Introduction to Operation Management:

Operation Management involves the design of the product for manufacturing concern industries and services design industry. It also includes the selection of best process to produce goods or services.

It also involves design of work systems location and facilities planning and quality improvement of the organizations product and services.

Definition of Operation Management:

“It is the business function that plans, organize, co-ordinates, and control the resources needed to produces a company’s goods and services.”

Different Function Areas of Business Organization:

Introduction of Company:

History

Incorporated in July 1991, Shazeb Pharmaceutical Industries Ltd. Is one of the leading producers of High quality IV Solution in Pakistan. The project is ideally located at 18 Km from Hasan Abdal on main Hazara Trunk Road in District Haripur. The Plant is based in a lunch green, pollution-free environmental and covers an area of 83,000 Sq. ft. , serving the nation over a decade.Company was repurchased by Sheikh Zulqar Hussain, Ishfaq Safdar Tarar and Dr. Ejaz in 2007

Mission Statement

The Company with Brig (Retd) Ghulam Hussain Cheema T.J., as its chairman, and Dr. Tassadaq Hussain Cheema as its Executive is backed by dynamic

team of professional expertise who resolve to: “Serve the Ailing Humanity by a dynamic futuristic vision and meet the demands of a rapidly changing health scenario through Service, Devotion and Dedication.

Technical Expertise

Shazeb Pharmaceuticals has the most reliable world-famous technical expertise, provided by the highly prestigious plant manufactures, M/s Getinge AB of Sweden and M/s Rommelag of Switzerland.

IV Solution: Life Saving Drugs

The Company with leading edge over others is producing a wide range of premium quality intravenous (IV) Solution. These specific IV Solutions play a very significant role in controlling dehydration, electrolyte imbalance and nutritional deficiency, helping millions of patient to recover every year!

Process Technique

The production/ manufacturing process of finest quality IV solutions demands for precision and accuracy involving latest equipment. Our process technique comprises listed areas.

Water Treatment

Water treatment is the most important process. Vital for excellent quality IV solution. Silhorko, a world leader in water treatment has installed the water treatment plant of Shazeb Pharmaceuticals. This plant provides deodorized and de-chlorinated water through automatic activated carbon filter.

Distillation

Pyrogen-free water for injection (WFI) id produced in a stainless steel computerized distillation still from kemiterm of Denmark. This entire system of sterilization meets the highest internation standers of excellence.

Solution Preparation

The HEPA Filters facility envisages high quality of solution preparation. During this process, stainless steel 316L mixing vessels, equipped with Hi-Tech NA-mixers ensure absolutely clean mixing.

Quality Control

“Quality At Every Step” is the Company’s motto. The high quality Shazeb Pharmaceuticals reflect the the company’s commitment to quality at all costs. Stringent quality control at all stages, backed by the confidence of Swedish Technologies from M/s Getinge AB is the mainstay of the Company’s success!The quality control lab., equipped with latest State-of -the-Art computers provides the basis for customer trust, conforming to Good Manufacturing Practices (GMPs) world wide.

The Quality Control Areas Include

Analyses of Raw Material Analysis of Water InjectionBottle Making/Filling Analysis After FillingPyrogen Testing After Auto-clavation Leakage Test / Clarity TestQuarantine/Sterility Testing Packing

Marketing

Shazeb Pharmaceuticals has a strong distribution network managed by the highly reputed Company, Gulraiz Mediaids (Pvt.) Ltd., to meet the growing demands of IV Solutions country wide even in remote areas and on divisional and district levels. This network is led by Marketing Professional with many years of experience.

Product Rang

Shazeb Pharmaceuticals produces/manufactures a wide rang of supreme quality sterile, Pyrogen-free IV Solutions. Some of these products are:

Zeesol – NS (Normal Saline) 1000ml500ml

Zeesol – DS(Dextrose + Sodium Chloride) 1000ml500ml

Zeesol – 5 (Dextrose 5%) 1000ml500ml

Zeesol – 10 (Dextrose 10%) 1000ml500ml

Zeesol – R (Ringer’s Solution) 1000ml500ml

Zeesol – H (Hartmann’s Solution) 1000ml500ml

Zeesol – D (Darrow’s Solution) 1000ml500ml

Zeesol – DR(Dextrose + Ringer Lactate) 1000ml500ml

Zeesol –DE (Dextrose + Electolyte) 1000ml500ml

Zeesol – M (Mannitol)500ml

Water for Injection 20 mlPotassium Chloride Injection 20 mlSodium Bicarbonate 20 mlDextrose 25% 20 mlSodium Chloride Injection 20 ml

Our Tomorrow

We are negotiating with prestigious, leading European Companies for manufacturing of Infusion sets and uplift of our existing product range. We are determined to keep in the Fast Lane, reach the top and stay there. In fact, we have an obsession to scale New Heights and we know that ‘Sky is the Limit!’

New Dimension

After a Successful launch of latge volume IV Solution ^ establishing a new name of high Quality Products, company planed to enter in small volume range. For this company requires a new bottle pack machine (Model) ideally suited for manufacturing products ranging from 5ml to 20ml.Shazeb Pharmaceuticals is now prepare to introduce a new dimension to the medical profession of Pakistan by launching water for injection in plastic packing, this is in addition to the other IV Solution in small volumes.

Function Areas of Shazeb Pharmaceutical industries limited:

Factory

1. Store Department

2. Production Department

Water Treatment Section Solution Preparation Section Filling Section

Sterilization Section Packing Section

3. Inventory Control Department

4. Technical Department

Mechanical Section Electrical Section Boiler Section

5. Quality Control Department

6. Admin Office

Head Office

1. Operation Department (also performing HR Functions)

2. Finance Department

3. Marketing Department

4. Import Department

5. Account Department

Management of the Company:Chairman:

Sheikh Zulqar Hussain

CEO:

Dr. Tassadaq Hussain Cheema

Secretary:

Ishfaq Safdar Tarar

Directors:

Sheikh Zulqar Hussain

Dr. Tassadaq Hussain Cheema

Ishfaq Safdar Tarar

Dr. Ejaz Ahmed

Riazul Husnain

Qaisra Zulqar

Naheed Ishfaq

Legal Advisor:

Shumail Ahmed Butt

Auditor:

Shahid Ahmed & Company

The Transformation process:

Transformation process involves the following:

Transformation process of Shazeb Pharmaceutical industries limited:

Material:

Material includes the following:

Water, Dextrose, Lactate, Sodium Chloride, polyethylene etc.

Land

Shazeb Pharmaceutical Industries Limited is located at Hazara Trunk Road Sarae Gadae District Haripur. Total Land of Shazeb Pharmaceutical Industries Limited is 41 canal

Labour

Labour includes daily wage labour, loader, females for packing and labeling, pharmacists, etc.

Machinery:

Machinery used in Shazeb Pharmaceutical Industries Limited for transformation is as under:

The essence of the operation function is to add value during the transformation process.

Value add:

It is the term used to describe the difference between the cost of input and the value of price of output.

Shazeb Pharmaceutical industries limited Value added:

In Shazeb Pharmaceutical industries limited the output cost and conversion cost is just the 60% of the output 40% is added during the process.

The usage of Value Added:

Firms use the money generated by value added for

Research and Development

Investment in new facilities and equipment.

Worker salaries and

Profits.

The Usage of Value added In Shazeb Pharmaceutical industries limited:

Worker Salries

Paying Liabilities

Profits

Dividend.

Retained Earning.

THE SCOPE OF OPERATION MANAGEMENT:

Forecasting

Capacity

Scheduling

Managing inventories

Assessing quality

Motivating and Training Employees.

Scope Of operation management In Shazeb Pharmaceutical industries limited:

Operation manager of Shazeb Pharmaceutical is responsible to keep him informed regarding any regulation issued by the government and how to tackle it.

He is responsible to utilize the resources available. What mold at what time whether 500ml, 1000ml, 20ml etc.

He makes the schedules regarding orders according to priorities of the customers.

He manages the inventories level both in raw material and in finish goods.

Train the new hiring and motivate them in training by telling the advantages and helps them by talking to senior managements in shape of incentives and bonuses.

Types of Operations:

Types Of Operation in Shazeb Pharmaceutical industries limited:

In Shazeb Pharmaceutical industries limited the types of operation is producing goods i-e- manufacturing.

Primary function of an operation management:

The primary function of an operation management is to guide the system by decision making.

Types of Decision:

There are two types of decisions

Strategic decision

Tactical/operational decision

Strategic decision

The decisions which sets the direction for the entire organization. These are long term decisions.

These are typically pertaining to the system design.

System Design:

System design involves decisions that relate to:

System Capacity:

What exist and what is required to organization for their success.

The Geographical Location of Facilities:

It means which is the infrastructure of the company.

Arrangement of Department:

To avoid movements of employees.

Placement of Equipment within physical structure.

The equipment should be placed in a way that the accidents are minimized.

Product and services planning.

Acquisition of equipment.

Tactical/operational decisions:

Such decisions are specific and short-term in nature and are bound by strategic decisions.

Such decisions typically pertain to the system operation.

System operations involve decisions that relate to:

Management of personnel

Inventory planning and control

Scheduling

Project management

Quality assurance

System Operation of Shazeb Pharmaceutical industries:

System operation of Shazeb Pharmaceutical industries involves decision that relate to:

Management of Personal:

It include the personal need to carry on production process , special pharmacist who insure the quality of the product, females needed for, packing of the bottles etc.

Inventory Planning and Control:

It involves the Management of raw material, i-e dextrose, lactate, sodium chloride, Polly bags, cartons, tapes and all sort of Material needed to finish the product.

Scheduling:

It includes the to made the schedule regarding the production maximum capacity to produce the goods and what order are in hand set out the priorities of the orders.

The maximum capacity of the Shazeb Pharmaceutical industries is 28000 bottles/day. These are normally 7 to 8 batches.

The injections capacity of Shazeb Pharmaceutical industries is 60000 injections per day.

Bottles may be of 500ml and 1000ml but the injection is 20ml.

Project Management:

For the sale of reduce the burden from operation manager the Shazeb Pharmaceutical industries has establish a seprate department for handling the different contracts/projects with Government/semi government/army.

But the coordination is must with of operation management and the project management.

Quality Assurance:

There are no Pharmacist available in Shazeb Pharmaceutical industries who are responsible for the quality of the product.

List attached

In what kind of decision the operation management is involved?

The operations manager is more involved in day-to-day operating decisions than with decisions relating to system design.

However, the operations manager has a vital stake in system design because system design essentially determines many of the parameters of system operation.

Other Areas that are part of the operation Function:

1. Purchasing : It has the responsibility for procurement of materials, supplies, and equipment. Close contact with operations is necessary to ensure correct quantities and timing of purchases. The purchasing department is often called on to evaluate vendors for quality, reliability, service, price, and ability to adjust to changing demand. Purchasing is also involved in receiving and inspecting the purchased goods.

2. Industrial Engineering : It is often concerned with scheduling, performance standards, work methods, quality control, and material handling.

3. Distribution : It involves the shipping of goods to warehouses, retail outlets, or final customers.

4. Maintenance : It is responsible for general upkeep and repair of equipment, buildings and grounds, heating and air-conditioning, removing toxic wastes, parking and perhaps security.

Types of bussines of Shazeb Pharmaceutical industries Limited:

Bussines as an organization:

Shazeb Pharmaceutical industries limited is doing business as an organization. They make the organizational structure. Following is the

organizational structure of Shazeb Pharmaceutical industries limited:

they divide the authority/make the structure according to divisions. Every division has a manager who is responsible to make the work from non managerial employees.

Objectives of business of Shazeb Pharmaceutical industries limited:

Objectives of Shazeb Pharmaceutical industries limited are to earn the project through providing goods by providing after sale services.

Goods include the infusions (drips). Company sale those goods and provide after services like replacement of stock after expiry.

Capital formation:

Sources of Finance: A firm can seek to raise needed capital through borrowing money (debt), selling ownership ( equity), or earning profits (retained earnings).

Chairman(Zulqar Hussain)

Director (Qaisra Zulqar)

Director(Naheed Ishfaq)

Director(Riaz-ul-Husnain)

Accounts ManagerMr. Sajjad

Finance ManagerMr Javed

DirectorDr. Ejaz Ahmed

Manager ProductionMr. Rab Nawaz

Manager Quality Control

Javed Hashmi

Manager Inventory ControlMr. Asif

DirectorIshfaq Safdar Tarar

Import ManagerMr. Ahsan

Operation ManageMr. Babarr

Director Zulqar Hussain

DirectorDr. Tassadaq Hussain

Cheema

CEO Dr. Tassadaq Hussain

Cheema

The Main Sources:

• Owners’ Equity/Equity Financing

• Debt Equity/Debt Financing

Sources of finance in Shazeb Pharmaceutical industries limited:

Shazeb Pharmaceutical industries limited is generating finance from following sources:

Debt

o From bank

o Provided by chairman

Retained Earnings

Debt:

Bank :

Maintaining the account with Soneri bank limited akbar chowk branch and taking the facility of loan from this bank.

Loan from chairman:

The main source of financing of Shazeb Pharmaceutical industries limited is the chairman of the company. All working capital is provided by him.

Plant Location

What is plant location?

Plant location refers to the choice of region and the selection of a particular

site for setting up a business or factory.

But the choice is made only after considering cost and benefits of different

alternative sites. It is a strategic decision that cannot be changed once

taken. If at all changed only at considerable loss, the location should be

selected as per it own requirements and circumstances. Each individual plant

is a case in itself.

Businessman should try to make an attempt for optimum or ideal location.

LOCATION ANALYSIS

Location analysis is a dynamic process where entrepreneur analyses and

compares the appropriateness or otherwise of alternative sites with the aim

of selecting the best site for a given enterprise. It consists the following:

(a) Demographic Analysis: It involves study of population in the area in terms

of total population (in no.), age composition, per capita income, educational

level, occupational structure etc.

(b) Trade Area Analysis: It is an analysis of the geographic area that provides

continued clientele to the firm. He would also see the feasibility of accessing

the trade area from alternative sites.

(c) Competitive Analysis: It helps to judge the nature, location, size and

quality of competition in a given trade area.

(d) Traffic analysis: To have a rough idea about the number of potential

customers passing by the proposed site during the working hours of the

shop, the traffic analysis aims at judging the alternative sites in terms of

pedestrian and vehicular traffic passing a site.

(e) Site economics: Alternative sites are evaluated in terms of establishment

costs and operational costs under this. Costs of establishment is basically

cost incurred for permanent physical facilities but operational costs are

incurred for running business on day to day basis, they are also called as

running costs.

SELECTION CRITERIA

The important considerations for selecting a suitable location are given as

follows:

Natural or climatic conditions.

Availability and nearness to the sources of raw material.

Transport costs-in obtaining raw material and also distribution or

marketing finished products to the ultimate users.

Access to market: small businesses in retail or wholesale or services

should be located within the vicinity of densely populated areas.

Availability of Infrastructural facilities such as developed industrial

sheds or

o sites, link roads, nearness to railway stations, airports or sea

ports, availability of electricity, water, public utilities, civil

amenities and means of communication are important, especially

for small scale businesses.

Availability of skilled and non-skilled labor and technically qualified and

trained managers.

Banking and financial institutions are located nearby.

Locations with links: to develop industrial areas or business centers

result in savings and cost reductions in transport overheads,

miscellaneous expenses.

Strategic considerations of safety and security should be given due

importance.

Government influences: Both positive and negative incentives to

motivate an entrepreneur to choose a particular location are made

available. Positive includes cheap overhead facilities like electricity,

banking transport, tax relief, subsidies and liberalization. Negative

incentives are in form of restrictions for setting up industries in urban

areas for reasons of pollution control and decentralization of industries.

Residence of small business entrepreneurs want to set up nearby their

homelands.

Plant Location of Shazeb Pharmaceutical industries Limited

Shazeb Pharmaceutical Industries Limited is located at Hazara Trunk Road

Srae Gadaee District Haripur Khyber Pakhton Khwan Pakistan. They have

chosen this location due to several reasons. Some of them are given as

follow:

Main Raw Material is pure Water and this area is best for pure water.

Even Operation Manager told that laboratories test says that there is

no need for any other machines to pure this water. This water is more

pure than of mineral water.

Second reason is availability of skilled and unskilled labour in very low

rates. Pharmacist can hire from Hazara University.

Third reason is that the transportation is available in very cheap rates.

Company’s customers are in all over the Pakistan and they have to

serve maximum areas of Pakistan so, transportation is very important.

Factory is away from public areas in the green valley so environment

does not effected by any waste of the company.

More emphasize is in frontier areas which is near to factory.

Plant Layout

Plant layout refers to the arrangement of physical facilities such as

machinery, equipment, furniture etc. with in the factory building in such a

manner so as to have quickest flow of material at the lowest cost and with

the least amount of handling in processing the product from the receipt of

material to the shipment of the finished product.

According to Riggs, “the overall objective of plant layout is to design a

physical arrangement that most economically meets the required output –

quantity and quality.”

According to J. L. Zundi, “Plant layout ideally involves allocation of space and

arrangement of equipment in such a manner that overall operating costs are

minimized.

IMPORTANCE

Plant layout is an important decision as it represents long-term commitment.

An ideal plant layout should provide the optimum relationship among output,

floor area and manufacturing process. It facilitates the production process,

minimizes material handling, time and cost, and allows flexibility of

operations, easy production flow, makes economic use of the building,

promotes effective utilization of manpower, and provides for employee’s

convenience, safety, comfort at work, maximum exposure to natural light

and ventilation. It is also important because it affects the flow of material

and processes, labor efficiency, supervision and control, use of space and

expansion possibilities etc.

ESSENTIALS

An efficient plant layout is one that can be instrumental in achieving the

following objectives:

a) Proper and efficient utilization of available floor space

b) To ensure that work proceeds from one point to another point without any

delay

c) Provide enough production capacity.

d) Reduce material handling costs

e) Reduce hazards to personnel

f) Utilize labour efficiently

g) Increase employee morale

h) Reduce accidents Provide for volume and product flexibility

j) Provide ease of supervision and control

k) Provide for employee safety and health

l) Allow ease of maintenance

m) Allow high machine or equipment utilization

n) Improve productivity

TYPES OF LAYOUT

As discussed so far the plant layout facilitates the arrangement of machines,

equipment and other physical facilities in a planned manner within the

factory premises. An entrepreneur must possess an expertise to lay down a

proper layout for new or existing plants. It differs from plant to plant, from

location to location and from industry to industry. But the basic principles

governing plant layout are more or less same. As far as small business is

concerned, it requires a smaller area or space and can be located in any kind

of building as long as the space is available and it is convenient. Plant layout

for Small Scale business is closely linked with then factory building and built

up area.

From the point of view of plant layout, we can classify small business or unit

into three categories:

1. Manufacturing units

2. Traders

3. Service Establishments

1. Manufacturing units

In case of manufacturing unit, plant layout may be of four types:

Product or line layout

Process or functional layout

Fixed position or location layout

Combined or group layout

FACTORS INFLUENCING LAYOUT

While deciding his factory or unit or establishment or store, a small-scale

businessman should keep the following factors in mind:

a) Factory building: The nature and size of the building determines the floor

space available for layout. While designing the special requirements, e.g. air

conditioning, dust control, humidity control etc. must be kept in mind.

b) Nature of product: product layout is suitable for uniform products whereas

process layout is more appropriate for custom-made products.

c) Production process: In assembly line industries, product layout is better. In

job order or intermittent manufacturing on the other hand, process layout is

desirable.

d) Type of machinery: General purpose machines are often arranged as per

process layout while special purpose machines are arranged according to

product layout

e) Repairs and maintenance: machines should be so arranged that adequate

space is available between them for movement of equipment and people

required for repairing the machines.

f) Human needs: Adequate arrangement should be made for cloakroom,

washroom, lockers, drinking water, toilets and other employee facilities,

proper provision should be made for disposal of effluents, if any.

g) Plant environment: Heat, light, noise, ventilation and other aspects should

be duly considered, e.g. paint shops and plating section should be located in

another hall so that dangerous fumes can be removed through proper

ventilation etc. Adequate safety arrangement should also be made.

Thus, the layout should be conducive to health and safety of employees. It

should ensure free and efficient flow of men and materials. Future expansion

and Diversification may also be considered while planning factory layout.

Plant layout of Shazeb Pharmaceutical Industries Limited

In Shazeb Pharmaceutical Industries Limited the whole process is conducted automatically by the machines.So, the process is fixed process that is the product is fixed and all the machinery completes the product. However Shazeb has separate section for packing only. Following some pictures are taken from the company:

PURCHASING

PURCHASING:

Purchasing refers to a business or organization attempting to acquire goods

or services to accomplish the goals of the enterprise. Though there are

several organizations that attempt to set standards in the purchasing

process, processes can vary greatly between organizations. Purchasing is

responsible for obtaining the materials, parts, supplies and services needed

to produce a product or provide a service. The percentage of purchased

inventories is even higher for retail and whole sale companies, sometimes

exceeding 90%. The importance of purchasing is more than just the cost of

goods purchased, other important factors include the quality of goods and

services or timing of delivery of goods and services, both of which can have

a significant impact on operations.

The goal of purchasing is to develop and implement purchasing plans for

products and services that support operations strategies. Among the duties

of purchasing are identifying sources of supply, negotiating contracts,

maintaining database of supplies, obtaining goods and services that meet or

exceed operations requirements in a timely and cost-efficient manner, and

managing suppliers. Thus purchasing selects suppliers, negotiates contracts

establishes alliance, and acts as liaison between suppliers and various

internal departments.

Purchasing is taking an increased importance as organizations place greater

emphasis on supply chain management, quality improvement, lean

production, and outsourcing. Moreover, business to business buying

relationships are changing. Although traditional relationships currently

account for the lion's share of buying relationships, they are expected to

decrease substantially by the middle of decade, while web-based auctions

and managed inventory relationships are expected to grow. In addition,

increasing globalization will continue to have an impact on purchasing.

PURCHASING INTERFACE

Purchasing has interface with a number of other functional arrears, as well as

with outside suppliers. Purchasing is connecting link between the

organization and the suppliers. In this capacity, it exchanges information

with suppliers and functional areas. The interacting between purchasing and

the other areas are as follows:

Operation constitute the main source of requests for purchased

materials, and close cooperation between these units and the

purchasing department is vital if quality, quantity and delivery goals

are to be met. Cancellation, changes in specification or changes in

quality, quantity or delivery time must be communicated immediately

for purchasing to be effective.

The purchasing department may require the assistance oh the legal

department in contract negotiations. In drawing up bid specifications

for nonroutine purchase, and in helping interpret legislation on pricing,

product liability and contracts with suppliers.

Accounting is responsible for handling payments to suppliers and must

be notified promptly when goods are received in order to take

advantage of possible discounts. In many firms, data processing is

handled by the accounting department, which keeps inventory records,

checks invoices and monitors vendor performance.

Design and engineering usually prepare material specification, which

must be communicated to purchasing. Because of its contacts with

suppliers, purchasing if often in a position to pass information about

new products and materials improvement on to design personnel. Also,

design and purchasing people may work closely to determine whether

changes in specifications, design or materials can reduce the cost of

purchased items

Receiving checks incoming shipment of purchased items to determine

whether quality, quantity and timing objectives have been met, and it

moves the goods to temporary storage. Purchasing must be notified

when shipments are late, accounting must be notified when shipments

are received so that payments can be made and both purchasing and

accounting must be appraised of current information on continuing

vendor evaluation.

Suppliers or vendors work closely with purchasing to learn materials will be

purchased and that work kings of specifications will be required in terms of

quality, quantity and deliveries. Purchasing must rate vendors on cost

reliability and so on. Good supplier relations can be important on rush orders

and material improvements Price control

THE PURCHASING CYCLE

DEFINITION:

"Series of steps that begin with a request for purchase material, equipment,

supplies or other items from outside the organization, and ends when the

purchasing department is notified that a shipment has been received in

satisfactory condition."

Purchases in Shazeb Pharmaceutical Industries Limited

Mr. Amjed is the purchase manager of Shazeb Pharmaceutical Industries Limited. He sits in the head office and visit the market as and when required. Normally his subordinates (Mr. Amin and Mr. Mubasher) visit the market. But he has the contact with all suppliers. However he is only responsible for local market and machine’s parts from international market.

Besides these purchases Shazeb Pharmaceutical Industries Limited has to purchase raw material for production from international market. Mr. Babar is the man who is responsible for this job.

Purchase Policy of Shazeb Pharmaceutical Industries Limited

Shazeb Pharmaceutical Industries Limited has design his own purchase policy. It is neither purely centralized nor decentralized.Everyone has given the authority to purchase. In factory only Rs. 50,000/- purchases can be made not more than that.Whole purchases are to be made by Mr. Amjed sitting in head office for factory. However Mr. Babar is responsible for Office supplies and raw material.

Purchase Cycle of Shazeb Pharmaceutical Industries Limited

Purchase cycle of Shazeb Pharmaceutical Industries Limited starts from the requirement from any department.

The department issues a requisite to the store department of Shazeb Pharmaceutical Industries Limited.

Store Department then send a formal request called Purchase Requisite (Copy attached) to the relevant person i-e in case of any machine or any other equipment part required the storekeeper will send the request to Mr. Amjed responsible for purchase and in case of raw material the request will be made to Mr. Babar.

Purchase Manager arranges the quotations from different suppliers. He then makes a comparison of those quotations. Ask budget from Finance Department. Issue a Purchase order. Supplier sends the goods to the destination. Supplier receives an Inward Gate pass from gate keeper. Storekeeper inspects the goods with P.O. Supplier issue an invoice to the company. After G.R. No. on Bill/Invoice storekeeper sends it to Purchase

Department. Mr. Amjed requests for the payment to Finance Department. Finance Department makes the Payment.

Note:

In case of import L/C is being used for payment. Company uses his

bank account in Soneri Bank Limited Akber Chowk Branch for this purpose.

LABOR SUPPLY

The employment procedure was the first phase of personnel work to receive

the attention of management and it has increased in importance in recent

years. Under present labor laws and strong union organization a worker who

is once employed soon achieves a claim upon his job which makes its

difficult for management to discharge him. The importance of employment

procedure is increased also by the policy of promotion from within since

future executives may enter the service of the company by way of the

employment office.

SOURCES OF LABOR SUPPLY:

The employment of worker requires attention to the source of labor supply in

order that the number of qualifies applicants may be adequate. The sources

of supply vary with business, the industry and the community, and every

business should determine for itself which sources are best. Information may

be gained by asking each applicant how heard of the job and what person

suggested that he may apply.

Persons who are employed should be followed up to determine the number

of applicants hired, the cost per applicant attracted and per applicant hired

the average time employees recruited from each source remain with the

company, and the success on the job of the workers recruited from each

source.

The development of sources of supply of applicants should be regarded as

the first step in the process of employee selection because the preference of

one source instead of another results in the elimination of persons who are

not available in the source that is developed. The employment department is

not interested in appealing to all possible applicants but refer to group that

represents partial selection. The larger the number of applicants the greater

is the cost of selection in both money and time. The employment manager

therefore begins his selection by cultivating some sources and neglecting

others. However, additional sources may be utilized in busy seasons or in

years of increasing productions.

METHODS OF SELECTING WORKERS:

Methods and devices for selecting workers are not expected in every case to

result in the employment of applicants who will succeed and the rejection of

those who would fail if employed. Employment methods cannot be expected

to rank or to grade workers in a manner that would be predictive of the

degree of success. While much progress has been made in the development

of scientific methods of selecting employment no method or combination of

methods can be relied upon always to result in the best selection.

Employment methods can be considered to be good if they make possible

the classification of applicants into three groups:

Those likely to succeed in the job

Those likely to fail

Those whose success is doubtful

INSIDE SOURCES:

JOB POSTING:

REHIRING FORMAL EMPLOYES:

SUCCESSION PLANNING:

OUTSIDE SOURCES:

EMPLOYMENYT AGENCIES:

REFERRAL RECRUITMENT:

RECRUITMENT VIA INTERNET:

JOB SEARCH ENGINES:

ADVERTISING:

Labor Supply of Shazeb Pharmaceutical Industries Limited

Selection:

Basically Shazeb Pharmaceutical Industries Limited conducts three types of interviews.

1. Initial interview

2 . Managerial level interview

3 . Interview with Chairman

Initial interview:

Initial interview is compulsory for everyone. It is conducted by the HR

department. The main purpose of this interview is to judge the candidate

that how long he can stay in Organization. In this interview we ask general

question such as candidate name, family back ground, achievement in life

and most importantly future goals.

 Managerial level interview:

It is conducted by the managers of different departments. In this interview managers check the decision making power.

 Interview with Chairman:

If the candidate clears the first two interviews then company call for the final

interview which is conducted by the Chairman. The purpose of this interview

is to interact with chairman.

Note:

1. Last interview is depending upon the nature of the job e.g. in Office Boy job no need for Chairman Interview.

2. Preference is to be given man through their own employee whether he is more skilled or not then the man comes from the outside.

3. No test session is required. Decision is to be made on interview base.

Role Of Foreman

Foreman:-

“A person who exercise control over workers or a man who serves as

the leader of the work crew in a factory.”

(Or)

“A man who chairs and speaks for a jury.”

Responsibilities of Foreman:-

Responsibilities:

To Plan, Lead, Organize and Control the Human and Physical resources

within the Production facility, in order to achieve required production output

as per plan and set targets.

1. Ensure effective Industrial Relations and good working climate in

the production department Lead Absenteeism - Disciplinary - Time keeping

and Control Employee Relations Correct Wage Payments.

2. To ensure optimum utilization of human, equipment ,resources,

material and time -by setting standards, the use of adequate reports -

personal observation - inspection Plan -Organize Equipment Overall

Equipment Efficiency – Availability Production Performance Reliability –

Utilization.

3. Development of employees- Delegate sufficient authority to

subordinates to allow them to perform their functions - Works

Instructionswithin their KPA’s -Plan and Lead Training and Development -

Planned Job Observations - Company policy and procedures.

4. Control the quality of the product -Ensure it is manufactured

according to specification- Rework – Scrap -Non conforming products.

5. Ensure that all safety aspects as per company rules and legal

requirements are adhered to P.P.E - Machine Safety.And applied - Lead

and Control - S.H.E

6. Ensure that a high level of housekeeping is maintained in all

areas of control Audit – 5 S.Plan- Organize and Control Housekeeping

7. Be responsible for the stores under production’s control. (Egg. WIP

and other RM stores)Play an active role in all stock takes and stock control

initiatives - accurate Stock takes to be done monthly Plan, Organize and

Control Stock receipting from Kanban & internal/external suppliers

8. Non-Conformance - Ensure that all non-conformances issued against

shift are resolved and closed out timorously - Lead investigation and

implementation of Corrective action according to due date

Dedicated, results-oriented project manager experienced in leading

all phases of successful, multi-million dollar construction projects. Track

record of consistently leading projects to on-time completion while

maintaining strict quality and cost control. Solid work ethic, attention to

detail, and commitment to delivering high-quality product. Exceptional

problem-solving, analytical, creative thinking and project visualization skills.

Thrive on daily challenges and ongoing project evolution. Areas of expertise:

* Labor/Material Resource Management

* Team Building

* Judgment and Decision Making

* Complex Problem Solving

* Building Code Compliance

* Leadership

* Quality Control

* Scheduling

* Conflict Resolution

* Change Orders

* Organizing/Planning

* Prioritizing

* Field Construction Management

* OSHA/Regulatory/Specifications Compliance

Construction Foreman:-

A construction foreman is the worker or tradesman who is in charge

of a construction crew. While traditionally this role has been assumed by a

senior male worker, the title in the modern sense is gender non-specific in

intent. Normally the foreman is a construction worker with many years of

experience in a particular trade who is charged with organizing the overall

construction of a particular project. Typically the foreman is a person with

specialist knowledge of a given trade who has moved into the position and is

now focused on an overall management of all trades rather than any

particular specialized group.

A good foreman is said by many engineers to be the keystone of their

projects. Foremen are best understood as Project Managers who have come

to that position after experience as a construction worker, as opposed to an

individual who has followed a professional project management development

program (for example a Lean Six Sigma Certificate).

Construction workers are employed in the construction industry and work

predominantly on construction sites and are typically engaged in aspects of

the industry other than design or finance. The term includes general

construction workers, also referred to as laborers and members of specialist

trade such electricians, carpenters and plumbers.

Role of Foreman In Shazeb Pharmaceutical Industries Limited:

Link Of Communication:

Disciplinary power:

Mr. Abdul Ghafoor has several powers in order to maintain discipline in

production area.

No final Authority:

In Shazeb Pharmaceutical Industries Limited, the final decision is taken

by the production manager but foreman can give him advice.

Supervisor:

Mr. Abdul Ghafoor has all know-how about machines and production

process. So, he gives the workers proper instruction and supervise them in

refine manner.

TECHNICAL CONTRIBUTION:

Production:

Without Mr. Abdul Ghafoor production cannot be possible. It takes

proper time and cost management.

Proper Usage Of Machine:

As he Mr. Abdul Ghafoor knows about every machine he can manage

and train in using machines.

Flow of Process:

In Shazeb Pharmaceutical Industries Limited, the production is a

continuous process so , he make it possible by removing hurdles in process.

Controlling Cost:

Mr. Abdul Ghafoor makes the worker to do work in continuously and

reduce the wastage of raw material which helps in reducing cost.

HUMAN RELATIONS:

Handling Workers’ Difficulties and Grievances:

In Shazeb Pharmaceutical Industries Limited, foreman is not

responsible for giving workers leave and holidays. This control is retained by

the HR manager.

ORGANIZATIONAL CONTRIBUTION:

Cooperation With Other Staff and Departments:

He cooperates and gives proper and authentic information to other

department which helps them in making right and accurate decision.

Advice Budget:

Mr. Abdul Ghafoor and Production Manager Mr. Rab Nawaz are the

persons who make production estimated budget on the basis of their

experience and working capacity of machines and workers.

PRODUCTION PLANNING AND CONTROL

Once the entrepreneur has taken the decisions regarding the product design

and production processes and system, his next task is to take steps for

production planning and control, as this function is essentially required for

efficient and economical production. One of the major problems of small

scale enterprises is that of low productivity small scale industries can utilize

natural resources, which are otherwise lying.

Small scale sector can play an important role, similar to the one played by

small scale industries in other developed countries.

Planned production is an important feature of the small industry. The small

entrepreneur possessing the ability to look ahead, organize and coordinate

and having plenty of driving force and capacity to lead and ability to

supervise and coordinate work and simulates his associates by means of a

program of human relation and organization of employees, he would be able

to get the best out of his small industrial unit.

Production planning without production control is like a bank without a bank

manager, planning initiates action while control is an adjusting process,

providing corrective measures for planned development. Production control

regulates and stimulates the orderly how of materials in the manufacturing

process from the beginning to the end.

BENEFITS TO SMALL ENTREPRENEUR

Production planning and control can facilitate the small entrepreneur in the

following ways

(1) Optimum Utilization of Capacity:

With the help of Production Planning and Control [PPC] the entrepreneur can

schedule his tasks and production runs and thereby ensure that his

productive capacity does not remain idle and there is no undue queuing up

of tasks via proper allocation of tasks to the production facilities. No order

goes unattended and no machine remains idle.

(2) Inventory control:

Proper PPC will help the entrepreneur to resort to just- in- time systems and

thereby reduce the overall inventory. It will enable him to ensure that the

right supplies are available at the right time.

(3) Economy in production time:

PPC will help the entrepreneur to reduce the cycle time and increase the

turnover via proper scheduling.

(4) Ensure quality:

A good PPC will provide for adherence to the quality standards so that quality

of output is ensured.

To sum up we may say that PPC is of immense value to the entrepreneur in

capacity utilization and inventory control. More importantly it improves his

response time and quality. As such effective PPC contributes to time, quality

an d cost parameters of entrepreneurial success.

STEPS OF PRODUCTION PLANNING AND CONTROL

Production Planning and Control (PPC) is a process that comprises the

performance of some critical; functions on either side, viz., planning as well

as control.

Production planning:

Production planning may be defined as the technique of foreseeing every

step in a long series of separate operations, each step to be taken at the

right time and in the right place and each operation to be performed in

maximum efficiency. It helps entrepreneur to work out the quantity of

material manpower, machine and money requires for producing

predetermined level of output in given period of time.

Routing:

Under this, the operations, their path and sequence are established. To

perform these operations the proper class of machines and personnel

required are also worked out. The main aim of routing is to determine the

best and cheapest sequence of operations and to ensure that this sequence

is strictly followed. In small enterprises, this job is usually done by

entrepreneur himself in a rather adhoc manner. Routing procedure involves

following different activities.

(1) An analysis of the article to determine what to make and what to buy.

(2) To determine the quality and type of material

(3) Determining the manufacturing operations and their sequence.

(4) A determination of lot sizes

(5) Determination of scrap factors

(6) An analysis of cost of the article

(7) Organization of production control forms.

SCHEDULING

It means working out of time that should be required to perform each

operation and also the time necessary to perform the entire series as routed,

making allowances for all factors concerned. It mainly concerns with time

element and priorities of a job. The pattern of scheduling differs from one job

to another which is explained as below:

Production schedule:

The main aim is to schedule that amount of work which can easily be

handled by plant and equipment without interference. Its not independent

decision as it takes into account following factors.

(1) Physical plant facilities of the type required to process the material being

scheduled.

(2) Personnel who possess the desired skills and experience to operate the

equipment and perform the type of work involved.

(3) Necessary materials and purchased parts.

Master Schedule:

Scheduling usually starts with preparation of master schedule which is

weekly or monthly break-down of the production requirement for each

product for a definite time period, by having this as a running record of total

production requirements the entrepreneur is in better position to shift the

production from one product to another as per the changed production

requirements. This forms a base for all subsequent scheduling acclivities. A

master schedule is followed by operator schedule which fixes total time

required to do a piece of work with a given machine or which shows the time

required to do each detailed operation of a given job with a given machine or

process.

Manufacturing schedule:

It is prepared on the basis of type of manufacturing process involved. It is

very useful where single or few products are manufactured repeatedly at

regular intervals. Thus it would show the required quality of each product

and sequence in which the same to be operated

Scheduling of Job order manufacturing:

Scheduling acquires greater importance in job order manufacturing. This will

enable the speedy execution of job at each center point.

As far as small scale industry is concerned scheduling is of utmost

importance as it brings out efficiency in the operations and s reduces cost

price. The small entrepreneur should maintain four types of schedules to

have a close scrutiny of all stages namely an enquiry schedule, a production

schedule, a shop schedule and an arrears schedule out of above four, a shop

schedule is the most important most suited to the needs of small scale

industry as it enables a foreman to see at a glance.

1. The total load on any section

2. The operational sequence

3. The stage, which any job has reached.

Loading:

The next step is the execution of the schedule plan as per the route chalked

out it includes the assignment of the work to the operators at their machines

or work places. So loading determines who will do the work as routing

determines where and scheduling determines when it shall be done. Gantt

Charts are most commonly used in small industries in order to determine the

existing load and also to foresee how fast a job can be done. The usefulness

of their technique lies in the fact that they compare what has been done and

what ought to have been done.

Most of a small scale enterprise fail due to non-adherence to delivery

schedules therefore they can be successful if they have ability to meet

delivery order in time which no doubt depends upon production of quality

goods in right time. It makes all the more important for entrepreneur to

judge ahead of time what should be done, where and when thus to leave

nothing to chance once the work has begun.

Production control:

Production control is the process of planning production in advance of

operations, establishing the extract route of each individual item part or

assembly, setting, starting and finishing for each important item, assembly

or the finishing production and releasing the necessary orders as well as

initiating the necessary follow-up to have the smooth function of the

enterprise. The production control is of complicated nature in small

industries. The production planning and control department can function at

its best in small scale unit only when the work manager, the purchase

manager, the personnel manager and the financial controller assist in

planning production activities. The production controller directly reports to

the works manager but in small scale unit, all the three functions namely

material control, planning and control are often performed by the

entrepreneur himself production control starts with dispatching and ends up

with corrective actions.

Dispatching:

Dispatching involves issue of production orders for starting the operations.

Necessary authority and conformation is given for:

1. Movement of materials to different workstations.

2. Movement of tools and fixtures necessary for each operation.

3. Beginning of work on each operation.

4. Recording of time and cost involved in each operation.

5. Movement of work from one operation to another in accordance with the

route sheet.

6. Inspecting or supervision of work

Dispatching is an important step as it translates production plans into

production.

Follow up:

Every production program involves determination of the progress of work,

removing bottlenecks in the flow of work and ensuring that the productive

operations are taking place in accordance with the plans. It spots delays or

deviations from the production plans. It helps to reveal detects in routing and

scheduling, misunderstanding of orders and instruction, under loading or

overloading of work etc. All problems or deviations are investigated and

remedial measurer are undertaken to ensure the completion of work by the

planned date.

Planning and controlling Production in Shazeb Pharmaceutical

Industries Limited

Routing

All the plant, machinery, accessories etc. are fixed they are to be changed

after a long time. So, the main task in routing is to whether to accept the

order or not and the second decision is about the material whether is

available or to purchase.

Flow chart of the production is already fixed.

Another decision is about the storage of the store, whether the capacity is

available or not.

Scheduling

Schedule is to be made according the priority level of orders. Maximum

production per day is 28000 bottles and 60000 ampoules.

They give two or three days rest to the plant in a month. They schedule

according to this.

Dispatching

In this stage they determine different level of inventory and make the

arrangements accordingly. For example in the raw material is on danger

level then they buy it from local market otherwise they import it.

Inspection:

This is mainly to ensure the quality of goods. It can be required as effective

agency of production control.

Corrective measures:

Corrective action may involve any of those activities of adjusting the route,

rescheduling of work changing the workloads, repairs and maintenance of

machinery or equipment, control over inventories of the cause of deviation is

the poor performance of the employees. Certain personnel decisions like

training, transfer, demotion etc. may have to be taken. Alternate methods

may be suggested to handle peak loads.

QUALITY CONTROL AND INSPECTION

What is quality?

It means and includes the desirable and measurable features present in the

product.

Key aspects of quality for the customer include:

Good design – looks and style

Good functionality – it does the job well

Reliable – acceptable level of breakdowns or failure

Consistency

Durable – lasts as long as it should

Good after sales service

Value for money

‘Value for money’ is especially important, because in most markets there is

room for products of different overall levels of quality, and the customer

must be satisfied that the price fairly reflects the quality.

Some products and services are marketed as ‘basic’, having none of the

extra features and benefits of more expensive alternatives. Even though it

may be ‘low quality’ in terms of style or features, these products still give

good value for money for their overall level of quality.

For the firm, good design is fundamental, so that the product can be

produced efficiently, reliably and at the lowest possible cost. If products are

being made for other, large firms, then the quality standards may be

dictated by the firm placing the order.

Why is quality important?

Quality helps determine a firm’s success in a number of ways:

Customer loyalty – they return, make repeat purchases and

recommend the product or service to others.

Strong brand reputation for quality

Retailers want to stock the product

As the product is perceived to be better value for money, it may

command a premium price and will become more price inelastic

Fewer returns and replacements lead to reduced costs

Attracting and retaining good staff

These points can each help support the marketing function in a business.

However, firms have to work hard to maintain and improve their reputation

for quality, which can easily be damaged by a news story about a quality

failure.

How is quality measured?

Aside from achievement of standards like BSI, firms can measure quality

aspects such as:

Failure or reject rates

Level of product returns

Customer complaints

Customer satisfaction – usually measured by a survey

Customer loyalty – evident from repeat purchases, or renewal rates

A detailed analysis of areas such as these would be an important part of

Quality Improvement.

Quality control

This method checks the quality of completed products for faults. Quality

inspectors measure or test every product, samples from each batch, or

random samples as appropriate to the kind of product produced.

Advantages: inspection is intended to prevent faulty products

reaching the customer. This approach means having specially trained

inspectors, rather than every individual being responsible for his or her

own work. Furthermore, it is thought that inspectors may be better

placed to find widespread problems across an organization.

Disadvantages: individuals are not necessarily encouraged to take

responsibility for the quality of their own work. Giving workers

responsibility for their own work helps to improve motivation by

increasing the interest and variety in the job, so quality assurance

tends to be preferred for this reason as well. Other approaches to

quality mean that there is much less need for quality control if the

whole process is geared towards ‘zero defects’ or getting it right first

time.

Rejected product is expensive for a firm as it has incurred the full costs of

production but cannot be sold as the manufacturer does not want its name

associated with substandard product. Some rejected product can be re-

worked, but in many industries it has to be scrapped – either way rejects

incur more costs,

A quality control approach can be highly effective at preventing defective

products from reaching the customer. However, if defect levels are very

high, the company’s profitability will suffer unless steps are taken to tackle

the root causes of the failures.

Quality Assurance

This is an approach that aims to achieve quality by organizing every process

to get the product ‘right first time’ and prevent mistakes ever happening.

This is also known as a ‘zero defect’ approach.

In quality assurance, there is more emphasis on ‘self-checking’, rather than

checking by inspectors.

Advantages :

Costs are reduced because there is less wastage and re-working of

faulty products as the product is checked at every stage.

It can help improve worker motivation as workers have more

ownership and recognition for their work

It can help break down ‘us and them’ barriers between workers and

managers as it eliminates the feeling of being checked up on.

With all staff responsible for quality, this can help the firm gain

marketing advantages arising from its consistent level of quality.

Quality assurance refers to planned and systematic production processes

that provide confidence in a product's suitability for its intended purpose. It

is a set of activities intended to ensure that products (goods and/or services)

satisfy customer requirements in a systematic, reliable fashion. QA cannot

absolutely guarantee the production of quality products, unfortunately, but

makes this more likely.

Shewhart Cycle:

The most popular tool used to determine quality assurance is the Shewhart

Cycle, developed by Dr. W. Edwards Deming. This cycle for quality assurance

consists of four steps: Plan, Do, Check, and Act. These steps are commonly

abbreviated as PDCA.

The four quality assurance steps within the PDCA model stand for:

Plan: Establish objectives and processes required to deliver the

desired results.

Do: Implement the process developed.

Check: Monitor and evaluate the implemented process by testing the

results against the predetermined objectives

Act: Apply actions necessary for improvement if the results require

changes.

Inspection

Quality inspection

The act of monitoring or observing, (usually involving sampling and related

sampling plans), a process, procedure, or service to insure compliance with

the operational definition and to insure that all customer requirements or

internal prerequisites are meet.

Activities may include the collecting data using stratified sampling from the

item being inspected. Usually execute by the QA, (quality assurance),

departments, but not always.

Typically employs the use of a control charts using collected data to evaluate

the process using statistical process control.

An inspection is one of the most common sorts of review practices found in

software projects. The goal of the inspection is for all of the inspectors to

reach consensus on a work product and approve it for use in the project.

Commonly inspected work products include software requirements

specifications and test plans. In an inspection, a work product is selected for

review and a team is gathered for an inspection meeting to review the work

product. A moderator is chosen to moderate the meeting. Each inspector

prepares for the meeting by reading the work product and noting each

defect.

The goal of the inspection is to identify defects.

In an inspection, a defect is any part of the work product that will keep an

inspector from approving it. For example, if the team is inspecting a software

requirements specification, each defect will be text in the document which

an inspector disagrees with.

Types

. on site or floor inspection

.centralized inspection

1. on site inspection:

It is an arrangement whereby production is examined at the same place and

is not taken to the laboratory or any other place for detrmining the quality

2. centralized inspection.

Specialized test can be performed in laboratory for detemining quality.such

as analyizing food samples.

Frequency of Inspections

Depends on type of inspection

Inspectorate resources (e.g. workload, number of inspectors)

New facilities - before licensed

All companies - regular schedule

Ideally annual

Large companies

Several visits over a period, e.g. 5 years

Validity of manufacturing license or HALEEB certificate

Duration of Inspections

Depends on type of inspection

Inspectorate resources (e.g. workload, number of inspectors)

Size of the company

Purpose of the visit

Days to weeks

Number of inspectors

Including specialist support

Benefits of Inspections

 

Inspections provide a number of benefits, and are one of the least expensive and most effective methods of detecting errors.  The inspection process improves productivity by correcting defects early and preventing costly rework, provides designers/programmers with immediate corrective feedback, prevents perpetuation of errors in subsequent iterations of the development process, makes participants more knowledgeable of the system at an earlier time frame, provides findings that can be used to improve the software development process early in the project.

Quality in Shazeb Pharmaceutical Industries Limited

Shazeb Pharmaceutical Industries Limited is very conscious about the quality of the product and services.They believe on the Total Quality concept. They have a strong technical and quality control team which ensured the quality of the product.After sales services makes the quality better. After sales services includes timely replace the product as and when it expire.All customer are satisfy and loyal with Zeesol Brand.