ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD.

1.

Introduction of ayurveda
WHAT IS AYURVEDA?

Ayurveda is an ancient system of health care that is native to the Indian subcontinent. It is presently in daily use by millions of people in India, Nepal, and Sri Lanka. The word "Ayurveda" is a tatpurusha compound of the word yus meaning "life", "life principle", or "long life" and the word veda, which refers to a system of "knowledge". Thus "Ayurveda" roughly translates as the "knowledge of life", or "knowledge of a long life". According to Charaka Samhita, "life" itself is defined as the "combination of the body, sense organs, mind and soul, the factor responsible for preventing decay and death, which sustains the body over time, and guides the processes of rebirth" According to this perspective, Ayurveda is concerned with measures to protect "ayus", which includes healthy living along with therapeutic measures that relate to physical, mental, social and spiritual harmony. Ayurveda is also one among the few traditional systems of medicine to contain a sophisticated system of surgery (which is referred to as "salya-chikitsa")

THE HISTORY OF AYURVEDA

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. 7 Vivekanand college for b.b.a.

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PHILOSOPHY OF AYURVEDA
Ayurveda is a holistic system of medicine from India that uses a constitutional model. Its aim is to provide guidance regarding food and lifestyle so that healthy people can stay healthy and folks with health challenges can improve their health. There are several aspects to Ayurveda that are quite unique: 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. Everything in Ayurveda is validated by observation, inquiry, direct examination and knowledge derived from the ancient texts. 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.

Tridosha system
The central concept of Ayurvedic medicine is the theory that health exists when there is a balance between three fundamental bodily humours or doshas called Vata, Pitta and Kapha.

Vata is the impulse principle necessary to mobilize the function of the nervous system Pitta is the energy principle which uses bile to direct digestion and hence metabolism into the venous system. Kapha is the body fluid principle which relates to mucous, lubrication and the carrier of nutrients into the arterial system.

Principal of Ayurveda
According to ayurvedic philosophy an individual bundle of `spirit, desirous of expressing itself, uses subjective consciousness or Satwa to manifest sense organs and a mind. Spirit and mind then project themselves into a physical body, created from the five (Pancha) great (maha) eternal elements (bhutas) together called the Panchamahabhutas which arise from Tamas. The sense organs then using 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Rajas to project from the body into the external world to experience their objects. The body becoming the minds vehicle, its physical instrument for sense gratification. The Bhutas combine into "Tridoshas" or bioenergetics forces that govern and determine our health or physical condition. While the three gunas (Rajas or activity, Tamas or inertia and Satwa, which balances the first two) or psychic forces determine our mental and spiritual health. Ayurveda is thus a holistic system of health care that teaches us to balance these energies in order to achieve optimum health and well being. The Panchamahabhutas

Akash

Vayu

Agni

Prithvi

Jal

According to Ayurveda everything in life is composed of the Panchamahabhutas Akash (Space), Vayu (Air), Jal (Water), Agni (Fire) and Prithvi (Earth). Omnipresent, they are mixed in an infinite variety of relative proportions such that each form of matter is distinctly unique. Although each element has a range of attributes, only some get evident in particular situations. Constantly changing and interacting with each other, they create a situation of dynamic flux that keeps the world going. In the case of a complex, multi-cellular organism as a human being for instance, Akash corresponds to spaces within the body (mouth, nostrils, abdomen etc.); Vayu denotes the movement (essentially muscular); Agni controls metabolism); the functioning of enzymes (intelligence, digestive system,

Jal is in all body fluids (as plasma, saliva, digestive juices); and Prithvi manifests itself in the solid structure of the body (bones, teeth, flesh, hair et al).

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THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries. The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market.

Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly non-medicine items such as foods and cosmetics. Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis. These materials constitute only 7% of Dabur's total revenue (thus, less than 50 million dollars). Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88% share. Other major products are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).

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Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Baidyanath has a sales volume of about 350 million dollars, but most of the product sales are in the cosmetic range. The company reports having over 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Included items are herbal teas, patent medicines, massage oils, and chyawanprash.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business level of about 500 million dollars and has a U.S. distribution division (Himalaya USA). It is known in the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first marketed in India in 1955.

The Emami Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.

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Vicco Laboratories was established in 1958. It mainly produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.

Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies. It has gained a large advantage with its new product Evanova, a preparation containing 33 herbs and minerals and non-hormonal active ingredients used as a menopause treatment alternative to HRT. Soya is one of the main ingredients in this product. The product also contains Ayurvedic herbs that act like selective estrogen receptor modulators as well as asparagus root (shatavari), which reduces the frequency and intensity of hot flashes.

2.HISTORY AND INTRODUCTION OF ASFA

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Once in a golden morning Shri Swami Atmanand Sarswati comes in Surat and he stat to give knowledge of culture/ religion and ayurveda by his lectures at every place of Surat city. He set up Tapi Brahmcharya Ashram at the land which was donated to in at the bank of river Tapi. In Ashram many student study about Ayurveda and Sanskrit. And with passes of time he started an ayurvedic clinic and a Pharmacy for medicines needed to run clinic. And slowly with flow of time the promotion and expan sion, the small Pharmacy become only one co-operative ayurvedic pharmacy of Gujarat which is established in 2nd June, 1948 with name Shri Swami Atmanand Sarswati Co-operative Pharmacy Limited which is known as its short name Asfa. Asfa (Shri Swami Atmanand Sarswati Ayurvedic Co-operative Pharmacy Limited) is established in 1948 in Surat at the bank of river Tapi. It is an only one co-operative pharmaceutical pharmacy in Gujarat. Shri Swami Atmanand Sarswati who was the man with strong mind power established the Pharmacy. 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 dont desire state, I dont desire paradise, I even dont 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.

By showing the above mentioned figure we can say that Asfa is very rapidly grow and expand in whole Gujarat. It has opened branches at Valsad, Baroda, Ahemdabad, Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Bardoli and Bharuch etc. It has also work as a consulting in Valsad and Surat. It established a consulting clinic in Valsad where the information about various ayurvedic medicines is provided to people without taking any pay. 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. Asfa get a certificate of GMP (Good Manufacturing Practice) from Gujarat state food and medicine Control Corporation. Asfa is a first Pharmacy which is gets this type of certificate. Asfa get GMP certificate in 2004 and also get ISO 9001 in 2005 and laboratory of Asfa get permission from food and medicines commissioners office, Gandhinagar.

VARIOUS PRODUCTS OF ASFA

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. A product is a bundle of all kind of satisfaction for customers. Product is something which tries to provide solution for the problem of the consumers. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. Asfa produce consumer goods. Asfa produce 288 medicines of different categories in different quality and quantity which are classified as the following:

Categories Rasa

Medicines Sutshekhar rasa Vaat chintamani rasa Vasant kusumakar Jawahar mohra rasa Chandramrut rasa Akeeka bhasma Mandoor bhasma Yashad bhasma Raupya bhasma Shankh bhasma Bal rakshak sogothi Khokhalini sogothi Darajni sogothi Kushthhar sogothi Arjuna churna Kuberax churna Nagkeshar churna Markandi churna Sarpgandha churna Gokshuradi gugal Triphala gugal Kishor gugal Pathyadi gugal

Bhasma

Sogothi

Churna

Gugal

Dantmanjan

Ayurvedic dantmanjan Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Bhallatak dantmanjan Dindayal dantmanjan Syrup Asfa cough syrup Banfasa Balchaturbhadra syrup Shankpushpi syrup Panchguna taila Narayan taila Brahmi hair oil Bhrungraj taila Brahmi dhrut Trifala dhrut Dasmul kwath Maharasnadi kwath Jivanyadi malam Darajno malam Pardadi malam Chyavanprasha valeh Vasavaleha Pipalyadi avleh Kantkaryavaleh Abhayarishta Ashokarista Chandanasava Drakshasava

Taila

Dhrut & Kwath

Malam

Avaleh

Asav & Arishta

INTODUCTION OF PRODUCTION MANAGEMENT

Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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. Production management means creating and maintaining an environment in which individuals working together in groups willingly 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 the customers. Good Production management is essential for every organization and it is important in following ways: It helps to satisfy the need of customer timely. It increases the productivity of organization. It gives better satisfaction to the employees. It satisfies the investors by increasing return on investment and capital appreciation. It satisfies the community by welfare and development activities. It satisfies the suppliers. It benefits to whole nation.

Organization structure of production department of ASFA

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3.

PLANT LOCATION & plant lay-out Plant location

It is a function of determining the production unit should be located for most economical and effective operations. 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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 main objective of Asfa is to maximize the profit through the minimize cost of production. This objective can be achieved only when the plant is at the right place where all kinds of production facilities are available. Process of selecting plant location involves following steps: 1. Decision regarding country of operation 2. Selection of region or state 3. Selection of area 4. Selection of site 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 raw materials

Asfa are using number of raw materials so the idle location for Asfa is that where at least the main raw materials are easily available by which the production of Asfa run Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. regularly and the production cost can be minimized considering all these Shree Swami Atmanand Sarswati select the place near the river Tapi at varachha road.

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. Asfa is also located along river bank and near national highway so there is good transportation facilities are available. 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

Location of Factory and Branches

Factory of Asfa 1. Near Panini taki, Varachha road, Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Surat-395006 Phone no. (0261-648092, 644410) 2. 17, 18, Navagam Udhyognagar Co-operative Sangh Navagam, District: Kamrej, Surat, Phone no: (02621-252440) Branches: 1. Near Bank of Baroda, Chouta pool, Surat, Phone no: 0261-426413 2. Ayurvedic Hospital Compound, Station road, Surat. 3. Dhanasutar Ni Poll, Relief road, Ahemadabad.

4. Balavant Building, Kharivav road, Baroda. 5. 8, Navrang Shopping Center, Panch Bati, Bharuch. Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 6. 3,Amar Chambers, Near the lal school, Valsad. 7. Hirachand Nagar, Station road, Bardoly.

PLANT LAY- OUT

Plant lay-out is configuration of departments, work station and equipments in the production system or in the conversion process. Plant lay-out is the arrangement of machinery, equipments and facilities such as receiving and shipping departments, tool rooms, maintenance rooms, inspection cabins, stores, plating shops, heat treatment chambers, trolleys, cranes and other handling equipments, employee amenities like toilets, canteen, rest and change room, parking facilities etc. so as to ensure smooth and quick movement of materials from raw material stage to finished Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. product stage with minimum material handling, quality of operations, good communication etc. at the lowest possible handling cost. It includes arrangement of new plan and also revision in existing lay-out. There are various types of lay-outs are as follows: Process lay-out. Product lay-out. Fix position lay-out. Cellular manufacturing lay-out. Combination lay-out.

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.

4.

MATERIAL HANDLING system

Material handling is art and science of movement of material in any form from one place to another from receiving through operation to final product. Material handling is defined as controlled movement of material, from receipt, through storage and production and up to the shipment of finished product. As definition suggests it is concerned with storage and internal movement of following type of material. 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Raw material Work-in-progress inventory Finished product Surplus and waste Capital equipments Asfa used only solid and liquid raw material. So we can classify the material handling equipments of Asfa in following basis: (1.) Classification on the basis of form of material. According to this classification there can be three broad categories. Solid material Liquid material Gases Asfa use hand carts, trucks with container and manual handling system for solid material and pipelines and barrels for liquid material.

(2.)

Classification as per path of movement Asfa use different equipments as per path of movement. Whether movement is vertical or horizontal, whether it is a fixed path movement or variable path, the equipments are different for each purpose such as hand carts can take variable path and pipelines are for vertical movement of material.

(3.)

Classification on the basis of degree of automation There are three categories according to this method of classification. First, fully automatic handling equipments like robots. Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Second, semi automatic handling system like conveyer belt. Third, manual system like hand carts. Asfa uses only third category which is manual system. (4.) Classification on the basis of source of power Equipments can be electrically powered, powered be any fuel and manually. Asfa uses all these type of equipments such as boiler and machines are electrically powered, truck are use diesel and hand carts are manually powered.

MATERIAL RECEIPT PROCESS

In Asfa, there is systematic process for material receipt as follows. The first step is purchase order given by company to suppliers. When material comes it is not directly sent to store department but it is given fore quality checking.

In Asfa, there is one laboratory to check the quality of materials. They are checking the quality of goods and compare with quality of sample which is given by suppliers. If there is any discrepancy, it should be immediately reported to the purchase department and that goods are sent to rejected goods department. Rejected goods department take necessary action for the return of goods to suppliers. 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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. Received material is store in various containers by store department and issue when they get order.

MATERIAL ISSUE PROCESS

In Asfa, there is a simple and short process of material issue. It is as follows. Received material store in different container, in different quantity, by store department. When production department need material, production manager is make a report of required material and send to store department.

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Store department check the availability of material. If require material is available, they send it for quality checking to quality control department. If quality is acceptable, they send report of it to store department. After this, store manager take the material which is require and send for cleaning that material. At the last the cleaned material is send to purchase department with entry in material outward book.

5. PRODUCTION PLANNING

Production planning is that function of management which decides about the resources that will be required for future manufacturing operations and of allocating these resources to produce the desired output at right time, in right amount, of required quality and at minimum cost. Production planning is the planning of how much produce, Requirement of human resource and finance. It is also planning of quality standard and raw materials 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. requirement etc. production plan is preparation of guiding plan before starting production plan involve when, what, how and why to produce goods. 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 dealers. When stock of medicine is remain of only three months they inform production department about requirement of medicine. From the information of dispatch department, production department decides about manufacture various products as per requirement and for this they prepare production plan. In Asfa, production planning is include planning of material requirement, requirement of manpower, capacity requirement etc.

Material Requirement Planning

Material requirement planning is the first of the production planning in any company. In Asfa, production manager is check the availability of require inputs or raw material. If raw material is not in stock then give purchase order or if it is in stock, production manager do next planning of manpower.

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.

Capacity Requirement Planning

Capacity requirement planning is a technique to determine what personal and equipment capacities are required to meet production objectives. In Asfa, they make 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. CRP, various operations and activities are assigning to various department. If capacity is inadequate they adjust it by some addition labour or over time.

Maintain Quality Standard

In Asfa, there is separate department called quality assurance department which is check quality of raw material finished product and semi finished articles on company standards. They try to improve quality management system for better customer satisfaction and provide qualitative medicine to its customers.

Inventory Control
Since entire material requirement planning is done on the basis of production plan, ultimately inventory level depends on accuracy of production plan. In this industry, they use first in first out method for inventory control.

MATERIAL REQUIREMENT PLANNING

Material requirement planning is a technique for determining the quality and timing for the acquisition of dependent demand items needed to safety master schedule requirements. In the modern world, enterprise resource planning system is being used extensively and it also takes care of whole organization instead of one unit of organization. Basically material requirement planning consists of computer programmed, which is run periodically such as weekly, monthly or quarterly to incorporate the latest schedule of production requirement. Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. In Asfa, for preparation of material requirement planning three inputs are used which are as follows: 1. Master production schedule:2. Inventory status file:3. Bills of material:(1) Master Production Schedule:Mps is based on forecast of various items. MRP accepts practically possible master production schedule quantities of various items as quantities of items to be manufactured. It further calculates what the requirement of various raw material and inputs is. (2) Inventory Status file:All the quantities of various items in Mps is never considered for MRP process it is always considered after deducting present inventory levels of various items and pending purchase orders for this purpose, it is necessary to take data from inventory status file of various items.

(3) Bills Of Material:It is a database, which specifies relationship between raw material and outputs. This document is necessary to convert production quantities of finished products into requirements of various raw materials, parts, components and sub assemblies. Bills of material shows each of the materials, parts or sub assemblies by unique part number, which facilitate processing by in to price and also contents the quality of parts or material require per unit of end product. Bills of material have a series of level each of represents a stage in the manufacture of the end product. Level 1: Representing final assembly or end product.

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Level 2: Shows parts and sub assemblies when end product is the first desmemtated. Level 3: Result of desmentating the sub assemblies of level 1 in form of part father sub assemblies. and

6.

INVENTORY CONTROL

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. As inventory is an essential part of any organization. Systematic management and control of inventory for all the items is a challenging job. Asfas main objectives of inventory control are: To maintain investment in inventory at the lowest level To supply the products to its user as per their requirement at right time. To keep inactive, waste, scrape and obsolete items at the minimum level. 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. To minimize holding, replacement and shortage cost of inventory at minimum level. To maximize the efficiency in production.

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, 29. 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: 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 material in excess. It is 10% of purchased raw-material as per last five years record. WEIGHT 7 Vivekanand college for b.b.a. the item is in short but similar item with some another code is available in stock. It is

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. This is always in kgs 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. NET WEIGHT= GROSS WEIGHT BOX WEIGHT. 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 supplier does not supply less than 100 units so that size will be 1 box = 100 leanings. SAFETY STOCK

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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. ACCUMULATED LEAD TIME It is the total time taken in procuring the time after identification of its need and releasing orders. (From placing to receipt of the item)

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. 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 9. Indent quantity: The item is in short and the work order has been made. After the purchase item has to be made and purchase that item from vender, this quantity known as indent quantity.

MANAGEMENT OF INVENTORY
Inventory control means the decision of the firm as to the extent to which inventories can be economically stored. Asfas main objectives of inventory control are: To maintain investment in inventory at the lowest level To supply the products to its user as per their requirement at right time. To keep inactive, waste, scrape and obsolete items at the minimum level. To minimize holding, replacement and shortage cost of inventory at minimum level. To maximize the efficiency in production.

MANAGEMENT OF CASH
Cash is the medium of exchange which allows management to carry on the various activities of the business on day to day basis. Cash management involves the following four factors: Ascertainment of the minimum cash balance and controlling the level of cash. Controlling cash inflows. Controlling cash outflows. Optimum investment of surplus cash.

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INVENORY VALUATION METHODS

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 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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. A Category It includes those items which are very important and of high value but forms only a small proportion of total quantity of inventory.

In Asfa, there are 30 items which are comes in category A and they represents
as much as 74% of value of inventories. Strict control over receipt, storage and issue should be exercised over these items such as Abhraka bhasma shataputi, makardhwaja vati sataguna, bruhat vasant kusumakar rasa, etc.

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. ABC analysis of Asfa Category A B C No. of items(in % of total Value of items ( in % of number of items) 10 25 65 total value of inventory) 74 18 8 7 Vivekanand college for b.b.a.

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100 92 18% 74 C

B A
74 %

10

35

100 VED ANALYSIS

The possible consequences of material stock outs when demand arises from the basis of VED analysis. The cost of shortage depends upon the seriousness of the situation. Items are grouped as V(Vital), E(Essential) and D(Desirable). This classification of inventory is based on importance and application of different items in production process. According to this classification there are three categories of item VED. Vital items are those items without which production will instantly stock all main raw materials are obviously vital items. Similarly, there can be some another low value items which are absolutely necessary for production process. As explained above, spar parts of machines like power generator or boiler become vital items. Essential items are those items without which efficiency of production process will reduce. Absence of these items may not cause total stoppage of production but rate of production may go down or wastage of material may increase.

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. Example: In chemical industry, manufacturing can be carried out without an item which is working as catalyst but speed of chemical reaction and hence, output of the production process may reduce considerably. Desirable items are those items, without which it will be inconvenient to do production operation. Without these items, production is not going to stop or slow down. Example: measuring instruments, small tool of safety devises are such desirable items.

In Asfa, there is no system like VED analysis but by doing VED

analysis those who are responsible for availability of various raw material and items may know which items are important for production process.

7.

QUALITY CONTROL

Quality is measure of characteristic of a product or service which impart it functional or aesthetic value so as to satisfy the needs of and users for a given price paid by them. Quality control is a system of policies, procedures and guidelines which established and maintained the specifies standard of quality. It includes all aspects of quality such as research and development, design parameters, inspection, measurement and analysis of current quality levels, future trends and also competitors quality level, feedback from field performance of quality, choice of machines, tools, processes etc., selection and training of production and inspection staff, corrective actions and follow up etc. Asfas objective of quality control Asfas main objective is to produce cost effective quality ayurvedic medicine. The other objectives are as follows: To give qualitative products to customers. To see whether the medicines are confirms to pre-determine standers. Vivekanand college for b.b.a. 7

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. To reduce wastage. To develop quality consciousness. To assess the quality.

QUALITY CONTROL SYSTEM IN ASFA

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 Asfa also check the quality of goods during the process of production so is there any problem in quality while processing, it can remove by taking corrective actions and make qualitative medicines for customers. These types of checking record are kept in standard verification. Finished product

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ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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. 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. By

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DOCUMENTS RELATED TO QUALITY CONTROL

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 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 7 Vivekanand college for b.b.a.

ATMANAND SARASWATI PHARMACY CO-OPERATIVE LTD. 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.

8.

BIBLIOGRAPHY

INTERNET:
www.ayur.com/about.html www.holisticonline.com/ayurveda/ayv-introduction.htm www.indianmedicine.nic.in/html/ayurveda/ayurveda.htm#de www.wikipedia.org/wiki/Ayurveda

BOOKS:
(Asfa Na Avshadho) K. Aswathapa Production Management

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