ID, product ID and the quantity

information to automatically record the amount to be paid. A provision will also be there

for the MPO to send emergency orders via sms whereby the depot software displays an

alert signal for immediate action. The system will also record the pending revenues

from each MPO to keep track of how far the MPO has reached his target. The software

will automatically check the inventory availability before generating the invoices for the

orders pending delivery. Invoices are not issued for medicines that are out of stock. If

the depot is out of stock, then the software will send an automatic email to the central

distribution software instructing to deliver that particular medicine as soon as possible

to the depot.

The invoice will be later verified by the depot manager and he will put this verified

information next with the help of an IT employee. The software will then automatically

prepare a transport plan based on the delivery destinations, different routes and the

size of the orders as well as will select the available salesman for delivery purposes.

This transportation plan will include the destination time, place and the name of the

salesman overseeing each order. All step by step records are stored in the database.

The software will also send the list of order requirements to the terminal used by the

packaging department. The employees of packaging department will then prepare the

packets of medicine according to the invoices.


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Depot Manager will be the person in charge of the next action. He will describe the

duties and transportation plan to respective salesmen. He will also explain the

transportation plan to each driver and will provide the driver with a printed schedulewith specifications about which order numbers will be loaded in his van and which

salesman would claim which package from him. The salesman is given both the copies

of all the invoices that have to be delivered by him. Then the salesman will move

around different areas assigned to him and will deliver the packages to the pharmacy

premises and get the invoice signed by the recipient. The Chemist can safely avoid

checking all the contents before signing the invoice since the computer printed labels

on the packages will display a list of the name and quantity of all the enclosed drugs.

After that the Chemist will pay the specified amount of money to the salesman. Anyreturn will also be collected and the amount to be paid will be manually fixed. The

returned goods will be taken back to the depot on the same day so that the accounts

and inventory levels can be adjusted. This will enable the system to facilitate updated

accurate inventory levels on the following day before it generates any invoice. The

salesman will report this return incident to the Depot Manager who will order the IT

employees to take corrective actions to add back the returned inventory in the sales

program software and to adjust the accounts payable. The system will thus keep track

of any returned inventory along with reasons for the delivery failure and will keep arecord of the performance of the salesman and the MPO involved in the deal.

After clearing the inventory issue, the salesman will submit the money collected and a

copy of all the invoices to the cashier on the same day. The cashier will then only have

to enter the salesmans ID into the system and the software will calculate the total

amount due from the salesman by automatically checking the list of invoice orders that

he was assigned to deliver. After counting the money, all the relevant invoice accounts

are settled with just one click if there is no discrepancy and finally the cashier will issue

the memo as a full clearance. Throughout this procedure, the system will continuously

update the targets reached by the MPO and will provide the MPO with day to day

updates on his target achievement.


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Process Model in the Envisioned System

Delegation

of job tosalesman

Packaging

Cash

collection/return

Getting the

signature ofrecipient

Reaching the

destination &handover of

responsibility

Reporting

the Return

Inwards

Getting th

signature o

recipient

Verification

Day 1

Targetsetting

Convincing

Doctors

Push selling &taking order

from the

chemists

CompilingOrders &

writing

report

Day 2


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Convincing

Doctors Push selling &

taking order from

the chemistsPurpose

Input

Step II

Medicine Info

& Orders

Prescription

Generation Order

details vi

sms

PurposeInput Output

Price List

Step IIIOutputInput

Performanc

The MPO takes his time to convince the

doctors and keeps a track of the doctors

visited. On an average the MPO gets about

20 minutes to convince each doctor and

thereby devotes around 4 and half hour

every day for this purpose. The major cost

in this section constitutes of the salary and

conveyance of the MPO. Quality is

satisfactory since the company prefers to

engage in personal one to one marketing.

The MPO convinces the chemists in his a

geographical area to place orders for the drugs. He

orders for medicines in a printed order form and

signed by the Chemist. He then types out all the

related information in a specified format and se

through sms to the depot server. The server

receiving the sms with the help of the softwaautomatically record and process all the information

with the MPO's ID. The software uses the product

the quantity information to automatically reco

amount to be paid. There is also a provision for th

to send emergency orders via sms whereby the

software displays as an alert signal for immediate

The system will also record the pending revenue

each MPO to keep track of how far the MPO has re

his target. There will be no need for a daily call

There is a significant time reduction as the orders

the depot immediately instead of arriving on th

day. This step takes 5 hrs on average to complet

Quality in this step is satisfactory.

Performance

Step I

Purpose

Performance

Output

he software generates monthly as well as

aily targets for each MPO. The Division

anager can make changes to the targets if

e need arises. The segregation of the

rget into a day to day basis is aimed to

sist the MPO by continuously updating

eir performance and fixing the daily target

cordingly. MPO can view updated

formation related to the achievement of

eir sales target by viewing the amount of

venue that has been collected from their

ders and the amount from orders pendingelivery. The viewing of targets by each

PO will take 40seconds on average every

ay. The cost of the MPO measuring the

aily targets and making the Daily Call

port is eliminated. Only a small portion the

vision Manager's salary will be included in

e cost. Improved quality leads to more

tisfaction.

nfo from the

head office

Information

for MPOs on

achievement

Targetsetting


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Input

Step V

Purpose

Performance

OutputInput

Input

The invoice is verified and signed by

the depot manager. Approximately 8

minutes are required for all the orders

of a particular MPO to be verified in a

particular day. The IT employee

sitting next to the Depot Manager will

enter all the select invoice numbers

that have been verified. It takes

around 90 seconds for the IT

employee to select the invoice

numbers. The software will then

automatically prepare a transport plan

based on the delivery destinations,

different routes and the size of the

orders. Record of the location and

route of all the customers are stored

in the database. The software also

send the list of order requirements to

the terminal confined for the

Packaging Department. Salary is still

included in the cost calculation in this

step. The quality of the new process is

deemed to be effective.

Invoice

Verification

Authorized

invoice,

transport plan,

orders to the

packaging

department

Step IV

Purpose

Performance

Outpu

Records of each salesman regarding the MPOs he has

assigned to serve and his geographical area of opera

maintained in the computer database. The software sor

the invoice orders for all the salesmen available in the

The Depot manager can rearrange the tasks of ind

salesmen in order to balance the work load based o

availability of manpower. The transportation plan is a com

generated schedule containing the destination time, plac

the name of the salesman overseeing each order.

Manager explains the duties and transportation pl

respective salesmen. He also explains the transportation

each driver and provides the driver with a printed schedu

specifications about which order numbers will be loaded

van and which salesman would claim which package from

Thus the delegation of work is faster and does not take

than 2 minutes to process. The costs included in this stage

portion of the salaries of the Depot manager and IT emp

The quality is satisfactory since the transportation Plan is

effective and the division of work among the salesmen

more organized.

Authorized

invoice

Delegation of

job to the

salesman

TransportPlan, assi

delivery o

Step IV

Purpose

Performance

Output

e order related data sent via sms will

ntain all the details needed to create

oices including the product ID,

antity, customer ID, terms of delivery,

. The software will automatically

ocess and generate invoices which

ed to be delivered on that day. The

oices that require delivery on later

tes will remain pending in the software

d will be printed out in the due time.

e invoices will be issued after checking

ether the inventory is available. Thetware will automatically send an e-

il to the central distribution software if

e inventories fall short. The MPOs

ovide the hard copies for verification

er during their reporting time. The

me taken for generating an average of

nvoices is 2 minutes. The cost in this

p falls since fewer IT employees have

be employed. The system eliminates

man error and involvement except for

e errors that take place at source.

Order details

via sms

Compiling Orders

& writing report

2 copies of

the invoice


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Input

Step VIII

Purpose

Performance

Output

Input

Input

The driver carries with him a printed

schedule in which the salesman is required

to sign once the package has been

dispatched from the van. Because of the

transportation plan, the destination route

becomes more organized and more orders

can be delivered within fewer trips. This

also reduces the average traveling time

per order. On an average it takes the

driver 1.5 hours to deliver all the orders of

a single MPO in the gulshan1-Banani areaand to return back to the depot. Such time

reduction is possible since the van will also

deliver orders of other MPOs in Uttara and

Baridhara within the same trip. The cost in

this step is reduced because of lower fuel

costs and fewer salesman as hence less

salary. In cases when the salesman has to

reach the destination on his own and not

Packages

released from

the depot

Reaching the

destination & handover

of responsibility

Packages

ready to be

dispensed

Step IX

Purpose

Performance

Output

The salesman delivers the packages

pharmacy premises and gets the

signed by the recipient. The Chem

safely avoid checking all the contents

signing the invoice since the computer

labels on the packages will display a list

name and quantity of all the enclosed

This will reduce the checking time by ac

an assurance from the packaging depa

Also, the company will gain the trust

pharmacies overtime when they reali

the chances of error is negligible.

average the salesman has to spend a

minutes per day to get all the ind

invoices signed as per orders taken

particular MPO. Some cost in the form

salary is involved in this step. The qu

job in this level is satisfactory .

Invoice

Getting the

signature of

recipientInvoice

signed by t

recipient

Step VII

Purpose

Performance

Output

dicine requirements from the verified invoices are sent

he Packaging terminal. The salesman takes a copy of

printed invoice to the packaging department. It has

ffs other than the store man to pack all the orders.

orders are packed on a priority basis depending on

transportation plan. Computer generated labels are

ached to the packages after being verified by the store

n. The salesman presents the invoice and oversees

loading of the packages into the van. The job

uirements of the salesman are greatly reduced and

s he can expand his geographical operational base.

system will keep a record of the inventories

patched from the depot and of the vans in which the

kages have been loaded. The driver also checksether the packaging department has loaded all the

cific packages in his van or not since a single van

ries the orders to be delivered by different salesmen.

en the stock of any particular drug falls below a

imum level, it can send an alert signal to the Depot

nager's terminal and an automated e-mail to the

tral distribution software. The time taken by the

kaging department to pack the orders and for the

esman and driver to load them into the vans will take

minutes on average and there is a significant time

ing for the salesman. The physical stock counting

es place at the end of every month. The quality in this

p is satisfactory.

Packaging

orders

Packaging

Packaged

Orders


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Input

Step XI

Purpose

Performance

OutputInput

Input

The returned goods are taken back to the

depot on the same day so that the

accounts and inventory levels can be

adjusted. This will enable the system reflect

the accurate and updated inventory levels

on the following day before it generates

any invoice. The salesman reports this

incident to the Depot Manager, who orders

the IT employees to take corrective actions

to add back the returned inventory in thesales program software and to adjust the

accounts payable. The system keeps track

of any returned inventory along with

reasons for the delivery failure and keeps a

record of the performance of the salesman

and the MPO involved in the deal. The

salaries of the staffs involved are included

in this stage. Reporting to the supervisor

can take around 3 minutes per day since

the amount of rejected orders will be

greatly reduced. The quality in this stage is

satisfactory.

Returned

packages

Reporting the

Return Inwards

Adjusted

Inventory

Step XII

Purpose

Performance

Output

The salesman submits the money and a copy of all the invoi

to the cashier. The optimized system allows the salesman

present the money to the cashier on the same day instead

submitting it on the next day .The cashier only has to enter

salesmans ID into the system and the software calculates

total amount due from the salesman by automatically check

the list of invoice orders that he was assigned to deliver. A

counting the money, all the relevant invoice accounts are setwith just one click if there is no discrepancy enables the cas

to issue the memo as a full clearance. If a pharmacy fails

provide immediate payment (or installment as per the paym

schedule), the salesman will have to report the discrepancy

that the system can be updated by increasing the accou

payable. In this regard, the cashier checks the validity of s

claims. The system also updates the targets reached by the M

after the money has been collected. The time taken for

cashier to enter the salesman's ID and count the money i

minute on average. Further discrepancy investigation could t

another 2 minute. The cashier's salary forms the major cos

this stage since it is a part of his job duty. The quality in t

stage is satisfactory.

Cash from

transactions

Getting the

signature of

recipient

Memos an

updated

Account

Step X

Purpose

Performance

Output

cording to the terms of

yment, the Chemist pays the

ecified amount of money to

e salesman. Any return is

so collected and the amount

be paid is manually fixed.

is step involves counting the

oney manually which takes

out 50 seconds per order.

n the whole it takes 7.5

nutes per day per MPO,

nce the possibility of errorve been be minimized and

e orders are delivered on

me. Thus, the return inwards

s been reduced. The salary

the salesman is considered

a cost in this stage. The

ality of work in this

eration is satisfactory if cost

fectiveness is taken into

count.

Orders as

stated in

Cash

collection/return

Cash and (or)

returned items


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3.2 New Performance Parameters

3.2.1Time


Target setting ConvincingDoctors

Push sellingand taking

orders

InvoiceCreation

Verification Delegation ofjob to

salesman

Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min

50secs

40secs

30secs

3hrs 4hrs

5hrs

6hrs

5hrs

4hrs

5.5min

5min

4.0min

10.5min

9.5min

9min

4min

2min

1min


Packaging Reaching thedestination and

handover ofresponsibility

Getting thesignature of

the recipient

Cashcollection/return

inward

Reporting thereport inward

Depositingmoney

Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg Min Max Avg M

18min 15

min

12

min

2

hrs

1.5

hrs

1.75

min

10

min

9

min

7.5

min

8.5

min

7.5

min

7

min

4

mins

3

min

2

min

5

min

3

min

2.

m

3.2.2Cost

Number of MPO 100

Number of working days 25

MPO Salary

Monthly Daily

Individual Salary 10,000 10,000/25=400

IT Support

Before After

Monthly Daily Monthly Daily


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No of people 4 2

Individual salary 8,000 8,000

Total Cost

4x8,000=32,000 2x8,000=16,00

0

Cost per MPO 320 320/25=12.8 160 160/25=5.72

Sales Man

Before After

Monthly Daily Monthly Daily

Individual salary 4,000 4,000

No of MPOs 1

Sales Man serves

4 6

Cost per MPO

4,000/4=1,000 1000/25=40 4,000/6=666.

67

666.67/25=26.

7

Packaging

Monthly Daily


No of staff 2

Total cost 1,500x2=3,000

Cost per MPO 3,000/100=30 30/25=1.2

Driver Salary

Monthly Daily


No of MPO's 1 driver serves 4

Cost per MPO 5,000/4=1,250 1,250/25=50


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Depot Manager

Monthly Daily


No of Depot Manager 1

Total Cost 18,000x1=18,000

Cost per MPO 18,000/100=180 180/25=7.2

Cashier

Monthly Daily


No of Cashier 1

Total Cost 10,000x1=10,000

Cost per MPO 10,000/100=100 100/25=4

MPO Conveyance

Monthly Daily

Daily Conveyance 100x25=2,500 100

Fuel Cost

Monthly Daily

Fuel 80x25=2,000 80


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New System Installation

Server installation cost 80,000

Cost per MPO 80,000/100=800

Adding new hardware features 30,000

Cost per MPO 30,000/100=300

Total Cost per MPO 800+300=1,100

***The hardware cost cannot be divided on a daily basis as it occurs once the

components are bought

3.3 New Role of System Components

3.3.1People

A. Medical Promotion Officer (MPO)

In the optimized system the MPO will continue to have his regular responsibilities

of achieving daily sales targets, convincing doctors and pursing chemists to

purchase medicines from General Pharmaceuticals. However, there will be achange regarding the taking of orders from the pharmacy. In the optimized

system the MPO will SMS immediately after taking an order. The SMS will include

all the necessary information eg: MPO ID, customer ID, product ID, quantity,

delivery time and date and mode of payment. The SMS will be received on the

other end by the system software by using a server. The MPO will also take

paper order and submit it to the depot on his next visit to the office.

B. IT PersonnelThe responsibility of the IT personnel in the optimized system will be to

accumulate printed invoices, to ensure that the system is functioning properly

and to circulate auto generated reports according to the managements needs.

C. Depot Manager


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The depot manager will continue to sign and verify the invoices under the

optimized system. He will review the computer generated delivery schedule and

adjust it the salesmen available. The depot manager will do the verification only

after he has received the hard copy of the order sheet from the MPO.

D. Salesman

The salesman receives a briefing regarding the delivery he is required to make

from the depot manager. The salesman will carry the invoice of his delivery to

the packaging department. In the envisioned system the salesman will no longer

do the packaging himself. He will deliver the medicine to the chemists and collect

the money along with a signed copy of the invoice. Upon unloading medicines

from the van, the salesman will have to sign the drivers copy of the schedule.

The salesman will have to ensure that the chemist signs the invoice after the

delivery of medicines. The salesman will also have to bring back with him any

returned medicine. He hands over the money, signed invoices and returned

packages to the cashier and receives a memo in return.

E. Driver

In the optimized system the driver will be given a computer generated schedule

with delivery time, place, names of salesmen to whom the packages would be

handed over. The driver will have the responsibility of getting the schedule

signed by the salesman once the driver hands over the packages to the

salesman.

F. Cashier

The salesman will deposit the collected money to the cashier. The cashier will

then check with the software the amount of money that was due from the

salesman. After checking, the cashier will then count the money and update the

software with new information. The cashier will keep a hard copy of the memo

that is given to the salesman after clearance of transaction. In the optimized

system the cashier will no longer reimburse MPOs with day to day conveyance

fees. The cashier will reimburse the MPO once a week according to the fixed

amount of conveyance fee set by the administration.


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G. Packaging personnel

In the optimized system packaging personnel will be hired and he will be given

the responsibility of packing the medicines and labeling it. The label will have

information about the name and quantity of each medicine. The packaging

personnel will keep a track of the packages disposed in the database.

I. Store man

The store man verifies the computer generated labels and then they are attached

to the packages. Since the packaging personnel are now involved in the manual

counting of inventory, the store man has the responsibility of entering the

inventory information into the database.

3.3.2Machine and Tools

H. Software

The software in the optimized system will be more efficient and effective than

the current software. The MPOs will send the orders via SMS to the server. The

software will retrieve the information from the SMS and automatically print

invoices. Inventory levels will be deducted along the process and if the stock of

any medicine falls short the system will automatically send an email to the

central distribution. The software would keep track of the orders brought by each

MPO and that will eliminate the need of the daily call report. The software will

automatically show whether the MPO has been successful in achieving his

targets.

The software will also sort out the invoices for all available salesmen in the

depot. In order to optimize the current process the software will generate a

transportation plan based on destination, route and the size of the order. The

software will keep track of the vans in which the medicines are being loaded.

Along with the invoices the software would generate labels for the packaging of

the medicines. The labels will have information on the name and quantity of each

medicine. The software will keep track of the amount of money each salesman is

supposed to bring back.


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I. Database

In the current system the database has general information about clients, MPOs,

products, sales men, transaction data for cash, inventory levels, etc. In the

optimized system the database will have the additional information about which

salesman has been designated for which MPOs. The database will also have

information on the invoices assigned to the each salesman.

3.3.3Hardware

3.3.3.1 Computing

The depot will have monitors, CPU, mouse, keyboard and printer.

3.3.3.2 Non- Computing

There will be Cash counter, paper, cartons, foil, ropes, etc.

3.3.4Communication Network

The computers in the depot are connected through LAN and a server will be

installed to receive the SMS from the MPOs in the new system. The server would

send auto generated e-mails to the central distribution in case there is a

shortage of any medicine. A high end PC will be used as a server.


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3.4 Relationships of components roles to parameters

People Software Hardware Database Communication

p Totaltime

Role PP Role PP Role PP Role PP Role

get setting Time: 40sec

MPO can view updatedinformation related to

the achievement of theirsales target by viewingthe amount of revenuethat has been collectedfrom their orders and theamount from orderspending delivery.

25sec

ProcessesData

3sec Displays info 2sec

Keeps thedata

2sec

Communicates thedata over networki

vincingtors

Time: 4hrs

Convincing thephysicians about theeffectiveness of the drugand offering themvarious promotionaloffers

4hours

h selling andng orders

Time: 5hrs(includingwaitingtime)

The MPO convinces thechemists and takesorders for medicines in aprinted order form andgets it signed by the

Chemist. He then typesout all the order relatedinformation in a specifiedformat and sends itthrough sms to thedepot software.

3 min15secs

Processes thesms orders

1 min Gets the Printouts

Keeps record 15sec

Transfers data tothe server

oice creation Time:5min

Processesdata andaccount infobased on thesms receivedand createsinvoices.

30sec

Displays theinfo. Gets theprint out ofinvoices

3.5min

Keeps recordsof all the datarelated to theinvoice alongwith data onMPOs

30sec

Receives datathrough sms.Updatdata on the otherterminals


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p Totaltime


fication Time:9.5mins

The invoice is verifiedand signed by the depotmanager. An ITemployee sitting next tothe Depot Managerenters all the selectinvoice numbers thathave been verified

7mins

PreparesTransportationplan,jobschedule ofsalesmen.

1 min Gets printouts ofTransportationplan and jobschedule

1min

Keeps recordof verifiedaccounts,eachsalesmans

assignedinvoicenumbers, etc

10secs

Communicates datato the PackagingDepartments

Terminal

egation of

to salesmanTime: 2mins

He explains the dutiesand transportation planto respective salesmenand driver.

2 min

kaging Time:15mins

Salesman takes a copyof the printed invoice tothe packagingdepartment.It has staffsother than the store manto pack all the orders.Driver checks whetherthe packagingdepartment has theinvoice numbers ofloaded packages fromhis schedule.

14mins20secs

Processesinventoryupdates

20sec

Displays alltheinformation

2secs

Receives invoiceorder data from theserver.Communicainventory updates.

ching thetination and

dover ofponsibilty

Time: 1.5hrs(includestravellingtime)

Driver gets a printedschedule signed by thesalesman whiledelivering any order

1.5hours


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p Totaltime


ting thenature ofpient

Time:9mins

Salesman delivers thepackages to thepharmacy premises andgets the invoice signedby the recipient.

9mins

h

ection/returnard

Time: 7.5

mins

Chemist pays the

specified amount ofmoney to the salesman.Any return is alsocollected and the amountto be paid is manuallyfixed.

7.5

mins

orting the

urn Inwards

Time: 3mins

Salesman reports anyincident of goodsreturned to the DepotManager, who orders theIT employees to adjustinventory and accountspayable.

2mins

Processesaccount info

15secs

Displaysinformation

10secs

Stores a/cdata

20secs

Sends data to tserver

ositingney

Time: 3mins

Salesman submits themoney and a copy of allthe invoices to thecashier. Cashier onlyenters the saleman's ID

into the system

2mins10sec

Processessalesmanspecific datarelated to thedifferent

accounts

30sec Displays info 2sec Stores data 10sec

Both wcommunication the othworkstations for daadjustment


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4.0 NEW POLICY, PROCEDURE & STANDARD

The envisioned system will make further use of IT, i.e., software, hardware, networking

and data management components. In effect, the IS needs to constitute the policies

and procedures that will ensure proper functioning of the new system. Sessions need to

be held to accustom the employees to the new features and utilities of the software and

sms service. New policies should be designed to include the following aspects:

Specification of the format in which the SMS needs to be sent for it to be captured

by the software. Uniform spacing and indents along with right product codes are

crucial for avoiding any chance of error.

The Depot manager, IT staffs, MPOs and Packaging staffs need to report to the

office at 8:00 am in the morning. The salesmen have to report by 9:30 am in the

morning.

MPOs are required to submit the order sheets to the depot by 8:15 am in the

morning for verification.

The MPOs will get a fixed conveyance allowance every month along with their

salary. Any grievances regarding the preset amount should be informed to the

Depot Manager, along with reasons backed up by proper evidence.

The invoice orders will have to be verified by checking them with the hard copy of

the order sheet. If the order sheet is unavailable, the invoice should be verified

by calling the MPO over phone and matching the requirements.

The Depot manager has the authority to make amendments to the job division

generated by the software for each individual salesman

The Driver will get a printed schedule stating the delivery destination along with

the invoice number of packages.

The salesman is required to sign the schedule as soon as the package has been

unloaded from the van.

The salesman needs to get the signature of the Chemist in the invoice form that

he brings backs to the depot

The salesman needs to count the money before ending any transaction. Any

deviation henceforth is the liability of the salesman.

The goods returned should be brought back to the depot on the very same day

that the goods have been dispatched.


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Documents

MIS General Pharma