AN ORGANISATION STUDY AT

TERUMO PENPOL LIMITED

THIRUVANANTHAPURAM

An organization study report submitted in partial fulfillment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

University of Kerala

Submitted by

VINOD KUMAR JK

Under the guidance of

FACULTY GUIDE

Dr. R JAYALEKSHMI

INSTITUTE OF MANAGEMENT IN KERALA

ICM Campus, UNIVERSITY OF KERALA

THIRUVANANTHAPURAM

May - 2014

1

DECLARATION

I hereby declare that the project report entitled “An organization

study at TERUMO PENPOL, Thiruvananthapuram” submitted by

me for the award of the degree of Master of Business Administration of

the University of Kerala is my own work. The report has not been sub-

mitted for the award for any other degree of this University or any other

University.

Trivandrum VINOD KUMAR JK

10-05-2014

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ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere gratitude to all who helped

me to complete this project successfully through their timely guidance, help and sup-

port.

First and foremost, I wish to thank GOD the almighty for his blessing and guidance

throughout the project.

I express my sincere gratitude to Mrs. M.A.PUSHPA KUMARI the Deputy Man-

ager (ADMN) Terumo Penpol Ltd, Trivandrum, for providing an opportunity and for

her valuable guidance for this project work.

It gives great pleasure to place on record my sincere gratitude to my guide Dr. R

JAYALEKSHMI for this valuable guidance and eminent supervision throughout the

preparation of this report.

Finally, I also take this opportunity to thank my parents, relatives and friends who

have directly and indirectly helped me for the successful completion of the project

work.

Trivandrum VINOD KUMAR JK

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CONTENTS

CH.NO Name of the chapter Page No

I Introduction

II Industry Profile

III Company Profile

IV Organizational Structure

V Analysis Objective Wise

VI SWOT Analysis

VII Porters Five Force Analysis

VIII Finding Suggestions And Conclusion

Bibliography

Appendix

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LIST OF TABLES AND CHARTS

Char

t No

Name Of The Chart Page No

4.1 Organization Structure 22

5.1 Accounts & Finance department 25

5.2 HRD department 27

5.3 Production department 28

5.4 Purchase department 31

5.5 Maintenance department 33

5.6 Personnel and Administration department 35

5.7 Quality control department 38

5.8 Store department 39

5.9 Marketing department 42

5.10 Export and Logistic department 43

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I. CHAPTER

INTRODUCTION

6

INTRODUCTION

Organization study at Terumo penpol (TPL) is to acquaint myself with the business

environment for a period of one week as a part of the MBA curriculum at the IMK.

The study was conducted to understand the structure, function and processes of vari-

ous departments and their interdependence. During the course of study I was able to

successfully interact with the employees of the organization. They were happy to give

me all possible information. They also took me to the plants and worksites where I got

the first hand information about the organizational process and its functions.

OBJECTIVE OF THE STUDY

To examine the relationship between operational efficiency and organiza-

tional structure

To familiarize with a business organization

To familiarize with the different departments in the organization and their

functioning.

To understand how the key business process are carried out in organiza-

tion

Understand how information is used in organization for decision making

at various levels and

To relate theory with practice

METHODOLOGY AND DATA SOURCE

The methodology used for the survey is through collection of primary and secondary

data and by direct investigation with employees and the managers. Information col-

lected from the company in two ways. They are:-

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PRIMARY DATA

The primary data was collected from the management executives, various section

heads, supervisors and employees of the company through direct methods like inter-

views, discussions and observations.

SECONDARY DATA

The secondary data was collected from company registers, financial statements pre-

pared and maintained by the company, newsletters and magazines published by the

company, department manuals of the various departments of the company, brochures

and websites.

SCOPE OF THE STUDY

The study helps to develop a practical knowledge about the working of

the organization

It helps to get familiarize with the organizational procedure

The study helps to understand the company strategy for growth

Which envisage further expansion of capacity, modernization of

process, adherence to strict quality assurance protocol and a drive to

boost efficiency in manufacturing

LIMITATION OF THE STUDY

Time was major limiting factor

Secondary data from company manuals are out dated

Lack of cooperation from certain department due to their work load

The information obtained is not complete and accurate, as confidential

report not provided for the purpose of study.

The study has limited scope, as it aims an overall organization study

and not an in-depth study.

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CHAPTER SCHEME

I Chapter Introduction :This chapter denotes the objective of the organization study, methodology and data sources, scope of the study and limitations

II Chapter Industry Profile:In this chapter shows blood bag details, problems faced by blood bag manufactures and the demand for blood bags.

III Chapter company profile:

This chapter specifies the history of the company and the products pro-duced and marketed by the company.

IV Chapter Organizational Structure:In this chapter draw about the different departments of the organization and the organogram

V Chapter Analysis Objective Wise:This chapter indicates detailed analysis of each departments working un-der the organization

VI Chapter SWOT analysis:This chapter denotes the detailed analysis of organization in all perspec-tives

VII Chapter Porters Five Force Analysis:This chapter specifies another form of analysis in another dimension

VIII Chapter Finding Suggestions And Conclusion:This chapter describes the new findings from the organization, sugges-tions for improvement and the conclusion

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CHAPTER II

INDUSTRY PROFILE

Donating blood to save a life is one of the best things a Person can do for his fel-

low beings. Each process in blood banking from blood collection till issue is equally

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important and it is the collective responsibility of manufacturer of blood banking

products and its users to ensure that blood collection is safe and sterility is maintained

throughout the process. A manufacturer’s responsibility is to ensure that their prod-

ucts are user-friendly and by all means safer to use and they should create awareness

among the users about the key features of these products. A blood bag system is easy

to use when standard practices are followed by the user, but many times blood banks

face issues like:

a) Presence of skin particle in blood: may damage the whole unit of collected blood

b) Needle sticks injury for phlebotomist: may result in transmitting disease from a

donor to phlebotomist.

To prevent these problems additional features are provided in the blood bag system

like Pre donation bags, Needle Injury Protector or NIP etc. In many western countries

these features are mandatory. In India these additional features are available but are

not much popular.

The Primary goal of every Blood Transfusion Service is to provide patient with safest

possible blood product. Blood product belongs to biological products, which collects

healthy blood as the raw material and then is made through biological process. Blood

bag is a disposable bio medical device used for collection, storage, transportation and

transfusion of human blood components. It can successfully replace the use of glass

bottles because bottle requires exhaustive cleaning, rinsing and autoclaving proce-

dures and there are chances of breakage at any stage.

WORLD SCENARIO

Globally, approximately 75 million blood bags are collected annually [Source:

WHO], Major blood bag manufacturers globally include Baxter Bioscience, USA;

Bayer Corporation, USA and Octapharma AG, Switzerland. With the increasing

global demand for blood bags and growth rate of its market being 15 percent annually

the business for the potential investor is desirable and is expected to generate high re-

turns from the business. The investor would need to set up highly standardized plant

as the demand for these products largely depend on their quality. The blood bag man-

ufacturing industry is now in a growth stage. It is now witnessing high customer traf-

11

fic. This particular industry goes hand in hand with new technology. It also contrib-

utes a fair portion of revenue to the economy.

Indian Research and Development organization is offering technology for the manu-

facture of disposable blood bag systems. The system consists of a single or multiple

bags connecting with tubing, needle cover, clamp etc. The blood bags are made of

plastic material, which are compatible with blood. Further, use of disposable bags

eliminates the possibility of any contamination. In recent times the blood bag has be-

come a conspicuous item and essential need of hospitals and nursing homes to

meet blood infusion emergencies. Blood bags are most ostensibly serving the medical

field in crucial hour. As the number of hospital, nursing homes are increasing the de-

mand for the blood bags too are increasing tremendously.

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CHAPTER III

COMPANY PROFILE

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The Birth

Peninsula Polymers (Penpol) Pvt Ltd., incorporated in 1983, was the brainchild of for-

mer IAS officer, Mr.C.Balagopalan. Captivated by a newspaper article on blood bag

technology, the young bureaucrat embarked on an entrepreneurial journey that led to

pioneering steps in biomedical device manufacture. Partnering with Sree Chitra

Tirunal Institute for Medical Sciences and Technology (known then as the Chitra

Medical Centre), Penpol started production in its factory in Trivandrum, Kerala, on

26th March 1987, with TTK Pharma as its sole sales agent. In 1989, the company

achieved some significant milestones like sending out its first export shipment, and

setting up its R&D division.

New Horizons

In the mid-1990s, although the Indian economy had opened up, imported medical

equipment was still expensive. More importantly, such equipment could not be ser-

viced or repaired easily. Penpol started manufacturing blood transfusion and allied

equipment in 1996, and, in 2001, the company began its export.

A Partnership across Boundaries

In 1999, Penpol entered into a joint venture with the multibillion dollar Terumo Cor-

poration of Japan, and changed its name to Terumo Penpol. By teaming up with an

international company that had a reputation for unimpeachably superior technology

and global marketing capability, Terumo Penpol took yet another step towards be-

coming a world leader in developing and manufacturing innovative devices, equip-

ment and accessories for blood transfusion.

In 2013 April Terumo Penpol became the subsidiary of Terumo Corporation, a Japa-

nese company with $3.8 billion in revenue and presence in over 150 countries.

Terumo has distinguished itself as a high quality manufacturer of medical products,

with 20 factories around the world and employs 14,000 people worldwide. Terumo is

pioneering products of future like implantable left-ventricular assist systems, artificial

vessels, minimally invasive surgery devices, nano-capsules and more.

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In 2012 Terumo acquire CaridianBCT. Terumo has become the world leader in

Blood Management. The Blood Transfusion division of Terumo is being re-organized

under the newly acquired company which has been renamed as TerumoBCT. The

Apheresis and Cellular Therapy products of Terumo BCT complements Terumo Pen-

pol products to provide a full range of blood collection, storage and processing solu-

tions for Hospitals and Blood Centers in India and other countries.

The Way Ahead

Terumo Penpol with an annual production of 24 million units has become the lead-

ing manufacturer of blood bags which are used in 80 countries.  Its equipment instal-

lations have today crossed 10,000 numbers. Enjoying the loyalty of 1056-strong

workforce, this 26-year-old company has set its focus to be the market leader in Blood

Transfusion industry.

STRATEGIC INTENT

MISSION

‘Contributing to Society through Health Care.’

VISION

To become a World class Medical Device manufacturer adopting Customer First

approach in all business processes

QUALITY POLICY

At TerumoPenpol, Quality is a way of  life, starting with material procurement from

world class sources,  production adhering to Good Manufacturing Practices(GMP),

testing as per quality and safety standards, and installation followed by unique, TPL

customer care services.  The quality management system of Terumo Penpol is certi-

fied according to ISO 9001, 1SO 13485,ISO 14001, OHSAS 18001 and European Stan-

dards EN 46001 and European Medical Device Directive 93/42/EEC.

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Manufacture high quality products meeting customers requirements.

Design all products in accordance with international standards

Ensure high quality at all stages of supply chain.

Adopting a customer first approach in all business process.

Improving quality ,safety and environment management.

WORK PLACE MANAGEMENT (five s’)

TPL ensure proper organizing, neatness, cleanliness, standardization and discipline at

work place for sustained housekeeping and management practices.

Seiri ( Organising)

Sorting between wanted and unwanted things in a selected area.

Seiton (Neatness)

A place for everything and everything in its place.

Seiro (cleanliness)

Deals with the jobs of thoroughly cleaning work place.

Seiketsce (Standardisation)

Means standard which is needed to maintain seiri, seiton and seiro standardization

leads to visual management to avoid mistakes.

Shetsuske (Discipline)

Means discipline which is called for strict adherence to a system from the present

unsystematic way.

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BOARD OF DIRECTORS

NAMES DESIGNATION

KIMURA YOSHHIROCHAIRMAN AND MANAG-ING DIRECTOR

PADMA KUMARCHANDRASHEKAR

WHOLE TIME DIRECTOR

KENJI SEKINE DIRECTOR

HIROTOMO MORITA DIRECTOR

HIROSHI NAGUMO DIRECTOR

NELBY MOL NELSON SECRETARY

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PRODUCT PROFILE

Terumo Penpol personifies the story of a home grown R&D initiative commercialized

successfully. Practicing the concept of “ Quality First ” approach in manufacturing,

Terumo Penpol has been serving Blood Centers across the globe for more than 25

years. Susidiary of Terumo Corporation, Japan, a global leader in healthcare products,

has enabled Terumo Penpol to harness the combined strengths in Technology and

Manufacturing to continue redefining standards in Blood Transfusion.

TPL blood bag reaches a customer after undergoing 41 physical and biological tests

that ensure safety in use. Its product range consists of single bag, double triple bag,

quadrupple bag, penta blood bag.

Product categories

A. Blood collection equipment

B. Blood storage equipment

C. Blood processing equipment

Blood collection equipment

I. Blood Bag

II. Donor Station

III. Blood Collection Monitor

IV. Portable tube Sealer

V. Tube Sealer

Terumo Blood Bags

The TPL Blood Bag systems are high quality products designed for optimum blood

management during collection, separation, preservation and transfusion. Various

types of blood bag systems with improved storage period of blood and blood compo-

nents are available. A new range of Blood Bags provides the Blood Banks with a

large choice of safety features.

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Five types of blood bags catering to various patient needs: Single, Double, Triple,

Quadruple and Penta Blood Bags and two options of anticoagulant solution CPD and

CPDA-1 are available. Also available Blood Bags with additive solution S.A.G.M.-1

and S.A.G.M.-2 .

 

Terumo Single Blood Bag

For whole blood collection. The bag contains CPDA solution.

Terumo Double Blood Bag

For whole blood collection and separation of 2 different blood components (red

blood cells, and plasma) obtained through the process of centrifugation and extrac-

tion

Terumo Triple Blood Bag

Triple Blood Bag with SAGM, for whole blood collection and separation of 3 differ-

ent blood components (red blood cells, plasma and platelets). The primary bag con-

tains CPD and one satellite bag contains SAGM.

Terumo Quadruple Blood bag

Quadruple blood bags with SAGM for whole blood collection and separation for 3

different blood components (red blood cells, plasma and platelets) through the buffy

coat method. The primary bag contains CPD solution and has 3 satellite bags. One

satellite bag is of 100 ml capacity to prepare platelets through the buffy coat method.

One satellite bag is valid for 5 days of platelet storage.

Top and Bottom Blood Bag with Leukocyte filter for CRC

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Top and Bottom penta blood bag with a CRC filter for whole blood collection and

separation of 3 different blood components(leukodepleted red blood cells, plasma and

platelets).The primary bag contains CPD solution and one satellite bag is attached to a

CRC filter which comes with SAGM solution for red cell preservation. Platelets are

prepared from the buffy coat method. One transfer bag is valid for 5 days of platelet

storage.

MSG(Medical System Group ) PRODUCTS

Donor Station Terumo Penpol (DC 200)

Terumo Penpol Blood Collection Monitor (D601)

Terumo Penpol Portable Tube Sealer (LM 100E)

Terumo Penpol Tube Sealer (XS 1010)

 

STORAGE EQUIPMENT

Terumo Penpol Blood Storage Cabinet

Terumo Penpol Deep Freezer (DF 80U)

Terumo Penpol Platelet Agitator with Incubator

PROCESSING EQUIPMENT

Compo scale (CS 300)

Intelligent Expressor (E 300)

Terumo Automatic Component Extractor (T-ACE II+)

Terumo Sterile Connecting Device(TSCD-II)

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CHAPTER IV

ORGANISATIONAL STRUCTURE

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ORGANISATIONAL STRUCTURE

The organization has following department s that function effectively with a vibrant

group of employee with the help of whom the organization is able to shape in future.

The main departments of the organization are as follows:-

1. Personnel and administration department

2. Export and logistics department

3. Finance department

4. GMP department

5. HRD department

6. Maintenance department

7. Marketing department

8. Production department

9. Purchase department

10. Quality department

11. R & D department

12. Stores department

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EXECUTIVE DIRECTOR

CHAIRMAN AND MANAGING DIRECTOR

ADMINISTRATION MANUFACTURE AND COMMER-CIAL

DOMESTIC SALES AND MAR-KETING

HR

CSR

GENERAL ADMIN

FINANCE

IT

M.R

LEGAL AFFAIRS

B.B FACTORY

MSG

QA

MATERIAL

LABOUR (PAD)

INTERNATIONAL SALE

LOGISTICS

STRATEGIC PLANNING

CHAPTER V

ANALYSIS OBJECTIVE WISE

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DEPARTMENTS AND ITS FUNCTIONS

1. FINANCE DEPARTMENT

The policy of finance department is to ensure provisions of timely finance to various department and quality programs to exercise necessary financial controls and to main-tain accounting records as per companies act and to provide all statutory reports and also to provide internal information reports on time to the management for measuring organization performance and for decision making.

ORGANORAM

ACCOUNTING POLICY: - The purpose of accounting policy is to verify, quantify and record all the transactions

SYSTEM OF COMPUTING ACCOUNTS: - Accrual basis of accounting except certain benefits to the employees which are on cash basis

RETIREMENT BENEFITS: - Contribution for gratuity is on basis of actuarial valuated intimated by LIC

PROJECT DEVEKOPMENT EXPENSE: - Expense to development and preliminary stage is car-ried forward, if any project is abandoned it is written off in the same year. in case of minor project expense charged as revenue expenditure.

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CMD

EXECUTIVE DIRECTOR

DEPUTY MANAGER ACCOUNT DEPUTY MANAGER PURCHASE

ACCOUNTS AUDIT EXECUTIVE AC-COUNTS

EXECUTIVE SEC-RETARY

BUDGETARY CONTROL

FROEIGN CURRENCY TRANSACTION:- They are converted at the rate on the date of transac-tion. Current assets and current liabilities in foreign currencies converted at year and ex-change rate.

SALES TAX:- Before 10th of every month a monthly report of sales tax is submitted to the concerned departments. The sales tax audit is conducted before 31st December of every ear. Report must be submitted to sales tax audit.

FINANCE:- Finance manager has to plan and mobilize the required fund from various sources for this the following are carried out:-

1. submission of growing power statement2. Timely summation of report3. Submission of credit monitoring analysis report to bank authorities4. Submission of quarterly performance report5. Perpetration of daily collection report from various departments6. Development of fund invests decision

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2. HUMAN RESOURCE DEVELOPMENT DEPARTMENT

The policy of corporate HRD department is to hire, induct, asses performance and train the associates in a systematic manner in resonance with the quality policy and organizational goal.

ORGANOGRAM

RECRUITMENT:-

It is one of the major activities of HRD. Recruit right person for the right job, ensure better productivity and lesser hassles. It done on the bases of man power budgeting, It is prepared by (HRD). HOD will consult with divisional head and the budget and planning department for preparation of manpower budgeting. HOD should forward the requisition and initiate the process of recruitment if the position is budgeted. If it is not special approval from the management obtained.

Recruitment should do through internal data base recruitment agencies, campus inter-view, advertisement. After short listing the candidates an interview panel will be cre-ated and they will conduct interview. HRD department will send the interview details along with names, proposed salary and responsibility to the CMD through ED for the approval. The appointment order will be prepared and issued based on this on resigna-tion an exit interview is conducted by HOD (HRD).

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CHAIRMAN

HOD (HRD DEPARTMENT)

TRAINING OFFICER EXECUTIVE HRD

3. PRODUCTION DEPARTMENT

The policy of production department is to produce a well equipped and hygienic prod-uct according to needs of customer.

ORGANOGRAM

PRODUCTION PROCESS

The production process involves following steps:-

Selection of raw materials Formulation Processing

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CMD

PRODUCTION MANAGER

DEPUTY MANAGER

SHIFT ENGINEER MANUFACTURING CHEMIST

JE(EXTR) JE (BS) JE(BS) JE(BS) JE(LABEL) JE(PHARMA) JE(WSP)

TECHNICIAN WIP CLERK TECHNICIAN

RAW MATERIAL USED

PVC Plasticizers Lubricated Other additives

FORMULATION

This is critical aspect the involves careful selection of raw materials and proportions to be used to achieve the range of desirable properties. It can be done by experiment s followed by various studies

PROCESSING

It involves following step

1. Compounding: It involves combining PVC, plasticizers, stabilizers and other additives to form a homogenous mix at a specific temperature.

2. Palletizing: PVC compound is softened by heating extruded through dye plate. Extended standards are cooled by passing it through containing demo-nized water the dried by hot air and cut into 2-3mm long pellets. Pellets are dried by heating an oven at around 70dc with air circulation.

3. PVC sheet and tube extrusion: The raw materials for sheet extrusion are compounded PVC pellets. A single screw extruder is used for the continuous process.

4. In processing of sheets: This is done to confirm quality before being used in manufacturing of blood bags, the test on tube involves chemical test and ele-ment test.

5. Tube and compound assembly: in tube assembly compound of tube are bro-ken off at a junction who has cut provided at the stamping stage.

6. Welding / Bag sealing: First the sheet is assembled with one embossed sur-face and plane surface facing the inside of the bag to be made. Thus the both inside and outside are embossed as well as plane surface.

7. Labeling of bags: It is done manually. Label manufacture subcontractor came for inspection and confirmed ones are sent for use. Prior to use the batch num-bers are printed. The labeling should be perfect.

8. Preparation of anticoagulant solution: Preparation have 5 steps Weighing of materials Mixing of chemicals In process of testing of mixture Filtration of mixed solution Collection of mixed solution

9. Filling: The solution with collection tank is rented to sub tank of capacity of 50 litters each. From this solution is channeled to blood bags via nozzle is taken for testing. All those done is least exposed to air prevent contamination.

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10. Packing: Polypropylenes covers are used for PVC blood bag packing. Packing is done manually. Bags are inserted and the tube with needle, holding assem-bly and donor tubes are coaled into the packet sealing is done manually or au-tomatically.

11. Sterilizing: It can be done through autoclaving and drying.12. Final inspection: pinch off leak, weld leak, stopper leak, transfusion leak, and

needle bent damages, label rejection, CPAD satin/color change and other.

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4. PURCHASE DEPARMENT

The policy of purchase department to provide material / services of high quality and the delivery as sought / acceptable to the requestioners, procuring them at economical and convenient terms possible persevering to develop and maintain good professional business relationship with sub contractors.

ORGANOGRAM

The activities of the purchase department start with the receipt of purchase request on forwarded by the user department through stores. After receiving the requisition from different department, purchase department send enquiry to suppliers through internet, website, newspaper, industry directories etc. Then receiving the quotation from different suppliers the purchase department prepares a comparative state-ment. Through these statements they analyze which on is better to them, and them they release the purchase order to that supplier. Then they ensure the supply as per there deliver schedule.

Besides purchase department carry out view vender development function. For this they purchase samples from them and do test at the lab to ensure standard of qual-

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GENERAL MANAGER

DEPUTY MANAGER

PURCHASE EXECUTIVE

PURCHASE CLERK PURCHASE CLERKPURCHASE CLERK PURCHASE CLERK

ity and then visit the factory to place a trail order after testing the workers ability, production process and if all these are intact then they please a bulk order since they have approved of the particular vendor. Vendor evaluations / rating are also deter-mined by the purchase department. For this purchase department fix certain stan-dards in quality, delivery schedule, price and distance. If the vendor fails to satisfy anyone among this then they will reject that vendor. TPL purchase raw material for the production of blood bags. For this they use PVC compound in the pellet form. Wesley Company, Bangalore. For production they use 4 chemicals, it is purchased from INCE chemicals, Cochin. The packing materials are purchased from cartons at Attingal. For purchasing labels they imported it from Japan.

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5. MAINTENANCE DEPARTMENT

The policy of this department is to provide the functions of machines in a smooth and effective manner.

ORGANOGRAM

FUNCTIONS

Utility maintenance Preventive maintenance Break down maintenance Environment maintenance

The TPL Company has adopted two types of maintenance preventive maintenance and break down maintenance.

Maintenance department prepares the schedule for the preventive maintenance of util-ity equipments for a period of one year as per preventive maintenance schedule. At the end of the period, preventive maintenance schedule is revised on the basis of

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EXECUTIVE DIRECTOR / GENERAL MAN-AGER

DEPUTY MANAGER MAINTENANCE

MAINTENANACE MANAGER

TECHNICIAN / BOILER OPERATORS

break down analysis of last year. If the required necessary changes are also incorpo-rated in the Preventive maintenance procedure.

Immediately after maintenance machines are qualified for production then it is taken for trail run / verification.

The purpose of break down maintenance is to bring down maintenance technician in maintenance on duty will be attending the break down without any delay and in case he needs any guidance engineer/ supervisor will provide it.

Environment monitoring is also adopted in maintenance department. Control of envi-ronment in a clean room is essential to keep the burden at low level that the micro-organisms can be excluded during processing and packing of sterile product. Thus condition monitoring of operating environment is essential.

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6. PERSONNEL AND ADMINISTRATION

The policy of Personnel and administration department is to render effective adminis-tration of all personnel and administration functions with specific emphasis on indi-vidual relation discipline and welfare in a systematic and scientific way towards the accomplishment of organizational goal.

ORGANISATION

FUNCTIONS OF P AND A DEPARTMENT

To meet the manpower requirement To carry out the administrative functions of the factory in a systematic manner Preparation of pay roll document Salary distribution Responsible for company vehicle Handling of inward and outward letters To provide communication facility Maintenance of factory premises To ensure the security functioning of company Selection of security

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GENERAL MANAGER

PERSONNEL MANAGER

SECURITY OFFICER PERSONNEL OFFICER EXECUTIVE PERSON-NEL

SYSTEM EXECUTIVE

LAUNDRY STAFF SENIOR CLERK OFFICE CLERK

CALSSIFICATION OF WORKMEN

Permanent: Whose work is permanent in nature and whose appointment is duly con-firmed by management after evaluating his performance during probationary period. There are 199 permanent workers in TPL.

Probationers: These workers are under observation for a period of time. After this period they may become permanent or not according to their performance. There are 23 probationers in TPL.

Temporary: These workers are not permanent in nature they can work up to which they like. These workers are under the control of management.

Substitute: These workers are substituted for a permanent worker do to his absents. When he returns he will be replaced.

Casual: These workers are irrespective of any time period. Only one casual worker in TPL now.

Apprentice: These are workers who are in training bases for a period of time. 97 ap-prentices are present in TPL.

PROCEDURE OF SELECTION

The concerned department heard originates personnel requisition from for every posi-tion to be filled with a clear job description and job specification to be carried out by the recruit and it is sent for approval of the GM. An internal notification shall be ex-hibited in the notice board indication the details of vacancy if suitable candidates are available internally. In other cases any one or more than one of the external sources are selected for initiating recruiting process.

On receipt of application assistant personnel office organizes the scrutiny in consulta-tion with the Personnel manager or the General Manager and arranges for interview with suitable candidates. Prior to the test or interview the candidates are required to fill up the personnel profile and assessment by the selection committee is recorded in the interview assessment from. Candidates are required to produce the concerned doc-ument in original during the interviews as a proof of their educational qualification, age, work experience, conduct and character. Then appointment orders are issued to the successful candidates.

36

Candidates are placed in the respective sections after the induction programs. Every new candidate appointed should undergo a pre employment medical examination con-ducted by the medical practitioner and fitness certificate should be produced at the time of joining in a prescribed format. A joining order will be issued at the end of re-porting for duty.

Identity card, time punching card and leave card will be issued to each employee who are directly employed by TPL. Issues stationeries like stapler, pen calculator etc to the new employee if needed after entering in the stores records. Any employee in the or-ganization can suggest required amendments through his/ her department head.

For recruitment to junior executive posts, preference will be given to internal candi-dates based on qualification, experience, and performance besides other suitability condition.

PAYMENT OF WAGE

Details entered in the Muster roll are the basis for payroll preparation. 23 rd of every month is considered as closing day. Personnel executive is responsible for roll perpe-tration and personnel manager shall check the same for any discrepancies. Statement indication the details of the late comings, ESI leaves, and leaves without pay are dis-played in the notice board on 24th of the month for perusal by workers and to initiate necessary corrections with 2 days before preparing the final statements. The final statements are prepared on 29th and the same is sent to the accounts departments on 30th. Based on the above calculations the salaries are credited to the concerned em-ployee’s bank account.

Factories cashier in charge is responsible for the collection of salary amount. Timing of salary disbursement is arrangement in such a way that all the three shift workers A shift (6:00 am to 2:00pm), B shift (2:00pm to 10:00pm), C shift (10:00pm to 6:00am) and general shift (8.30am to 5:00pm) or executives and managers are getting the salary the same day without any work interruption. If person no present at the time of salary distribution will be kept under the custody of cashier for two more days. Person who have not collected the salary have to collect it from accounts departments, head office.

FIXATION OF WAGE

An amount of RS.2500/- per month merged with (Basic and FD) and RS.1125/- per month merged with other allowances. In addition to the above an increase of RS.350/- for medical, educational, and night shift allowances will be given to the workman.

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7. QUALITY CONTROL DEPARTMENT

The policy of quality control department is to ensure quality by adopting high stan-dard of testing with respect to pharmacopoeia standards. ISO standards in house spec-ification and to develop and implement system for improving quality to achieve gross production, gross profit and to eliminate manufacturing and design related customer complaints.

ORGANOGRAM

FUNCTION

Incoming raw material analysis In process analysis Finished product analysis Inspection of incoming consumable items Monitoring of environmental condition Intermediate product processing for production Inspection/ test status at incoming area

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GENERAL MANAGER

JUNIOR EXECU-TIVE

EXECUTIVE 1 CUSTOMER SUPPORT

ANALITICAL CHEMIST

IN PROCESS IN-SPECTOR

CLERK TECHNICIANS

EXECUTIVE 2

CHEMIST TECHNI-CIANS

8. STORE DEPARTMENT

The policy of the store and preserved materials in good condition by maintaining opti-mum level of inventory, issue the same to the user and manage the finished goods, till it is dispatched to the customers.

ORGANOGRAM

FUNCTIONS

Receipt of storage materials Incoming of raw materials and packing materials Packing and dispatch of finished goods Material receipt from plants Issue of material Stock control Preservation of goods Receipt and sales of scrap Codification of labels Packing

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DEPUTY MANAGER

JUNIOR MANAGER

SUPERVISOR

STORE CLERK TECHNICIAN STORE ASSIS-TANT

DATA ENTRY

ISSUE OF MATERIALS

All the sections in the various departments are given separate requisition books. Based on the requirement of requisition made by the concerned department head. Based on the availability the requested items are collected by the store assistants. The items kept for the issue will be verified by the store copy of the receipt note material are transferred to the plant by the store assistant.

INVENTORY CONTROL

A monthly consumption list is made and is compared with the consumption rate. The item which is less than the monthly consumption in the list is marked and stock is re-newed through purchase. For this a request for purchase is prepared. This request is different from raw materials, consumables and spares.

DISPATCH OF FINISHED GOODS

Daily stock position of finished goods is generated from computer by junior executive who intimates the marketing office regarding daily stock position by fax. Marketing office furnished in return the details of the finished goods to be distributed by the dis-patch note. The superior directs the need load worker to load worker to load goods batch wise as performance invoice taken to the lorry by trolley and thereafter by man-ual loading. Goods loaded are counter checked by invoice; a non returnable material pass is prepared for the quality to the dispatched by superior.

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9. GOOD S MANUFACTURING PRACTISE DEPARTMENT

GMP ensures that products are made of the nature and quality intended. It is particu-larly essential that the personnel involved in every aspect right through from receipt of material to distribution of finished products, known the manufacturing condition and process which will affect quality, safety and performance of product.

HOUSEKEEPING

A vital element of quality assurance is good housekeeping. To have an environment conductive for manufacturing of medical products housekeeping play a vital role. Housekeeping is employed to create and maintain tidy safe environment remove dirt and dust which can be hazard to quality of product reduce the level of contamination of microorganisms.

PERSONNEL HYGIENE

Personnel employed in production area are medically certified free from disease. Thus in a clean room and some controlled areas entry restricted to authorized persons also. Use of cosmetics, jewelleries and those which can shed particles is prohibited is clean room and personnel belongings are stored in lockers in the change room. Eating, drinking and chewing in production area are prohibited.

ENTRY PROCESS

No person can enter through the changing area where outdoor clothing is removed and sterilized garments are worn. The personnel are required to wash their hands and feel immediately before entering the changing rooms. That is black, grey and white areas are specified instruction are lend.

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10.MARKETING DEPARTMENT

Marketing department is solemnly resolved to provide the customer with the right product of right quality at right time.

ORGANOGRAM

The marketing department of TPL is based in Chennai. The domestic market is di-vided into six zones. They are ;

South I South II East West North Gujarat

The product of TPL can be sold only to 1720 licensed blood banks 270 banks do com-ponent separation. Now company’s major focus on them because they use multiple blood bags, which is more profitable to the company.

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MANAGING DIRECTOR

GM MARKETING

ZONAL HEAD

AREA MANAGER

11.EXPORT AND LOGISTIC DEPARTMENT

The policy of export and logistic department is to achieve excellence in customer ser-vice by providing

Timely and accurate information On time deliveries for all orders Technical and promotional support

ORGANOGRAM

More than 80% of TPL’s sales come from the export market. Terumo’s market share comes around 20-25% of world market. Terumo Penpol exports goods to more than 50 countries of world. 99% of export constitutes blood bags and 1% constitutes equip-ments.

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EXECUTIVE DIRECTOR

DEPUTY MANAGER MARKET-ING

MARKETING EXECUTIVE LOGISTIC COORDINATOR EX-PORT

EXPORT ORDER EXECUTION

Export order acceptance form is prepared by logistics department coordinator export and forwarded to deputy manager sales, production manager and marketing manager. Once the final contract review is over and the production duties are finalized in the meeting. Marketing manager should forward the duly filled export order acceptance form to export department within two days of final contract review.

1. Based on the dispatch dates informed in the contract review meeting. Once the export order acceptance form is received from the materials departments, the customer and deputy manager sales is informed of the dispatch plan.

2. The DMS will inform LCE of the availability of products against each order 3 day prior to the plan dispatch date.

3. Based on the information a dispatch advance is given to DMS 2 days prior to the dispatch date.

4. All export documents are prepared prior to dispatch date.5. If the consignment is going on CIF bases a letter is given to the insurance

company with details regarding shipment.6. The entire document specified in the purchase order are prepared prior to the

dispatch of goods. 7. Five copies of document signed and sealed are submitted along with the speci-

fied document.8. The customer is notified of the date of the dispatch routing and date of arrival

of the goods at the destination port after shipment.9. Copies of shipment document along with original are send to customer by

LCE.10. Other originals of shipment documents are routed through our bank to cus-

tomer bank.11. One the shipment is completed details of shipment is filled in the export order

register.

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CHAPTER VI

SWOT ANALYSIS

45

SWOT ANALYSIS

SWOT analysis is a structured planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a business venture.. It involves

specifying the objective of the business venture and identifying the internal and exter-

nal factors that are favorable and unfavorable to achieving that objective. The tech-

nique is credited to Albert Humphrey, who led a convention at the Stanford Research

Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500

companies. The degree to which the internal environment of the firm matches with the

external environment is expressed by the concept of strategic fit.

Setting the objective should be done after the SWOT analysis has been performed.

This would allow achievable goals or objectives to be set for the organization.

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STRENGTH

Quality of the products is high

Collaboration with Terumo Corporation and Terumo BCT

Quality certifications like ISO, OHSAS ,and CE marking

Follow Japanese production technique of KAIZEN, TQM

Sound R&D

Stable Management

Enjoys export assistance

Better harmony between workers and top management

Products have high demand in domestic as well as international mrket.

Qualified and experienced professionals.

Sound financial position

WEAKNESSES

No adequate supply to meet the domestic demand of the product

High price of blood bag compared to imported brand

Servicing difficulty of blood bank equipments.

No proper MIS

Mainly depends on export market

Raw material supply from far of place

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OPPORTUNITY

Growth of high tech hospital in India

Up gradation of blood banks

High employment potential

Able to adopt new technology to reduce cost of production

Quality awareness among people is growing at a faster rate

THREATS

Capacity constrain

Low priced product available from other manufactures

Unable to capture domestic market

Small market share in India

No community blood centre

Blood banks are not technology upgraded

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CHAPTER VII

PORTER’S FIVE FORCE MODEL

49

PORTER’S FIVE FORCE MODEL ANALYSIS OF TPL

The model of pure competition implies that risk-adjusted rates of return should be

constant across firms and industries. However, numerous economic studies have af-

firmed that different industries can sustain different levels of profitability; part of this

difference is explained by industry structure.

Michael Porter provided a framework that models an industry as being influenced by

five forces. The strategic business manager seeking to develop an edge over rival

firms can use this model to better understand the industry context in which the firm

operates.

Bargaining Power Of Suppliers

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Competative rivalry with in the industry

Threat of substitutes

Bargaining power of supplier

Threats of new entrants

Bargaining power of customer

Bargaining power of suppliers is high in the case of TPL because

the major raw material for blood bag is PVC pellets and if the price is reduced it af-

fect quality of pellets . So the company has to rely on suppliers for high quality mate-

rials for a moderate price

Bargaining power of customers

Bargaining is also high of customers is also high in the case of TPL

because of the availability of blood bag from other companies at cheaper rate. com-

pany is also look more in to loyal customer.

Threats of substitutes

Threats of substitutes is less in the case of TPL., except human

body, blood is stored in blood bag. Earlier bottle is used .now it is totally replaced.

Threats of new entrants

Threats new entrants is also less in the case of TPL because the num-

ber of players in the industry is much more such that the production of blood bags is

double the quantity demanded. The rules and regulation of government also play a

vital role as barrier. The fund needed for setting up of production plant and R&D is

high.

Competitive rivalry with in the industry

Competitive rivalry of TPL with in the industry is also high.

There are many players in the industry. Comparing with the product of TPL is hav-

51

ing a premium price because of this TPL has faced an industry shake out from the

single bag tender market.

52

CHAPTER VIII

FINDING, SUGGESTIONS AND CONCLUSION

53

FINDINGS

Terumo penpol is the largest producer of blood bags and is a part of terumo

corporation an terumo BCT

Product quality is high

Company follow Good Manufacturing Practice company has strong R&D

department

Export is high in the case of blood bag, but blood bank equipments have less

export

Follow KAIZEN, TQM

Won several awards for the industry and R&D

CSR activities is more appreciative .

Quality of the products is high

Quality certifications like ISO, OHSAS ,and CE marking

Follow Japanese production technique of KAIZEN, TQM

Sound R&D

Stable Management

Enjoys export assistance

Better harmony between workers and top management

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SUGGESSIONS

More permanent workers should be adopted

May expand the product line

May start their own blood bank

Integrate all office under one building.

Give importance to customer health and efficiency

Conduct enthusiastic programs to reduce stress

Infrastructure arrangements could be improved in MSG

Up to date information could be posted in official website of TPL

Distribution networks could be improved

Waste management could be improved

Travelling facility of employees could be improved

Adoption of new technology helps to reduce cost of production

Give more publicity about the company.

More actions taken over to reduce employees turnover

Proper implementation company policy

clubbing of innovation and value added features in the product might

contribute to increase in the potential market.

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CONCLUSION

Terumo penpol is subsidiary of the multibillion dollar terumo corporation, Japanese

company having its presence in over 150 countries. Terumo has distinguished itself as

a high quality manufacturer of medical products, with 13factories around the world.

The company generates annual sales of about $2.0 billion and employs 12,322 people

worldwide. Terumo is pioneering products of future like implantable left-ventricular

assist systems, artificial vessels, minimally invasive surgery devices, Nano-capsules

and more. Terumo penpol ltd (tpl) has opened its new factory premises on 28 may

2008. The new plant will enable terumo penpol to double its production capacity from

the existing 13 million. A significant portion of this output will be exported.The com-

pany has been consistently winning top exporter awards for medical disposables and

surgical products. the plastic exports promotion council has feted tpl as the second

best exporter for nine consecutive years from 1999.Terumo penpol has 700 customers

all over India and its blood bags are sold in over 60 countries across the world and its

medical equipment division has more than 1900 installation to its credit. Terumo pen

pol has its head quarters in Trivandrum and employs more than 800 people experi-

enced team of marketing and sales professionals covering the whole of In -

dia. A well-trained service group further supports the team .

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BIBLIOGRAPHY

Department Manual

Direct Interview

Annual Report

Books

1. Aswathappa .K Human Resource And Personnel Management

2. Kothari c. r, research methodology & technique

3. kolter philip 2002,marketing management

WEBSITES

www.terumopenpol.com

www.terumo.com

www.wikipedia.com

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