Performance Measurement Of

8/8/2019 Performance Measurement Of

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Performance Measurement of

Beximco pharmaceuticals ltd

nternational Islamic UniversityChittagong


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Presented by

ynamic Group

:roup Members.1 Ameen Mahmood M101505.2 Kazi Robiul Hasan M101521.3 Ashraful Islam M101523

.4 Abdul Kadir Anshur M101502.5 Ahmed Mohamed DahirM101507


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Contents


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Performance Measurement

&Performance refers to job or activitiesmeasurement refers to evaluation or.assessment So by erformanceMeasurement is meant evaluation or

.assessment of job of an organization


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ormulas for Performance Measurement

A . P r o f i t a b i l i t y M e a s u r e m e n t :F o r m u l a S t a n d a r d

N o r m s

Profit Margin= Net Profit X 100 5%-6%

Sales

Return on Investment= Net profit X 100 10% -12%

Investment

Return on equity= Net profit X 100 13%-15%

equity


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Productivity Measurement

B. Productivity Measurement : Formula Standard Norms

Raw Material Productivity= Sales revenue 2 Times

Raw Material Cost

Labor Productivity= Sales revenue 2.5 Times

Labor Cost

Capital Productivity= Sales revenue 1 Times

capital


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erformance Measurement for.EXIMCO Pharmaceutical Ltd

294,302,934 207,140,366

2,402,700,962 2,183,829,795

12.25% 9.49%

294,302,934 207,140,366

8,560,380,432 8,012,857,866

3.44% 2.59%

294,302,934 207,140,366

4,834,747,661 4,596,420,977

6.09% 4.51%

Return on Investment= X 100 X 100

Return on equity= X 100 X 100

A. Profitability Measurement: 2004 2003

Profit Margin= X 100 X 100


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Profit Margin Return On Investment Return On Equity

2003 9.49% 2.59% 4.50%

2004 12.25% 3.44% 6.09%

Standard Norms 6% 12% 16%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Percentage

Profitability


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2,402,700,962 2,183,829,795

787,768,299 851,733,404

3.05 2.56

2,402,700,962 2,183,829,795

101,417,546 84,829,589

23.69 25.74

2,402,700,962 2,183,829,795

559,762,500 508,875,000

4.29 4.29

Capital Productivity=

B. Productivity Measurement : 2004 2003

Raw Material Productivity=

Labor Productivity=


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Raw Material Labor Capital

2003 2.6 25.74 4.29

2004 3 23.69 4.29

Standard Norms 2 2.5 1

0

5

10

15

20

25

30

Times

Productivity


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Productivity and Profitability Relationship

Profit earning capacity of an.enterprise

Best measurements of evaluating of.overall performance

Measurement of productivity alonecannot identify the causes of

.productivity changes Profitability may be changed due to

.productivity or price cost movement


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roductivity and profitability Relationship,or the year ended 31st Dec 2004

Case Profitability Productivity Impact hat Should bedone1 rofit Margin aw Material Financialcondition

will be soundand stable

Maintain or increaseproductivity further

HIGH HIGH

2 eturn onInvestment abor The companymay soon beoperating at

a loss andmay be on the

bridge ofshut down

,Improve profitability,strengthen market

,research market,promotion advertising

and pricing policyLOW HIGH

3 eturn onEquity apitalProductivity The companymay soon beoperating at

a loss andmay be on the

bridge ofshut down



and pricing policyLOW HIGH


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roductivity and profitabilityRelationship ,or the year ended 31st Dec 2003Case Profitability Productivity Impact hat Should bedone1 rofitMargin awMaterial Financialcondition

will be soundand stable

Maintain or increaseproductivity further

HIGH HIGH2 eturn onInvestment abor The companymay soon be

operating ata loss andmay be on the

bridge ofshut down



and pricing policyOW HIGH

3 eturn onEquity apitalProductivityThe companymay soon be

operating ata loss andmay be on the

bridge ofshut down



and pricing policy


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Performance Measurement Of

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