01 July 2013
Title Page
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Contents
Acknowledgement ........................................................................................................................................ 5 Executive Summary ...................................................................................................................................... 6 Organization History in brief ........................................................................................................................7 Vision and Mission of the organization. ..................................................................................................... 11 Top Management ........................................................................................................................................ 12 Company Organizational Structure.............................................................................................................15 Size of the organization ..............................................................................................................................16 Turnover.................................................................................................................................................. 16 Geographical Spread ...............................................................................................................................17 McKinseys 7-S Framework .......................................................................................................................19 Porters 5 Forces Model ..............................................................................................................................21 Supplier power ....................................................................................................................................22 Future strategy/plans of the company. ........................................................................................................23 Main Products .............................................................................................................................................24 Introduction to the Purchase & Warehouse department ............................................................................25 Purchase Department .......................................................................................................................... 25 Warehouse...........................................................................................................................................25 Methodology ...............................................................................................................................................27 Ethnographic Study.................................................................................................................................27 Maintenance of Journal / Diary to track various issues ..........................................................................28 Employee satisfaction .........................................................................................................................28 Company culture .................................................................................................................................28 Sources of conflict ..............................................................................................................................30 Sources of opportunities for the company .......................................................................................... 30 Issues for future competition............................................................................................................... 31 Early warning signals .......................................................................................................................... 32 Trends / Patterns .................................................................................................................................32 Experience gained in the organization (Self learning) ................................................................................ 34
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Purchase Department ..............................................................................................................................34 Warehouse...............................................................................................................................................35 HR Department ....................................................................................................................................... 37 Identification of critical issues or problem areas if any .............................................................................. 40 Purchase Department ..............................................................................................................................40 HR Department ....................................................................................................................................... 41 IT Department .........................................................................................................................................42 Other Suggestions ...................................................................................................................................43 Conclusion .................................................................................................................................................. 44 Summary of feedback given to organization .......................................................................................... 44 Summary of self-learning .......................................................................................................................44 Bibliography ...............................................................................................................................................45 Learning from the Summer Training ..........................................................................................................46 Application of concepts, tools, techniques and skills learnt at the IMNU. ............................................. 46 New knowledge, tools, techniques or skills that I have picked up ......................................................... 46 Any directions for future learning or career path that you may like to pursue. ......................................47 Certificate of project completion ................................................................................................................ 48
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Acknowledgement
A summer internship is a golden opportunity for learning and self development. I consider myself very lucky and honored to have so many wonderful people lead me through in completion of this summer internship.
I wish to express my indebted gratitude and special thanks to Mr. Sanjay Priolkar (GMOperations), who gave me an opportunity to do my Summer Internship at Indoco Remedies Ltd. I express my deepest thanks to Mr. Umar Sayyed (Head of the Purchase Department) for giving necessary advices and guidance during my Summer Internship. I choose this moment to acknowledge their contribution gratefully.
I offer my deepest sense of gratitude to Mr. Amol Shet (Assistant Manager-HR), Mr. Vijay Keluskar (Head of the Warehouse), Ms. Ranjana Naik, Ms. Niraksha Borkar, and Ms. Khushboo Sahu for their judicious and precious guidance which were extremely valuable.
I would like to thank entire Warehouse and Purchase Department for their cooperation and guidance during my Internship. I thank each and every employee of Indoco for their contribution in enhancing my knowledge and making my Summer Internship a solid learning curve. Last but not the least; I would also like to extend my sincere thanks and gratitude to my institute for giving me this learning opportunity and my mentor Prof. Ashwini Awasthi for his support & guidance.
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Executive Summary
Indoco Remedies is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs) in India. The Company is striving to place itself on a strong promising path by expanding its business strategically, strengthening its manufacturing facilities and enhancing capabilities across the organization. The Company is looking at various opportunities in untapped markets and association with business partners in the global markets to boost its revenues. During my tenure as Summer Intern at Indoco Remedies, I got chance to work in Purchase Department & Warehouse. In Purchase department, my work involved from receiving indents from various departments, asking quotation from various suppliers, negotiating prices, using ERP system to generate Purchase order and following up with the supplier for the delivery of the material. In warehouse department, my work activities included receiving of Packing Material and Raw Material, .Assisting Quality Control (QC) team member in sampling the material, Updating Material location, Issuing material for a batch of tablets, Palletization & Dispatch of finished goods. I have also submitted a report to the organization in which I have identified certain problems in the organization and also proposed the solutions for the same.
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Research and Manufacturing Services (CRAMS) to its customers globally. With a sizeable basket of own Dossiers in CTD format, Indoco is all set to offer the full range of services including APIs with DMFs/CoS and CTD Dossiers with supply of Finished Dosages.
Milestones Achieved 1993 1997 1999 - R&D recognized by DSIR. - Commencement of production in Goa Plant I. - New Corporate Office at Indoco House. - Acquisition of Warren, Company makes presence in Ophthalmic & Dental Segments. 2002 2003 - State-of-the-art sterile facility, Plant II commissioned at Verna Goa. - UK-MHRA approval for the Solid Dosage facility at Plant I. - Exports to regulated markets commence. - First contract for Dossier Development with European company. - Domestic Marketing makes a foray into the lifestyle segment. 2004 - First Contract for Development services with US Company. - Karvol brand acquisition from Solvay Pharmaceuticals Pvt. Ltd. - Four Patent applications filed. - Company jumps five ranks in two yrs in the ORG-IMS Retail Audit. 2005 - First ANDA filed on the basis of Exhibit batches manufactured in sterile facility in Goa. - Development Contracts for inject able products signed with a US Company. - Tablet capacity doubled by commissioning an extended facility in the existing UK- MHRA approved plant. - Shares of the Company listed on BSE and NSE.
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2006
- US-FDA approval for Ophthalmic facility, Plant-II in GOA. - Contract signed for supply of 18 generic products to German Market. - 2 ANDAs filed with USFDA. - Commencement of liquid manufacturing facility at Baddi, Himachal Pradesh. - New R&D Centre at Rabale, near Mumbai becomes functional. - Solid Dosage facility at Goa Plant I re-inspected & approved by UK-MHRA. - UK-MHRA approval for Creams & Ointments facility. - Darmstadt-Germany approves Goa facility for Solid Dosage manufacturing. - Acquisition of LaNOVA Chem Pvt. Ltd. with its brand new API manufacturing facility of international standards. - Launch of Surge - a specialty marketing division.
2007
- ANVISA (Brazil) approval for the Solid Dosage facility at GOA Plant I. - Commencement of exports to the US markets. - Launch of Warren-Excel and Spera - two specialty marketing divisions.
2008
- IDMA Quality Excellence Awards 2008 - The Sterile Facility at Goa Plant II received the Gold Award and the Solid Dosage Forms and Externals Facility at Goa Plant I received the Silver Award. - TGA (Australia) approval for the Solid Dosage, Liquid Orals and Creams & Ointments Dosage forms at GOA Plant I. - First shipment of Diclofenac Ophthalmic solution shipped to USA against an approved ANDA. - Successfully faced Slovenia audit for the Solid Oral Dosage forms at Baddi Plant. - MCC (South Africa) approval for the Solid Dosage facility at GOA Plant I and for the Sterile facility at Goa Plant II.
2009
- UK-MHRA approval for the Solid Oral Dosage forms at Baddi Plant. - Export sales exceeded Rs. 1 Billion in the FY 08-09.
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- Successfully faced Slovenia audit for the Sterile Facility at Goa Plant II for the Injections Area. 2010 - Indoco Remedies teams up with ASPEN, South Africa by licensing out intellectual property (dossiers) for marketing its products in emerging markets covering 30 countries, including SA, Brazil, Mexico, Venezuela, Russia & Australia. - Indoco Remedies licenses out technology to Watson Pharmaceuticals Inc. USA. Under the terms of profit sharing agreement, Indoco will develop, manufacture and supply a basket of sterile products to Watson for the US market 2011 - Indoco received the Silver Quality Excellence Award for Sterile Manufacturing Facility in Goa and Solid Dosages Facility in Baddi (Himachal\Pradesh) at IDMA's Golden Jubilee celebrations. - Indoco announced the signing of an agreement with DSM, a 9 billion Company, for commercial cooperation for Active Pharmaceutical Ingredients (APIs). Indoco and DSM have formed a strategic alliance, wherein DSM shall be marketing and selling the APIs manufactured by INDOCO.
2012
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Company Vision
To improve the quality of life by making available products of highest quality at affordable prices To ensure that quality becomes a habit, a commitment that finds expression at every stage from production testing, marketing to employee relations To be a research based globally known company present in all 5 continents of the world
Company Mission
To continue to be quality driven, research based, focused pharmaceutical company To adopt and assimilate CGMP (current good manufacturing practices) with strict adherence to environment safety To build on the trust generated by the fraternity. To share management goals, with employees and also to celebrate corporate success with them
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Top Management
Mr. Suresh G. Kare : Executive Chairman
He is the Executive Chairman of Indoco Remedies Ltd. He has been at the helm of the companys affairs for forty-nine years and is responsible for its transformation from a small sick unit in 1963, to the global, fast growing, profitable organization that it is today. Suresh G. Kare has a technical background and is recognized for his leadership and vision.
Having worked in various departments in different capacities, Aditi has steadily climbed the corporate ladder and is now a Managing Director on the board at Indoco Remedies Limited. She heads Domestic Marketing, Business Development, Technical, H.R. and the API Business at Indoco. Aditi Kare Panandikar, a Pharmacist by profession, has earned her basic degree in Pharmaceutical Administration from the Ohio State University, USA. A third generation entrepreneur, she joined the family business soon after returning back in 1992
A Pharma professional with over 25 years experience in the industry, across various functions such as Finance, Operations, Purchase, Projects and International Business. As Jt. Managing Director he is overall responsible for all Manufacturing as well as Supply Chain Operations, the Finance Portfolio and the International Formulation Business at INDOCO. He is a science graduate and holds a Masters degree in Business Administration from the Mumbai University. He has also trained in the field of management at the Indian School of Business, Hyderabad and the Kellogg School of Business, Chicago, USA. Sundeep V. Bambolkar has been with the group since 1982.
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Mr. D. M. Sukthankar He holds Master Degree in Commerce from Bombay University. He was selected for IAS (Indian Administrative Service) in 1956 and served in various capacities in different departments of the Govt. of Maharashtra and the Govt. of India prior to his retirement. Mr. Sukthankar was appointed on the Board on September 10, 1994. Mr. D. M. Gavaskar He is a Chartered Accountant and Company Secretary. Mr. Gavaskar is a Commerce Graduate from the University of Bombay and he has also completed from U.K. a course in Strategic Management and another course for Senior Management from Templeton College, Oxford University, and Henley College of Management, respectively. Mr. Gavaskar has been inducted as an Additional Director on the Board with effect from April 11, 2005 .
Mr. Sharad P. Upasani Mr. Upasani joined Indian Administrative Service in 1962. Prior to that he had obtained postgraduate degree of Master of Commerce and also did Bachelor of Law from University of Bombay. After joining service in 1968 he did Masters of Business Administration in U.S.A. After retirement in 1996, Upasani is practicing in the field of Corporate Law and has acted as Arbitrator in variety of cases including infrastructure projects. In addition to his legal practice and arbitrations, Shri. Upasani is also Vice-President of M. Visvesvaraya Industrial Research & Development Centre, (World Trade Centre), Mumbai and President of Consumer Council of India.
Mr. Rajiv P. Kakodkar He holds a bachelor of pharmacy degree from Bombay University and an MBA degree from the prestigous Stuart School of Business, Chicago, USA. He has vast international business experience in pharmaceutical field. His area of expertise include Indenting and Sourcing for pharmacetical global and domestic businesses. He is a founder of his own chemical business in operation for over two decades.
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Dr. Anil M. Naik Dr. Anil M. Naik graduated in 1966 with Gold Medal from IIM, Kolkatta. He also holds a doctorate from the Mumbai University. He has to his credit, Rani Tarneja Award of 1992 and is affiliated to reputed Educational Institutions and Social Service organizations. His business skills and acumen have been instrumental in turning around a few corporate entities and Management Development Programmes, conducted by him, were well received by the top noche companies. Dr. Naik was appointed on Board on 14th February 2012.
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Managing Director
JT Managing Director
SR.VP -Operations
DyM.stores DyM.Prodution
DyMEngineering
QA
Accounts IT Purchase QC HR
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Turnover
Annual turnover of Indoco Remedies has been rising steadily over the year years s. Below are the figures of past five years. ( Cr.) Mar ' 09 Mar ' 08 350.35 262.56
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Geographical Spread
Goa Plant I
Indoco Remedies Goa Plant I, is a product manufacturing facility which includes Solid Dosages, Creams, Ointments and Liquid Dosages and is located in a non-pollutant area, with a vertical flow system, monolithic flooring, fully air-conditioned RM and FG stores. The unique feature is that it has a separate Pilot Plant. The plant has capability to manufacture Aqueous, Non-aqueous and Photosensitive products. The plant has been approved by Approved by UK-MHRA, MCCSouth Africa, TGA-Australia, ANVISA-Brazil & German Authorities.
Goa Plant II
This is a state-of-the-art sterile facility for Ophthalmics and Injectables approved by USFDA for Ophthalmic preparations. This facility has also been approved by MCC - South Africa and Ministry of Health - Tanzania. The Plant has been designed with a sophisticated internal environment monitoring system using PC based system to monitor and control parameters like temperature, humidity, pressure difference, particulate count and safety aspects. The Design of the plant is modular.
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Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The new R&D thrust by Indoco Remedies will accelerate its growth and the company is in talks with several leading organizations for taking up assignments in the area of contract research and manufacturing services.
Baddi Plant
Indoco has set up a Greenfield Manufacturing unit in BADDI, Himachal Pradesh at a cost of Rs. 360 mn (9mn US$) to manufacture tablets, creams, ointments, liquid orals and toothpaste. The new facility will support the Companys growing formulations requirements for the domestic as well as international business. The manufacturing facility has been designed for logical flow of men and materials. The plant has been provided with all necessary arrangements to eliminate the risk of errors, avoid cross border contamination and mix up.
Waluj Plant
Indoco's Waluj manufacturing facility is located in Aurangabad, over the plot area of 87156 sq. ft. The total built up area is approximately 4000 sq.mtr. This facility has been designed for logical flow of men & material and has been provided with all necessary arrangements to eliminate the risk of errors, avoid cross contamination and mix up. The site is surrounded by non polluting industries which do not generate any smoke, soot or dust.
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Skills
Shared Values
Staff
Style
The 7-S-Model Model is better known as McKinsey 7 7-S. S. This is because the two persons who developed this model, Tom Peters and Robert Waterman were consultants at McKinsey & Co at that time. They published their 7-S-Model Model in their article Structure Is Not Organ Organization ization (1980) and in their books The Art of Japanese Management (1981) and In Search of Excellence (1982).
The model starts on the premise that an organization is not just Structure, but consists of seven elements: Those seven elements are distinguished in so called hard Ss and soft Ss. The hard
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elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, Strategies and Systems of the organization. Strategy: On the domestic front, Indoco is planning to have new product launches in all the marketing divisions, further penetration in the market through extended geographical reach with intense product promotion campaigns and the launch of Indoco CND, a new marketing division with products from lifestyle and chronic segments, will ensure the desired growth.In the international business. Indoco is preparing to launch a few products in US through Watson and move up the value chain in EU by registering own dossiers. Structure: Every plant in this organization consists of various departments. Each department has Department Head. Below Heads, we have officers, senior officers, Executives and Senior Executive. Every member from department reports to the department Head. Department Head directly reports to the GM-Operations of the Plant. Systems: The Company has a HR system to take care of its employees. Various scheme and cultural events take place to engage the employees. New employees have to stay back after 5.30pm and they are trained by their seniors. Every 6 months, employees are encouraged to change their section in which they work. This ensures that every employees has been cross trained and load shedding can be done at crucial time. Shared Values: Shared Values implies that the employees are driven by some guiding values. Values
provide guidance in times of crisis. Few of the values, which Indoco Remedies follows, are: Individuals respect Accountability Excellence Operational Efficiency
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Honesty Consistency
Style: It has been observed that, many managersa nd department heads at Indoco Remedies follow democratic leadership style. A department level decision is not taken unless all the members are consulted, their opinions are taken into account and new suggestions are always welcome. Staff: Indoco as a company strongly believes in Employee diversity. Its commitment to diversity includes a range of initiatives that help employees to work in an understanding, flexible and creative environment. Skills: Employees from QC department are encouraged to be FDA ( Food and Drug Administration) approved chemists. As mentioned earlier, employees acquire skills ski of members from other sections of same department.
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Supplier power Suppliers are very essential part for the success of the organization. Suppliers can disturb the production process if material is not supplied. It takes some time to arrange for new material in Pharma industry. Also prices are controlled by the suppliers. Hence it plays decisive role in the final price of the product. Switching costs are high. As it takes time to add new supplier in the approved vendor list. This is because audits are performed and then the vendor is approved by the organization. Buyer power Buyers can control and exert influence over an industry in many of the cases. In Pharma industry, there are lot of substitutes and cost of switching for the customers is also very low. Also competitive margins needs to be provided to stockist and independent distributers. Intensity of rivalry Indoco is facing stiff competition for its rivals such as Cipla,Sanofi,Zydus,Lupin etc. Pharma industry is very competitive and there exists substitutes for most of the products. For example tablet Glychek-M produced by Indoco Remedies has substitute in Metformin produced by Zydus. Similarly Paracetamol tablets produced by Indoco remedies has competition with Paracetamol (Same Name and Similar contents) produced by Cipla or Zydus. Every firm is trying to increase their market share for their individual products. Threat of substitute As I mentioned above, there exists substitutes for most of the Pharma Products and also at lower costs. Also cost of switching is also very low in most of the cases. Threat of new entrants The threat of a new organization entering the industry is high when it is easy for an organization to enter the industry i.e. entry barriers are low. Here it would take time for any organization to get settled into the business and establish market share which is enough to sustain in the long run. A new entrant may be faced with various hurdles erected by established businesses, such as: economies of scale - manufacturing, R&D, marketing, sales, distribution. product differentiation - established products, brands and relationships capital requirements and financial resources
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access to distribution channels: preferred arrangements regulatory policy: patents, regulatory standards switching costs - employee retraining, new equipment, technical assistance
In the international business, Indoco is preparing to launch a few products in US through Watson and move up the value chain in EU by registering own dossiers. The company is expanding its base in EU by adding new customers with special focus on new ophthalmic range. The company is progressing well on the in-house development for new products slated to go off patent in the near future and has an impressive product pipeline for servicing generic companies across the globe.
The potential in emerging markets will be exploited by adopting two pronged approach, i.e., partnership with Aspen A plot of land adjacent to the existing facility has already been acquired. There has been a significant rise in the number of development projects the R&D is handling. Hence the R&D facility now needs an expansion. The Company has taken a step in this direction by acquiring a plot of land next to the existing R&D facility. Overall, the Company is on track to achieve the intended growth in all the business segments that it operates in.
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Main Products
Dicyclomine Hydrochloride Injection Ciprofloxacin Eye drops Tobramycin Eye/Ear drops Lignocaine Hydrochloride Injection (Lignox) Cyclopam Cital Tuspel Plus Febrex Paracetamol Metformin Ropinorole Tradazone Indometformin Albendazola
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Warehouse
Department Head: Mr. Vijay Keluskar Mentor: My mentor did not change in the entire course of Summer Internship. My point of contact was still Ms. Niraksha Borkar even when I was in Warehouse.
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Storage of Raw Material , Packing material and Finished goods in the inventory. Dispatch of Finished goods. Issuing Raw Material to Granulation Section under Production department and issuing Packing Material to Packing section under Production department. Maintaining the required information related to Material receipt, Storage locations, Finished goods dispatched and generating Goods receipt note (GRN) in the ERP system.
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Methodology
Ethnographic Study
Ethnography is a qualitative research design aimed at exploring cultural phenomena. As an observer I noticed various practices in the organization. Office timings were fixed in the administration and purchase department. Timings were 9am to 5.30 pm. Employees had option of doing 1st shift i.e 7.30am to 4pm. But suppliers office were open only aftr 9am in most cases, there was no use of doing first shift in Purchase department. In warehouse, there was only one shift i.e 9am to 5.30pm . The employees at the Managerial level were addressed as Sir or Madam. This was opposite to the organization in which I worked previously. In my previous organization the all other employees were addressed by their first name. If any problem was arrived, it was solved in a collective manner, rather than onus being laid upon only one employee. Most of the employees communicated orally in local language i.e Konkani in this case. This even included the conversation between Manager and subordinate. Those who did not understand Konkani, Hindi was the language for oral communication for them. Every year, Navaratri is celebrated with great pomp and joy. Production is stopped in those days. Pooja is performed daily in those days. On each day, different department gets the chance to perform the pooja. On those days, Sports events are held and also various other competitions are organized. Other days that are celebrated are founders day and womens day. It was also observed that on birthdays, employees distributed sweets or snacks to the members of his or her own department. If any employee from any department stays up late for work, he is provided with food and Cab facility.
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Company culture
Employee Diversity: Indoco as a company strongly believes in Employee diversity. Their commitment to diversity includes a range of initiatives that help their employees to work in an understanding, flexible and creative environment. Employee Networks: Indoco supports associations that represent the common interests of their employees. These provide support and development possibilities that help them to keep and
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retain the best people. Flexible shift Options: Indocos flexible working policy enables their people to maintain a positive work-life balance and address personal and professional needs. Mentoring: Indoco uses mentoring to give their employees the opportunity to learn from a more experienced colleague. Again, this is part of their plan to keep the best people. Recruitment of Female and Minority Employees: Indoco is committed to equal opportunities through recruitment of employees that represent all people within society, including women and ethnic minorities. Talent Review and Succession Planning: Indoco places a high priority on their ability to develop talent and enthusiasm in their employees. Through succession planning they can identify and encourage their high-potential employees and ensure that they have a career path that meets their and companies needs.
Training and Development: By providing their employees with an environment that encourages learning and development, they allow people to realize their potential. Activities such as on-thejob training, web-based learning and self-study are part of their training and development programme. Management Trainee Programme: Management Trainee Programme is a perfect example of their commitment towards developing and nurturing young talent. Indoco recruits the best minds from Business Schools and prepares them for the challenges of business. Each of the Management Trainee, irrespective of their discipline, gets an opportunity to work and get exposed in sales, R&D, HRD and manufacturing. Salary and Benefits: Salaries and other benefits in Indoco can be comparable to the best in the industry and one can expect to be rewarded highly if your performance is very good and consistent. Additionally, one will receive a wide range of benefits like the Group Life Insurance, Pension plan are a few examples of their focus to provide their employees and their dependents with adequate financial protection on solid and long term care basis.
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Sources of conflict
Conflict could occur Intra Department or Inter Department. The possible conflicts that would occur which I noticed were between supplier and Purchase department, Warehouse and logistics, Accounts and Suppliers, Purchase and other department and Accounts and Purchase Department. The conflict I usually noticed was between Purchase and Other department. Other departments always treated their Indents (request for material) on high priority but purchase department would usually require at least a week to procure this material. Hence other departments would inquire again and again. Another source of conflict is the payment, which is to be done by accounts department. But accounts department usually delay the payment. Suppliers catch hold of Purchase department, which is the point of contact for Suppliers. Due to this possible conflict can arise between Accounts, Purchase and Suppliers. Both of these problems are mentioned in detail, in the section Identification of critical issues or problem areas if any.
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Advantage of taking sub contracting order is that 1. Only production cost needs to be taken care and wastage needs to be reduced 2. Packing material and raw material are procured by the company who has done the sub contracting 3. Fixed revenues are earned 4. No risk of product being failed in the market and losses occurred. Dis-Advantage is that 1. If product fails in the market due to manufacturing deformities, future orders are at risk. 2. Also every company would like to manufacture its own product and market it by itself and utilize its entire capacity. Other sources of opportunities can be setting up of plants in foreign countries or setting up of marketing division in foreign countries. Currently Indoco Remedies has its operations only in India and it also exports its products. The products they manufacture, which are exported are either subcontracted or to only those few countries, whose regulatory bodies have performed the audits.
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Organizational Training
A new employee has to undergo, two day induction program. In these two days, every employee has to visit each and every department, and understand the basic operations of that department. They have to write its description in the form provided by the HR department. Once the induction is over, employee joins the respective department. Every department has its own set of SOPs. SOPs are standard operating procedures followed by every department. A new joinee has to go through each and every SOP of the respective department. New employee than has to wait for extra hours after the regular office time, to complete his training. For these he is also paid over time charges, if his name is included in the overtime (OT) sheet by the respective department head. Indoco Remedies also believe in cross training. There are various sections in every department. Each employee has to work in different department after every 6 months. This not only makes them all rounders but benefits organization in case any situation has arrived where more employees are needed in a particular section. I have also noticed that, in competitors firms, employees are working in a section for many years. Due to this they not able to explore the other opportunities. His knowledge is corroded by the time; he decides to switch the organization.
Trends / Patterns
1. Employees at the Managerial level were addressed as Sir/Madam. 2. There is 30 minutes lunch break for employees at all level. There is no canteen in any of the 3 plants in Goa. But there exists dining area and washing area for plates. One can also go out of premises to eat food. Food is also delivered by contractors and hotels. This is mainly a precaution for micro organisms from entering the premises.
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3. Birthdays were celebrated on the last working day of the month. Cost for the cake was contributed by all the employees and every employee has a chance to showcase his talent on this occasion.
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Transport: Whether it will be taken care by the supplier or by the company. Date of the Indent, Name of the person who has raised the indent and the department which needs those items or the material.
Once the PO is raised, I need to calculate the total cost manually along with the applicable taxes. And cross check it with the total specified in the system. If the total is above certain amount, the PO is sent to the Head Office in Mumbai for the processing. Else it is approved in the same office. After PO is raised and amount is verified, the PO is sent to the supplier and copy of the PO along with the indent and other quotations were documented in the file by me. Status is than changed for that PO in the ERP system which would indicate that PO is raised but material is not yet received. Once the Items and materials are received, a Goods Receipt Note (GRN) is generated by the respective department and sent to the Purchase department, and then the status of the PO is again changed to the goods received.
Warehouse
The responsibilities that were given to me in warehouse were 1. Receiving packing material I had to receive the different kinds of packing materials such as shippers, PVC, foils, cartons, labels, leaflets, tapes. For this I had to verify the batch numbers, expiry dates, Address of the manufacturer (Plant) , and the vehicle through which it has come. Once this was done, I had to instruct the casual workers to receive it and keep the material on pallets and put it on the racks in the quarantine area. Mostly there were 3 casual workers.1 knew to operate the stacker vehicle And other two would be the helpers. 2. Assisting Quality Control (QC) team member in sampling the material Once the material was put into quarantine area, I had to ensure that each and every box or set of material had labels on it. I.e. had to instruct the casual workers to stick the labels and verify them individually whether they match or not. After this QC team member would take the sample material and I had to ensure that QC team member has put under test label on the boxes or sets and same for Approved or rejected label 3. Updating Material location . Once Approved label was put on the boxes or sets. I had to instruct the casual workers to shift the material to Approved material area and update the location of the material in a book which in
Institute of Management, Nirma University Page 35 of 48
turn was updated in the ERP system by the senior officer. During this process sometimes I had to arrange for pallets from other sections and also had to combine small quantities and keep on the same location using divider. I had to ensure that no same location on racks, would contain material with same Analytical Receipt Number (AR Number), A unique numbers used to identify same batch of material. And if it exists, there was a divider between two and locations are properly updated in the system. 4. Issuing material for a batch of tablets A paper would be given to me by the warehouse officers. On that paper they would write the materials they would need for a particular batch. And also they would write the quantity, Location of that material (Which was previously updated), and AR number. Hence I had to remove those materials from the mentioned locations and put them in a cage with help of casual workers. Also update the cage label with the name of the batch and the date. Than officer would verify the material and give his signal to send the cage to the packing hall ( Production department ). During this process I also had to take into account the excess material that was returned to the warehouse by the packing department. Hence I had to issue and direct to use material on First In First Out (FIFO) basis. 5. Palletization
(Sample image taken from www.indiamart.com ) I had to instruct casual workers to make pallets for the finished goods. Also had to supervise the process and had to achieve certain target for that day. I had to ensure they did not waste the packing material and pallets were made as per the prescribed standards. 6. Dispatch of finished goods. I had to ensure that right batch of finished goods was dispatched. Also check the interior of the vehicle i.e to check if the Air condition was on inside the containers that came to receive the
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finished goods. Also I had to note down or tick mark the pallet identification numbers that were dispatched and report it to the office.
HR Department
When I started my summer Internship, there were only 2 employees in the HR department. It was learnt that, third employee had resigned recently and decision to hire the replacement was not yet approved by the higher authority. Due to this there was significant work load on the remaining two employees. After I completed 15 days in Purchase department, Senior Officer from HR department directed me to do some HR related work. This was done in coordination with my Mentor. For next 2-3 days, I was given to work on the email Id of the resigned employee. I had to download all the resumes from the email Id of that employee. This resumes were sent by 1. Employees from other department, either from same plant or other plants. 2. Forwarded by senior HR officers and managers , resumes to be included in database of that plant. 3. Resumes sent by candidates themselves, enquiring about any vacancy and offering their candidature. My work was to download all the resumes, so that email Id of that employee , who had left the organization, can be deleted permanently. After downloading I had to put this resumes under two categories: 1. Qualification 2. Department in which they intend to work Both the categories had same resumes, but under them, they were further divided into more subcategories. Under qualification they were sorted on the basis on their latest qualification. Some of the qualification that they included were Msc, Bsc, Bcom, Bpharm, Mpharm, BTech/BE, Dip in Mechanical Engg , PDGM-HR, SSC,HSSC. Resume with MBA degree was a rare site. Under department they were sub categorized into Quality Assurance (QA), Qaulity Control (QC), QC-Micro ( for Microbiology lab), Production, Maintenance, Warehouse, Accounts, House Keeping, HR. Under Production they were more categorized into 3 sub categories i.e Granulation, Compression and Packing as per the 3 sections which existed under production. In Total there were around 750 to 800 resumes that I had to go through. Before taking up this work, I was briefed about all the departments in the organization, what are the various sections
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existed under each department, which qualification is considered for which department and for further sections. This was the first time I learnt about various department existed in a Pharmaceutical plant, from HR point of view. I downloaded those resumes, scanned them for a while, and it was left to me as to under which department I had to categorize. I.e. I had to take decision on my own as to under which folder I had to put the candidate. For example, A person has worked in Packing department for 3 yrs, but he is working in Granulation department for last 6 months and aspires to work in Granulation department. 6 month experience is very less for a person to work at Senior Officer Level in Granulation, but his total work experience qualifies him to be so. So now it as up to me to decide whether to consider him as candidate for Granulation department or Packing department. This was one of the best experiences as I was given independence to take my own decision and it would contribute to the organization significantly. In my entire duration at Indoco Remedies, on three occasions, I was told to shortlist resumes from the database which I had created, for vacancy that our plant had. Than I had to speak to the candidates and verify certain information. And I had to decide if they were suitable or not and then had to call them for personal interview. During the entire period I have spoken to more than 50 candidates over telephone. Apart from the database I had created, they also gave me some files with the hard copies of the resumes. These copies were dropped at the organisation by the candidates themselves. Usually they drop the resumes at the security office along with a cover letter. Other work that was given to me was verifying of OT (Overtime) sheets for the month of May. OT sheets were submitted by every department to the HR department over the period of 30 days. I had to manually verify if the OT hours were calculated correctly by respective department. If not, I had to make the necessary changes. If there was any confusion I had to verify the timings myself by checking the attendance and punching time. Also I had to take decisions whether Half Hour OT is supposed to be given or not if the employee has completed 15 or more minutes. For this I was supposed to check their other timings also if they have 0 to 15 min of recorded time on any other day. After the manual verification, I had to enter the details in the official worksheet in the MIS system, which was later sent to the Head Office for releasing the payment for OT. I have also given a report to the firm, in which I have mentioned some of the problems that I have identified and the solutions that I have proposed. I have copy of it with the stamp and sign of the Asst Manager (HR) of the organization. The report was discussed personally with the Head of Purchase department, for all the plants existed in the industrial estate. The report was submitted to the General Manager of the Plant III, where I did my Internship. He also discussed each point with me. During this discussion it was understood that, control of operations did not lie entirely in the hands of managers at plant level. The proposals for any decision or action are sent to Head Office. If it is approved, than only it was implemented. Head of the Purchase
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Department informed me that he would highlight the Identified problems and their solutions at the next meeting ( At plant level) .
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Purchase Department
1. Problem Identified: Whenever indent is made by any department, it has been observed that field STOCK ON HAND is left blank most of the time. Also the indent is made when there is no stock left. Hence respective department considers the indent as high priority and they follow up with purchase department next day onwards. Due to this purchase department has to order at high cost in order to fulfill urgent requirement and save time.
Proposed Solution The normal time to process the indent and procure the material is around 10-15 days. Hence it would be advisable to fill the STOCK ON HAND (actual stock and not faking the shortage) field so that purchase department can treat the indents as per the priority. Apart from this each department would raise indents in advance i.e. they would raise the indents 15 days in advance for the materials they would need after 15 days.
2. Problem identified Purchase department raises Purchase Order (PO) as per the details mentioned in the indent. Once PO is raised, Vendors supply the necessary material/equipments. In the PO as well as the quotation, payments terms are specified. If the vendors are not paid as per the payment terms, they contact Purchase department or the department which had ordered the material/equipment. They keep on following with purchase or respective department. Due to this some vendors are reluctant to supply next time or they supply at high price.
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Proposed Solution We know that procurement is initial process and very critical for production. In competitive environment, procurement cost plays very important role in the final cost of the product. Company will be able to get best prices if payment terms of the vendors are respected and followed. This will in turn help in reducing the final cost of the product. Market reputation will also be enhanced. Suppliers would be eager to supply material of good quality at better prices.
While making the payment to the vendors, we can keep a grace period of 15 to 20 days after the payment terms are over. For example if vendor has specified payment term of 30 days from the delivery of the material, we can keep grace period of 20 days. Hence payment should be made within 50 days from the delivery of the material. No outstanding payment of the vendor should be seen in the system whose grace period is crossed i.e. after 50 days in this case. This would facilitate in fetching the best rate from the vendors and also timely payment would be made to the vendors, who are also one of the stakeholders of our organization.
HR Department
1. Problem Identified There is no award or recognitions given to the employees for their outstanding contributions or dedication for a particular month or quarter.
Proposed Solution We can give a certificate and a gift to such employees. Only certificate can also be given. Head of the department can identify such employees and nominate them. Out of these, 2 or 3 employees can be selected by Jury and they can be given recognition on the same day as we celebrate birthdays in Plant III. Gift can be given in the form of Wrist Watches, Wall clocks, Wallets, Purses, Mugs etc with Indoco logo on them. This can also be mentioned on Indonet and on notice boards. This would promote Internal Marketing too.
2. Problem Identified
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There is no online employee database with details of the employees. This would facilitate in fetching any kind of details (eg. Telephone extension, immediate supervisor) about any employee very quickly.
Proposed Solution Indonet can have a section of employee database. A record in the database would contain Photo of the employee, name of the department and section, designation, work email, Telephone extension, global dialing number if any, Plant address at which he/she is working and name of the supervisor. Whenever an employee joins the organization, it would be his/her responsibility to provide the details to the IT team and create his/her record. Also it would be employees responsibility to inform the IT department whenever he/she resigns from the job. Also we can have search options. A search can be made by entering certain keywords. For example, by entering or selecting certain options, we can view all the employees of Plant II from Production Department.
IT Department
1. Problem Identified It has been observed that employees from all departments leave their desks without locking their desktops. Other employees can take advantage of this by stealing data, sending any kind of email or by performing any other undesirable action.
Proposed Solution IT department can implement a policy in which it would be compulsory for the employee to lock their desktops while leaving the desks. Along with this they would have to turn off their monitors only. This can also save some amount of power too. An employee or two from each department can be given responsibility of reminding the employees in case someone forgets to lock his/her desk and turn off the monitor.
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Other Suggestions
1. Case studies can be developed by every department for any important events or incidents that has happened in the respective department. By doing this we would have record of that particular incident and action taken at that time. Also there would be proposed solution to it. Precautions can also be mentioned, which should be taken so as to not to repeat such incidents and how to act during re occurrence of such incidents. This is necessary because many employees leave the organization and they take knowledge and experience along with them. Hence to spread awareness and impart knowledge to the new employees, each department can maintain a book for case studies.
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Conclusion
Summary of feedback given to organization
Some of the key problems in the organizations were identified and solutions have also been proposed for them. Purchase Indents need to be more specific. Outstanding amount of the vendors needs to be cleared within specified dates. IT department should ensure that all PCs are locked when an employee leaves the desk. HR department needs to motivate employees in better way. And lastly a file of case studies need to be maintained in the each department to keep written record of any important incidents that happen in the department.
Summary of self-learning
Summer internship was a best learning experience for me at this point in my student life. I not only applied the concepts that I learnt at IMNU but gained valuable experience in Purchase and Warehouse department. In Purchase department, I learned to use ERP system to generate purchase order. In ware I learnt to issue the packing material for the Packing department as well updating material location in the ERP system. Apart from this I gained valuable knowledge of functions of various other departments too.
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Bibliography
(n.d.). Retrieved from http://www.bseindia.com/stock-share-price/indoco-remedies-ltd/indocoremedies/532612/
(n.d.). Retrieved from http://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?s ymbol=INDOCO Indoco, R. (2012, May 28). 65th annual report. Retrieved from http://www.indoco.com/annualreports/65annualreport.pdf
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4. Doing work by yourself is easy. But it is difficult to motivate others and make them work. Not only make them work, but finish the work within prescribed deadlines. 5. One day, I was doing work which casual workers were supposed to do. I.e transferring of raw material using trolleys. Warehouse manager saw me. He advised me to not to do this work as I am suppose to make others do it. He also advised me that, a manager should know the limits of his work. Beyond that, just knowledge of other processes and procedures if enough.
Any directions for future learning or career path that you may like to pursue.
I would like to pursue a career in Supply Chain Management. Also I am planning to do Six Sigma Green Belt certification this year.
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