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On
DECLARATION
I, Mr. Vivek Aghera P., hereby declare that the project work entitled
“Analysis of Four Departments of Shri Swami Atmanand
Saraswati Ayurvedic Co-operative Pharmacy Ltd.” submitted to
Shri S. V. Patel College of Computer Science and Business
Management affiliated to Veer Narmad South Gujarat
University, is a record of an original work done by me under the
guidance of Chintu sir. This project work has been performed for
the partial completion of graduation degree in BBA.
Sign: ______________
(Vivek Aghera)
Sign : ______________
(Vivek Aghera)
From the study of last 2 years Pharmacy’s financial report, we can say that
rate of progress of Pharmacy is very good. Asfa is co-operative pharmacy and
since its establishment it is never done loss but Asfa sale its medicines at low
price so that its profit is less compare to other Pharmacies. Pharmacy’s Sales
and Profit is decrease in current year to compare past years.
For the duration of our training in Asfa, we found that the workers and
managerial staff are good and the management of all departments is efficient.
Workers are fully satisfied with their work. This Pharmacy’s aim is not only do
profit but also work for employee welfare and societal welfare.
Ayurveda, the science of life, prevention and longevity is the oldest and most
holistic medical system available on the planet today. It was placed in written
form over 5,000 years ago in India, it was said to be a world medicine dealing
with both body and the spirit. Before the advent of writing, the ancient wisdom
of this healing system was a part of the spiritual tradition of the Sanatana
Dharma (Universal Religion), or Vedic Religion. VedaVyasa, the famous
sage, shaktavesha avatar of Vishnu, put into writing the complete knowledge
of Ayurveda, along with the more directly spiritual insights of self realization
into a body of scriptural literature called the Vedas and the Vedic literatures.
There are two main re-organizers of Ayurveda whose works are still existing
in tact today - Charak and Sushrut. The third major treatise is called the
Ashtanga Hridaya, which is a concise version of the works of Charak and
Sushrut. Thus the three main Ayurvedic texts that are still used today are the
Charak Samhita (compilation of the oldest book Atreya Samhita), Sushrut
Samhita and the Ashtangha Hridaya Samhita. These books are believed to be
over 1,200 years old. It is because these texts still contain the original and
complete knowledge of this Ayurvedic world medicine, that Ayurveda is known
today as the only complete medical system still in existence. Other forms of
medicine from various cultures, although parallel are missing parts of the
original information.
Its recommendations will often be different for each person regarding which
foods and which lifestyle they should follow in order to be completely healthy.
This is due to its use of a constitutional model.
It understands that there are energetic forces that influence nature and
human beings. These forces are called the Tridoshas.
Because Ayurveda sees a strong connection between the mind and the
body, a huge amount of information is available regarding this relationship.
Theory of Tridosha
VATA
Organ in which situated Dominant Mahabhoota
Prana Murdha (palate) jala
Samana Koshtha (stomach) Agni
Vyana Sarva sharer (whole body) vayu
PITTA
Aalochak Netra (eye) Agni
Sadhak Hridaya (heart) aakash
Pachak Koshtha (stomach) prithvi
Ranjak Yakrit, pleeha (liver, spleen) jala
Bhrajak Tvak (skin) vayu
KAPHA
Bodhak Jivha (tongue) Agni
Kledak Amashaya (stomach) jala
Avlambak Hridaya (heart) prithvi
Tarpak Indriya (sense organs) akasha
Shleshak Sandhi (joints) vayu
Principal of Ayurveda
Within a simple, single living cell for example the earth element predominates
by giving structure to the cell. The water element is present in the cytoplasm
or the liquid within the cell membrane. The fire element regulates the
metabolic processes regulating the cell. While the air element predominates
the gases therein. The space occupied by the cell denoting the last of the
elements.
Shri Swami Atmanand Sarswati was spent his whole life in survive of people
and teach Ayurved to his Shishyas. He had only one goal of his whole life as
follows:
“I don’t desire state, I don’t desire paradise, I even don’t desire moksh,
but I desire to solve the problems of people who are suffering from the
dieses by way of using Ayurvedic treatment.”
Asfa has its head office at chowta pool and it has a factory at Varachha road
in Surat. Asfa also expanded its production capacity and established one
more factory at Navagam. Asfa has about 4000 members now but when it
was started it has only 70 members to operate various activities.
Asfa sold its product in most of cities of Gujarat and Mumbai through its
dealers. Asfa has widely distributed dealer network. Asfa produce qualitative
product, by reason of that a slogan “Aushadho to Asfa nij”.
Ahemadabad(9) Rajpipala(2)
Amod(1) Surendranagar(2)
Mahuva(1) Vyara(2)
Bharuch(2) Vapi(1)
Bilimora(4) Vadodara(4)
Bardoli(2) Viramgam(1)
Chikhali(2) Vidhyanagar(2)
Godhara(2)
Gandevi(1)
Gandhinagar(2)
Junagarh(2)
Kathor(1)
Kapadvanj(1)
Kamrej(1)
kilapadi(1)
Mandavi(1)
Amran(1)
Navasari(4)
Porbandar(1)
Surat(14)
Factory of Asfa
Branches:
3. Dhanasutar Ni Poll,
Relief road,
Ahemadabad.
4. Balavant Building,
Kharivav road,
Baroda.
7. Hirachand Nagar,
Station road,
Bardoly.
CHAIRMAN
VICE PRESEDENT
SECRETORY
GENERAL MANAGER
PRODUCTION
ADMINISTRATION
DEPARTMENT
DEPT.
ASSISTANT PRO.
MANAGER
ACCOUNTANT
SUPERVISOR
CASHIER
WORKERS
SENIOR CLERK
RAW MATERIAL
DEPARTMENT
SALES DEPARTMENT
INTRODUCTION
Market: -
The common usage of market means a place where goods are bought or
sold. In its strict meaning market need not necessarily mean a place of
exchange.
Marketing: -
Marketing is concerned with selling but now a day the concept has enlarged
its meaning. We know that a product is provided with the aim of sale. The aim
producer totally depends on marketing. Without marketing no unit can run. It
covers marketing research, new product development and so many other
important functions.
Marketing Environment
The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which
together have about 85% of India's domestic market. Dabur India Ltd. (1884)
is India's largest Ayurvedic medicine supplier and the fourth largest producer
of FMCG. Zandu (1919) focuses preliminary on ayurvedic medicines but it
produce chemical and cosmetic products also. Himalaya is established in
1939 in Bangalore and has business about 500 million dollar. Vicco (1958)
produces topical therapies based on Ayurveda and is best known
internationally for its toothpaste product.
Asfa has main competition from Baidyanath and Charak. Sri Baidyanath
Ayurvedic Bhawan Ltd. was founded in 1917 in Calcutta, and specializes in
Ayurvedic medicines. The company reports having over 700 Ayurvedic
products, made at 10 manufacturing centers, with 1,600 employees. Charak
Pharmaceuticals was founded in 1947, and currently has three distribution
centers in India; it produces liquids, tablets, and veterinary supplies.
Product
Marketing
Promotion Price
mix
Place
Product
A product is any thing that can be offered to a market that might satisfy a want
or need. Asfa produce 288 medicines for its customer. Other companies do
not have so large range of product width and length. Asfa use rarely found
able herbs in its medicines which make difference from competitors. Asfa
produce more qualitative products than the competitors. Asfa also research
and produce new medicines and patent them. Such medicines like Asfa
haemetone, Reducid, Asfalax, Gasowin, Asfa-tone.
Promotion
Marketing communication consist of communication marketing activities
through various forms of promotion that is personal selling, advertising,
publicity and public relationship, sales promotion etc. together called
promotion mix. Asfa does not do more expenditure for promotional activities
like other companies. Asfa do zero level marketing than also Asfa easily
sale its medicine and its dealer largely expand in all Gujarat.
Place
Place means the decision by which company transfers their product, location,
inventory handling, warehousing, storage facility, transportation etc. Asfa has
a big location for plant at bank of river tapi. Asfa is located near the nation
high way so it can transport and get material easily. Asfa has own retail
store in various cities so it can easily provide medicines to customers than its
competitors. Competitors like Pooja, Zandu, Himalaya, Dabour etc. have not
so widely develop distribution network in Gujarat.
3) Search supplier: the asfa tries to search out supplier. Main source of
the search vendor are trade directories internet trade advertisement visit
industrial exhibition, phone to other company for recommendations. from
various soures of buyer trues to identified the most appropriate from only
a few prequalified vendors.
Product mix means,”The set of product offered for sale by a firm or a business
unit is known as a product mix”.
(1) Width of the product mix is concerned with the number of product lines
marketed by the company.
(2) The depth of the product mix depends on the average number of
product items included in the product lines.
(3) The consistency of the product mix indicates how far or to what extent
the product lines are interconnected with each other from the view
point of their final use or production requirements or channel of
distribution.
(1) Packaging – packaging is meant for the protection and maintenance of the
quality of the product. It serves the purpose of container and wrapper;
however, it is the powerful tool of promotion at point of purchase. Attractive
packaging and labeling increases sales without spending much on
advertisement
Asfa company produce 288 types of product and use the 288 types of
packaging. Overall 6 types of machine available at Asfa for packaging.
(2) Labeling – labeling is connected with brand and packaging. Label is a strip
on the container or packaging on which certain instruction.
Asfa company give instruction to consumer that how use the product and
price of the product, date of the manufacturing etc.
PRICE
Asfa has super-value strategy for its products. Asfa provides medicines at low
price with high quality.
Asfa set price for its products by taking care of the below matters.
Asfa set price with considering its objective of provide medicines at fairly
price with good quality.
DISTRIBUTION NETWORK
Asfa have well developed distribution network for marketing activities. Asfa
have 78 dealers for selling its medicines. Asfa have own distribution network.
Asfa sell its medicines by own stores and these stores are created in whole
Gujarat state such as in Surat, Ahmedabad, Ankles war, Anand, Navsari,
Vadodara and in many other cities of Gujarat.
Asfa use zero level and one level channel for distribution. Asfa provide
medicines to its retail store as per their requirement and that stores sales
medicines direct to customers so customer get medicines in less price than
competitors. Asfa have also a store at outside the pharmacy from where
anyone can get medicines easily.
6. Retail stores are selling that medicines to customers and send the copy
of bills of selling medicines with payment.
7. Asfa receive copy of bills and note in sales documents and collect
payment.
Asfa produce 288 medicines or many other products. Asfa produce medicines
in various categories like asav, aristas, syrups, churns, avlehas etc. and all of
them have different unique features but Asfa products main feature is “Better
Quality in Lower Price”.
We have a variety of asavs and aristas that are prepared on the time
tested principle of ayurveda. Our products in asavs and aristas are of high
medicinal value then that of others.
Asfas syrups are meant for overall growth, stimulated appetite, correct
digestive system and cough & respiration disorders.
Asfa’s avlehas are prepared from the herbs which rare to found which
wasn’t made by others. These avlehas are costly because of special herbs
are used for it.
SOURCES OF RECRUITMENT
Asfa use both internal and external sources which are as follow in detail.
Internal source
Asfa uses internal source when they need more employees in short period of
time.
Former employee
Former employees are also an internal source of applicants. Some retired
employees may be willing to come back to work on part time bases or may
recommend someone would be interested in working for the pharmacy.
External sources
External sources far outnumber the internal methods. Specifically, sources
external to a pharmacy are:
Advertisement
This is the common source of recruitment. All types of organizations are using
it for recruitment. Asfa use most of time this source for recruitment. It gives
advertisement in local and stat level news paper. Asfa take care that
advertisement must be effectively drafted before publishing.
Employment exchange
Employment exchanges have been setup all over the country in difference to
in provisions of the Employment Exchanges Act, 1959. The act requires the
entire industrial establishment to notify the vacancies before they are filled.
Asfa also notify its vacancies and take employees from employment
exchange.
SELECTION
Selection is the process by which candidates for employment are divided into
class- those who will be offered employment and those who will not. Thus, the
selection process is a tool in the hand of the management to differentiate the
qualified and unqualified applicants by applying various techniques such as
interviews, tests.
PROCESS OF SELECTION
4. For worker and top level test is not taken. They call for interview.
Interview is taken by managers and the applicants who are passed
from this are selected for job.
Asfa take care of organization objectives and policies while recruit employees.
Asfa also take care of such questions like whether organization should fill
vacancies by internal promotion or hiring from out side, which type of training
Human resource forecasting is the process of estimating the future quality and
quantity of people require. The basis of forecast is annual budget and long
term plans of Asfa, which are translated into activity level for each function
and department. Base on this information the number of hours to be worked
by each skilled man power in a given period of time should be calculated.
Once the hours are available the next logical step is to find out the quantity
and quality of personnel.
The human resource forecasting is done by various techniques like
managerial judgment trend analysis, Delphi method, flow models and work
study method and many others. Asfa use managerial judgment technique for
its human resource forecasting because it is very simple technique. In this
techniques asfa’s managers are sit together, discuss and decide the future
demand for labour.
Personnel demand analysis provides the manager with number and quality of
employee that to be require. Next logical step for manager is to find out the
number of people likely to be available form within and outside of an
organization. The supply forecast covers the existing human resources,
internal source of supply and external source of supply.
Asfa use the analysis of present employee human resource audit summaries,
each employee skill and ability for understanding capability available in
organizations work force. It also forecast the internal source or supply.
Managers are calculating the available supply of manpower within the
organization. Asfa also calculate how many employees are available in
market or outside the organization whose are take responsibilities of job.
Asfa does not use control and evaluation for human resource planning.
Organizations objectives
And polices
Human resource
Programming
On job training is training is training in which pharmacy and its members are
help and provide guidance, if there is any difficulty in any work. Training is
based on learn and teach and hence, employees will grow with experience.
Asfa have formal induction program. All details are providing by pharmacy to
new employee. Asfa’s content of induction program includes the following
matters:
History of Asfa
Objectives of pharmacy
Name and designation of managers
Employee’s designation and responsibility
Layout of pharmacy
Production and other processes of pharmacy
Job duties, location, tasks, objectives etc
Safety steps
Asfa give training to employees, when old machines are replaced by new
machines. Asfa analysis the objective of pharmacy and various departments,
ask questions to employees and if there is any difficulty in achieving goal of
pharmacy then, Asfa give training to its employees.
◊ Asfa give promotion on the basis of both seniority and merits so it can take
advantages of both.
DEMOTION
Asfa mostly dose not give demotion to any employee but it give demotion
only 3 times in its life.
Asfa give demotion only when employee is not regular, do not work
sincerely or employees behavior in organization not good.
In above cases, sometime Asfa left the employee from Pharmacy.
The policy is fair and equal for all level of pharmacy.
The circumstances under which employees can be demoted is clearly
specified and made known to employees.
Transfer
For employee transfer rate is also very low, because of post is limited.
PERFORMANCE APPRAISAL
Asfa can easily measure the performance of its workers on time base method
because in Asfa all worker has a card for attendance and work hours are
easily calculated from that card.
Asfa also the record the time of completion of job. There are many medicines
are prepared by Asfa at the same time. Medicine prepared in various
departments and the time of processing in each department is record by Asfa
Asfa gives wages and salaries according to time base wage system. Asfa
gives salaries at 7th of every month. Asfa use time base system because it is
old pharmacy and in that time peace rate wage system is not famous in
industry. Asfa also use this method because of some advantages like easy to
understand and calculate, earning of workers are regular and fixed Asfa want
to maintain quality which is not maintaining peace rate etc.
In Asfa, while deciding the structure of wage and salary administration, Asfa
first set objective of it which are as follows:
WELFARE ACTIVITIES
Labour welfare means anything done for the comfort and improvement.
Intellectual or social of the employees over and above the wage paid which is
not a necessity of the industry.
Employee welfare or labour welfare means,” The efforts to make life worth
living for workmen.”
Transportation
Vocational guidance and credit societies
Discount in purchase on medicines
Roads, lighting, garden
Communication facility
Security
Training and development programs
Provide employment
Provide ayurvedic medicines at fair price
Effective waste disposal system
Effective use of resources of society
Asfa pharmacy maintained its record in the form of file. There are following
details, which are involved in the record keeping of each employee.
Employment history
Employee no
Name
Address
Rate of salary
Total balance saving
Attendance record and pay roll
Leaves, transfers and promotion
Shift cord
Over time cord
Training Records
Accident and sickness records
Production is the process of converting the raw materials and other inputs into
the products for further production or the finished goods or services so that
the utility of inputs is created or enhanced and the needs of the consumers
are satisfied. That is consumer goods, industrial goods, services of transport,
medical treatment, education, banking, post and telegraphs, insurance etc. so
in simple meaning the management of the production process is called as
production management.
Managing
director
Production
manager
Assistant Inventory
production Packing control Store
manager manager manager manager
Workers
In Asfa, normally production plan is prepared from the sales or demand for the
product of company. Starting point of production planning is dispatch
department. Dispatch department supply various products of Asfa to the
Manpower planning
For achieving successful result of production planning, it is advisable to make
manpower planning in advance. In Asfa first they decided how much labour
required producing desirable quantity. If there is shortage of manpower, they
hire casual or part time labour.
In Asfa, for preparation of material requirement planning three inputs are used
which are as follows:
Master production schedule
The points for which the decision of plant location is taken are as follows:
New business
Expansion not possible at the same site
Economic factor (land cost of old factory becomes high so by selling it
owner get large economic benefit)
Expansion opportunities needs more branches
Sudden development because of natural calamities
Special circumstances
The owner of the Asfa Shree Swami Atmanand Sarswati was decided the
India as a country, the Gujarat as a stat, Surat as a city, Varachha as a site
location.
There are different factor which are play important role in considering the
plant location of Asfa are as follows.
Availability of labour
The availability of skilled and unskilled manpower, a prevailing wage pattern,
living costs and the industrial relations situation influence the location.
Manager chooses the location of Asfa at varachha road where both type of
manpower available easily at lower wages.
Transportation facilities
Adequate transportation facilities are essential for the economic operation of a
production system. Many facilities or plants are located along river banks.
There are some other functions which also affect selection of plant location
are as follows:
Markets
Power
Climate and fuel
Legislation and taxation
Community facilities
Waste disposal
Site size
Land costs
In Asfa, the plat lay-out is product type of plant lay-out. This company
manufactures many products on continuous bases and machines are for
special purpose. In this lay-out the machines or facilities are arrange
sequence of an operations require by a particular product. Thus for each
product there will be a separate line of machines and equipments and
depending on an operation sequence. There are two type of product lay-out
first line processing lay-out and second flow type of lay-out. In Asfa, there is a
line processing lay-out. There is sequence of operations from raw material
department to packing department.
Inventory control is the means by which material of the correct quality and
quantity is made available as and when it is required with due regard to
economy in the storage costs, setup costs, manufacturing costs, purchase
prices and working capital.
INVENTORY UNIT
Inventory unit shows the unit, which is explained in kilo gram, liter, meter etc.
ORDER CODE
Order codes represent the following results if items are 0, 1, 2……9.
0 = for firm planning of main items, which are to be dispatched without any
further process (final products)
1 = for manual planning, material requirement planning “off” switch for case:
the item is in short but similar item with some another code is available in
stock. It is planning can be stopped “off”.
2 = material requirement planning “on” switch for the item.
3 = material requirement planning “on” with instruction to check and plan for
sales order requirement.
4 = reserved for EDP department to freeze the planning released and to keep
the action in abeyance for one or another reason.
BYPASS CODE
Bypass code denotes 0 is for component and 1 is for phantom items. Bypass
code is used to bypass the item for convenience.
INSPECTION CODE
Inspection code denotes Y/N i.e. yes or no whether the item to be inspected
or not. Asfa usually check the entire item in B.M; hence, it is always “Y”.
SCRAP
Scrap means the waste of material arising during manufacturing process.
Scrap found in Asfa Company in the last 5 year and hence, it has to purchase
WEIGHT
This is always in kg’s indicating net or gross weight that is suppose any item
is packed. The gross weight of item is equal to net weight + weight of box.
FIX LOT
It refers to single character Y/N- for specifying whether the order to be
released for a single lot or not.
EX: Lot is 500 and order quantity is 2500. If “Y” is given MRP will print 5 lines
and if “N” is given then it will print in a single line for a single order and single
schedule time.
LEAD TIME
For making any job available the company has to release the order to vender
then after the vender will take a sometime to deliver the material. Finally the
material will be inspected and will be made available at work place. The total
time taken is called “Lead Time”. This is always in weeks.
LOT SIZE
Lot size is the quantity of order at which the total ordering cost and inventory
carrying cost will be the minimum. Lot size decided on the following basis.
Requirement for a specific time span.
Economic order quantity calculated based on cost of production and
requirement.
Minimum order quantity specified by vender.
Fix packing offered by supplies etc.
The company has to define lot size in relevant unit of measuring such as box,
packet, liter or tones. EX: The company need 70 units of leaning but the
SAFETY STOCK
It is the stock or inventory maintaining to meet unforeseen situation such as
variation in demand, variation in supply of quantity by supplier and variation in
lead time of supply etc. so it use in emergency.
STOCK
There are several types of stock which are explained below.
1. Vender stock: vender stock has two type of stock. First is the labour
and other is repairing. Some items are given to vender for repairing are
known as repairing stock.
2. Store stock: The items, which have been stored by the company, are
known as store stock.
3. Repairing stock: some items are given for repairing because of, it
may store from long time or may be for any damage or corrosion is
called repairing stock.
4. Short stock: The stock, which is in short, is called short stock and
negative sign defines it.
5. Committed quantity: Committed quantity is the quantity, which is
issued against work.
6. Available quantity:
Available order = floor stock + store stock + repairing stock – (short
stock + committed quantity).
7. Sales order quantity: the quantities, which are issued against sales
order is known as sales order quantity.
8. Order quantity: the order quantity is the sum of purchase order and
work order quantity.
ORDER QUANTITY = PURCHASE ORDER + WORKING ORDER.
Materials are issued to the different jobs, works, and orders from the ‘store’.
The cost of finished product largely depends upon the price changed for raw-
material issued to the jobs. Various methods are used for inventory valuation,
which will solute with industry condition. The methods of inventory valuation
are as follows:
1. FIFO method (first in first out)
2. LIFO method (last in first out)
3. HIFO method (highest in first out)
4. Average cost method
5. Market price method
6. Standard cost method
7. Base stock method
Asfa use FIFO method for inventory valuation.
ABC ANALYSIS
Abc analysis is analysis according to the value of items. In Asfa, the inventory
consists of hundreds of items and many employee are controlled them. For
this company do lot of expenses. In order to affect economy in controlling
such large inventory Asfa use a system known as ABC (Always Better
Control) analysis.
It has been found from the experience that all items included in inventory are
not of equal importance. A few items in the inventory represent a large
proportion of total value of inventory. Hence, more attention must be devoted
to the control of such items. All the items are divided into three categories.
B – Category
Items included in category B are not as important as those in category A, but
are important enough for its proper records to be maintained. They constitute
70 items of total number of items, but represent 18% of total value of
inventory of Asfa. These items are Brahmi vati, makardwaja vati, ashvgandha,
mahasudershan shurna etc.
C – Category
The remaining items must be placed in category C. they are not so important
form the view point of maintaining control over the receipt and consumption
such items constitute 65% of the total number of items but they represent 8%
of total value.
100 8
92
B
A
74 %
10 35 100
No.
Bought of Purchase order no.
They are checking the quality of goods and compare with quality of sample
which is given by suppliers.
If the goods are of quality, receiving section will prepare a “goods receive
note”. Four copies of the note are prepared and three copies are sent to the
store keeper along with the goods received and they attach green color
“accept card” with materials.
At the last the cleaned material is send to purchase department with entry
in material outward book.
DOCUMENTS OF PURCHASING
Purchase request
Comparison statements
Asfa Pharmacy
Surat
Comparative statement of quotations
Tender no……… Opened on…………
Name of material………
Serial Name of quantity price Duties and Terms of remarks
no supplier taxes delivery
Purchase order
Terms of delivery……..
For Asfa Pharmacy
Purchase Manager
PURCHASE PROCESS
A) Receive requisitions
The requisition includes information like how many items wanted, when they
should be available, quantity in hand, who is making the request etc.
In Asfa, who requires raw materials or other things, they give “purchase
requisition slip” to production department.
B) Review requisitions
C) Select suppliers
Asfa is co-operative pharmacy and for purchase they invite quotation from
various suppliers. After getting quotations and by comparing them Asfa select
the suppliers. Asfa is not giving so much important to price but give important
to quality.
D) Place orders
Orders are placed to selected suppliers. For order placing to selected
suppliers, Asfa prepare a purchase order and send to suppliers. Purchase
order includes specific quantity and quality of material at stipulated terms and
material send period and placed mentioned in it.
E) Monitor orders
If placed order is for long time then it is necessary to monitor those orders.
Asfa also monitor these types of orders because lengthy orders are checked
to determine whether anticipated deliveries are on schedule.
F) Receive orders
The purchase transaction is complete only after receiving the order quantity in
an acceptable condition. When material is comes in Asfa, it is checked for
quality in Asfa‘s laboratory. If qualities acceptable then only material is send to
store department with material inward receipt.
Asfa checks the quality of all three type of product, raw-material, in process
goods and finished product.
Raw –material
In this stage, raw materials are being checked and compare with specified
quality or order placed. In quality control laboratory they check the quality of
raw material, ratio of water and solid material etc. If quality of raw material is
not satisfactory, goods will be rejected. If acceptable report is send to store
department.
In process goods
Finished product
When product are finished its process then from them some samples are
send to quality control department for quality checking and if quality is
accepted then only finished product give to packing department for packing
and labeling. The document is used to keep these types of records is called
“Finished product report”.
In Asfa, there is systematic and scientific approaches for quality control they
follow some standardize rules and regulation for quality control. Asfa check
quality of Raw material, In process goods and Finished product.
For raw material they check the quality of item of various levels such as
scientific name, family, description (macro and micro scope).
After checking the items at micro and macro level then they check its identity.
By purity
◊ Foreign matter
◊ Total ash
◊ Acid
By strength
◊ Alcohols
◊ Water
For In process goods and finish product they check integration of various item
checks that quality of product will much with company standard.
1. Chemical list
2. Instrument list
3. Reference book list
4. S.O.P. (Standard Operating Process)
5. M.F.C. (Master Formula Card)
6. Calibration report
7. Test reports
Finished product report
Raw material report
Packing material report
In process report
S.V.PATEL COLLEGE OF COMPUTER SCIENCE AND BUSINESS 82
MANAGEMENT
Re-test report
R.M. order sample record
Stability study report
8. House kipping record
9. Complain record ( outside)
10. Prepare solution record
11. In-ward, out-ward registered
12. B.M.R. issue registered
13. Suggestion record
14. Release order record
15. Out side testing record
16. Q.S.P. (Quality System Procedures)
17. Q.A.M. (Quality Manual)
18. Date stock registered.
The scope of financial management, that is, the views about finance functions
have undergone remarkable changes over time. Till 1950, finance function
was regarded as the function only of raising finance for business, and sources
of finance but now, an efficient and effective utilization of finance is also been
considered as an important function of financial management.
GENERAL
MANAGER
CASHIER
RAW
SALES
SENIOR BANKING MATERIAL
DEPARTMEN
CLERK OPERATOR DEPARTMEN
T
T
Asfa is a co-operative pharmacy and it is not work with object of earning profit.
Asfa do not prepare revenue and capital budgets.
Asfa do not prepare revenue and capital budget but if Asfa prepare it than it is
useful to Asfa in following ways:
Asfa do not prepare capital budgeting but it can prepare it by following the
below mentioned steps:
COSTING METHODS
The methods to be used for the ascertainment of cost of production differ from
industry to industry. It primarily depends upon the manufacturing process and
also on the methods of measuring the departmental and finished products.
Job costing
Contract costing
Batch costing
Asfa use batch costing and multiple operation costing methods. Asfa use
these methods because Asfa produce its products in batch and multiple
operations are proceeding at a time in Asfa.
Materials
Materials Other
Other
Labourcost
Labour cost
Cost
Cost expenses
expenses
Direct
Direct Indirect
Indirect Directlabour
Direct labour Indirect
Indirect Direct
Direct Indirect
Indirect
materials
materials materials
materials cost
cost labour cost
labour cost expenses
expenses expenses
expenses
cost
cost cost
cost
Labour
Direct expenses
Prime cost
Factory overhead
Factory expenses
Fuel and power
Carriage inward
Indirect wages
Depreciation and repairs
Rent and taxes
Insurance
stationary
Works cost
Office and
administration
overheads
Office expenses
Director fees
Rent, rates
Office salaries
Sundry expenses
Stationary
Depreciation of office
furniture
Office cost
Selling and distribution
expenses
Travelers expenses and
salaries
Packing expenses
Stationary
Bad debt
Cost of sales
profit
S.V.PATEL COLLEGE
Selling price OF COMPUTER SCIENCE AND BUSINESS 90
MANAGEMENT
WORKING CAPITAL MANAGEMENT
The term working capital refers to that part of capital which is not tied up in
fixed assets but is used to meet the day-to-day requirements of business,
which changes from day-to-day, and which is converted into cash
continuously.
Equity shares
Preference shares
Long term loans
MANAGEMENT OF RECEIVABLES
MANAGEMENT OF INVENTORY
‘Inventory control means the decision of the firm as to the extent to which
inventories can be economically stored.’
MANAGEMENT OF CASH
1. Sources:
(A) Funds from business operations
(B) Sales of non current assets
(C) Issue of share capital
(D) Long term borrowings
Total (1)
2. Applications:
(A) Purchase of non current assets
(B) Redemption of debentures
(C) Repayment of other long term liabilities
(D) Buy back of shares
(E) Redemption of preference shares
(F) Payment of income tax
(G) Distribution of cash dividend
Total (2)
3. Changes in working capital (1- 2)
ACCOUNTING POLICIES
Fixed assets
Inventories
The stock of inventories such as finished, processed and raw material are
valued by its cost or net realizable value.
General accounting
The accounts are prepared on historical cost basis and accounting principle of
going concern concept.
DEPRICIATION
Asfa use two methods for calculate depreciation first is straight line method
and second is written down value method.
Common size profit and loss account of ASFA at end of the year 2008-2009
A ration is only a comparison of the numerator with the denominator. The term
ratio refers to the numerical or quantitative relationship between two figures. A
ratio is the relationship between two figures, and obtained by dividing the
former by the latter. Ratios are design to show how one number is related to
another.
Ratio analysis is an important and age old technique of financial analysis. The
data given in the financial statement in absolute form are dump and are
unable to communicate any thing. Ratios are relative form of financial data
and very useful technique to check upon the efficiency of a firm.
Current Ratio
1.17 1.16
1.16
1.15
Ratio (%)
1.14
1.13 1.12
1.12
1.11
1.1
2008 2009
Years
Series1
Interpretation:
2.4 2.33
2.3
2.2
Ratio (%)
1.9
1.8
2008 2009
Years
Interpretation:
The net profit ratio measures the efficiency of management in generating
additional revenue over and above the total cost of production. The net profit
ratio in ASFA increases in 2008 year which shows increased efficiency of
pharmacy but it decrease slight in 2009 with increased in sales and but
0.0235
0.023
0.023
0.0225
0.022
0.0215
Series1
0.021 0.0206
0.0205
0.02
0.0195
0.019
2008 2009
Interpretation:
Return on assets ratio indicates the effective utilization of assets in generating
revenue for firm. In ASFA, the ratio decreased every year that shows the
ineffective use and inefficiency of management.
CONCLUSION: