An Group No:07

Assignment
On

“A Study On Shri Swami Atmanand Saraswati Ayurvedic

Co-operative Pharmacy Limited (ASFA) ”

SUBJECT: PRODUCTION AND OPERATION

MANAGEMENT
MBA SEM-2 (2018-20)
CLASS: A1

S. R. LUTHRA INSTITUTE OF MANAGEMENT

GUJARAT TECHNOLOGICAL UNIVERSITY

SUBMISSION DATE: 1 APRIL 2019

ENROLL NO: 2001 AND 2060
GROUP NO: 07

SUBMMITED TO: SUBMMITED BY:

Dr. RANJAN SABHAYA ABHISHEK MEHTA 01
BHAKTI MEHTA 60
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COMPANIES PROFILE

COMPANY’S NAME: SHRI SWAMI ATMANAND SARASWATI AYURVEDIC

CO-OPERATIVE PHARMACY LTD.
REGISTERED OFFICE: ASFA Pharmacy opp. Kalakunj Society, Near water tank,
Varachha Road, Surat-6
NO. OF BRANCH: 2 Plant in Surat
5 other branch
7 total
EMAIL ADD.: [email protected]
REGISTERED DATE: 2 Sept, 1949
SERVICE PROVIDE:Cheap and best quality medicines for the well being of the society

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HISTORY AND INTRODUCTION OF ASFA

Once in the golden morning Shree Swami Atmanand Sarswati comes in Surat and
he state 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 ba nk of river Tapi. In Ashram many students study about Ayurveda and Sanskrit.
And with passes of time he started an ayurvedic clinic and a Pharmacy for medicines needed
to run clinic. A n d slowly with flow of time the promotion and expansion, the
small Pharmacy become only one co-operative ayurvedic pharmacy of Gujarat which is
established in 2ndJune, 1949
with nameShri Swami Atmanand Saraswati 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 Saraswati who was the
man with strong mind power established the Pharmacy.

Shri Swami Atmanand Saraswati was spent his whole life in survive of people and teach
Ayurved to his Shishyas. He had only one goal of his whole life as follows:
“I don’t desire state, I don’t desire paradise, I even don’t desire moksh, but I desire to
solve the problems of people who are suffering from the diesases 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
ha s a bou t 4000 members now but when it was started it has only70
members to operate various activities.

By showing the above mentioned figure we can say that Asfa is very
rapidlygrow and expand in whole Gujarat. It has opened branches at Valsad,
Baroda, Ahemdabad, Bardoli and Bharuch etc.

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Organization structure of production department of “ASFA”

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Nature Of Production (Products/ Services)
Product Category Which “Asfa” Produce:
1. Hair Oil
2. Chyavanprash
3. Ghee
4. Bhasma
5. Pisti
6. Tablets
7. Churna
8. Ashwarishta Syrup
9. Toothpaste Powder
10. Purpati

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 Product Name Short Description Dose

AamlakChurna Digestion, Eye dieases One tea spoon with

water or milk
Abhayarisht Headache, Piles, 10 to 15 ml with equal
Inflamation amount of water
Asfa Balm Waist pain, Cold, Cough As required apply
externally on affected
parts
Bhrungraj Hair Oil Hairfall, Hair enhancer As required apply in
hair
DashangLep Swelling, Burning As required apply
Sensation externally on affected
parts
SaptaparnaChurna Fever, Malaria 2 to 4 gm with water

ShrungBhasma Heart Pain 250 to 500 gm with

honey
Shiva Churna Constipation One tea spoon with
water
PravalPisti Acidity, Fever, Cough 125 to 500 mg with
honey or milk
TamraBhasma Stomach ailments, Liver 20 mg to 60 mg with
disorders honey
TrifalaChurna Eye diseases, One tea spoon with
Constipation water
Vasavalekha Cough, Breathlessness, 5 to 10 gm with milk
TB
YastimadhuChurna Cough, Throught disorder One tea spoon with
water

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Types of Process in Production
 Batch processing system: It stops at regular intervals of time because the product requires
processing on a variety of machines
 Product produced are of different varieties hence production process is slow compare to
other.

From the above theory, it is clear that company falls in batch manufacturing category
because it manufactures various types of diagnosis kits.Also certain sicknesses are non-
seasonal like diabetes, cancer, aids etc. for which company have to manufacture medicines
regularly throughout the year. Many other sicknesses are seasonal like malaria, jaundice etc.
for which company has to increase production during particular season. So, company offer
many large product mix to their customers. Every month they manufacture different set of
products. They undertake batch wise production of different products one after another.

Batch size and lot size of all products are fixed in this system. And each such final lot size is
kept separately at specific fixed identified area.

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PRODUCTION PROCESS OF RASA (AROGYA VARDHANI RASA)

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PRODUCTION PROCESS OF PATENT MEDICINES (SPL.GULKAND)

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PRODUCTION PROCESS OF TABLETS (PUNARNAVA MANDUR)

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Location And Layout
Asfa is located at Kalakunj, area of Surat which is the industrial area so all types of facilities
are available there very easily.
The most important part of production is to get the raw material; the facility of getting raw
material is easier because here the transportation can easily be done. And at this location both
skilled and unskilled workers are easily available, as the villages and many civilized areas are
near by.
Asfa is located near highway, which makes the transportation easier. Other facility like
railway facility is also near by only. As it is in the industrial area so electricity, water, gas,
land etc are all easily available at the site.

Plant layout
Plant layout is the arrangement of machinery, equipment and facilities such as receiving and
shipping department, tools room, maintenance room, inspection cabin, stores, trolleys, drums
and container and other handling equipments, employees amenities like canteen, rest and
change room, toilet, parking facility etc.

The plant layout of “ASFA” is cellular layout type where machines and equipments are
arranged according to manufacturing process.

Product Type Layout

Churna Process Layout

Tablets Process Layout

Syrup Product Layout

Balm Product Layout

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Aggregate Production Planning And Control System

In “ASFA” production planning is done considering the sales of previous year and demand of
current year. On the basis of the sales of the previous year and demand of current year
company prepares the list of the medicines that are to be produce throughout the year. After
preparing the list of medicines, company refers BMR (Batch Manufacturing Record) of the
medicines that are to be produced throughout the year for requirement of raw-material,
machine capacity and man-power. After considering the safety stock level of 40%, company
places the order of the raw-material which falls short of the stock of raw-material.

BMR (i.e. Batch Manufacturing Record) is the record which shows the requirement of raw-
material, machine capacity and man power for producing the particular quantity of medicine
of a particular category. Also “ASFA” produce the fixed quantity of the particular medicine
according to the quantity of the medicine mention in BMR irrespective of the quantity of
demand forecast.

So the Asfa follows Level Output Rate Plan in which they vary the inventory size and keep
workforce size and utilization of workers constant.

Material Requirement Planning

“ASFA” company as a such do not prepare any material requirement planning as it produces
the quantity of the particular medicine as mention in BMR (Batch manufacturing record) if
the company gets the order of produces the particular medicine then it will refer BMR for
quantity of the medicine to be produced and the requirement of raw material. After
considering the safety stock level of 40% company gives the order of raw material which
falls short of current stock level. So the question of preparing MRP does not come in to
picture as it is already mention in BMR the amount of material required to be produced in 1
lot of medicine.

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Capacity Requirement Planning

Like MRP, the company do not do CRP that is capacity requirement planning because they
installed capacity of the machines in the company is according to BMR so the company
produces the quantity mention in BMR and not beyond that quantity and also not less then
that quantity as the company cannot increase the capacity and capacity will not utilize fully
respectively. Also the fixed quantity of medicine which is produced and being demanded by
the dealer, the stock of that medicine is 100% sold. If the dealer wants more quantity than
they produced quantity according to the BMR and stock the additional medicines for the
future period.

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Methods of Inventory Management
ABC ANALYSIS

Abc analysis is analysis according to the value of items. In “Asfa”, the inventory consists of
hundreds of items and many employee are controlled them. For this company do lot of
expenses. In order to affect economy in controlling such large inventory “Asfa” use a system
known as ABC (AlwaysBetter Control) analysis.
It has been found from the experience that all items included in inventory arenot of equal
importance. A few items in the inventory represent a largeproportion of total value of
inventory. Hence, more attention must be devotedto 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 formsonly a small
proportion of total quantity of inventory.
In “Asfa”, there are 10 items which are comes in categoryA and theyrepresents as much as
74% of value of inventories. Strict control over receipt,storage and issue should be exercised
over these items. Items included in this category are gold, silver, saffron, volatile oil like
clove oil, cinnamon oil, eucalyptus oil etc.

 B – Category

Items included in category B are not as important as those in category A,butare important
enough for its proper records to be maintained. They constitute70 items of total number of
items, but represent 18% of total value of inventory of “Asfa”. These items are:

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 C – Category

The remaining items must be placed in categoryC. they are not so important from the view
point of maintaining control over the receipt and consumptionsuch items constitute 65% of
the total number of items but they represent 8%of total value.

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Quality Control in Asfa
Asfa checks the quality of all three type of product, raw-material, in processgoods and
finished product.

Raw –material
In this stage, raw materials are being checked and compare with specifiedquality 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 isnot satisfactory, goods will be rejected. If
acceptable report is send to storedepartment. Usually they take 25 gm of raw material for
quality checking.

In process goods
Asfa also check the quality of goods during the process of production so isthere any problem
in quality while processing, it can remove by takingcorrective actions and make qualitative
medicines for customers. These typesof checking record are kept in “standard verification”.
10 gm is taken for quality checking at work in progress level. Also sample size depends upon
the volume of production. For bulk production more samples are taken. For costly and small
production volume less samples are taken.

Finished product
When product are finished its process then from them some samples aresend to quality
control department for quality checking and if quality isaccepted then only finished product
give to packing department for packingand labeling. The document is used to keep these
types of records is called“Finishedproduct report”.

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Process of quality checking of products

Churna

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Syrup

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Equipments used in quality control department

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Brief idea about Departments and Machines

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