Observations Of Operations Management Albert David Pharmaceutical Production Business Essay Example

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• Site Layout Plan Of Albert David
• Background Of the project

Medicines have been essential for human development for many years.

In today's business environment, the provision of pharmaceuticals is a crucial part of medical management, especially in connecting patients with medicine. Timely delivery of necessary medication relies heavily on a well-functioning supply chain. Integration into the healthcare system is essential for ensuring effective operation of this supply chain. However, in India, the medical industry did not prioritize an efficient supply chain and instead focused on other concerns. As a result, a specific initiative was implemented in 2001 to improve the management and organization of the supply chain.

Complaints from the northern region, particularly near Ghaziabad, have significantly increased in the past two years due to a lack of effective supply chain management. This has resulted in a mismatch between demand and supply of medicines. Some hospitals receive medications in bulk while others receive none, indicating an ineffective process likely caused by inadequate organization management. As a result, wholesalers are dissatisfied with the healthcare system's inability to meet their needs.

The healthcare system is facing increasing complexity as there is a rising demand for medicines and ongoing growth. However, the manufacturing of these medicines has not kept up with this demand, leading to problems in the supply chain. Despite being located in an industrial area, a significant portion of required medicine supplies are sourced from neighboring regions.

Albert David should take advantage of the current market demand in order to guarantee effective supply and significant profits. The organization's main objectives involve merging, acquiring, and expanding.

A growth strategy is implemented every two years to achieve expansion and acquire more assets and manufacturing facilities. There are plans for a significant expansion and the creation of a private limited company within the next three months. Furthermore, substantial expansion ventures are anticipated in September of this year. Pursuing mergers and acquisitions has become a common practice within the organization as a means to ensure growth.

The main objective of this study is to gain insight into the various processes involved in operation management in the pharmaceutical industry. The specific aims of the study are as follows:

• To understand the process of fabricating antibiotics
• To comprehend and analyze the production processes for glucose and saline solutions
• To examine how information systems contribute to achieving operational efficiencies
• To gain an understanding of different types of machines and their integration using PLC technology
• To propose recommendations for improving operational models

However, it should be noted that the scope of this survey is limited due to a lack of available online information regarding the company's operational efficiency. Conducting primary research is not feasible in this context due to cost constraints.It should be noted that as a pharmaceutical organization, they have limited online information available due to the confidential nature of their research projects. However, it is possible to obtain information about machine names and fabrication processes. I have made every effort to fully understand the operational procedures of the organization as directed by the capable operations management team.

Methodology

The information used primarily comes from cyberspace and various books and journals.

Existing System

The hierarchy of Albert David can be roughly categorized into three levels. The

highest level consists of executives who make decisions regarding finance, research, and marketing. The industrial production manager is another managerial employee.

The finance director oversees the finance section and manages the day-to-day financial activities. The marketing director handles marketing-related issues, including distribution and selling of finished products to distributors, various wholesalers, and local hospitals. The research director is responsible for quality control and testing activities. Albert David does not have a separate Research & Development department; research on drug components and compositions is conducted at their Kolkata headquarters. The production director is in charge of the production section and ensures timely delivery of ordered products. The organization's main objectives include mergers, acquisitions, and expansion. Approximately every 24 months, an expansion plan is initiated to promote growth and gain access to additional assets and manufacturing units.

Over the next three months, there are plans for a significant expansion and implementation of a private limited company. Additionally, large-scale growth programs in September of this year are expected. Mergers and acquisitions have become a trend within the organization as a means to ensure growth. The office and administration staff will include administrative assistants, general office clerks, secretaries, and record keepers who handle various tasks such as payroll, sales, raw materials, and shipments. Jobbers, distributors, and sales representatives will market the company's products to pharmacists, healthcare administrators, and doctors. These three sources serve as a communication channel between the company and its clients.

The majority of workers can be divided into two main occupational groups. Production workers are responsible for operating, installing, inspecting, maintaining, and repairing drug production equipment. They also handle drug packaging and transportation. On the other hand, assembly line

workers and those involved in storytelling and production businesses perform assigned assembly tasks within their teams. Instead of concentrating on a single task, these workers rotate among different tasks. The assignment and execution of work are highly flexible.

The efficiency of a supply chain is very important in this sector as it will ensure that people will receive the proper amount of medications when needed. An efficient supply chain should be integrated into the medical system. In India, the medical industry prioritized other things over an efficient supply chain, which is why the specific supply chain project was launched in 2001 to ensure effective supply chain management. Other workers in the manufacturing unit specialize in various aspects of the manufacturing process.

Various types of fabrication techniques are employed in chemical processing, such as the installation of machine compositors and machine accountants for different types of glucose. Each worker is given a specific occupation to ensure the fabrication process is precise and high-quality. To ensure quality, supervisors and inspectors closely monitor the process, measuring and controlling quality and operational procedures to prevent any compromise in product quality. At the RO plant, machine operators also have the responsibility of maintaining pressure and controlling the flow of filtered water towards the final processing unit, ensuring the material is suitable for medicinal and pharmaceutical use. Inspectors diligently oversee the quality process, examining ampoules for stains and foreign particles in their consistency.

Once the drugs are prepared and inspected, machine operators and stamps package them. Quality inspectors closely supervise each stage of the process to maintain the product's quality. They also oversee packaging, assembly, cleaning, and equipment maintenance to exert control

over manufacturing and ensure safe production.

Importance of Information Technology

Information technology is now an indispensable part of the business landscape as it has become difficult to imagine a functioning business without it. The continuous advancements in information technology, along with increased global competition, have resulted in more complexity and uncertainty for businesses of all sizes. One area that has received considerable attention in recent business literature is the creation of new organizational network structures that enable survival and growth within a complex environment.

Various types of fabrication techniques are employed, with each worker assigned a specific role in order to ensure precise and high-quality fabrication. To maintain the quality throughout the process, multiple supervisors and quality inspectors are present to oversee and regulate the operations. In the reverse osmosis (RO) plant, the machine operators not only operate the machines but also maintain pressure and control the flow of filtered water to the final processing unit, ensuring that the material remains suitable for medicinal and pharmaceutical use. The inspectors diligently oversee the quality process, examining ampoules for any stains or foreign particles in their consistency.

After the drugs are prepared and inspected, they are packaged in bottles or other containers using a make filling machine. The effective implementation of information technology would reduce liability and the cost of expected failures, as well as increase flexibility and the cost of adaptation. The reaction of businesses to the environment remains crucial in determining effectiveness. Computer-communication systems' capabilities and flexibility make them more suitable for businesses as they can respond to specific information or communication needs. Information technology is impacting all industries and businesses, both in services and manufacturing. It is affecting

workers at all levels, from executives to middle management and clerks. Information technology is becoming increasingly essential in various technologies, including trade, engineering, routine operations, and non-routine tasks.

The advancements in Information Technology will lead to a significant decrease in synchronization costs, which will result in the emergence of new, focused business structures. This advancement allows businesses to effectively manage mutual relationships in order to respond to new and urgent competitive forces. In the near future, businesses will face a shortage and excess of information, referred to as information oversupply. To overcome this information overload, companies need to implement methods for selectively reducing the amount of information. Enhanced telecommunications will simplify the management of geographically dispersed business units. Telecommunications advancements will also facilitate increased long-distance communication.

Well-structured information about modus operandi, preprogrammed procedures, and determination procedures is preferably communicated indirectly. The Indian Pharmaceutical Industry is currently leading India's science-based industries and demonstrates a wide range of capabilities in the complex field of drug industry and technology. With an estimated worth of $4.5 billion, the growth rate of the Indian Pharma Industry is around 8 to 9 percent annually. It ranks highly among third world countries due to its technological advancement, quality, and variety of medications produced. Domestically, almost every type of medicine is now manufactured, ranging from basic business pills to advanced antibiotics and intricate cardiac compounds.

The Indian Pharma Industry plays a crucial role in advancing and prolonging development in medical specialties. It boasts of quality manufacturers and many units approved by regulative governments in USA and UK, which have stimulated, assisted, and spearheaded this dynamic development for the past 53 years. This has helped put India

on the pharmaceutical map of the world. Currently, there are over 20,000 registered units making up the highly fragmented Indian Pharmaceutical sector. However, it has experienced significant expansion in the last two decades. The market is controlled by the leading 250 pharmaceutical companies, with approximately 70% market share collectively and around 7% held by the market leader. Government price control and intense price competition contribute to a highly fragmented market.

The pharmaceutical industry in India fulfills approximately 70% of the state's demand for various medical products such as bulk drugs, drug intermediates, pharmaceutical preparations, chemicals, tablets, capsules, viva voces, and injectibles. This industry consists of around 250 large units and 8000 Small Scale Units, which are the core of India's pharmaceutical industry (including 5 Cardinal Public Sector Units). These units produce a wide range of pharmaceutical preparations, including medications ready for patient ingestion and about 350 essential drugs used in the production of these preparations.

The working conditions of employees within the organization are highly important, and the health and safety supervisor ensures proper care in this regard. However, in the past two years, there has been a significant increase in complaints from the northern region, particularly areas near Ghaziabad. The main reason behind these complaints is identified as issues within the organization's supply chain process.

Is it possible that the ineffective management process is causing a significant mismatch between the supply and demand of medical specialties, leading to hospitals receiving some in bulk and others not at all? This issue may be making wholesale suppliers unhappy. Additionally, as the healthcare system becomes more complex, the demand for medical specialties has been increasing in the past two years.

However, there has been no increase in the manufacturing of these medications, creating issues in the supply chain.

Despite being located in an industrialized country, Albert David relies heavily on supplies of medication from neighboring regions. To ensure a steady supply and maximize profits, the company must take advantage of the current market demand. One of their main goals is to pursue mergers, acquisitions, and expansion. Approximately every 24 months, they initiate an expansion program to promote the company's growth and gain access to more assets and manufacturing units. Within the next three months, a major expansion and implementation of a private limited company are planned. Additionally, significant expansion programs are anticipated in September of this year. The organization has previously engaged in mergers and acquisitions as a means of ensuring growth, which has become a trend within the company.

There are various processes used in the organization to achieve maximum operational efficiency. One of these processes is the production process, which focuses on quality and is performed for specific medical specialties that require customized orders due to their specific requirements. This process complicates the role of the company's operational directors, as they have to manage both the organizational procedures and the specific procedures. Another process is the table manufacturing process, which is mainly carried out manually by blending scoops of liquids and powders. The mixture is then reformed to ensure the exclusivity of the product. Additionally, there is the Mull Station Machine process, which involves using a multi-station machine (rotary press) for high-speed tablet pressing.

It efficiently "squeezes" the ingredients into precise tablet form, which can be round or oval. Additionally, it can imprint the maker or

product name.

Decision

To conclude, the process used in Albert David is efficient and likely to result in a high-quality management system. The operational managers have demonstrated satisfactory performance by implementing standard operating procedures that contribute to the organization's growth. The organization's transformation process is superior to many others in India, as evidenced by consistent profits over the past two years, particularly during times of recession.

The organisational hierarchy has improved with the introduction of the PLC methodology. This methodology breaks down processes into smaller steps and creates a hierarchical structure, which is beneficial due to the implementation of better standard operating procedures (SOPs). The process may be longer, but it is more effective. Additionally, the operations management within the organization has become more effective, especially because the company is a transnational organization that exports numerous products from its various plants in India to different countries.