ORGANISATIONAL STUDY REPORT OF OUSHADHI (OST)

ORGANISATION

An organisation is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word is derived from the Greek word organon, itself derived from the better-known word ergon. An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience.

Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.

INDUSTRY PROFILE

              Ayurveda is a system of traditional medicine native to the Indian Subcontinent and practiced in other parts of the world as a form of alternative medicine. In Sanskrit, the word Ayurveda consists of the words āyus, meaning 'life', and veda, meaning 'related to knowledge' or 'science' Evolving throughout its history, Ayurveda remains an influential system of medicine in South Asia. The earliest literature of Ayurveda appeared during the Vedic period in India. The Sushruta Samhita and the Charaka Samhita were influential works on traditional medicine during this era. Ayurvedic practitioners also identified a number of medicinal preparations and surgical procedures for curing various ailments and diseases.

         Ayurveda is the science of life. Unlike all other branches of medicine, Ayurveda observes a patient in entirely on physical, mental and spiritual levels. While treating diseases it is well established by the modern medicine beyond any doubt that one’s mind has a very strong influence on his body. With this enormous understanding on human mind, body and spirit, Ayurveda offers treatment for almost all known diseases.  Ayurveda is considered to be a form of complementary and alternative medicine (CAM) within the western world, where several of its

methods, such as the use of herbs, massage, and Yoga as exercise or alternative medicine, are applied on their own.

                                      Ayurveda is grounded in a metaphysics of the 'five great Elements [; earth, water, fire, air and ether)—all of which compose the Universe, including the human body. Ayurveda deals elaborately with measures of healthful living during the entire span of life and its various phases. According to Ayurveda, these three regulatory principles— Doshas (literaly that which deteriorates - )—are important for health, because when they are in balanced state, the body is healthy, and when imbalanced, the body has diseases. Ayurveda hold that each human possesses a unique combination of Doshas. In Ayurveda, the human body perceives attributes of experiences as 20 Guna ( meaning qualities) It is believed that building a healthy metabolic system, attaining good digestion, and proper excretion leads to vitality. Ayurveda also focuses on exercise, yoga, meditation, and massage. Thus, body, mind, and spirit/consciousness need to be addressed both individually and in unison for health to ensue.

           Ayurveda is a science which intended to benefit the entire world. In ancient India, It was considered as a great science in touch with Indian philosophical thoughts. It utilizes wealth of nature for increasing the natural resistance of the body. Ayurveda favours administration of natural raw drugs (plants/animal/mineral/metal/marine origin) and their preparations. Generally Ayurvedic medicines are non toxic, well tolerated and estimated that Rs 500 crores. The field of herbal products in international market is fast growing.

            Eight disciplines of Ayurveda treatment, called Ashtangas:

• Internal medicine (Kaaya-chikitsa)
• Paediatrics (Kaumarabhrtyam)
• Surgery (Shalya-chikitsa)
• Treatment of diseases above the clavicle (Salakyam)
• Demonic possession (Bhuta vidya): Bhuta vidya has been called psychiatry.
• Toxicology (Agadatantram)
• Prevention diseases and improving immunity and rejuvenation (rasayana)
• Aphrodisiacs and improving health of progeny (Vajikaranam)

COMPANY PROFILE

                The Pharmaceutical Corporation (I.M) Kerala limited, Thrissur popularly known as OUSHADHI is an Ayurvedic medicine manufacturing company fully owned by Government of Kerala. Oushadhi is the largest producer of Ayurveda medicines in public sector in India. It is one among the few public sector companies, consistently making profit since 1999.It is a GMP and ISO 9001 – 2000 certified company. It produces around 500 Ayurvedic formulations – both classical and proprietary. Oushadhi is directly controlled by Health and Family Welfare Department of Kerala State Government.Oushadhi was originated as Sree Kerala Varma Govt. Ayurvedic Pharmacy in 1941 at the instance of His Highness the Maharaja of Cochin, for the supply of medicines to Govt.Ayurvedic Hospitals in Thrissur and erstwhile princely family of Cochin State. In 1975 , it was renamed as The Pharmaceutical Corporation (I.M.) Kerala Ltd, Thrissur. Oushadhi  is the sole supplier of medicines to Government Ayurveda Hospitals and Dispensaries in Kerala. It is also a supplier of Ayurvedic medicines to Government Hospitals and dispensaries of other states like Madhyapradesh, Chattisgarh, and Pondicherry etc.

Profile

*    Largest producer of Ayurveda medicines in public sector in India
*    One among the few Public Sector companies, consistently making profit and paying dividend to Government of Kerala since 1999.
*    Supplies medicine to Government of Kerala for the distribution to common man through ISM Dept.
*    A GMP and ISO 9001-2000 certified company.
*    Produces 450 Ayurvedic formulations - both classical and proprietary.
*    Sole supplier of medicines to Government Ayurveda Hospitals and proprietary.
*    Supplier of Ayurvedic Medicines to Government Hospitals and dispensaries of other states like Madhya Pradesh, Chattisgarh, Pondichery,   Rajasthan, Orissa, New Delhi etc.
*    Caters to the need of public through a vast network of 610 agencies spread all over the nation.
*    Governed by dedicated board of directors.  

LOCATION

Registered Office: Shoranur road, Thrissur, Kerala, South India.
Factory: Kuttanellur, 8 Kms from Thrissur Town.
Office: Kuttanellur, 8 Kms East from Thrissur Town.

MILESTONES

     1941–Commenced by His Highness, The Maharaja of Cochin as “Sree Kerala Varma Ayurveda Pharmacy”.

     1959 – Converted into Co-operative Society viz Sree Kerala Varma Ayurveda Pharmacy and stores Ltd.

     1975   - Registered as a Company under Indian Companies Act and renamed as “The Pharmaceutical Corporation (Indian Medicines) Kerala Ltd. Thrissur.

      1991 - Commissioned modern manufacturing unit at Kuttanellur and shifted the factory to the new premises.

      2004   - Started a new Panchakarma Hospital and Research Institute at Thrissur.

      2007 - The entire Office shifted to the Factory premises at Kuttanellur.

      2008 - Commenced full - fledged R&D Center at Kuttanellur and regional distribution unit at Kannur.

VISION

A leading world class Ayurveda Industry in the country by 2020.

DEPARTMENTS

·       Administration

·       Human Resources

·       Finance & Accounts

·       Purchase

·       Production

·       Marketing

·       Quality Control, Research & Development

·       Maintenance

·       Panchakarma Hospital & Research Centre

Administration

•Provides support and service for the activities of the Board of  Directors

• Coordination of Bank branch activities and provision of interaction between branches and the main office.

• Expanding and reorganization of Bank market network.

 • To create appropriate condition for efficient operation of structural Bank subdivisions.

 • Currency control of Bank branches.

 • Control of money transfer in foreign currency.

 • Coordination of construction, maintenance, rent and keeping buildings issues.

 • Coordination of issues as logistical support of Bank activities.

Human Resources

The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

Finance & Accounts
The finance department of a business takes responsibility for organising the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The main areas covered by the financial department include:

·       Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings

·       Control of expenditure and ways & means position.
Audit

·       Treasury administration

·       Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc.

·       Service Conditions including Freedom Fighters Pensions.

·       Resource mobilization through loans, Institutional Finance, Small Savings, Credit and Investment and public debt.

·       Financial concurrence and advice.

·       Compilation of Codes, Rules and procedures concerning financial transactions and having bearing on State finance and their implementation.

·       Safety and investment of funds from consolidated funds, contingency fund and public account.

·       Contract, recovery and refund of revenue etc

Purchase Department

The Purchasing Department is responsible for coordinating the acquisition raw materials and other needs of the company and ensuring that they are bought at the minimum cost and offer value for the money spent. The purchase department id headed by purchase manager who is assisted by assistant manager. This department is responsible for purchasing all the goods and raw materials needed for Oushadhi; hence they are following a centralized purchasing system. They purchase raw materials through open tender.                                       

System Followed For Purchase Of Raw Materials.

                           The most important function of purchase department is purchasing of raw materials. They purchase raw materials through tenders. The procedure for purchase starts when the purchase department receives a request from any department for purchase of goods. Then the purchase department invites quotations from various suppliers of that particular product. After careful analysis of the received quotations they select the quotation which has the minimum price and place order to them mentioning the quantity and quality of the goods required.

                                               

When the goods are received they are examined by set of doctors to check whether the goods are up to the quality ordered. If the goods are not up to the required quality they will be sent back. Good quality raw materials will be received and stored in the stores and will be issued to the concerned department which ordered the goods according to their request of FIFO basis. Finally after receiving the goods the purchase department initiates the accounts department to make payment to the supplier as per their terms in their quotation.

Features Of Purchase Department

·        Purchase more than 600 varieties of raw materials through open tender.

·        Standardized procedure to verify the variety of raw materials.

·        More than 60%  raw materials comes from the forest.

·        Annual purchase of 7 – 9 crores.

·        Buy back agreement with farmers.

·        Maintaining data base of raw materials.

Production

·       Produces 450 Ayurvedic formulations - both classical and proprietary.

·        Qualified and experienced doctors to supervise productions.

·        Production of medicine as per GMP norms.

·        Quality control to ensure quality of raw materials and finished goods.

·        Modern dosage forms like, tablets, ointments, etc are introduced.

1.    The production and planning department will set standards and targets for each section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach.

2. The purchasing department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality.

3. The stores department will be responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerised stock control systems helps keep stcoks at a minimal but necessary level for production to continue unhindered.

4. The design and technical support department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved.

5. The works department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

Marketing

Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them.

There are two main types of market research: Quantitative research involves collecting a lot of information by using techniques such as questionnaires and other forms of survey. Qualitative research involves working with smaller samples of consumers, often asking them to discuss products and services while researchers take notes about what they have to say. The marketing department will usually combine both forms of research.

The marketing department will seek to make sure that the company has a marketing focus in everything that it does. It will work very closely with production to make sure that new and existing product development is tied in closely with the needs and expectations of customers.

Quality Control, Research & Development

R&D is the key for any pharmaceutical industry. Although there is lot of knowledge in the ancient text of Ayurveda R&D is necessary to make it suitable in today’s context.

Every product of Oushadhi that is manufactured is preliminarly tested and developed here . R & D department has miniaturized forms of all sorts of commercialized equipments . They have recently published a magazine called ‘Oushadhi Sandesh’. It has constructive articles and also contains Articles about Quality Control like “ Instant Checks for adulteration” . The magazine also contains various information about other departments also.

R&D has a special economic significance apart from its conventional association with scientific and technological development. R&D investment generally reflects a government's or organization's willingness to forgo current operations or profit to improve future performance or returns, and its abilities to conduct research and development.

  Although R&D department had been existing in the company a separate existence was formed only in 2008.

Maintenance department

·       Procurement of plant and machinery.

·       Up keep and maintenance of all plant and machinery.

·       Construction of civil work.

·        Power and water supply.

·       Effluent treatment.

·       Maintenance of campus.

Panchakarma Hospital & Research Centre

·         Located at Shornur Road, Thrissur.

·         Started functioning on 18.10.2004.

·         Both in patient and out-patient section.

·         30 bedded modern hospital.

·         Round the clock service of 4 Ayurvedic Doctors.

·         Average number of patients per year-2000.

·         Average turnover from Hospitals, Rs. 18 lakhs/year.

·         Average turnover from pharmacy Rs. 6 lakhs.

·         Clinical trial cell.

·         Famous for Panchakarma therapy.

Medical Plant Cultivation

·         Two medicinal plant nurseries at Kuttanellur and Pariyaram,
supported by SMPB.

·         Annual distribution of 3 Lakh seedlings of 20 leading species.

·         Cultivated 15 acres of land at Kuttanellur with 20 species of medicinal trees species.

·         Raised medicinal trees on 50 acres of land at Pariyaram, Kannur District.

·         Raised medicinal plant gardens in 150 selected schools in Thrissur and Kannur Districts of Kerala.

 

Oushadhi is a 100% Government of Kerala owned Ayurvedic medicine manufacturing company situated in Kuttanellur, near Ollur, Thrissur city, Kerala state. Directly controlled by Health and Family Welfare Department of Kerala State Government, it has widened its service to Ayurvedic health care by establishing Pancha Karma Hospital and Research Institute at Thrissur with most modern amenities.

 

STRENGTHS

§  Established brand image

§  Continuous government support.

§  Huge market demand.

§  Dedicated work force.

                          CORE VALUES

*    Mutual trust and respect
*    Customer satisfaction
*    Quality control
*    Professional ethics
*    March with time

WEAKNESS

The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

§  Infancy stage of research & development Department.

§  Lack of modern technology in R&D compared to private sector Ayurvedic medicine manufacturing companies.

§  Strikes by trade unions, even though strikes are less they hinder production.

§  Procedural delays due to government interventions.

                              OPPORTUNITIES

·        Monopoly of medicine supplier to government Ayurveda Hospitals and dispensaries in Kerala

·        Raising interest towards Ayurveda

·        Huge market demand.

·        They are the market leader in manufacturing and sale of Ayurvedic medicines.

·     Support from various organisation like state forest department SC/ST federation etc and general public.

THREATS

·    Difficulty in standardization, and validation of Ayurvedic medicine as per the modern trials for selling larger market outside

·   Usually people do not prefer Ayurveda for serious diseases. 

·   Presence of fraud Ayurveda doctors caused a black mark for this industry.

PRODUCTS

ORGANISATIONAL STRUCTURE

CHAPTER 2

DATA PRESENTATION AND ANALYSIS

THE PHARMACEUTICAL CORPORATION (IM)

 KERALA LTD OUSHADHI

The Pharmaceutical Corporation (IM) Kerala Ltd popularly known as Oushadhi is a fully owned Government owned Ayurvedic medicine manufacturing company. It was originated as Sree Kerala Varma Government Ayurvedic pharmacy in 1941 at the instance of His Highness The Maharaja of Cochin, for the supply of medicines to the Government Ayurvedic Hospitals in Thrissur and erstwhile princely family of Cochin state. In 1959, it was converted and registered as a co-operative society & Stores Ltd No: 4318 Thrissur.

                On 8^th September 1975 it was incorporated as a company under the Indian companies Act ,1956 and renamed as “The Pharmaceutical Corporation (Im) Kerala Ltd” Thrissur and its operation started on 10^th July 1976 , with the take over of business of SKVAC pharmacy.

Objectives of Oushadhi

§  Manufacturing and Marketing of high quality Ayurvedic medicines.

§  Research and Developmental studies on Ayurvedic formulations.

§  Maintenance of medical plants herbarium and Cultivation.

§  Health care and clinical Research programme.

§  Implementation of Government of  Kerala Health care programme

§  Propagation of Ayurveda and connected systems all over the world.

§  Promoting Ayurvedic education and establishing institutions for the same.

§  Implementation of Community Development  Programmes with special reference to women and child Development

CHAPTER 3

SOCIAL RESPONSIBILITY  OF OUSHADHI

Business which is the hard core of the economic system has realised and has been made to realize by social, economic and political forces that it has social obligations to fulfill besides ensuring its own existence through profit an activity.

          There are various objectives of business in it and important objective is the public or social responsibility of a business enterprise. This is an objective which cannot be stated in as tangible terms as others and yet recent development in our economy as well as others brings out its crucial importance. It will be useful to go into formed and persuaded business men to consider their responsibilities and the conditions which were favourable to the development of businessmen’s concern with social responsibilities.

About Company

          Some of the important them are:

i)      The development of professional managerial class with a different motivation and point of view due to the separation of ownership from management in corporate enterprise.

ii)   The change in public opinion about role of business in modern society

iii)            The increased complexity of the decision – making processors in which various points of view and diverse interests are expressed.

iv)The threat of public regulation or public ownership

v)   The pressure of Labour movement

vi)The development of business education and contact with government and its problems.

vii)         The development of moral values and social standards applicable to business man

viii)      Recognition of human factors contributing to the long- run interests of the business people

          Some of specific responsibilities to various sections are:

a)   The Enterprise and Shareholders

          In the first place, corporate business must provide a fair return on capital to shareholders and must provide them regular, accurate and full information about the working of the enterprise.   The shareholders should also meet their obligations by envicing been interest in company affairs.

1)   It must ensure the safety of the funds invested by shareholders or owners

2)   It must ensure effective utilization of funds provide by them.

3)   It must provide fair and reasonable return on investment in long run

4)   To ensure full participation of owners in management of the affairs of the concerns.

5)   To provide a fair and honest report of business operation

6)   To offer reasonable appreciation of capital through growth, innovation and diversification of business activities.

b)   Enterprise and Workers

          It is the responsibility of the management to provide opportunities to the workers for meaningful work. Also, the management of a business should try to win the cooperation of the workers by creating the right conditions in the enterprise. The business enterprise owes it to the workers unions, accept the workers right to associate and assure a fair wage and a fair deal of to the workforce.   The worker’s need to be helped to develop their own leadership qualities in unions through education. Social security, profit – sharing, fair promotions, proper grievance settlement and employee welfare are some of the other well – recognized responsibilities of business firm to their employees.

1)         Provide recreation, sanitation and medical facilities

2)         To ensure job security for the workers

3)         To maintain cordial relationship with employees

4)         To ensure fair opportunities to workers for their promotion, growth and development.

5)         Provision and recognition of genuine trade union rights of workers

6)         Proper steps should be taken to ensure social security.

7)         It must ensure fair and courteous treatment to the workers.

8)         To recognize the needs of workers.

9)         Recognize thee collective targaining and encourage it.

10)    To ensure protection of workers from occupational hazards.

11)    Recognize workers as human resources and treat them as asset instead of a factor of production.

12)    A grievance handling procedure should be established for the redressal of the grievance of employees.

C. Enterprise and the Consumers

          A business enterprise has the responsibility of providing the goods and services needed by the community at most reasonable process.  It must guard against adulteration, poor quality, lack of service and courtesy to customers, misleading and dishonest advertising etc. The consumers also need protection against monopoly and restrictive trade practices. Such protection can be provided best if business learns to play its part of the game with fairness and liberalism.

1.    To encourage the formalion of association of consumers for their satisfaction and welfare.

2.    To ensure a fairly wide distribution of products among all sectors of the consumers.

3.    It must guard against adulteration, poor quality hoarding, black marketing etc.

4.    Proper after sales service to the customers should be ensured.

5.    It must guard itself against obscene and misleading advertisement

6.    Prompt services to customers must be ensured.

7.    Exploitation of consumers should be avoided.

8.    Consumers should be given adequate freedom to select the products which they require

9.    Heavy burden in the form of high process should not be imposed on consumers.

10.                       Introduction of new products should be made known to the consumers.

D) Enterprise and Community

          An enterprise must respect the two any pay taxes regularly and honestly. It must behave as a good citizen and take care to avoid bad affluent, smoky chimneys and to devote attention to housing and worker’s living conductions.  It has the responsibility of maintaining proper relations with the community through press and meetings.

1.    To minimize all kinds of pollution.

2.    To ensure safety of the people who are living near the business establishment.

3.    To develop a good relationship with community.

4.    To channelise the resources of the society in production lines and make their best use.

5.    To give cash donations and provide jobs to the disabled person and widows.

6.    It should rehabilitate the people who are suffered due to the business operations.

7.    It must try to create new opportunities for employment to solve unemployment problems.

8.    National resources must be utilized efficiently and without wastage.

9.    To help the community by opening schools, dispensaries, chartable institution etc.

10.                        To refrain from indulging in anti – social business activities.

11.                       To organize the cultural and religious function for the community, for improvement of society

12.                       To sustain a congenial and neatly environmental conduction.

E) Enterprise and Government

1.    Firms should pay tax in time.   It should not try to indulge or avoid tax.

2.    The main responsibility of the business is to obey to laws by government.

3.    It should invest their surplus funds, in infrastructure bonds, government bonds etc.

4.    It must not allow unfair trade practices.

5.    It must co-operate with government to implement social activities.

6.    Discourage unhealthy practices like influencing government officials to carry, favours obtaining license.

They should not try to indulge in malpractices like hoarding, black marketing to create artificial shortage.

BRANCHES

•    Arogyabhavan, Thiruvananthapuram

•    Poojappura, Thiruvananthapuram

•    Pariyaram, Kannur 

SUPPORTERS

•    Govt. of Kerala 

•    Ayush Department of Govt. of India

•    ISM Dept. of Govt. of Kerala

•    General Public

•    National Medicinal Plant Board

•    State Forest Departments

•    Reputed organizations like KFRI, TBGRI,

      Agl. Universities, Ayurveda Research Centres.

•    SC/ST Federation

•    Wholesale dealer of Raw materials.

 

Findings and Suggestions

Ø Oushadhi  supplies saplings of  medicinal plants to the  public at concessional rate.

Ø Provides medicinal plants to schools and colleges at free of cost.

Ø Provides technical assistance for the extensive cultivation of medicinal plants.

Ø Effective system of pollution control system has been adopted.

Ø Manufacture more than 400 Ayurvedic formulations for the wellbeing of the public.

Ø The whole manufacturing activities are under the direct and expert supervision of qualified Ayurvedic physicians.

Ø Quality medicines are made available to public at reasonable prices.

Ø Meets the entire medicine requirements of Government Ayurvedic hospital and dispensaries.

Ø Meets public demands through network of exclusive Oushadhi dealers and agents.

Ø Distributionship started in Karnataka, Chennai and A.P.

CONCLUSION

RECOMMENDATIONS AND SUGGESTIONS

v More promotional activities must be done including social responsibility.

v Oushadhi must go for a diversification of programmes.

v More emphasis must be given for community medicines.