1

AN ORGANISATION STUDY AT
TERUMO PENPOL LIMITED
THIRUVANANTHAPURAM


An organization study report submitted in partial fulfillment of the requirement for the
award of the Degree of

MASTER OF BUSINESS ADMINISTRATION
University of Kerala
Submitted by
VINOD KUMAR JK
Under the guidance of
FACULTY GUIDE
Dr. R JAYALEKSHMI


INSTITUTE OF MANAGEMENT IN KERALA
ICM Campus, UNIVERSITY OF KERALA
THIRUVANANTHAPURAM
May - 2014

2







DECLARATION
I hereby declare that the project report entitled An organization
study at TERUMO PENPOL, Thiruvananthapuram submitted by
me for the award of the degree of Master of Business Administration of
the University of Kerala is my own work. The report has not been sub-
mitted for the award for any other degree of this University or any other
University.

Trivandrum VINOD KUMAR JK
10-05-2014
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere gratitude to all who helped
me to complete this project successfully through their timely guidance, help and sup-
port.
First and foremost, I wish to thank GOD the almighty for his blessing and guidance
throughout the project.
I express my sincere gratitude to Mrs. M.A.PUSHPA KUMARI the Deputy Manag-
er (ADMN) Terumo Penpol Ltd, Trivandrum, for providing an opportunity and for
her valuable guidance for this project work.
It gives great pleasure to place on record my sincere gratitude to my guide Dr. R
JAYALEKSHMI for this valuable guidance and eminent supervision throughout the
preparation of this report.
Finally, I also take this opportunity to thank my parents, relatives and friends who
have directly and indirectly helped me for the successful completion of the project
work.

Trivandrum VINOD KUMAR JK



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CONTENTS

CH.NO

Name of the chapter

Page No
I Introduction
II Industry Profile
III Company Profile
IV Organizational Structure
V Analysis Objective Wise
VI SWOT Analysis
VII Porters Five Force Analysis
VIII Finding Suggestions And Conclusion
Bibliography
Appendix



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LIST OF TABLES AND CHARTS
Chart
No
Name Of The Chart Page No
4.1 Organization Structure 22
5.1 Accounts & Finance department 25
5.2 HRD department 27
5.3 Production department 28
5.4 Purchase department 31
5.5 Maintenance department 33
5.6 Personnel and Administration department 35
5.7 Quality control department 38
5.8 Store department 39
5.9 Marketing department 42
5.10 Export and Logistic department 43

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I. CHAPTER
INTRODUCTION





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INTRODUCTION
Organization study at Terumo penpol (TPL) is to acquaint myself with the business
environment for a period of one week as a part of the MBA curriculum at the IMK.
The study was conducted to understand the structure, function and processes of vari-
ous departments and their interdependence. During the course of study I was able to
successfully interact with the employees of the organization. They were happy to give
me all possible information. They also took me to the plants and worksites where I got
the first hand information about the organizational process and its functions.
OBJECTIVE OF THE STUDY
To examine the relationship between operational efficiency and organiza-
tional structure
To familiarize with a business organization
To familiarize with the different departments in the organization and their
functioning.
To understand how the key business process are carried out in organiza-
tion
Understand how information is used in organization for decision making
at various levels and
To relate theory with practice
METHODOLOGY AND DATA SOURCE
The methodology used for the survey is through collection of primary and secondary
data and by direct investigation with employees and the managers. Information col-
lected from the company in two ways. They are:-
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PRIMARY DATA
The primary data was collected from the management executives, various section
heads, supervisors and employees of the company through direct methods like inter-
views, discussions and observations.
SECONDARY DATA
The secondary data was collected from company registers, financial statements pre-
pared and maintained by the company, newsletters and magazines published by the
company, department manuals of the various departments of the company, brochures
and websites.
SCOPE OF THE STUDY
The study helps to develop a practical knowledge about the working of
the organization
It helps to get familiarize with the organizational procedure
The study helps to understand the company strategy for growth
Which envisage further expansion of capacity, modernization of pro-
cess, adherence to strict quality assurance protocol and a drive to boost
efficiency in manufacturing
LIMITATION OF THE STUDY
Time was major limiting factor
Secondary data from company manuals are out dated
Lack of cooperation from certain department due to their work load
The information obtained is not complete and accurate, as confidential
report not provided for the purpose of study.
The study has limited scope, as it aims an overall organization study
and not an in-depth study.
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CHAPTER SCHEME

I Chapter Introduction :
This chapter denotes the objective of the organization study, methodology
and data sources, scope of the study and limitations

II Chapter Industry Profile:
In this chapter shows blood bag details, problems faced by blood bag
manufactures and the demand for blood bags.

III Chapter company profile:
This chapter specifies the history of the company and the products pro-
duced and marketed by the company.
IV Chapter Organizational Structure:
In this chapter draw about the different departments of the organization
and the organogram

V Chapter Analysis Objective Wise:
This chapter indicates detailed analysis of each departments working un-
der the organization

VI Chapter SWOT analysis:
This chapter denotes the detailed analysis of organization in all perspec-
tives

VII Chapter Porters Five Force Analysis:
This chapter specifies another form of analysis in another dimension

VIII Chapter Finding Suggestions And Conclusion:
This chapter describes the new findings from the organization, sugges-
tions for improvement and the conclusion




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CHAPTER II


INDUSTRY PROFILE
















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Donating blood to save a life is one of the best things a Person can do for his fel-
low beings. Each process in blood banking from blood collection till issue is equally
important and it is the collective responsibility of manufacturer of blood banking
products and its users to ensure that blood collection is safe and sterility is maintained
throughout the process. A manufacturers responsibility is to ensure that their prod-
ucts are user-friendly and by all means safer to use and they should create awareness
among the users about the key features of these products. A blood bag system is easy
to use when standard practices are followed by the user, but many times blood banks
face issues like:

a) Presence of skin particle in blood: may damage the whole unit of collected blood

b) Needle sticks injury for phlebotomist: may result in transmitting disease from a
donor to phlebotomist.

To prevent these problems additional features are provided in the blood bag system
like Pre donation bags, Needle Injury Protector or NIP etc. In many western countries
these features are mandatory. In India these additional features are available but are
not much popular.
The Primary goal of every Blood Transfusion Service is to provide patient with safest
possible blood product. Blood product belongs to biological products, which collects
healthy blood as the raw material and then is made through biological process. Blood
bag is a disposable bio medical device used for collection, storage, transportation and
transfusion of human blood components. It can successfully replace the use of glass
bottles because bottle requires exhaustive cleaning, rinsing and autoclaving proce-
dures and there are chances of breakage at any stage.
WORLD SCENARIO
Globally, approximately 75 million blood bags are collected annually [Source:
WHO], Major blood bag manufacturers globally include Baxter Bioscience, USA;
Bayer Corporation, USA and Octapharma AG, Switzerland. With the increasing glob-
al demand for blood bags and growth rate of its market being 15 percent annually the
business for the potential investor is desirable and is expected to generate high returns
from the business. The investor would need to set up highly standardized plant as the
12

demand for these products largely depend on their quality. The blood bag manufactur-
ing industry is now in a growth stage. It is now witnessing high customer traffic. This
particular industry goes hand in hand with new technology. It also contributes a fair
portion of revenue to the economy.
Indian Research and Development organization is offering technology for the manu-
facture of disposable blood bag systems. The system consists of a single or multiple
bags connecting with tubing, needle cover, clamp etc. The blood bags are made of
plastic material, which are compatible with blood. Further, use of disposable bags
eliminates the possibility of any contamination. In recent times the blood bag
has become a conspicuous item and essential need of hospitals and nursing homes to
meet blood infusion emergencies. Blood bags are most ostensibly serving the medical
field in crucial hour. As the number of hospital, nursing homes are increasing the de-
mand for the blood bags too are increasing tremendously.



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CHAPTER III
COMPANY PROFILE


















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The Birth
Peninsula Polymers (Penpol) Pvt Ltd., incorporated in 1983, was the brainchild of
former IAS officer, Mr.C.Balagopalan. Captivated by a newspaper article on blood
bag technology, the young bureaucrat embarked on an entrepreneurial journey that led
to pioneering steps in biomedical device manufacture. Partnering with Sree Chitra Ti-
runal Institute for Medical Sciences and Technology (known then as the Chitra Medi-
cal Centre), Penpol started production in its factory in Trivandrum, Kerala, on 26
th

March 1987, with TTK Pharma as its sole sales agent. In 1989, the company achieved
some significant milestones like sending out its first export shipment, and setting up
its R&D division.
New Horizons
In the mid-1990s, although the Indian economy had opened up, imported medical
equipment was still expensive. More importantly, such equipment could not be ser-
viced or repaired easily. Penpol started manufacturing blood transfusion and allied
equipment in 1996, and, in 2001, the company began its export.
A Partnership across Boundaries
In 1999, Penpol entered into a joint venture with the multibillion dollar Terumo Cor-
poration of Japan, and changed its name to Terumo Penpol. By teaming up with an
international company that had a reputation for unimpeachably superior technology
and global marketing capability, Terumo Penpol took yet another step towards be-
coming a world leader in developing and manufacturing innovative devices, equip-
ment and accessories for blood transfusion.
In 2013 April Terumo Penpol became the subsidiary of Terumo Corporation, a Japa-
nese company with $3.8 billion in revenue and presence in over 150 countries. Teru-
mo has distinguished itself as a high quality manufacturer of medical products, with
20 factories around the world and employs 14,000 people worldwide. Terumo is pio-
neering products of future like implantable left-ventricular assist systems, artificial
vessels, minimally invasive surgery devices, nano-capsules and more.
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In 2012 Terumo acquire CaridianBCT. Terumo has become the world leader in
Blood Management. The Blood Transfusion division of Terumo is being re-organized
under the newly acquired company which has been renamed as TerumoBCT. The
Apheresis and Cellular Therapy products of Terumo BCT complements Terumo Pen-
pol products to provide a full range of blood collection, storage and processing solu-
tions for Hospitals and Blood Centers in India and other countries.
The Way Ahead
Terumo Penpol with an annual production of 24 million units has become the lead-
ing manufacturer of blood bags which are used in 80 countries. Its equipment instal-
lations have today crossed 10,000 numbers. Enjoying the loyalty of 1056-strong
workforce, this 26-year-old company has set its focus to be the market leader in Blood
Transfusion industry.
STRATEGIC INTENT
MISSION
Contributing to Society through Health Care.
VISION
To become a World class Medical Device manufacturer adopting Customer First
approach in all business processes
QUALITY POLICY
At TerumoPenpol, Quality is a way of life, starting with material procurement from
world class sources, production adhering to Good Manufacturing Practices(GMP),
testing as per quality and safety standards, and installation followed by unique, TPL
customer care services. The quality management system of Terumo Penpol is certi-
fied according to ISO 9001, 1SO 13485,ISO 14001, OHSAS 18001 and European
Standards EN 46001 and European Medical Device Directive 93/42/EEC.

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Manufacture high quality products meeting customers requirements.
Design all products in accordance with international standards
Ensure high quality at all stages of supply chain.
Adopting a customer first approach in all business process.
Improving quality ,safety and environment management.
WORK PLACE MANAGEMENT (five s)
TPL ensure proper organizing, neatness, cleanliness, standardization and discipline at
work place for sustained housekeeping and management practices.
Seiri ( Organising)
Sorting between wanted and unwanted things in a selected area.
Seiton (Neatness)
A place for everything and everything in its place.
Seiro (cleanliness)
Deals with the jobs of thoroughly cleaning work place.
Seiketsce (Standardisation)
Means standard which is needed to maintain seiri, seiton and seiro standardization
leads to visual management to avoid mistakes.
Shetsuske (Discipline)
Means discipline which is called for strict adherence to a system from the present
unsystematic way.




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BOARD OF DIRECTORS

NAMES DESIGNATION

KIMURA YOSHHIRO

CHAIRMAN AND MANAG-
ING DIRECTOR

PADMA KUMAR
CHANDRASHEKAR

WHOLE TIME DIRECTOR

KENJI SEKINE

DIRECTOR

HIROTOMO MORITA

DIRECTOR

HIROSHI NAGUMO

DIRECTOR

NELBY MOL NELSON

SECRETARY

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PRODUCT PROFILE
Terumo Penpol personifies the story of a home grown R&D initiative commercialized
successfully. Practicing the concept of Quality First approach in manufacturing,
Terumo Penpol has been serving Blood Centers across the globe for more than 25
years. Susidiary of Terumo Corporation, Japan, a global leader in healthcare products,
has enabled Terumo Penpol to harness the combined strengths in Technology and
Manufacturing to continue redefining standards in Blood Transfusion.
TPL blood bag reaches a customer after undergoing 41 physical and biological tests
that ensure safety in use. Its product range consists of single bag, double triple bag,
quadrupple bag, penta blood bag.
Product categories
A. Blood collection equipment
B. Blood storage equipment
C. Blood processing equipment
Blood collection equipment
I. Blood Bag
II. Donor Station
III. Blood Collection Monitor
IV. Portable tube Sealer
V. Tube Sealer

Terumo Blood Bags
The TPL Blood Bag systems are high quality products designed for optimum blood
management during collection, separation, preservation and transfusion. Various
types of blood bag systems with improved storage period of blood and blood compo-
nents are available. A new range of Blood Bags provides the Blood Banks with a
large choice of safety features.
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Five types of blood bags catering to various patient needs: Single, Double, Triple,
Quadruple and Penta Blood Bags and two options of anticoagulant solution CPD and
CPDA-1 are available. Also available Blood Bags with additive solution S.A.G.M.-1
and S.A.G.M.-2 .


Terumo Single Blood Bag
For whole blood collection. The bag contains CPDA solution.
Terumo Double Blood Bag
For whole blood collection and separation of 2 different blood components (red
blood cells, and plasma) obtained through the process of centrifugation and extrac-
tion
Terumo Triple Blood Bag
Triple Blood Bag with SAGM, for whole blood collection and separation of 3 differ-
ent blood components (red blood cells, plasma and platelets). The primary bag con-
tains CPD and one satellite bag contains SAGM.
Terumo Quadruple Blood bag
Quadruple blood bags with SAGM for whole blood collection and separation for 3
different blood components (red blood cells, plasma and platelets) through the buffy
coat method. The primary bag contains CPD solution and has 3 satellite bags. One
satellite bag is of 100 ml capacity to prepare platelets through the buffy coat method.
One satellite bag is valid for 5 days of platelet storage.

Top and Bottom Blood Bag with Leukocyte filter for CRC
Top and Bottom penta blood bag with a CRC filter for whole blood collection and
separation of 3 different blood components(leukodepleted red blood cells, plasma and
20

platelets).The primary bag contains CPD solution and one satellite bag is attached to a
CRC filter which comes with SAGM solution for red cell preservation. Platelets are
prepared from the buffy coat method. One transfer bag is valid for 5 days of platelet
storage.

MSG(Medical System Group ) PRODUCTS
Donor Station Terumo Penpol (DC 200)
Terumo Penpol Blood Collection Monitor (D601)
Terumo Penpol Portable Tube Sealer (LM 100E)
Terumo Penpol Tube Sealer (XS 1010)

STORAGE EQUIPMENT
Terumo Penpol Blood Storage Cabinet
Terumo Penpol Deep Freezer (DF 80U)
Terumo Penpol Platelet Agitator with Incubator

PROCESSING EQUIPMENT
Compo scale (CS 300)
Intelligent Expressor (E 300)
Terumo Automatic Component Extractor (T-ACE II+)
Terumo Sterile Connecting Device(TSCD-II)



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CHAPTER IV
ORGANISATIONAL STRUCTURE







22



ORGANISATIONAL STRUCTURE
The organization has following department s that function effectively with a vibrant
group of employee with the help of whom the organization is able to shape in future.
The main departments of the organization are as follows:-
1. Personnel and administration department
2. Export and logistics department
3. Finance department
4. GMP department
5. HRD department
6. Maintenance department
7. Marketing department
8. Production department
9. Purchase department
10. Quality department
11. R & D department
12. Stores department







23




EXECUTIVE DIRECTOR
CHAIRMAN AND MANAGING DIRECTOR
ADMINISTRATION MANUFACTURE AND COMMER-
CIAL
DOMESTIC SALES AND
MARKETING
HR
CSR
GENERAL ADMIN
FINANCE
IT
M.R
LEGAL AFFAIRS
B.B FACTORY
MSG
QA
MATERIAL
LABOUR (PAD)
INTERNATIONAL SALE
LOGISTICS
STRATEGIC PLANNING
24










CHAPTER V
ANALYSIS OBJECTIVE WISE





25

DEPARTMENTS AND ITS FUNCTIONS
1. FINANCE DEPARTMENT

The policy of finance department is to ensure provisions of timely finance to various
department and quality programs to exercise necessary financial controls and to main-
tain accounting records as per companies act and to provide all statutory reports and
also to provide internal information reports on time to the management for measuring
organization performance and for decision making.
ORGANORAM










ACCOUNTING POLICY: - The purpose of accounting policy is to verify, quantify and record all
the transactions
SYSTEM OF COMPUTING ACCOUNTS: - Accrual basis of accounting except certain benefits to
the employees which are on cash basis
RETIREMENT BENEFITS: - Contribution for gratuity is on basis of actuarial valuated intimated
by LIC
PROJECT DEVEKOPMENT EXPENSE: - Expense to development and preliminary stage is car-
ried forward, if any project is abandoned it is written off in the same year. in case of minor
project expense charged as revenue expenditure.
CMD
EXECUTIVE DIRECTOR
DEPUTY MANAGER ACCOUNT DEPUTY MANAGER PURCHASE
ACCOUNTS AUDIT EXECUTIVE AC-
COUNTS
EXECUTIVE
SECRETARY
BUDGETARY
CONTROL
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FROEIGN CURRENCY TRANSACTION:- They are converted at the rate on the date of transac-
tion. Current assets and current liabilities in foreign currencies converted at year and ex-
change rate.
SALES TAX:- Before 10
th
of every month a monthly report of sales tax is submitted to the
concerned departments. The sales tax audit is conducted before 31
st
December of every
ear. Report must be submitted to sales tax audit.
FINANCE:- Finance manager has to plan and mobilize the required fund from various sources
for this the following are carried out:-
1. submission of growing power statement
2. Timely summation of report
3. Submission of credit monitoring analysis report to bank authorities
4. Submission of quarterly performance report
5. Perpetration of daily collection report from various departments
6. Development of fund invests decision


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2. HUMAN RESOURCE DEVELOPMENT DEPARTMENT

The policy of corporate HRD department is to hire, induct, asses performance and
train the associates in a systematic manner in resonance with the quality policy and
organizational goal.
ORGANOGRAM








RECRUITMENT:-
It is one of the major activities of HRD. Recruit right person for the right job, ensure
better productivity and lesser hassles. It done on the bases of man power budgeting, It
is prepared by (HRD). HOD will consult with divisional head and the budget and
planning department for preparation of manpower budgeting. HOD should forward
the requisition and initiate the process of recruitment if the position is budgeted. If it
is not special approval from the management obtained.
Recruitment should do through internal data base recruitment agencies, campus inter-
view, advertisement. After short listing the candidates an interview panel will be cre-
ated and they will conduct interview. HRD department will send the interview details
along with names, proposed salary and responsibility to the CMD through ED for the
approval. The appointment order will be prepared and issued based on this on resigna-
tion an exit interview is conducted by HOD (HRD).

CHAIRMAN
HOD (HRD DEPARTMENT)
TRAINING OFFICER EXECUTIVE HRD
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3. PRODUCTION DEPARTMENT

The policy of production department is to produce a well equipped and hygienic
product according to needs of customer.

ORGANOGRAM











PRODUCTION PROCESS
The production process involves following steps:-
Selection of raw materials
Formulation
Processing

CMD
PRODUCTION MANAGER
DEPUTY MANAGER
SHIFT ENGINEER
MANUFACTURING CHEMIST
JE(EXTR) JE (BS) JE(BS) JE(BS)

JE(LABEL) JE(PHARMA) JE(WSP)
TECHNICIAN WIP CLERK TECHNICIAN
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RAW MATERIAL USED
PVC
Plasticizers
Lubricated
Other additives
FORMULATION
This is critical aspect the involves careful selection of raw materials and proportions
to be used to achieve the range of desirable properties. It can be done by experiment s
followed by various studies
PROCESSING
It involves following step
1. Compounding: It involves combining PVC, plasticizers, stabilizers and other
additives to form a homogenous mix at a specific temperature.
2. Palletizing: PVC compound is softened by heating extruded through dye
plate. Extended standards are cooled by passing it through containing demon-
ized water the dried by hot air and cut into 2-3mm long pellets. Pellets are
dried by heating an oven at around 70dc with air circulation.
3. PVC sheet and tube extrusion: The raw materials for sheet extrusion are
compounded PVC pellets. A single screw extruder is used for the continuous
process.
4. In processing of sheets: This is done to confirm quality before being used in
manufacturing of blood bags, the test on tube involves chemical test and ele-
ment test.
5. Tube and compound assembly: in tube assembly compound of tube are bro-
ken off at a junction who has cut provided at the stamping stage.
6. Welding / Bag sealing: First the sheet is assembled with one embossed sur-
face and plane surface facing the inside of the bag to be made. Thus the both
inside and outside are embossed as well as plane surface.
7. Labeling of bags: It is done manually. Label manufacture subcontractor came
for inspection and confirmed ones are sent for use. Prior to use the batch num-
bers are printed. The labeling should be perfect.
8. Preparation of anticoagulant solution: Preparation have 5 steps
Weighing of materials
Mixing of chemicals
In process of testing of mixture
Filtration of mixed solution
Collection of mixed solution
9. Filling: The solution with collection tank is rented to sub tank of capacity of
50 litters each. From this solution is channeled to blood bags via nozzle is tak-
en for testing. All those done is least exposed to air prevent contamination.
30

10. Packing: Polypropylenes covers are used for PVC blood bag packing. Packing
is done manually. Bags are inserted and the tube with needle, holding assem-
bly and donor tubes are coaled into the packet sealing is done manually or au-
tomatically.
11. Sterilizing: It can be done through autoclaving and drying.
12. Final inspection: pinch off leak, weld leak, stopper leak, transfusion leak, and
needle bent damages, label rejection, CPAD satin/color change and other.




















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4. PURCHASE DEPARMENT

The policy of purchase department to provide material / services of high quality and
the delivery as sought / acceptable to the requestioners, procuring them at economical
and convenient terms possible persevering to develop and maintain good professional
business relationship with sub contractors.

ORGANOGRAM










The activities of the purchase department start with the receipt of purchase request
on forwarded by the user department through stores. After receiving the requisition
from different department, purchase department send enquiry to suppliers through
internet, website, newspaper, industry directories etc. Then receiving the quotation
from different suppliers the purchase department prepares a comparative state-
ment. Through these statements they analyze which on is better to them, and them
they release the purchase order to that supplier. Then they ensure the supply as per
there deliver schedule.

Besides purchase department carry out view vender development function. For this
they purchase samples from them and do test at the lab to ensure standard of quali-
GENERAL MANAGER
DEPUTY MANAGER
PURCHASE EXECUTIVE
PURCHASE CLERK PURCHASE CLERK

PURCHASE CLERK

PURCHASE CLERK

32

ty and then visit the factory to place a trail order after testing the workers ability,
production process and if all these are intact then they please a bulk order since they
have approved of the particular vendor. Vendor evaluations / rating are also deter-
mined by the purchase department. For this purchase department fix certain stand-
ards in quality, delivery schedule, price and distance. If the vendor fails to satisfy an-
yone among this then they will reject that vendor. TPL purchase raw material for the
production of blood bags. For this they use PVC compound in the pellet form. Wesley
Company, Bangalore. For production they use 4 chemicals, it is purchased from INCE
chemicals, Cochin. The packing materials are purchased from cartons at Attingal. For
purchasing labels they imported it from Japan.


















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5. MAINTENANCE DEPARTMENT

The policy of this department is to provide the functions of machines in a smooth and
effective manner.

ORGANOGRAM










FUNCTIONS
Utility maintenance
Preventive maintenance
Break down maintenance
Environment maintenance

The TPL Company has adopted two types of maintenance preventive maintenance
and break down maintenance.
Maintenance department prepares the schedule for the preventive maintenance of util-
ity equipments for a period of one year as per preventive maintenance schedule. At
the end of the period, preventive maintenance schedule is revised on the basis of
EXECUTIVE DIRECTOR / GENERAL
MANAGER
DEPUTY MANAGER MAINTENANCE
MAINTENANACE MANAGER
TECHNICIAN / BOILER OPERATORS
34

break down analysis of last year. If the required necessary changes are also incorpo-
rated in the Preventive maintenance procedure.
Immediately after maintenance machines are qualified for production then it is taken
for trail run / verification.
The purpose of break down maintenance is to bring down maintenance technician in
maintenance on duty will be attending the break down without any delay and in case
he needs any guidance engineer/ supervisor will provide it.
Environment monitoring is also adopted in maintenance department. Control of envi-
ronment in a clean room is essential to keep the burden at low level that the microor-
ganisms can be excluded during processing and packing of sterile product. Thus con-
dition monitoring of operating environment is essential.


35

6. PERSONNEL AND ADMINISTRATION
The policy of Personnel and administration department is to render effective admin-
istration of all personnel and administration functions with specific emphasis on indi-
vidual relation discipline and welfare in a systematic and scientific way towards the
accomplishment of organizational goal.
ORGANISATION








FUNCTIONS OF P AND A DEPARTMENT

To meet the manpower requirement
To carry out the administrative functions of the factory in a systematic manner
Preparation of pay roll document
Salary distribution
Responsible for company vehicle
Handling of inward and outward letters
To provide communication facility
Maintenance of factory premises
To ensure the security functioning of company
Selection of security

GENERAL MANAGER
PERSONNEL MANAGER
SECURITY OFFICER PERSONNEL OF-
FICER
EXECUTIVE PER-
SONNEL
SYSTEM EXECUTIVE
LAUNDRY STAFF SENIOR CLERK OFFICE CLERK
36

CALSSIFICATION OF WORKMEN

Permanent: Whose work is permanent in nature and whose appointment is duly con-
firmed by management after evaluating his performance during probationary period.
There are 199 permanent workers in TPL.
Probationers: These workers are under observation for a period of time. After this
period they may become permanent or not according to their performance. There are
23 probationers in TPL.
Temporary: These workers are not permanent in nature they can work up to which
they like. These workers are under the control of management.
Substitute: These workers are substituted for a permanent worker do to his absents.
When he returns he will be replaced.
Casual: These workers are irrespective of any time period. Only one casual worker in
TPL now.
Apprentice: These are workers who are in training bases for a period of time. 97 ap-
prentices are present in TPL.

PROCEDURE OF SELECTION

The concerned department heard originates personnel requisition from for every posi-
tion to be filled with a clear job description and job specification to be carried out by
the recruit and it is sent for approval of the GM. An internal notification shall be ex-
hibited in the notice board indication the details of vacancy if suitable candidates are
available internally. In other cases any one or more than one of the external sources
are selected for initiating recruiting process.

On receipt of application assistant personnel office organizes the scrutiny in consulta-
tion with the Personnel manager or the General Manager and arranges for interview
with suitable candidates. Prior to the test or interview the candidates are required to
fill up the personnel profile and assessment by the selection committee is recorded in
the interview assessment from. Candidates are required to produce the concerned
document in original during the interviews as a proof of their educational qualifica-
tion, age, work experience, conduct and character. Then appointment orders are is-
sued to the successful candidates.

37

Candidates are placed in the respective sections after the induction programs. Every
new candidate appointed should undergo a pre employment medical examination
conducted by the medical practitioner and fitness certificate should be produced at the
time of joining in a prescribed format. A joining order will be issued at the end of re-
porting for duty.

Identity card, time punching card and leave card will be issued to each employee who
are directly employed by TPL. Issues stationeries like stapler, pen calculator etc to the
new employee if needed after entering in the stores records. Any employee in the or-
ganization can suggest required amendments through his/ her department head.
For recruitment to junior executive posts, preference will be given to internal candi-
dates based on qualification, experience, and performance besides other suitability
condition.

PAYMENT OF WAGE

Details entered in the Muster roll are the basis for payroll preparation. 23
rd
of every
month is considered as closing day. Personnel executive is responsible for roll perpe-
tration and personnel manager shall check the same for any discrepancies. Statement
indication the details of the late comings, ESI leaves, and leaves without pay are dis-
played in the notice board on 24
th
of the month for perusal by workers and to initiate
necessary corrections with 2 days before preparing the final statements. The final
statements are prepared on 29
th
and the same is sent to the accounts departments on
30
th
. Based on the above calculations the salaries are credited to the concerned em-
ployees bank account.
Factories cashier in charge is responsible for the collection of salary amount. Timing
of salary disbursement is arrangement in such a way that all the three shift workers A
shift (6:00 am to 2:00pm), B shift (2:00pm to 10:00pm), C shift (10:00pm to 6:00am)
and general shift (8.30am to 5:00pm) or executives and managers are getting the sala-
ry the same day without any work interruption. If person no present at the time of sal-
ary distribution will be kept under the custody of cashier for two more days. Person
who have not collected the salary have to collect it from accounts departments, head
office.
FIXATION OF WAGE
An amount of RS.2500/- per month merged with (Basic and FD) and RS.1125/- per
month merged with other allowances. In addition to the above an increase of RS.350/-
for medical, educational, and night shift allowances will be given to the workman.
38

7. QUALITY CONTROL DEPARTMENT

The policy of quality control department is to ensure quality by adopting high stand-
ard of testing with respect to pharmacopoeia standards. ISO standards in house speci-
fication and to develop and implement system for improving quality to achieve gross
production, gross profit and to eliminate manufacturing and design related customer
complaints.
ORGANOGRAM






FUNCTION
Incoming raw material analysis
In process analysis
Finished product analysis
Inspection of incoming consumable items
Monitoring of environmental condition
Intermediate product processing for production
Inspection/ test status at incoming area


GENERAL MANAGER
JUNIOR EX-
ECUTIVE
EXECUTIVE 1 CUSTOMER
SUPPORT
ANALITICAL
CHEMIST
IN PROCESS
INSPECTOR
CLERK TECHNICIANS
EXECUTIVE 2
CHEMIST TECHNI-
CIANS
39

8. STORE DEPARTMENT

The policy of the store and preserved materials in good condition by maintaining op-
timum level of inventory, issue the same to the user and manage the finished goods,
till it is dispatched to the customers.

ORGANOGRAM






FUNCTIONS
Receipt of storage materials
Incoming of raw materials and packing materials
Packing and dispatch of finished goods
Material receipt from plants
Issue of material
Stock control
Preservation of goods
Receipt and sales of scrap
Codification of labels
Packing


DEPUTY MANAGER
JUNIOR MANAGER
SUPERVISOR
STORE CLERK TECHNICIAN STORE ASSIS-
TANT
DATA ENTRY
40

ISSUE OF MATERIALS

All the sections in the various departments are given separate requisition books.
Based on the requirement of requisition made by the concerned department head.
Based on the availability the requested items are collected by the store assistants. The
items kept for the issue will be verified by the store copy of the receipt note material
are transferred to the plant by the store assistant.

INVENTORY CONTROL

A monthly consumption list is made and is compared with the consumption rate. The
item which is less than the monthly consumption in the list is marked and stock is re-
newed through purchase. For this a request for purchase is prepared. This request is
different from raw materials, consumables and spares.

DISPATCH OF FINISHED GOODS

Daily stock position of finished goods is generated from computer by junior executive
who intimates the marketing office regarding daily stock position by fax. Marketing
office furnished in return the details of the finished goods to be distributed by the dis-
patch note. The superior directs the need load worker to load worker to load goods
batch wise as performance invoice taken to the lorry by trolley and thereafter by man-
ual loading. Goods loaded are counter checked by invoice; a non returnable material
pass is prepared for the quality to the dispatched by superior.




41


9. GOOD S MANUFACTURING PRACTISE DEPARTMENT

GMP ensures that products are made of the nature and quality intended. It is particu-
larly essential that the personnel involved in every aspect right through from receipt
of material to distribution of finished products, known the manufacturing condition
and process which will affect quality, safety and performance of product.

HOUSEKEEPING
A vital element of quality assurance is good housekeeping. To have an environment
conductive for manufacturing of medical products housekeeping play a vital role.
Housekeeping is employed to create and maintain tidy safe environment remove dirt
and dust which can be hazard to quality of product reduce the level of contamination
of microorganisms.
PERSONNEL HYGIENE
Personnel employed in production area are medically certified free from disease. Thus
in a clean room and some controlled areas entry restricted to authorized persons also.
Use of cosmetics, jewelleries and those which can shed particles is prohibited is clean
room and personnel belongings are stored in lockers in the change room. Eating,
drinking and chewing in production area are prohibited.

ENTRY PROCESS
No person can enter through the changing area where outdoor clothing is removed
and sterilized garments are worn. The personnel are required to wash their hands and
feel immediately before entering the changing rooms. That is black, grey and white
areas are specified instruction are lend.




42


10. MARKETING DEPARTMENT

Marketing department is solemnly resolved to provide the customer with the right
product of right quality at right time.

ORGANOGRAM







The marketing department of TPL is based in Chennai. The domestic market is divid-
ed into six zones. They are ;
South I
South II
East
West
North
Gujarat
The product of TPL can be sold only to 1720 licensed blood banks 270 banks do
component separation. Now companys major focus on them because they use multi-
ple blood bags, which is more profitable to the company.

MANAGING DIRECTOR
GM MARKETING
ZONAL HEAD
AREA MANAGER
43


11. EXPORT AND LOGISTIC DEPARTMENT

The policy of export and logistic department is to achieve excellence in customer ser-
vice by providing
Timely and accurate information
On time deliveries for all orders
Technical and promotional support

ORGANOGRAM






More than 80% of TPLs sales come from the export market. Terumos market share
comes around 20-25% of world market. Terumo Penpol exports goods to more than
50 countries of world. 99% of export constitutes blood bags and 1% constitutes
equipments.





EXECUTIVE DIRECTOR
DEPUTY MANAGER MARKET-
ING
MARKETING EXECUTIVE LOGISTIC COORDINATOR
EXPORT
44


EXPORT ORDER EXECUTION

Export order acceptance form is prepared by logistics department coordinator export
and forwarded to deputy manager sales, production manager and marketing manager.
Once the final contract review is over and the production duties are finalized in the
meeting. Marketing manager should forward the duly filled export order acceptance
form to export department within two days of final contract review.
1. Based on the dispatch dates informed in the contract review meeting. Once the
export order acceptance form is received from the materials departments, the
customer and deputy manager sales is informed of the dispatch plan.
2. The DMS will inform LCE of the availability of products against each order 3
day prior to the plan dispatch date.
3. Based on the information a dispatch advance is given to DMS 2 days prior to
the dispatch date.
4. All export documents are prepared prior to dispatch date.
5. If the consignment is going on CIF bases a letter is given to the insurance
company with details regarding shipment.
6. The entire document specified in the purchase order are prepared prior to the
dispatch of goods.
7. Five copies of document signed and sealed are submitted along with the speci-
fied document.
8. The customer is notified of the date of the dispatch routing and date of arrival
of the goods at the destination port after shipment.
9. Copies of shipment document along with original are send to customer by
LCE.
10. Other originals of shipment documents are routed through our bank to cus-
tomer bank.
11. One the shipment is completed details of shipment is filled in the export order
register.




45










CHAPTER VI
SWOT ANALYSIS








46


SWOT ANALYSIS
SWOT analysis is a structured planning method used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a business venture.. It involves
specifying the objective of the business venture and identifying the internal and exter-
nal factors that are favorable and unfavorable to achieving that objective. The tech-
nique is credited to Albert Humphrey, who led a convention at the Stanford Research
Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500
companies. The degree to which the internal environment of the firm matches with the
external environment is expressed by the concept of strategic fit.




Setting the objective should be done after the SWOT analysis has been performed.
This would allow achievable goals or objectives to be set for the organization.
47


STRENGTH
Quality of the products is high
Collaboration with Terumo Corporation and Terumo BCT
Quality certifications like ISO, OHSAS ,and CE marking
Follow Japanese production technique of KAIZEN, TQM
Sound R&D
Stable Management
Enjoys export assistance
Better harmony between workers and top management
Products have high demand in domestic as well as international mrket.
Qualified and experienced professionals.
Sound financial position



WEAKNESSES
No adequate supply to meet the domestic demand of the product
High price of blood bag compared to imported brand
Servicing difficulty of blood bank equipments.
No proper MIS
Mainly depends on export market
Raw material supply from far of place
48



OPPORTUNITY
Growth of high tech hospital in India
Up gradation of blood banks
High employment potential
Able to adopt new technology to reduce cost of production
Quality awareness among people is growing at a faster rate


THREATS
Capacity constrain
Low priced product available from other manufactures
Unable to capture domestic market
Small market share in India
No community blood centre
Blood banks are not technology upgraded




49









CHAPTER VII
PORTERS FIVE FORCE MODEL

50

PORTERS FIVE FORCE MODEL ANALYSIS OF TPL
The model of pure competition implies that risk-adjusted rates of return should be
constant across firms and industries. However, numerous economic studies have af-
firmed that different industries can sustain different levels of profitability; part of this
difference is explained by industry structure.
Michael Porter provided a framework that models an industry as being influenced by
five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates.

Bargaining Power Of Suppliers
Bargaining power of suppliers is high in the case of TPL because
the major raw material for blood bag is PVC pellets and if the price is reduced it af-
Competative
rivalry with in
the industry
Threat of
substitutes
Bargaining power of
supplier
Threats of new
entrants
Bargaining power
of customer
51

fect quality of pellets . So the company has to rely on suppliers for high quality mate-
rials for a moderate price
Bargaining power of customers
Bargaining is also high of customers is also high in the case of TPL
because of the availability of blood bag from other companies at cheaper rate. compa-
ny is also look more in to loyal customer.
Threats of substitutes
Threats of substitutes is less in the case of TPL., except human
body, blood is stored in blood bag. Earlier bottle is used .now it is totally replaced.

Threats of new entrants
Threats new entrants is also less in the case of TPL because the num-
ber of players in the industry is much more such that the production of blood bags is
double the quantity demanded. The rules and regulation of government also play a
vital role as barrier. The fund needed for setting up of production plant and R&D is
high.
Competitive rivalry with in the industry
Competitive rivalry of TPL with in the industry is also high.
There are many players in the industry. Comparing with the product of TPL is hav-
ing a premium price because of this TPL has faced an industry shake out from the
single bag tender market.
52



53










CHAPTER VIII
FINDING, SUGGESTIONS AND CONCLUSION
54

FINDINGS

Terumo penpol is the largest producer of blood bags and is a part of terumo
corporation an terumo BCT
Product quality is high
Company follow Good Manufacturing Practice company has strong R&D
department
Export is high in the case of blood bag, but blood bank equipments have less
export
Follow KAIZEN, TQM
Won several awards for the industry and R&D
CSR activities is more appreciative .
Quality of the products is high
Quality certifications like ISO, OHSAS ,and CE marking
Follow Japanese production technique of KAIZEN, TQM
Sound R&D
Stable Management
Enjoys export assistance
Better harmony between workers and top management



55


SUGGESSIONS
More permanent workers should be adopted
May expand the product line
May start their own blood bank
Integrate all office under one building.
Give importance to customer health and efficiency
Conduct enthusiastic programs to reduce stress
Infrastructure arrangements could be improved in MSG
Up to date information could be posted in official website of TPL
Distribution networks could be improved
Waste management could be improved
Travelling facility of employees could be improved
Adoption of new technology helps to reduce cost of production
Give more publicity about the company.
More actions taken over to reduce employees turnover
Proper implementation company policy
clubbing of innovation and value added features in the product might
contribute to increase in the potential market.


56

CONCLUSION
Terumo penpol is subsidiary of the multibillion dollar terumo corporation, Japanese
company having its presence in over 150 countries. Terumo has distinguished itself as
a high quality manufacturer of medical products, with 13factories around the world.
The company generates annual sales of about $2.0 billion and employs 12,322 people
worldwide. Terumo is pioneering products of future like implantable left-ventricular
assist systems, artificial vessels, minimally invasive surgery devices, Nano-capsules
and more. Terumo penpol ltd (tpl) has opened its new factory premises on 28 may
2008. The new plant will enable terumo penpol to double its production capacity from
the existing 13 million. A significant portion of this output will be exported.The com-
pany has been consistently winning top exporter awards for medical disposables and
surgical products. the plastic exports promotion council has feted tpl as the second
best exporter for nine consecutive years from 1999.Terumo penpol has 700 customers
all over India and its blood bags are sold in over 60 countries across the world and its
medical equipment division has more than 1900 installation to its credit. Terumo pen
pol has its head quarters in Trivandrum and employs more than 800 people experi-
enced team of marketing and sales professionals covering the whole of In-
dia. A well-trained service group further supports the team .



57

BIBLIOGRAPHY
Department Manual
Direct Interview
Annual Report

Books
1. Aswathappa .K Human Resource And Personnel Management
2. Kothari c. r, research methodology & technique
3. kolter philip 2002,marketing management


WEBSITES

www.terumopenpol.com
www.terumo.com
www.wikipedia.com