APROJECT REPORT

ONSUMMER TRAINING

AT“ASFA AYU PVT. LTD”

Submitted by. Roll No. 1) BORDA KALPESH R. 122) GOPANI PIYUSH B. 293) GOYANI DHARMESH M. 32

Guide by:Mr. MAHESH PUROHIT

Mrs. DILSHAD BHATHENAMrs. VARSHA PATELMr. SUMIT DHAMANI

Mr. HETAL MEHTA

Submitted to:VIVEKANAND COLLEGE FOR BBA

VEER NARMAD SOUTH GUJARAT UNIVERSITYSURAT

ACADEMIC YEAR - 2011-12

INDEXINDEX• Industry ProfileIndustry Profile

• Company ProfileCompany Profile

• Finance DepartmentFinance Department

• Human Resource DepartmentHuman Resource Department

• Marketing DepartmentMarketing Department

• Production DepartmentProduction Department

INDUSTRY PROFIL

• The word "Ayurveda" is a tatpurusha compound of the word ayus meaning The word "Ayurveda" is a tatpurusha compound of the word ayus meaning "life"," life principle", or "long life" and the word veda, which refers to a "life"," life principle", or "long life" and the word veda, which refers to a system of "knowledge". Thus "Ayurveda" roughly translates as the system of "knowledge". Thus "Ayurveda" roughly translates as the "knowledge of life", or "knowledge of a long life"."knowledge of life", or "knowledge of a long life".

• There are two main re-organizers of Ayurveda whose works are still existing There are two main re-organizers of Ayurveda whose works are still existing intact today - Charak and Sushrut.intact today - Charak and Sushrut.

COMPANY PROFILCOMPANY PROFIL

• ““Asfa” (Shri Swami Atmanand Sarswati Ayurvedic Co-operative Asfa” (Shri Swami Atmanand Sarswati Ayurvedic Co-operative Pharmacy Limited) is established in 2Pharmacy Limited) is established in 2ndnd June, 1948 in Surat at the bank of June, 1948 in Surat at the bank of river Tapi. It is an only one co-operative pharmaceutical pharmacy in river Tapi. It is an only one co-operative pharmaceutical pharmacy in Gujarat. Gujarat.

• Head office Head office - Chowta pool- Chowta pool • Factory Factory - Varachha road & Navagam- Varachha road & Navagam• 40004000 Members Members• 7 Branches 7 Branches - Valsad, Baroda, Ahmadabad, Bardoli and Bharuch - Valsad, Baroda, Ahmadabad, Bardoli and Bharuch • 66 66 DealersDealers• Asfa get a certificate of Asfa get a certificate of GMP (Good Manufacturing Practice)GMP (Good Manufacturing Practice) from from

Gujarat State food and medicine Control Corporation. Asfa is a first Gujarat State food and medicine Control Corporation. Asfa is a first Pharmacy which is gets this type of certificate. Asfa get Pharmacy which is gets this type of certificate. Asfa get GMP certificate GMP certificate in 2004in 2004 and also get and also get ISO 9001 in 2005ISO 9001 in 2005 and laboratory of Asfa get and laboratory of Asfa get permission from food and medicines Commissioner’s office, Gandhinagar.permission from food and medicines Commissioner’s office, Gandhinagar.

FINANCE DEPARTMENTFINANCE DEPARTMENT

• DEFINITION OF FINANCEDEFINITION OF FINANCE

• ““A branch of economics concerned with resource allocation as well as A branch of economics concerned with resource allocation as well as resource management, acquisition and investment”. Simply, finance deals resource management, acquisition and investment”. Simply, finance deals with matter related to money and the markets.with matter related to money and the markets.

• DEFINITION OF FINANCE MANAGEMENTDEFINITION OF FINANCE MANAGEMENT

According to the opinion of guthman and d’Goul “Financial management According to the opinion of guthman and d’Goul “Financial management means managerial function like planning and controlling pertaining to means managerial function like planning and controlling pertaining to

acquisition and using of fund needed in the business”.acquisition and using of fund needed in the business”.

IMPORTANCE OF FINANCIAL MANAGEMENTIMPORTANCE OF FINANCIAL MANAGEMENT

• It brings economic growth and development through investments, financing, It brings economic growth and development through investments, financing, dividend and risk management decision which help companies to undertake dividend and risk management decision which help companies to undertake better projects.better projects.

• When there is good growth and development of the economy it will When there is good growth and development of the economy it will ultimately improve the standard of living of all people.ultimately improve the standard of living of all people.

• It enables the individual to take better financial decision which will reduce It enables the individual to take better financial decision which will reduce poverty, reduce debts and increase savings and investments.poverty, reduce debts and increase savings and investments.

FUNCTIONS OF FINANCEFUNCTIONS OF FINANCE

• Investment decisions Investment decisions • Financial decision Financial decision • Dividend decisionDividend decision• liquidity decisionliquidity decision

CAPITAL STRUCTURE OF COMPANYCAPITAL STRUCTURE OF COMPANY

A) SOURCES OF LONG TERM FINANCEA) SOURCES OF LONG TERM FINANCE

• Long term capital is needed for investment in fixed assets like land, Long term capital is needed for investment in fixed assets like land, building, machinery, etc. building, machinery, etc.

External sources of long term financeExternal sources of long term finance• Equity sharesEquity shares• Preference sharePreference share• Debenture / bondDebenture / bond• Term loanTerm loan

Internal sources of long term financeInternal sources of long term finance• Bonus shareBonus share• Reserve and surplus Reserve and surplus • Depreciation reserveDepreciation reserve• Provision for taxationProvision for taxation

B) SOURCES OF SHORT TERM FINANCEB) SOURCES OF SHORT TERM FINANCE (WORKING CAPITAL MANAGEMENT(WORKING CAPITAL MANAGEMENTINTRODUCTION OF WORKING CAPITAL MANAGEMENTINTRODUCTION OF WORKING CAPITAL MANAGEMENT

• Gross or total working capital Gross or total working capital • Net working capital Net working capital

CASH MANAGEMENTCASH MANAGEMENT

DEFINITION OF CASH MANAGEMENTDEFINITION OF CASH MANAGEMENTCash management means planning of optimum level of cash balance and cashCash management means planning of optimum level of cash balance and cashflows and monitoring the optimum level of cash balance and cash flows with anflows and monitoring the optimum level of cash balance and cash flows with anobjective of minimizing the cost and maximizing the profitability.objective of minimizing the cost and maximizing the profitability.

Cash management involves the following three factors.Cash management involves the following three factors.a.a. Ascertainment of the minimum cash balanceAscertainment of the minimum cash balanceb.b. b. Controlling cash outflows.b. Controlling cash outflows.c.c. c. Optimum investment of surplus cash.c. Optimum investment of surplus cash.

CASH MANAGEMENTCASH MANAGEMENT

DEFINITION OF CASH MANAGEMENTDEFINITION OF CASH MANAGEMENT• Cash management means planning of optimum level of cash balance and Cash management means planning of optimum level of cash balance and

cash flows and monitoring the optimum level of cash balance and cash cash flows and monitoring the optimum level of cash balance and cash flows with an objective of minimizing the cost and maximizing the flows with an objective of minimizing the cost and maximizing the profitability.profitability.

Cash management involves the following three factors.Cash management involves the following three factors.• Ascertainment of the minimum cash balanceAscertainment of the minimum cash balance

• Controlling cash outflows.Controlling cash outflows.

• Optimum investment of surplus cash.Optimum investment of surplus cash.

INVENTORY OF MANAGEMENT INVENTORY OF MANAGEMENT

DEFINITION OF INVENTORY CONTROLDEFINITION OF INVENTORY CONTROL

“ “Inventory control means the decision of the firm as the extent to which Inventory control means the decision of the firm as the extent to which inventories can be economically stored.”inventories can be economically stored.”

OBJECTIVE OF INVENTORY CONTROLOBJECTIVE OF INVENTORY CONTROL

a) To maintain investment in inventory at the lowest level.a) To maintain investment in inventory at the lowest level.b) To supply the products to its user as per their requirement at right time.b) To supply the products to its user as per their requirement at right time.c) To keep inactive, waste scrape and obsolete items at the minimum level.c) To keep inactive, waste scrape and obsolete items at the minimum level.d) To minimize holding, replacement and shortage cost of inventory at minimum d) To minimize holding, replacement and shortage cost of inventory at minimum level.level.e) To maximize the efficiency in production.e) To maximize the efficiency in production.

HUMAN RESOURCE VISION OF COMPANYHUMAN RESOURCE VISION OF COMPANY • BASE ON COMPANY:-BASE ON COMPANY:-

• BASE ON OURSIDE:-BASE ON OURSIDE:-

HUMAN RESOURCE MISSIONHUMAN RESOURCE MISSION• BASE ON COMPANY:-BASE ON COMPANY:-

• BASE ON OURSIDE:-BASE ON OURSIDE:-

HUMAN RESOURCE MANAGEMENT ACTIVITIESHUMAN RESOURCE MANAGEMENT ACTIVITIES Asfa has about Asfa has about 40004000 members now but when it was started it has only members now but when it was started it has only 7070

members to operate various activities. members to operate various activities.

HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT DEPARTMENTDEPARTMENT

HUMAN RESOURCE PLANNING PROCESSHUMAN RESOURCE PLANNING PROCESS

Organizations objectives And polices

Human resource demand Forecast

Human resource supply Forecast

Human resource Programming

Human resource plan Implementation

RECRUITMENTRECRUITMENT ““Recruitment is a process of searching for prospectiveRecruitment is a process of searching for prospective

employees and stimulating and encouraging them to apply foremployees and stimulating and encouraging them to apply for

jobs in an organization.”jobs in an organization.”

Planning Searching Screening

SELECTION SELECTION SELECTION PROCESSSELECTION PROCESS

Internal EnvironmentInternal Environment1) Receipt of Applicant1) Receipt of Applicant2) Preliminary Interview2) Preliminary Interview3) Selection Tests3) Selection Tests4) Employment Interview4) Employment Interview5) Job Offer5) Job Offer

TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT

INDUCTION TRAININGINDUCTION TRAINING

•Asfa have formal induction program Asfa have formal induction program •History of AsfaHistory of Asfa•Objectives of pharmacy,Objectives of pharmacy,•Name and designation of managers,Name and designation of managers,•Employee’s designation and responsibility,Employee’s designation and responsibility,•Layout of pharmacy,Layout of pharmacy,•Production and other processes of pharmacy,Production and other processes of pharmacy,•Job duties, location, tasks, objectives etc.Job duties, location, tasks, objectives etc.•Safety steps,Safety steps,•Employee benefits such as pays, holidays, welfare activities,Employee benefits such as pays, holidays, welfare activities,•Introduction to superiors, coworkers and other staff,Introduction to superiors, coworkers and other staff,

PROMOTIONPROMOTION

• Asfa give promotion to any employee only one in a year.Asfa give promotion to any employee only one in a year.• The promotion policy is prepared by discussion with managers The promotion policy is prepared by discussion with managers

and other staff.and other staff.• Promotion is not being forced on reluctant employees.Promotion is not being forced on reluctant employees.

TRANSFERTRANSFER • In Asfa company transfer rate is very low because of every In Asfa company transfer rate is very low because of every

worker are very old from U.P., M.P., Bihar etc, that’s why worker are very old from U.P., M.P., Bihar etc, that’s why transfer is very few.transfer is very few.

• For employee transfer rate is also very low, because of post is For employee transfer rate is also very low, because of post is limited.limited.

PERFORMANCE APPRAISALPERFORMANCE APPRAISAL

Objective of Performance

Appraisal

Establish Job Expectation

Design an Appraisal Program

Appraisal Performance

Performance Interview

Use Appraisal Data forAppropriate Purposes

WAGES AND SALARYWAGES AND SALARY

• To give fair and regular wages to employee.To give fair and regular wages to employee.

• To improve productivity by motivation.To improve productivity by motivation.

• Control costs through sound wage and salary administration.Control costs through sound wage and salary administration.

• To improve public image of company.To improve public image of company.

• To attract others for employment.To attract others for employment.

INCENTIVE SYSTEMINCENTIVE SYSTEM• Wage incentives are extra financial motivation. Wage incentives are extra financial motivation.

• Asfa gives incentive base on looking different factors ofAsfa gives incentive base on looking different factors of

employees such as, personality, nature, communication style,behavior, employees such as, personality, nature, communication style,behavior, attitude etc.attitude etc.

INDUSTRIAL RELATIONSHIP IN ASFAINDUSTRIAL RELATIONSHIP IN ASFA

Employee welfare or labour welfare means,” The efforts to make life worth living Employee welfare or labour welfare means,” The efforts to make life worth living for workmen.” for workmen.”

1) 1) INTRA MURAL WELFARE ACTIVITY ASFA:-INTRA MURAL WELFARE ACTIVITY ASFA:-•Convenience and comfort during the work.Convenience and comfort during the work.•Medical facilities.Medical facilities.•Safety instruments such as guards, caps, shoes, aid equipments.Safety instruments such as guards, caps, shoes, aid equipments.

2) EXTRA MURAL WELFARE ACTIVITY OF ASFA:-2) EXTRA MURAL WELFARE ACTIVITY OF ASFA:-•Transportation, Security, Training and development programs.Transportation, Security, Training and development programs.

3) WELFARE ACTIVITY FOR SOCIETY:-3) WELFARE ACTIVITY FOR SOCIETY:-•Provide employment.Provide employment.•Provide ayurvedic medicines at fair price.Provide ayurvedic medicines at fair price.•Effective waste disposal system.Effective waste disposal system.•Effective use of resources of society.Effective use of resources of society.

PRODUCTION MANAGEMENTPRODUCTION MANAGEMENT

DEFINITION OF MANAGEMENTDEFINITION OF MANAGEMENT““Production means manufacturing an object using various input or goods likeProduction means manufacturing an object using various input or goods likeraw-material, power, labor, capital machine.” raw-material, power, labor, capital machine.”

DEFINITION PRODUCTION MANAGEMENT““Production management means creating and maintaining anProduction management means creating and maintaining anenvironment in which individuals working together in groups willingly environment in which individuals working together in groups willingly contribute their best to produce the specified goods and services by optimum contribute their best to produce the specified goods and services by optimum utilization of raw materials and other inputs so as to timely satisfy the needs of utilization of raw materials and other inputs so as to timely satisfy the needs of the customers.”the customers.”

RAW MATERIAL PURCHASE POLICYRAW MATERIAL PURCHASE POLICY

1)1) Receive requisitions Receive requisitions

2) 2) Review requisitionsReview requisitions

3) 3) Select suppliers Select suppliers

4) 4) Select suppliers Select suppliers

5) 5) Monitor ordersMonitor orders

6) 6) Receive ordersReceive orders

MATERIAL HANDLING EQUIPMENTMATERIAL HANDLING EQUIPMENT

1) Classification on the basis of form of material1) Classification on the basis of form of material

2) Classification as per path of movement2) Classification as per path of movement

3) Classification on the basis of degree of automation3) Classification on the basis of degree of automation

PROCESS OF PRODUCTIONPROCESS OF PRODUCTION

PRODUCTION PROCESS OF TABLET

Material receipts

Compression

Testing

Dispatch

Mixing

Granulation

Packing

QUALITY CONTROLQUALITY CONTROL

“ “Quality control is a system of policies, procedures and guidelines Which Quality control is a system of policies, procedures and guidelines Which established and maintained the specified standard of quality.”established and maintained the specified standard of quality.”

a) main objectivea) main objective

b) other objectiveb) other objective

QUALITY CONTROL SYSTEM IN ASFAQUALITY CONTROL SYSTEM IN ASFA a)Raw –materiala)Raw –material

b) In process goodsb) In process goods

c) Finished productc) Finished product

5) MAINTENANCE POLICY5) MAINTENANCE POLICYTWO TYPES OF MAINTENANCETWO TYPES OF MAINTENANCE

A) PRE – EMPTIVE MAINTENANCE SYSTEM A) PRE – EMPTIVE MAINTENANCE SYSTEM

B) ACTUAL MAINTENANCE SYSTEMB) ACTUAL MAINTENANCE SYSTEM

6) STORAGE DEPARTMENT6) STORAGE DEPARTMENT

7) WASTAGE CONTROL7) WASTAGE CONTROL

• CONTROLING UNAVOIDABLE WASTECONTROLING UNAVOIDABLE WASTE

• CONTROLING AVOIDABLE WASTECONTROLING AVOIDABLE WASTE

1) INTRODUCTION OF MARKETING 1) INTRODUCTION OF MARKETING

MARKETMARKET • Traditionally, ‘market’ was a physical place where buyers and sellers Traditionally, ‘market’ was a physical place where buyers and sellers

gathered to buy and sell goods.gathered to buy and sell goods.

MARKETINGMARKETING• Social definition of marketing, “marketing is a societal process by which Social definition of marketing, “marketing is a societal process by which

individuals and groups obtain what they need and want through creating, individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.offering, and freely exchanging products and services of value with others.

MARKETING ENVIRONMENTMARKETING ENVIRONMENT• PoliticsPolitics• EnvironmentsEnvironments• SuppliersSuppliers• TechnologiesTechnologies

IMPORTANT OF MARKETING MANAGEMENTIMPORTANT OF MARKETING MANAGEMENT • A) MARKETING PROMOTES PRODUCT AWARENESS TO THE A) MARKETING PROMOTES PRODUCT AWARENESS TO THE

PUBLICPUBLIC• B) MARKETING HELPS BOOST PRODUCT SALESB) MARKETING HELPS BOOST PRODUCT SALES• C) MARKETING BUILDS COMPANY REPUTATIONC) MARKETING BUILDS COMPANY REPUTATION

2) SEGMENTATION2) SEGMENTATION A marketer can rarely satisfy everyone in a market. Therefore, marketers A marketer can rarely satisfy everyone in a market. Therefore, marketers

start dividing up the market.start dividing up the market.

BASIS OF SEGMENTATIONBASIS OF SEGMENTATION• A) GEOGRAPHICA) GEOGRAPHIC• B) DEMOGRAPHIC B) DEMOGRAPHIC • C) PSYCHOGRAPHICC) PSYCHOGRAPHIC• D) BEHAVIORALD) BEHAVIORAL

TARGETINGTARGETING

• A target market refers to a group of individuals who are inclined towards A target market refers to a group of individuals who are inclined towards similar products and respond to similar marketing techniques and similar products and respond to similar marketing techniques and promotional schemes. promotional schemes.

BASIS OF TARGET MARKETBASIS OF TARGET MARKET• AgeAge• GenderGender• InterestInterest• Geographic location Geographic location • Need Need • OccupationOccupation

POSITIONINGPOSITIONING

A. Problem recognitionA. Problem recognitionB. General need descriptionB. General need descriptionC. Product specificationC. Product specificationD. Supplier search D. Supplier search E. Proposal solicitationE. Proposal solicitationF. Supplier selectionF. Supplier selectionG. Order routine G. Order routine H. Performance reviewH. Performance review

3) ORGANISATIONAL BUYING BEHAVIOR PROCESS3) ORGANISATIONAL BUYING BEHAVIOR PROCESS

4) 4PS OF MARKETING

PRODUCT Rasa = Sutshekhar rasa Bhasma = Akeeka bhasma Sogothi = Bal rakshak sogothi

PRODUCT LIFE CYCLE OF ASFA

IntroductionGrowthMaturityDecline

PACKAGING OF ASFA

LABELLING OF ASFA

TYPES OF LABELLINGA brand labelA descriptive labelA grade label

BRAND OF ASFABRAND OF ASFA “ “ A name, term, sign, symbol, or a combination of them intended to identify A name, term, sign, symbol, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”them from those of competitors.”

B) PRICINGB) PRICING

• Maximize profitsMaximize profits• Enhance promotionsEnhance promotions• Cost recoveryCost recovery• Competitive leadershipCompetitive leadership

C) PLACEC) PLACE

CHANNEL OF DISTRIBUTIONCHANNEL OF DISTRIBUTION““ASFA” has well developed distribution network for marketing activities. ASFA” has well developed distribution network for marketing activities. “ASFA” has 66 dealers for selling its medicines. “ASFA” has 66 dealers for selling its medicines. ““ASFA” uses zero level and one level channel for distribution.ASFA” uses zero level and one level channel for distribution.

ACTIVITIES OF SERVICESACTIVITIES OF SERVICESTransportationTransportationServicesServicesMargins of channel partnerMargins of channel partner

D) PROMOTIOND) PROMOTION““ASFA” does promotion by public relations. “ASFA” makes aware people ASFA” does promotion by public relations. “ASFA” makes aware people about its medicines by public relations.about its medicines by public relations.