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1. Introduction of ayurveda

WHAT IS AYURVEDA?

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

THE HISTORY OF AYURVEDA

Ayurveda, the science of life, prevention and longevity is the oldest and most holistic medical system available on the planet today. It was placed in written form over 5,000 years ago in India, it was said to be a world medicine dealing with both body and the spirit. Before the advent of writing, the ancient wisdom of this healing system was a part of the spiritual tradition of the Sanatana Dharma (Universal Religion), or Vedic Religion. VedaVyasa, the famous sage, shaktavesha avatar of Vishnu, put into writing the complete knowledge of Ayurveda, along with the more directly spiritual insights of self realization into a body of scriptural literature called the Vedas and the Vedic literatures.

There are two main re-organizers of Ayurveda whose works are still existing in tact today - Charak and Sushrut. The third major treatise is called the Ashtanga Hridaya, which is a concise version of the works of Charak and Sushrut. Thus the three main Ayurvedic texts that are still used today are the Charak Samhita (compilation of the oldest book Atreya Samhita), Sushrut Samhita and the Ashtangha Hridaya Samhita. These books are believed to be over 1,200 years old. It is because these texts still contain the original and complete knowledge of this Ayurvedic world medicine, that Ayurveda is known today as the only complete medical system still in existence. Other forms of medicine from various cultures, although parallel are missing parts of the original information.

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PHILOSOPHY OF AYURVEDA

Ayurveda is a holistic system of medicine from India that uses a constitutional model. Its aim is to provide guidance regarding food and lifestyle so that healthy people can stay healthy and folks with health challenges can improve their health.

There are several aspects to Ayurveda that are quite unique:

Its recommendations will often be different for each person regarding which foods and which lifestyle they should follow in order to be completely healthy. This is due to its use of a constitutional model.

Everything in Ayurveda is validated by observation, inquiry, direct examination and knowledge derived from the ancient texts.

It understands that there are energetic forces that influence nature and human beings. These forces are called the Tridoshas.

Because Ayurveda sees a strong connection between the mind and the body, a huge amount of information is available regarding this relationship.

Tridosha system

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

Vata is the impulse principle necessary to mobilize the function of the nervous system

Pitta is the energy principle which uses bile to direct digestion and hence metabolism into the venous system.

Kapha is the body fluid principle which relates to mucous, lubrication and the carrier of nutrients into the arterial system.

Principal of Ayurveda

According to ayurvedic philosophy an individual bundle of `spirit’, desirous of expressing itself, uses subjective consciousness or Satwa to manifest sense organs and a mind. Spirit and mind then project themselves into a physical body, created

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from the five (Pancha) great (maha) eternal elements (bhutas) – together called the Panchamahabhutas – which arise from Tamas. The sense organs then using…

Rajas to project from the body into the external world to experience their objects. The body becoming the mind’s vehicle, its physical instrument for sense gratification.

The Bhutas combine into "Tridoshas" or bioenergetics forces that govern and determine our health or physical condition. While the three gunas (Rajas or activity, Tamas or inertia and Satwa, which balances the first two) or psychic forces determine our mental and spiritual health. Ayurveda is thus a holistic system of health care that teaches us to balance these energies in order to achieve optimum health and well being.

The Panchamahabhutas

Akash Vayu Agni Prithvi Jal

According to Ayurveda everything in life is composed of the Panchamahabhutas – Akash (Space), Vayu (Air), Jal (Water), Agni (Fire) and Prithvi (Earth). Omnipresent, they are mixed in an infinite variety of relative proportions such that each form of matter is distinctly unique. Although each element has a range of attributes, only some get evident in particular situations. Constantly changing and interacting with each other, they create a situation of dynamic flux that keeps the world going.

In the case of a complex, multi-cellular organism as a human being for instance, Akash corresponds to spaces within the body (mouth, nostrils, abdomen etc.);

Vayu denotes the movement (essentially muscular);

Agni controls the functioning of enzymes (intelligence, digestive system, metabolism);

Jal is in all body fluids (as plasma, saliva, digestive juices); and

Prithvi manifests itself in the solid structure of the body (bones, teeth, flesh, hair et al).

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THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

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

The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market.

Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly non-medicine items such as foods and cosmetics.

Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis. These materials constitute only 7% of Dabur's total revenue (thus, less than 50 million dollars). Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88% share. Other major

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products are Dabur Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in

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

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals

were added, but the pharmaceutical division was separated off about 30 years later). However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business level of about 500 million dollars and has a U.S. distribution division

(Himalaya USA). It is known in the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first marketed in India in 1955.

The Emami Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved

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with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.

Vicco Laboratories was established in 1958. It mainly produces topical therapies based on Ayurveda and is best known internationally for

its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.

Charak Pharmaceuticals was founded in 1947, and currently has three distribution centers in India; it produces liquids, tablets, and veterinary supplies. It has gained a large advantage with its new product Evanova, a preparation containing 33 herbs and minerals and non-hormonal active ingredients used

as a menopause treatment alternative to HRT. Soya is one of the main ingredients in this product. The product also contains Ayurvedic herbs that act like selective estrogen receptor modulators as well as asparagus root (shatavari), which reduces the frequency and intensity of hot flashes.

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2.HISTORY AND INTRODUCTION OF ASFA

Once in a golden morning Shri Swami Atmanand Sarswati comes in Surat

and he stat to give knowledge of culture/ religion and ayurveda by his lectures at

every place of Surat city. He set up Tapi Brahmcharya Ashram at the land which was

donated to in at the bank of river Tapi. In Ashram many student study about

Ayurveda and Sanskrit. And with passes of time he started an ayurvedic clinic and a

Pharmacy for medicines needed to run clinic. And slowly with flow of time the

promotion and expan sion, the small Pharmacy become only one co-operative

ayurvedic pharmacy of Gujarat which is established in 2nd June, 1948 with name

Shri Swami Atmanand Sarswati Co-operative Pharmacy Limited which is known as

its short name “Asfa”.

“Asfa” (Shri Swami Atmanand Sarswati Ayurvedic Co-operative Pharmacy Limited) is

established in 1948 in Surat at the bank of river Tapi. It is an only one co-operative

pharmaceutical pharmacy in Gujarat. Shri Swami Atmanand Sarswati who was the

man with strong mind power established the Pharmacy.

Shri Swami Atmanand Sarswati was spent his whole life in survive of people and

teach Ayurved to his Shishyas. He had only one goal of his whole life as follows:

“I don’t desire state, I don’t desire paradise, I even don’t desire moksh,

but I desire to solve the problems of people who are suffering from the dieses

by way of using Ayurvedic treatment.”

Asfa has its head office at chowta pool and it has a factory at Varachha road in

Surat. Asfa also expanded its production capacity and established one more factory

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at Navagam. Asfa has about 4000 members now but when it was started it has only

70 members to operate various activities.

By showing the above mentioned figure we can say that Asfa is very rapidly grow

and expand in whole Gujarat. It has opened branches at Valsad, Baroda,

Ahemdabad, Bardoli and Bharuch etc. It has also work as a consulting in Valsad and

Surat. It established a consulting clinic in Valsad where the information about various

ayurvedic medicines is provided to people without taking any pay.

Asfa sold its product in most of cities of Gujarat and Mumbai through its dealers.

Asfa has widely distributed dealer network. Asfa produce qualitative product, by

reason of that a slogan “Aushadho to Asfa nij”.

Asfa get a certificate of GMP (Good Manufacturing Practice) from Gujarat state food

and medicine Control Corporation. Asfa is a first Pharmacy which is gets this type of

certificate. Asfa get GMP certificate in 2004 and also get ISO 9001 in 2005 and

laboratory of Asfa get permission from food and medicines commissioner’s office,

Gandhinagar.

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VARIOUS PRODUCTS OF ASFA

A product is a bundle of all kind of satisfaction for customers. Product is something which tries to provide solution for the problem of the consumers. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas.

Asfa produce consumer goods. Asfa produce 288 medicines of different categories in different quality and quantity which are classified as the following:

Categories Medicines

Rasa Sutshekhar rasa Vaat chintamani rasa Vasant kusumakar Jawahar mohra rasa Chandramrut rasa

Bhasma Akeeka bhasma Mandoor bhasma Yashad bhasma Raupya bhasma Shankh bhasma

Sogothi Bal rakshak sogothi Khokhalini sogothi Darajni sogothi Kushthhar sogothi

Churna Arjuna churna Kuberax churna Nagkeshar churna Markandi churna Sarpgandha churna

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Gugal Gokshuradi gugal Triphala gugal Kishor gugal Pathyadi gugal

Dantmanjan Ayurvedic dantmanjan Bhallatak dantmanjan Dindayal dantmanjan

Syrup Asfa cough syrup Banfasa Balchaturbhadra syrup Shankpushpi syrup

Taila Panchguna taila

Narayan taila Brahmi hair oil Bhrungraj taila

Dhrut & Kwath Brahmi dhrut

Trifala dhrut Dasmul kwath Maharasnadi kwath

Malam Jivanyadi malam Darajno malam Pardadi malam

Avaleh Chyavanprasha valeh Vasavaleha Pipalyadi avleh Kantkaryavaleh

Asav & Arishta Abhayarishta Ashokarista Chandanasava Drakshasava

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INTODUCTION OF PRODUCTION MANAGEMENT

“Production is the process of converting the raw materials and other

inputs into the products for further production or the finished goods or

services.”

so that the utility of inputs is created or enhanced and the needs of the

consumers are satisfied. That is consumer goods, industrial goods, services of

transport, medical treatment, education, banking, post and telegraphs, insurance etc.

so in simple meaning the management of the production process is called as

production management.

“Production management means creating and maintaining an environment

in which individuals working together in groups willingly contribute their best

to produce the specified goods and services by optimum utilization of raw

materials and other inputs so as to timely satisfy the needs of the customers.”

Good Production management is essential for every organization and it is

important in following ways:-

It helps to satisfy the need of customer timely.

It increases the productivity of organization.

It gives better satisfaction to the employees.

It satisfies the investors by increasing return on investment and

capital appreciation.

It satisfies the community by welfare and development activities.

It satisfies the suppliers.

It benefits to whole nation.

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Organization structure of production department of “ASFA”

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3. PLANT LOCATION & plant lay-out

Plant location

It is a function of determining the production unit should be located for most

economical and effective operations.

The points for which the decision of plant location is taken are as follows:

New business

Expansion not possible at the same site

Economic factor (land cost of old factory becomes high so by selling it owner get

large economic benefit)

Expansion opportunities needs more branches

Sudden development because of natural calamities

Special circumstances

The main objective of Asfa is to maximize the profit through the minimize cost of

production. This objective can be achieved only when the plant is at the right place

where all kinds of production facilities are available.

Process of selecting plant location involves following steps:

1. Decision regarding country of operation

2. Selection of region or state

3. Selection of area

4. Selection of site

The owner of the Asfa Shree Swami Atmanand Sarswati was decided the India as a

country, the Gujarat as a stat, Surat as a city, Varachha as a site location.

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There are different factor which are play important role in considering the

plant location of Asfa are as follows.

Availability of raw materials

Asfa are using number of raw materials so the idle location for Asfa is that where at

least the main raw materials are easily available by which the production of Asfa run

regularly and the production cost can be minimized considering all these Shree

Swami Atmanand Sarswati select the place near the river Tapi at varachha road.

Availability of labour

The availability of skilled and unskilled manpower, a prevailing wage pattern, living

costs and the industrial relations situation influence the location. Manager chooses

the location of Asfa at varachha road where both type of manpower available easily

at lower wages.

Transportation facilities

Adequate transportation facilities are essential for the economic operation of a

production system. Many facilities or plants are located along river banks. Asfa is

also located along river bank and near national highway so there is good

transportation facilities are available.

There are some other functions which also affect selection of plant location are as

follows:

Markets

Power

Climate and fuel

Legislation and taxation

Community facilities

Waste disposal

Site size

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Land costs

Location of Factory and Branches

Factory of Asfa

1. Near Panini taki,

Varachha road,

Surat-395006

Phone no. (0261-648092, 644410)

2. 17, 18, Navagam Udhyognagar Co-operative Sangh

Navagam,

District: Kamrej,

Surat,

Phone no: (02621-252440)

Branches:

1. Near Bank of Baroda,

Chouta pool,

Surat,

Phone no: 0261-426413

2. Ayurvedic Hospital Compound,

Station road,

Surat.

3. Dhanasutar Ni Poll,

Relief road,

Ahemadabad.

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4. Balavant Building,

Kharivav road,

Baroda.

5. 8, Navrang Shopping Center,

Panch Bati,

Bharuch.

6. 3,Amar Chambers,

Near the lal school,

Valsad.

7. Hirachand Nagar,

Station road,

Bardoly.

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PLANT LAY- OUT

Plant lay-out is configuration of departments, work station and equipments in the

production system or in the conversion process. Plant lay-out is the arrangement of

machinery, equipments and facilities such as receiving and shipping departments,

tool rooms, maintenance rooms, inspection cabins, stores, plating shops, heat

treatment chambers, trolleys, cranes and other handling equipments, employee

amenities like toilets, canteen, rest and change room, parking facilities etc. so as to

ensure smooth and quick movement of materials from raw material stage to finished

product stage with minimum material handling, quality of operations, good

communication etc. at the lowest possible handling cost. It includes arrangement of

new plan and also revision in existing lay-out.

There are various types of lay-outs are as follows:

Process lay-out.

Product lay-out.

Fix position lay-out.

Cellular manufacturing lay-out.

Combination lay-out.

In Asfa, the plat lay-out is product type of plant lay-out. This company

manufactures many products on continuous bases and machines are for special

purpose. In this lay-out the machines or facilities are arrange sequence of an

operations require by a particular product. Thus for each product there will be a

separate line of machines and equipments and depending on an operation

sequence. There are two type of product lay-out first line processing lay-out and

second flow type of lay-out. In Asfa, there is a line processing lay-out. There is

sequence of operations from raw material department to packing department.

4. MATERIAL HANDLING system

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“Material handling is art and science of movement of material in any

form from one place to another from receiving through operation to final

product.”

“Material handling is defined as controlled movement of material, from

receipt, through storage and production and up to the shipment of finished

product.”

As definition suggests it is concerned with storage and internal

movement of following type of material.

Raw material

Work-in-progress inventory

Finished product

Surplus and waste

Capital equipments

Asfa used only solid and liquid raw material. So we can classify the

material handling equipments of Asfa in following basis:

(1.) Classification on the basis of form of material.

According to this classification there can be three broad categories.

Solid material

Liquid material

Gases

Asfa use hand carts, trucks with container and manual handling system for solid

material and pipelines and barrels for liquid material.

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(2.) Classification as per path of movement

Asfa use different equipments as per path of movement. Whether movement is

vertical or horizontal, whether it is a fixed path movement or variable path, the

equipments are different for each purpose such as hand carts can take variable path

and pipelines are for vertical movement of material.

(3.) Classification on the basis of degree of automation

There are three categories according to this method of classification.

First, fully automatic handling equipments like robots.

Second, semi automatic handling system like conveyer belt.

Third, manual system like hand carts.

Asfa uses only third category which is manual system.

(4.) Classification on the basis of source of power

Equipments can be electrically powered, powered be any fuel and manually.

Asfa uses all these type of equipments such as boiler and machines are

electrically powered, truck are use diesel and hand carts are manually powered.

MATERIAL RECEIPT PROCESS

In Asfa, there is systematic process for material receipt as follows.

The first step is purchase order given by company to suppliers.

When material comes it is not directly sent to store department but it is given fore

quality checking.

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In Asfa, there is one laboratory to check the quality of materials.

They are checking the quality of goods and compare with quality of sample which is

given by suppliers.

If there is any discrepancy, it should be immediately reported to the purchase

department and that goods are sent to rejected goods department.

Rejected goods department take necessary action for the return of goods to

suppliers.

If the goods are of quality, receiving section will prepare a “goods receive note”.

Four copies of the note are prepared and three copies are sent to the store keeper

along with the goods received and they attach green color “accept card” with

materials.

Received material is store in various containers by store department and issue

when they get order.

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MATERIAL ISSUE PROCESS

In Asfa, there is a simple and short process of material issue. It is as follows.

Received material store in different container, in different quantity, by store

department.

When production department need material, production manager is make a report

of required material and send to store department.

Store department check the availability of material. If require material is available,

they send it for quality checking to quality control department.

If quality is acceptable, they send report of it to store department.

After this, store manager take the material which is require and send for cleaning

that material.

At the last the cleaned material is send to purchase department with entry in

material outward book.

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5. PRODUCTION PLANNING

Production planning is that function of management which decides about the

resources that will be required for future manufacturing operations and of allocating

these resources to produce the desired output at right time, in right amount, of

required quality and at minimum cost.

Production planning is the planning of how much produce, Requirement of human

resource and finance. It is also planning of quality standard and raw materials

requirement etc. production plan is preparation of guiding plan before starting

production plan involve when, what, how and why to produce goods.

In Asfa, normally production plan is prepared from the sales or demand for the

product of company. Starting point of production planning is dispatch department.

Dispatch department supply various products of Asfa to the dealers. When stock of

medicine is remain of only three months they inform production department about

requirement of medicine. From the information of dispatch department, production

department decides about manufacture various products as per requirement and for

this they prepare production plan.

In Asfa, production planning is include planning of material requirement, requirement

of manpower, capacity requirement etc.

Material Requirement Planning

Material requirement planning is the first of the production planning in any company.

In Asfa, production manager is check the availability of require inputs or raw

material. If raw material is not in stock then give purchase order or if it is in stock,

production manager do next planning of manpower.

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Manpower Planning

For achieving successful result of production planning, it is advisable to make

manpower planning in advance. In Asfa first they decided how much labour required

producing desirable quantity. If there is shortage of manpower, they hire casual or

part time labour.

Capacity Requirement Planning

Capacity requirement planning is a technique to determine what personal and

equipment capacities are required to meet production objectives. In Asfa, they make

CRP, various operations and activities are assigning to various department. If

capacity is inadequate they adjust it by some addition labour or over time.

Maintain Quality Standard

In Asfa, there is separate department called quality assurance department which is

check quality of raw material finished product and semi finished articles on company

standards. They try to improve quality management system for better customer

satisfaction and provide qualitative medicine to its customers.

Inventory Control

Since entire material requirement planning is done on the basis of production plan,

ultimately inventory level depends on accuracy of production plan. In this industry,

they use first in first out method for inventory control.

MATERIAL REQUIREMENT PLANNING

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Material requirement planning is a technique for determining the quality and timing

for the acquisition of dependent demand items needed to safety master schedule

requirements.

In the modern world, enterprise resource planning system is being used extensively

and it also takes care of whole organization instead of one unit of organization.

Basically material requirement planning consists of computer programmed, which is

run periodically such as weekly, monthly or quarterly to incorporate the latest

schedule of production requirement.

In Asfa, for preparation of material requirement planning three inputs are used which

are as follows:

1. Master production schedule:-

2. Inventory status file:-

3. Bills of material:-

(1) Master Production Schedule:-

Mps is based on forecast of various items. MRP accepts practically possible master

production schedule quantities of various items as quantities of items to be

manufactured. It further calculates what the requirement of various raw material and

inputs is.

(2) Inventory Status file:-

All the quantities of various items in Mps is never considered for MRP process it is

always considered after deducting present inventory levels of various items and

pending purchase orders for this purpose, it is necessary to take data from inventory

status file of various items.

(3) Bills Of Material:-

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It is a database, which specifies relationship between raw material and outputs. This

document is necessary to convert production quantities of finished products into

requirements of various raw materials, parts, components and sub assemblies.

Bills of material shows each of the materials, parts or sub assemblies by unique part

number, which facilitate processing by in to price and also contents the quality of

parts or material require per unit of end product. Bills of material have a series of

level each of represents a stage in the manufacture of the end product.

Level 1: Representing final assembly or end product.

Level 2: Shows parts and sub assemblies when end product is the first

desmemtated.

Level 3: Result of desmentating the sub assemblies of level 1 in form of part

and father sub assemblies.

6. INVENTORY CONTROL

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Inventory control is the means by which material of the correct quality and

quantity is made available as and when it is required with due regard to economy in

the storage costs, setup costs, manufacturing costs, purchase prices and working

capital.

As inventory is an essential part of any organization. Systematic management and

control of inventory for all the items is a challenging job. Asfa’s main objectives of

inventory control are:

To maintain investment in inventory at the lowest level

To supply the products to its user as per their requirement at right time.

To keep inactive, waste, scrape and obsolete items at the minimum level.

To minimize holding, replacement and shortage cost of inventory at minimum

level.

To maximize the efficiency in production.

INVENTORY UNIT

Inventory unit shows the unit, which is explained in kilo gram, liter, meter etc.

ORDER CODE

Order codes represent the following results if items are 0, 1, 2……9.

0 = for firm planning of main items, which are to be dispatched without any

further process (final products)

1 = for manual planning, material requirement planning “off” switch for case: the

item is in short but similar item with some another code is available in stock. It is

planning can be stopped “off”.

2 = material requirement planning “on” switch for the item.

3 = material requirement planning “on” with instruction to check and plan for sales

order requirement.

4 = reserved for EDP department to freeze the planning released and to keep the

action in abeyance for one or another reason.

BYPASS CODE

Bypass code denotes 0 is for component and 1 is for phantom items. Bypass code is

used to bypass the item for convenience.

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INSPECTION CODE

Inspection code denotes Y/N i.e. yes or no whether the item to be inspected or not.

Asfa usually check the entire item in B.M; hence, it is always “Y”.

SCRAP

Scrap means the waste of material arising during manufacturing process. Scrap

found in Asfa Company in the last 5 year and hence, it has to purchase material in

excess. It is 10% of purchased raw-material as per last five years record.

WEIGHT

This is always in kg’s indicating net or gross weight that is suppose any item is

packed. The gross weight of item is equal to net weight + weight of box.

NET WEIGHT= GROSS WEIGHT – BOX WEIGHT.

FIX LOTIt refers to single character Y/N- for specifying whether the order to be released for a

single lot or not.

EX: Lot is 500 and order quantity is 2500. If “Y” is given MRP will print 5 lines and if

“N” is given then it will print in a single line for a single order and single schedule

time.

LEAD TIME

For making any job available the company has to release the order to vender then

after the vender will take a sometime to deliver the material. Finally the material will

be inspected and will be made available at work place. The total time taken is called

“Lead Time”. This is always in weeks.

LOT SIZE

Lot size is the quantity of order at which the total ordering cost and inventory carrying

cost will be the minimum. Lot size decided on the following basis.

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Requirement for a specific time span.

Economic order quantity calculated based on cost of production and

requirement.

Minimum order quantity specified by vender.

Fix packing offered by supplies etc.

The company has to define lot size in relevant unit of measuring such as box,

packet, liter or tones. EX: The company need 70 units of leaning but the supplier

does not supply less than 100 units so that size will be 1 box = 100 leanings.

SAFETY STOCK

It is the stock or inventory maintaining to meet unforeseen situation such as variation

in demand, variation in supply of quantity by supplier and variation in lead time of

supply etc. so it use in emergency.

ACCUMULATED LEAD TIME

It is the total time taken in procuring the time after identification of its need and

releasing orders. (From placing to receipt of the item)

STOCK

There are several types of stock which are explained below.

1. Vender stock: vender stock has two type of stock. First is the labour and

other is repairing. Some items are given to vender for repairing are known as

repairing stock.

2. Store stock: The items, which have been stored by the company, are known

as store stock.

3. Repairing stock: some items are given for repairing because of, it may store

from long time or may be for any damage or corrosion is called repairing

stock.

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4. Short stock: The stock, which is in short, is called short stock and negative

sign defines it.

5. Committed quantity: Committed quantity is the quantity, which is issued

against work.

6. Available quantity:

Available order = floor stock + store stock + repairing stock – (short stock +

committed quantity).

7. Sales order quantity: the quantities, which are issued against sales

order is known as sales order quantity.

8. Order quantity: the order quantity is the sum of purchase order and

work order quantity.

ORDER QUANTITY = PURCHASE ORDER + WORKING ORDER.

9. Indent quantity: The item is in short and the work order has been

made. After the purchase item has to be made and purchase that item

from vender, this quantity known as indent quantity.

MANAGEMENT OF INVENTORY

‘Inventory control means the decision of the firm as to the extent to which inventories

can be economically stored.’

Asfa’s main objectives of inventory control are:

To maintain investment in inventory at the lowest level

To supply the products to its user as per their requirement at right time.

To keep inactive, waste, scrape and obsolete items at the minimum level.

To minimize holding, replacement and shortage cost of inventory at minimum

level.

To maximize the efficiency in production.

MANAGEMENT OF CASH

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Cash is the medium of exchange which allows management to carry on the various

activities of the business on day to day basis.

Cash management involves the following four factors:

Ascertainment of the minimum cash balance and controlling the level of cash.

Controlling cash inflows.

Controlling cash outflows.

Optimum investment of surplus cash.

INVENORY VALUATION METHODS

Materials are issued to the different jobs, works, and orders from the ‘store’.

The cost of finished product largely depends upon the price changed for raw-

material issued to the jobs. Various methods are used for inventory valuation, which

will solute with industry condition.

The methods of inventory valuation are as follows:

1. FIFO method (first in first out)

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2. LIFO method (last in first out)

3. HIFO method (highest in first out)

4. Average cost method

5. Market price method

6. Standard cost method

7. Base stock method

Asfa use FIFO method for inventory valuation.

ABC ANALYSIS

Abc analysis is analysis according to the value of items. In Asfa, the inventory

consists of hundreds of items and many employee are controlled them. For this

company do lot of expenses. In order to affect economy in controlling such large

inventory Asfa use a system known as ABC (Always Better Control) analysis.

It has been found from the experience that all items included in inventory are not of

equal importance. A few items in the inventory represent a large proportion of total

value of inventory. Hence, more attention must be devoted to the control of such

items. All the items are divided into three categories.

A – Category

It includes those items which are very important and of high value but forms only a

small proportion of total quantity of inventory.

In Asfa, there are 30 items which are comes in category A and they represents

as much as 74% of value of inventories. Strict control over receipt, storage and issue

should be exercised over these items such as Abhraka bhasma shataputi,

makardhwaja vati sataguna, bruhat vasant kusumakar rasa, etc.

B – Category

Items included in category B are not as important as those in category A, but are

important enough for its proper records to be maintained. They constitute 70 items of

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total number of items, but represent 18% of total value of inventory of Asfa. These

items are Brahmi vati, makardwaja vati, ashvgandha, mahasudershan shurna etc.

C – Category

The remaining items must be placed in category C. they are not so important form

the view point of maintaining control over the receipt and consumption such items

constitute 65% of the total number of items but they represent 8% of total value.

ABC analysis of Asfa

Category No. of items(in % of total

number of items)

Value of items ( in % of

total value of inventory)

A 10 74

B 25 18

C 65 8

100 8

92

18%

74 C

B

A

74%

10 35 100

VED ANALYSIS

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The possible consequences of material stock outs when demand arises from the

basis of VED analysis. The cost of shortage depends upon the seriousness of the

situation. Items are grouped as V(Vital), E(Essential) and D(Desirable).

This classification of inventory is based on importance and application of different

items in production process. According to this classification there are three

categories of item VED.

Vital items are those items without which production will instantly stock all main raw

materials are obviously vital items. Similarly, there can be some another low value

items which are absolutely necessary for production process. As explained above,

spar parts of machines like power generator or boiler become vital items.

Essential items are those items without which efficiency of production process will

reduce. Absence of these items may not cause total stoppage of production but rate

of production may go down or wastage of material may increase.

Example: In chemical industry, manufacturing can be carried out without an item

which is working as “catalyst” but speed of chemical reaction and hence, output of

the production process may reduce considerably.

Desirable items are those items, without which it will be inconvenient to do

production operation. Without these items, production is not going to stop or slow

down.

Example: measuring instruments, small tool of safety devises are such desirable

items.

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

analysis those who are responsible for availability of various raw material and

items may know which items are important for production process.

7. QUALITY CONTROL

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Quality is measure of characteristic of a product or service which impart it functional

or aesthetic value so as to satisfy the needs of and users for a given price paid by

them.

Quality control is a system of policies, procedures and guidelines which established

and maintained the specifies standard of quality. It includes all aspects of quality

such as research and development, design parameters, inspection, measurement

and analysis of current quality levels, future trends and also competitor’s quality

level, feedback from field performance of quality, choice of machines, tools,

processes etc., selection and training of production and inspection staff, corrective

actions and follow up etc.

Asfa’s objective of quality control

Asfa’s main objective is to produce cost effective quality ayurvedic medicine.

The other objectives are as follows:

To give qualitative products to customers.

To see whether the medicines are confirms to pre-determine standers.

To reduce wastage.

To develop quality consciousness.

To assess the quality.

QUALITY CONTROL SYSTEM IN ASFA

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Asfa checks the quality of all three type of product, raw-material, in process goods

and finished product.

Raw –material

In this stage, raw materials are being checked and compare with specified quality or

order placed. In quality control laboratory they check the quality of raw material, ratio

of water and solid material etc. If quality of raw material is not satisfactory, goods will

be rejected. If acceptable report is send to store department.

In process goods

Asfa also check the quality of goods during the process of production so is there any

problem in quality while processing, it can remove by taking corrective actions and

make qualitative medicines for customers. These types of checking record are kept

in “standard verification”.

Finished product

When product are finished its process then from them some samples are send to

quality control department for quality checking and if quality is accepted then only

finished product give to packing department for packing and labeling. The document

is used to keep these types of records is called “Finished product report”.

In Asfa, there is systematic and scientific approaches for quality control they follow

some standardize rules and regulation for quality control. Asfa check quality of Raw

material, In process goods and Finished product.

For raw material they check the quality of item of various levels such as

scientific name, family, description (macro and micro scope).

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After checking the items at micro and macro level then they check its identity.

By purity

◊ Foreign matter

◊ Total ash

◊ Acid

By strength

◊ Alcohols

◊ Water

For In process goods and finish product they check integration of various item

checks that quality of product will much with company standard.

DOCUMENTS RELATED TO QUALITY CONTROL

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1. Chemical list

2. Instrument list

3. Reference book list

4. S.O.P. (Standard Operating Process)

5. M.F.C. (Master Formula Card)

6. Calibration report

7. Test reports

Finished product report

Raw material report

Packing material report

In process report

Re-test report

R.M. order sample record

Stability study report

8. House kipping record

9. Complain record ( outside)

10.Prepare solution record

11. In-ward, out-ward registered

12.B.M.R. issue registered

13.Suggestion record

14.Release order record

15.Out side testing record

16.Q.S.P. (Quality System Procedures)

17.Q.A.M. (Quality Manual)

18.Date stock registered.

8. BIBLIOGRAPHY

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INTERNET:

www.ayur.com/about.html

www.holisticonline.com/ayurveda/ayv-introduction.htm

www.indianmedicine.nic.in/html/ayurveda/ayurveda.htm#de

www.wikipedia.org/wiki/Ayurveda

BOOKS:

(Asfa Na Avshadho)

K. Aswathapa – Production Management

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