CHAPTER I INTRODUCTION Organisation Study 1.1 INTRODUCTION An organization is a planned co-ordination of a number of people and their activities for the achievement of some specific goals through division of labour, and hierarchy of authority. An organization study involves the study of the structure and functioning of its departments. Organizing or organization is one of the important functions of Management. Almost all the organizations are different but they have certain common features. All are collection of people, linked together by formal and informal relationships. They have hierarchical orders that are engaged in co-operative activities and they all have identical boundaries. So the study of people in organization is important for future managers. Structure of an organisation is very important for its functioning and growth. It provides the basic frame work for its progress and expansion. For future managers it is imperative to study the organisational structure and functioning of successful organisations so that they as future managers may guide organisations towards success and profitable functioning. Nineteen years after Independence, India was tottering with an enormous population of 540 million. Birth rate was a staggering 2.5%, adding 35,617 babies every day. It was around this time that the Govt. Of India decided to broad base and intensifies the Family Planning Programme. A massive drive to educate and reach the masses was launched. The need to provide essential back-up services, through easy availability of contraceptive pills and condoms was felt. It became imperative to have a production facility for manufacturing superior quality condoms at low cost. Thus, on March 1, 1966, Hindustan Latex was born. IMK Kollam Page 2 Organisation Study 1.2 OBJECTIVES OF THE STUDY To understand and study the various functions of the departments in this organisation. To acquire knowledge about the various functions as well as managerial aspects of the company. To apply the theoretical knowledge to practical situations. To get an idea of performance of the organization regarding the achievements of its goals. 1.3 METHODOLOGY The methodology employed for the study was mainly through primary data and secondary data.it is descriptive in nature Primary Data Primary data are collected through discussions and interviews with management personnel’s of various departments • Conducting formal interviews with the department heads and other executives. • Informal talks with personnels in the organization. Secondary Data • Official website of HLL, www.lifecarehll.com Annual reports of HLL Lifecare Ltd. Company manuals and journals. Page 3 • • IMK Kollam Organisation Study IMK Kollam Page 4 Organisation Study 1.4 SCOPE OF THE STUDY The prime objective of the organization study is to get an organizational familiarization. It will helps to know more about the company its various departments, sections, delegation of authorities and hierarchy etc.It aims at generating a practical awareness of functions and management of the company. The study covers the general understanding of the organization, its culture, market position and its business activities. The study throws lights on the various products and production processes together with the company future plans of expansion. It helps to know whether the organization stands with respect to the society and to see whether it is been able to attain its overall mission and objectives. 1.5 LIMITATIONS • • Busy schedule of the employees. In order to maintain the secrecy of the organization, some of the information was kept confidential. • Time constrain were also there for the study. IMK Kollam Page 5 Organisation Study 1.6 CHAPTERISATION Chapter 1 Includes Introduction, Objectives, Methodology, Scope and Limitations of the study Chapter 2 Chapter 3 Deals with Industry Profile of the Company Deals with Company Profile – Includes History, Strategic Intent, Products Chapter 4 Chapter 5 Chapter 6 Chapter 7 Departmental Analysis Competitive Analysis (SWOT Analysis, PEST Analysis) Porter’s Five Force Analysis Findings, Suggestions and Conclusion IMK Kollam Page 6 Organisation Study CHAPTER II INDUSTRY PROFILE IMK Kollam Page 7 Organisation Study 2.1 ORIGIN OF INDUSTRY Studies among the 1479 U.S men have concluded that sex education appear to delay the age of first intercourse and to encourage the condom use. Men who have received sex education were more likely to use condom. The use of condoms has been traced back to several thousand years. The prehistoric cave findings in Egypt and France pointed out that condoms were in use, but it was in different form called the penile sheath, even today the tribes in Amazon jungle use gourd shells; however, most historians believed that Romans soldiers were the first to use the condoms. These soldiers used dried sheep intestine as sheathed for protecting themselves against sexually transmitted diseases. With the fall of Roman Empire the use of condoms becomes very rare. In fact the condom technology was lost during the Middle Ages. The condom was reinvented by Marquis De Sade in the 17th century. Merrill Youngs was the first company in the world to manufacture and distribute. In 1957, the very first lubricated condom was launched in the UK by Durex. From the early 1960s, the use of condoms as a contraceptive device declined as the pill, the coil and sterilisation became more popular. The female condom has been available in Europe since 1992 and it was approved in 1993 by the US Food and Drug Administration (FDA).In more recent years, improved technology has enabled the thickness of the condom to decrease. Also, condom manufacturers have recognised that one size of condom does not fit all. Now condoms with different shapes, widths and lengths are available. 2.2 GROWTH AND DEVELOPMENT OF THE INDUSTRY Ever since Merrill Youngs came up with manufacture and distribution of condom world over, new companies have come to the scenario. In the past men had to do the labour cutting, slicing and shaping the intestine of lamb and sheep to use. Today the latest technology helps to vulcanize the rubber latex into thin film called condom. IMK Kollam Page 8 Organisation Study 2.3 PRESENT STATUS OF THE INDIAN INDUSTRY The major players in India apart from HLL are TTK groups (Kohinoor) brand, SSL International Durex brand, JK Ansell’s Kamasutra brand and Polar Latex, Sureted Prophylactics (India) Limited, Indus Medicare etc. The total production capacity in India is around 2.5 billion. Kamasutra brand is in high demand in the market, which is followed by Moods of HLL. There are three segments for Indian condom market. 1. 2. 3. Free supply Social market Commercial market The following is the production capacity of major companies (in Millions/Year): HLL Lifecare Limited TTK Limited Polar Limited J K Ansell Sureted Prophylatics(India) Ltd Indus Medicare 1316 400 250 500 100 250 IMK Kollam Page 9 Organisation Study CHAPTER III COMPANY PROFILE IMK Kollam Page 10 Organisation Study 3.1 ORIGIN AND HISTORY The contraceptive industry has become highly competitive with the enhanced focus worldwide on protective sex. A distinctive shift has been evident with more people using condoms a prophylactic than a spacing method. This shift has been an important reason in repositioning of condom word wide a pleasure enhancing and HIV protection device. India is one of the largest and most populated countries in the world, out of this it is estimated that around 2.5 million people are currently living with HIV. Hence importance of protected sex is increasing enormously day by day and condoms are considered as the best and safest method. The increased use of oral pills and intra uterine devices for spacing the hormone based methods are getting high acceptance. The MNC pharma companies are launching new generation hormone based contraceptives the choice of consumers and clinicians have increase. Operating in high competitive Hospital product industry, supportive health care products like blood bags , Hydrocephalus Shunts, Tissue expanders etc have been developed by Indian labs for substituting costlier imports. The availability of local brands has made the foreign competitors to reduced prices and a few Indian companies have entered the market enhancing the competitive pressures. This increase has resulted in lowering the margins. Companies has broad based the product mix by offering various value added products like blood collection bags ,blood filters ,shunt accessories , medical equipments. HLL Lifecare Limited (HLL) commenced its journey to serve the Nation in the area of healthcare, on 1st March 1966, with its incorporation as a corporate entity under the Ministry of Health and Family Welfare, Government of India. HLL was set up in the natural rubber rich state of Kerala, for the production of male contraceptive sheaths for the National Family Welfare Programme. HLL commenced commercial operations on 5th April 1969 at Peroorkada in Thiruvananthapuram (formerly Trivandrum). The Plant was established in technical collaboration with M/s Okamoto Industries Inc. Japan. Two most modern Plants were added, one at Thiruvananthapuram and the other at Belgaum in 1985. Another Plant was added in the early nineties at Aakkulam IMK Kollam Page 11 Organisation Study in Thiruvananthapuram for the production of Blood Transfusion Bags, Copper T. IUD’s, Surgical Sutures and Hydrocephalus Shunt. HLL had set its sights in 2003 - when it had a turnover of a mere Rs 163 crores - to be a Rs 1000 crore company by the year 2010. On the path of rapid growth, this year (2010) it has not only surpassed this figure but has drawn a clear road map to achieve a five fold growth by the year 2015. HLL is today a Mini Ratna and upgraded as a Schedule B Central Public Sector Enterprise. HLL Lifecare Limited is the only company in the world manufacturing and marketing the widest range of Contraceptives. It is unique in providing a range of Condoms, including Female Condoms, Intra Uterine Devices, Oral Contraceptive Pills - steroidal, non-steroidal and Emergency contraceptive pills; and Tubal Rings. HLL produces today 1.316 billion condoms annually making it one of the world’s leading manufacturers of condoms, accounting for nearly 10 percent of the global production capacity. HLL’s Health care product range include: Blood Collection Bags, Surgical Sutures, Auto Disable Syringes, Vaccines, In - Vitro Diagnostic Test Kits, Pharma products for Women, Natural products, Hydrocephalus Shunt, Tissue Expanders, Surgical and Examination Gloves, Blood Banking equipment, Neonatal equipment, Blood Transfusion and Intravenous sets, Vending Machines, Iron and Folic Acid Tablets, Sanitary Napkins, Oral Rehydration Salts and Medicated Plasters. HLL’s Blood Bags were launched in Brazil in 2006. HLL also launched its nonsteroidal contraceptive pill under the brand name Ivyfemme in Peru in October 2008. HLL has introduced Closed System Blood Bags that are integrated with Leukocyte Filter - called LD Bags. These bags are intended for leuko-depletion immediately upon collection of blood from donors at blood banks. IMK Kollam Page 12 Organisation Study In collaboration with The Female Health Company (FHC), of US, HLL is marketing FC female condom in India. The female condom is the only female controlled prevention technology approved by the US FDA and the WHO. HLL launched the nitrile female condom - Velvet in India in Decembrer 2007. Targeted at contemporary Indian women and new age couples, nitrile condoms empower women providing dual protection against unwanted pregnancy and STDs, HIV/AIDS. HLL has also launched several initiatives in the services sector – for medical infrastructure development, diagnostic centres and procurement consultancy. These have been conceived to bring about a whole new realm of accessible, affordable healthcare delivery to every citizen. Over the years each of the initiatives taken up by HLL are targeted at reaching quality healthcare at the doorstep of every family. Associate Institutions of HLL namely HLFPPT and LifeSpring Hospitals have ensured this to the nation’s underserved and vulnerable populace, at an affordable cost. With a vast array of innovative products and social programmes to meet the nation’s health care needs, HLL Lifecare Limited (HLL) is firmly on track, with its vision of Innovating for Healthy Generations. HLL achieved a turnover of Rs. 4420 million during 2009-10, registering a growth of 20% over that for 2008-09 of Rs.3680 million. However the business handled by the company totaled Rs. 12960 million, including the value of transactions handled by its Procurement and Consultancy Division of Rs. 4860 million and Infrastructure Development Division of Rs 3690 million. Over the past sixteen years HLL has steadily set up a strong and sound infrastructure for direct marketing. HLL has put in place a vast distribution network covering the length and breadth of the country. HLL’s products today reach over five lakh retail outlets, in 10 states, covering over 600 districts, 1509 distribution points, including over a lakh villages, in the remotest corners of the nation. HLL has today five state of the art manufacturing facilities - two at Thiruvananthapuram (at Peroorkada and Akkulam) manufacturing Contraceptives and IMK Kollam Page 13 Organisation Study Health Care products, at Kanagala (near Belgaum) producing contraceptives and Womens Health Pharma range, at Kochi in the Special Economic Zone for Female Condoms, and at Manesar in Haryana for the production of In-Vitro Diagnostic Kits. These Units have the ISO 9001, ISO 14001- quality and environmental management system certifications. HLL’s Peroorkada Plant was also awarded the OHSAS 18001 Certification for its efficient Occupational Health and Safety Management System. HLL is investing heavily in the area of Research and Development. It is setting up a national centre for Research in the area of Contraceptive products. Since the condoms are the flagship products of HLL an analysis of the condom market of India will be relevant here. The condom market has come a long way since the government promoted family planning drive. The main competitors of HLL in the condom market are TTK- LIG, which sells two brands Kohinoor and Durex and JK Ansell sells the brand Kamasutra. The market is broady classified into 1. 2. A popuar economy segment where Kohinoor and moods are the leading brand A premium segment where kamasutra is leading. HLL is trying to break into this segment with moods premium. TTK- IG has their international brand Durex targeted at this segment. 3. leader The Company has achieved a turnover of Rs. 244 crores during the last financial year - 2006-07 and a profit after tax of Rs. 20.06 crores. The third segment is occupied by brands which are subsidized and sometimes distributed as a part of social marketing campaign. Nirodh is the major undisputed IMK Kollam Page 14 Organisation Study PEROORKADA FACTORY (PFT) History HLL started its operations as a packaging Unit for condoms in 1969 at Peroorkada, Thiruvananthapuram, Kerala. Subsequently HLL set up their own manufacturing unit in Peroorkada itself. The plant was initially named as Nirodh Factory, Trivandrum (NFT) and has now changed to Peroorkada Factory, Trivandrum ( PFT). The initial production capacity of PFT was 144 million pieces per year using Japanese technology. In 1976, the production capacity was doubled with the addition of 2 more lines in the moulding section. In 1987, the capacity was further increased to 608 million pieces. Subsequently, the machines of 1969 and 1976 were modernized and the capacity is enhanced to 640 million pieces. The last expansion of the company was in 2001 with the installation of new Malaysian machine. HLL now has an installation capacity of 670 million pieces per year (510 million pieces at PFT and 160 million pieces at KFB). HLL today is one of the world’s largest manufacturers of condoms with an annual production of 1 billion pieces. IMK Kollam Page 15 Organisation Study 3.2 MILESTONES OF HLL LIFECARE LTD. 1966 Incorporated as a company under the Ministry of Health and Family Welfare of the Government of India. 1969 Commences commercial production of Condoms at its Peroorkada Factory Thiruvananthapuram (PFT). Production capacity – 144 million pieces a year. 1976 Production capacity doubled to 288 million pieces a year with the addition of two more lines in the moulding section. 1985 Addition of a new plant at Thiruvananthapuram with the latest state-of-art Japanese Technology. Commencement of new condom plant at Kanagala, Belgaum (KFB). Raises HLL’s total Condom production capacity to 800 million pieces a year. 1991 HLL recognized as a MOU signing CPSU by the Government of India. HLL granted the 510(k) Registration by the Food and Drug Administration (FDA) US, for its Male Condoms. 1992 Adds manufacture of Medigard Surgical & Examination Gloves at PFT. Commences formulation and tabletting of Saheli (Centchroman) oncea-week non- steroidal pill at the Kanagala plant near Belgaum (KFB). 1993 Plant for formulation and tabletting of Mala-D Oral pills, commissioned at KFB. 1994 Commences production of copper-T Intra-Uterine Device (IUD) at its Aakkulam Factory, Thiruvananthapuram (AFT). Commences commercial production of Ceredrain Hydrocephalus Shunts. 1995 Introduces Surgical, Synthetic and Catgut Sutures. IMK Kollam Page 16 Organisation Study Commences manufacture of HL-Haemopack blood tansfusion bags at AFT. HLL awarded NF mark. 1996 HLL awarded ISO 9002 certification - for PFT (Condom manufacture) and AFT (manufacture of blood bag, copper-T and hydrocephalus shunt. 1997 HLL, the first company from India selected by the World Health Organisation (WHO) for sourcing of Condoms. 1998 HLL Peroorkada plant (PFT) awarded CE mark HLL’s Akkulam plant (AFT) awarded the CE mark. Hindustan Latex Family Planning Promotion Trust (HLFPPT) a notforprofit organisation of HLL commences several social marketing projects and services in different parts of the country. 2000 Receives MOU award and Certificate of merit from the Vice President of India, for achievement of MOU targets. AFT awarded ISO 14001 certification. 2002 PFT and KFB awarded ISO 14001 certification. KFB awarded the CE mark for Condoms. Introduces HL HAEMOSAFE Instant Needle and Syringe Destroyer, for destroying used needles. 2003 Receives MOU Award from the President of India, for excellence in the achievement of MOU targets for 2001-2002, on 5th April 2003. Introduces ‘Preventol’ Emergency Contraceptive Pills. Introduces for Blood Bank automation, HiCare Blood Collection Monitor and HiCare Tube Sealer for sealing Blood Bags. Commercial production of Surgical Sutures launched at AFT 2004 IMK Kollam Launches Moods condoms in the Middle East on 22nd January. Page 17 Organisation Study HLL’s Female Condom launched by the Secretary, Dept. of Family Welfare Launches Sanitary Napkins “Sakhi” at Indore on 29thFebruary. Receives Government of India’s MOU Award from the Prime Minister Launched ‘Autolok’ Auto destructive syringes 2005 Condom Vending Machines installed in Kerala by HLFPPT on 29th July. HLL launches Moods variant - Spiral Condoms Receives the National Safety Innovation Award from the Ministry of Labour Government of India, on 17th September. HLL launches Moods Glow Condoms at a special function at Thiruvananthapuram on 1st December. 2006 HLL receives National Award for Excellence in Cost Management instituted by ICWAI at New Delhi on 25th January. HLL upgraded as a Schedule ‘B” PSU by the Government of India on 24th April. Launches a new contraceptive concept - the Confidom Passion Rings HLL declared a MINI RATNA PSE by the Government of India on 31st August. TYFEX & HIVAC-B Vaccines launched HLL ties up with SUPPLYCO in Kerala for the distribution of its products on 9th November. HLL receives the Kite Mark (UK) Certification for its Condoms on 16th November. IMK Kollam Page 18 Organisation Study KFB receives the National Energy Conservation Award in the Drugs and Pharmaceuticals sector on 14th December. 2007 HLL renovates and opens the Kowdiar Park at Thiruvananthapuram for the citizens of Kerala’s Capital city on 17th January. HLL organized its first ever inter Unit/Department Expo – Latexpo Launches ‘Crezendo’ Condoms with Vibrating Ring New Condom Plant at Peroorkada inaugurated by the Union Minister for H&FW on 24th November. With this PFT’s capacity increases to over one billion (1000 million) condoms – one of the world’s largest. HLL’s ‘Corporate Song’ released on 24th November. Launches ‘VELVET’ – the new Female Condom made of a nitrile 2008 Receives National Rajbasha Award from the President of India for outstanding implementation of Official Language in the Southern Region, on 14th September. HLL registered its first Pharma product outside India in Peru in South America and launches its once-a-week, non-steroidal oral contraceptive pill in the brand name ‘Ivy Femme’ in Lima, Peru HLL ties up with Arya Vaidya Sala (AVS), Kottakkal for introducing Women Health Care, Health Generics, and Neutraceutical products Receives Capexil’s Export Award for outstanding export performance 2009 Hindustan Latex - HLL - took a new name HLL Lifecare Limited – on 1st January - as an organization whose activities encompass complete health care for all. Changes were also brought to its existing Logo by adding a touch of pink – which serves as the messenger of good health. HLL opened MOODS Planet retail outlet at Thiruvananthapuram (Kerala) to directly reach its range of contraceptives to consumers IMK Kollam Page 19 Organisation Study The prestigious ‘Superbrand’ status was conferred on HLL’s premium condom brand MOODS on 17 December. 2010 Launched ERP (Enterprise Resource Planning) implementation project HLL completes the construction of Super Speciality Block in the Trivandrum HLL bags prestigious Indira Gandhi Official Language Award first prize among C region (non-Hindi speaking states) on 14 September. The prestigious Power Brand status has been conferred on MOODS brand recognizing it as one of the top 200 brands in India, on 01 October 2010. 2011 Shri. Ghulam Nabi Azad, Union Minister for Health and Family Welfare inaugurated the second Blood Bag Plant – DONATO BLOCK- at Akkulam Factory, on 05 January 2001 HLL launched two professional distance education programmes on clinical engineering and management in association with Indira Gandhi National Open University (IGNOU), on 05 January. 3.3 STRATEGIC INTENT MOTTO Innovating for healthy generations VISION IMK Kollam Page 20 Organisation Study HLL Lifecare Limited will establish itself as the Leader in its core activities, through a process of continuous innovation and participatory approach in order to MISSION To accomplish the Corporate Vision, HLL Lifecare Limited has outlined a Mission to be a World Class Health Care Company with focus on five key areas, namely Provide best value to the customer. Be an employer of choice. Promote the cause of family health in general, and women's health in particular. Business Customer Innovation Employee Social Sector initiatives. Business Leadership Attain rapid growth and global levels of operations with cost competitiveness. Be among the top three players in each main product category. Become the organization to be benchmarked with. Become an acknowledged and admired leader at industry forums. Customer Focus Focus on quality and customer delight at all time Innovation IMK Kollam Page 21 Organisation Study Establish core competence through a process of learning and innovation. Create a culture of continuous innovation resulting in at least 10% of turnover from Research and Development initiative. Employee Satisfaction Strive to be the employer of choice in India with employee satisfaction levels of over 90%. Social Sector Initiatives Be recognized as the leading social organization in the field of reproductive and Women's Health, with a commitment to the society - a partner of choice for implementing all government and multi-lateral initiatives in these segments areas to achieve its vision. These are - customers, employees, business, industry, and socialinitiatives. IMK Kollam Page 22 Organisation Study 3.4 ORGANIZATIONAL POLICIES HLL Lifecare Limited is committed to: Provide products and services, conforming to international standards in the health care area to the complete satisfaction of all customers and for building healthy generations. Achieve a high standard of personal, corporate and business excellence through continual improvement, human resource development and teamwork. Meet all statutory & regulatory requirements and be an organization with Good Corporate Governance and Corporate Social Responsibility. HLL Lifecare Limited committed to quality by mandating that all manufacturing facilities are certified to a quality system standard. SAFETY, HEALTH AND ENVIRONMENT (SHE) POLICY Protect environment, prevent pollution and eliminate occupational health and safety risks through continuous monitoring and control of the impact of its activities, products or services on a continual basis. Set measurable objectives for continual improvement. Conserve raw materials, energy & reduce waste at source. Extend all support to agencies for creating awareness regarding good environment, health and safety policy to the public. SHE Management System Certifications HLL Lifecare Limited believes that preserving natural resources and protecting the environment is their responsibility to their employees, their customers and the communities in which they operate. They are also committed to health and safety of their employees and as part of this responsibility they have developed and are maintaining excellent environmental, health, and safety management systems that meet the requirements of ISO 14001 & OHSAS 18001. 3.5 PRODUCTS IMK Kollam Page 23 Organisation Study The different products of HLL Lifecare Ltd are produced at three different factories in India: • • • Peroorkada Factory (PFT) Akkulam Factory (AFT) Kanagala Factory (KFB) Perorkada factory produces condoms out of latex. HLL is one of the world’s largest manufacturers of condom. The company is now introducing a wide variety of condoms into the market. Akkulam factory produces healthcare products like blood bags, sutures, hydrocephalus shunts, copper-t, ceredrain etc. HLL started production of copper – T in 1993 at Akkulam plant. HLL’s T-Care is being exported to several countries. Kangala factory produces oral contraceptive pills: • • • Saheli Mala – D Mala – N Besides manufacturing several contraceptive and healthcare products HLL also have the trading of many other products such as: • • • • • • Needle destroyers Iron and folic acid tablets, Tissue expander Sanitary napkin Surgical gloves Oral rehydration salt etc IMK Kollam Page 24 Organisation Study HLL Lifecare Ltd’s Product Range: PRODUCTS BRANDS Ultrathin Supreme Dotted All Night Extra Long Scented (Rose, Musk, Jasmine) Moods Chocolate Flavour Banana Flavoured Strawberry Flavoured Ribbed Condoms Share Nymph Nirodh Rakshak Ustad Crezendo Saheli Novex Coloured Glow Share 3s Nymph 3s Deluxe Nirodh New Lubricated Nirodh Super Deluxe Nirodh SIPPSA Telugu Ustad 3s Crezendo Saheli Novex VARIETIES Non-steroidal Oral Contraceptive Pills Oral Re-Hydration Salt Blood Transfusion and Intravenous Set Emergency Contraceptive Pills Intra Uterine Device Iron and Folic Acid Medicated Plaster Surgical Sutures Jal Jeevan Jal Jeevan HL HAEMOPACK HL HAEMOPACK HiCARE HiCARE Preventol T-Care Ferro Plus Plast Aid Hicon Hisil Hinsurg Hincryl Preventol T-Care Ferro Plus Plast Aid Hicon Hisil Hinsurg Hincryl Page 25 IMK Kollam Organisation Study Hinocryl Hidox Hinglact Surgical Gloves Mediguard Hi-Tech Hydrocephalus Shunt Needle Destroyer Tube Sealer Tissue Expander Steroidal Oral Contraceptive Pills Instant Needle and Syringe Destroyer Blood Collection Monitor Disposable Delivery Kit Female Condom Tubal Rings CBD Herbs Berries Ceredrain Needle Destroyer Tube Sealer HiCare HL-SUBCUTEX Arpan Mala-D Instant Needle and Syringe Destroyer HiCare Disposable Delivery Kit Confidom Velvet Tubal Rings Chyavanules Hinocryl Hidox Hinglact Mediguard Surgical Gloves (Nonsterile) Mediguard Examination Gloves Mediguard Surgical Gloves (Sterile) Ceredrain Needle Destroyer Tube Sealer HiCare HL-SUBCUTEX Arpan Mala-D Instant Needle and Syringe Destroyer HiCare Disposable Delivery Kit Confidom Velvet Tubal Rings Chyavanules IMK Kollam Page 26 Organisation Study IMK Kollam Page 27 Organisation Study HLL – A Worldwide provider of Contraceptives and Health Care Products HLL is today the leading provider of contraceptive and health care products for various public health programmes managed by international agencies like – UNFPA, Mission Pharma, PSI and IDA. HLL is partnering with the Government of India in the National Rural Health Mission, Reproductive and Child Health Project and the National AIDS Control Programme. HLL has the highest quality certifications awarded by reputed international agencies. All its products have the CE Mark, and its range of condoms have the US FDA 510k registration, the KITE mark, SABS mark and the TBS mark. Major Events in the area of Health Care In partnership with Becton and Dickinson (BD) – one of the world’s leading Health Care companies, HLL recently introduced Bsure – reuse prevention syringe for use in the curative segment. This is a major step to address the public health challenge facing the nation. The Bsure syringe employs a unique plunger breaking mechanism that is ‘clinician activated’, to eliminate any possible reuse of the syringe. HLL had also earlier introduced the ‘Autolok’- auto destructive syringe, for the national immunization programme. HLL has teamed up with M/s Gambro BCT - a Swedish Company, a global leader in automated blood collection technologies, therapeutic aphaeresis, and leukaphaeresis, for cell therapy applications. HLL is marketing their Blood Component Therapy Aphaeresis Systems in India. The Aakkulam Unit of HLL has recorded outstanding performance for the year 200607. The Unit manufactured a record 5.5 M Pcs. of Blood Transfusion Bags during the past year. The Unit also produces Surgical Sutures, Copper T’s, Tubal Rings, Hydrocephalus Shunts and Tissue Expanders. HLL’s Blood Bags have been registered in Brazil and these were launched here on 23rd June, 2006. IMK Kollam Page 28 Organisation Study HLL has also introduced Closed System Blood Bags that are integrated with Leukocyte Filter - called LD Bags. These bags are intended for leuko-depletion immediately upon collection of blood from donors at blood banks. In the area of the Female Condom, HLL has entered into an agreement with The Female Health Company (FHC), a US company, to market their primary product - FC female condom in India. FHC is the manufacturer of FC female condom, the only female controlled prevention technology approved by the US FDA and the WHO. FC is distributed in over 100 countries around the world. HLL is in talks with FHC, for a possible transfer of technology to enable production of FC Female Condoms in the country. HLL launched on 17th December, 2007 Velvet - the new condom for women in India. Targeted at contemporary Indian women and new age couples, this risk free condom ensures full protection during sexual intercourse. Velvet is made of a special material called nitrile, which is thinner and stronger than the male condom, making it more reliable during usage. These superior quality nitrile condoms are women initiated contraception and come with dual protection against unwanted pregnancy and STDs, HIV/AIDS. NEW BUSINESS • • • • • Vaccines Life spring Hospital Network In – Vitro Diagnostic Test kits Hind Labs Diagnostic centre Medipark HLL has ventured into the area of Vaccines – to take on the challenge posed by communicable diseases, which are responsible for a significant share of the global burden of diseases, particularly in developing nations. The need to have affordable high quality vaccines for preventing communicable diseases is a public health priority in India. The company has initially launched the marketing of Hepatitis B and Typhoid Vaccines. IMK Kollam Page 29 Organisation Study The Ministry of Health and Family Welfare handed over to HLL on 11th January 2008, nearly 300 acres of land at Chengalpet, near Chennai in Tamil Nadu, for its proposed Medical Equipment Park and Vaccine Project. The MediPark is envisaged to be an integrated manufacturing facility complex of international standards in the field of healthcare and shall comprise of manufacturing industries for medical diagnostics, equipments, disposables and devices. The complex will also house an incubation centre. HLL started the LifeSpring Hospital Chain to provide cost effective quality care, particularly in the area of reproductive health for the low income population. The first LifeSpring Hospital was launched at Hyderabad in December 2005 and also at Kanpur and at Agra in UP. HLL and Acumen Fund, a nonprofit venture philanthropy fund based in the US formed on 18th March, 2008, LifeSpring Hospitals (Pvt.) Ltd. - a joint venture intended to create a chain of small hospitals (20-25 beds) focused on providing lowincome clients in the country widespread access to maternal and child health care services. The company, a 50/50 equity partnership between HLL and Acumen, will support LifeSpring’s plan to open five hospitals in 2008 and thirty across India by the end of 2010 and scale to 140 franchised hospitals between 2010 and 2012. This is a unique social franchising initiative for creating access to good quality reproductive health services to poor people, at affordable prices. LifeSpring charges range between 30-50% of the prevailing market rates, and will significantly reduce the burden of rising health costs on the nation’s low-income communities, helping to reduce poverty. LifeSpring Hospitals will offer the following key services: antenatal care, postnatal care, deliveries (normal and caesarean), family planning services and medical termination of pregnancy, pediatric care, including immunizations, as well as diagnostic services, a pharmacy, and health care education to the communities in which it works Procurement and Consultancy Services Division of HLL Lifecare Limited handles the procurement of Drugs, Chemicals, Medical Equipments and other health sector goods for its clients at a pre-decided commission rate agreed upon by both HLL and the client through a written contract. Currently HLL (P & CD) is handling the IMK Kollam Page 30 Organisation Study procurement of different Central Government Agencies such as NACO, NVBDCP and MCD. P & CD of HLL also procures medical equipments for several medical colleges all over India under the PMSSY Scheme on behalf of the Ministry of Health and Family Welfare, Government of India. This division also provides procurement and consultancy services for HLFPPT and HLL’s Pregnancy kit Manufacturing Factory at Manesar (MFG). The import of JE Vaccines from Chengdu Institute of Biologicals, China for and on behalf of Ministry is also coordinated by the P&CD of HLL Lifecare Limited. Infrastructure Division (ID) of HLL Lifecare Limited . is the in-house consultant to the Ministry of Health & Family Welfare, Govt. of India for up-gradation of Medical Colleges at Bangalore, Salem & Trivandrum under Pradhan Mantri Swasthya Suraksha Yojna(PMSSY) and also for six AIIMS like hospitals at Bhopal, Bhubaneswar, Jodhpur, Patna, Raipur & Rishikesh. ID of HLL is also the consultant to MOH&FW for up-gradation of JIPMER, Pondicherry. HLL set up last year, a dedicated ‘Women’s Health Care Pharma Division to cater to the reproductive Health Care needs of women - covering all age groups. The initial focus of the division will be the Gynaec segment, the products of which will be promoted through Doctors. All products for this Division are being manufactured at HLL’s Kanagala Plant, near Belgaum in Karnataka. The product range will cover all sectors of women’s health viz., autoimmune diseases, gynaecological infections and sexually transmitted diseases, hormone-related disorders (including menopause, contraception and sexual dysfunction), osteoporosis, cancer, and urinary bladder disorders. HLL has commenced manufacture and distribution of ‘Nishchay’ Rapid Diagnostic Test kits for the detection of Pregnancy in markets all over the country. At the first instance HLL is manufacturing and supplying 22 million Pregnancy Test Kits from its manufacturing facility at Manesar in Haryana. The product will be distributed to the various sub centers, PHC, CHC, taluk hospitals, district hospitals, General Hospitals, speciality hospitals etc. in various states in the country. HLL also plans to introduce in the near future Diagnostic kits for the detection of Malaria and Dengue fever and IMK Kollam Page 31 Organisation Study Chikungunya. The overall objective is to effectively bring down the infant/maternity mortality rate, and Malaria and Dengue mortality reduction. HLL launched on 9th February, 2008 at New Delhi, HINDLABS - its first Diagnostic centre in the country, a Public Private partnership venture with the CGHS (Central Government Health Scheme). This most modern Lab facility which was inaugurated by the Union Minister for Health and Family Welfare Dr. Anbumani Ramadoss, will deliver reliable, accurate and quality diagnostic services to the CGHS beneficiaries at CGHS rates. The same services will be provided to patients outside the CGHS too at affordable rates. The plan ahead is to establish Diagnostic Centres for the CGHS, in the National Capital Region (NCR) and in 23 major cities of India covering over 110 hospitals. COMPETITORS OF HLL LIFECARE LIMITED Global Ethicon: A 1200 Million Global Company with 50% of the sales coming from USA. The world wide Suture sales in work $800 million. US Surgical (USSC): It is relatively new in to operation. Davis & Geck (D & G): Has a global market share of 12% in sutures. It is the first company to launch absorbable sutures. ANTz Latex Pvt. Ltd., Singapore. Ansell Ltd, Australia. Sinochem Ningbo Medical Company Ltd., China. Napes Company, China Green Mate Corporation, South Korea. Domestic IMK Kollam Page 32 Organisation Study Ethicon: Market Leader with about 95% shares. They manufacture Synthetic- absorbable & Synthetic Non-absorbable sutures. TTK produces 425 million pieces of condoms every year under the brand names Kohinoor, Fiesta, Champ, & Durapack. JK groups "Kamasutra". Popular Latex, which markets "Adam" brand of condoms. Terumo Penpol, Blood Bags. Johnson & Johnson, Sutures. Polyment, Blood Bags. 3.6 CORPORATE SOCIAL RESPONSIBILITY HLL, India's leading manufacturers and marketers of Contraceptives, Health Care and Pharma Products, is today on the path of rapid growth. HLL has set its sights to be a Rs 1000 crore company by the year 2010. But apart from increasing the figures in its balance sheet the company is also involved in various Corporate Social Responsibilities which have helped people enrich their lives in one way or the other. The CSR Policy of HLL is to- “Be a socially responsible corporate entity with thrust on three pillars of sustainable development-Social, Environmental & Economic.” The various community initiatives by HLL over the past two years are: Health: The Company initiated a massive cleanliness drive in various parts of the city along with the Corporation of Trivandrum and Habitat to face the challenge posed by the spread of vector borne vector borne diseases in the city and neighborhood. HLL is also assisting in the modernization of the Peroorkada General Hospital that serves a vast segment of the city’s population. IMK Kollam Page 33 Organisation Study It has also conducted free diabetic medical camp by renowned diabetician Dr. Jyothidev Kesavdev for people living near the Akkulam factory, a few kms from the Trivandrum Medical College,. To ensure proper sanitation and cleanliness at the Anganwadi opposite to the Akkulam Factory, the company constructed and donated toilets for them. Blood donation -Employees of HLL have been participating regularly in blood donation camps. Also, most of the company employees have given their consent for donating eyes after their death. The forms were handed over to the National organization for the Blind. Family wellbeing: The Company has contributed to provide pucca houses to the poor families, whose homes were in a dilapidated state in the vicinity of the HLL factory at Peroorkada. HLL made arrangements to distribute drinking water in Kanagala village near its factory at Kanagala in Belgaum District, and uniforms and other assistance for the school going kids in the village. Cultural, Educational, Sports initiatives: The company has been extending financial assistance to various educational, cultural, social and sports organizations for their various activities all over the state. In this area priority has been accorded to activities of students of the state’s school and colleges for organising their various educational events/seminars and cultural. . The company has been providing assistance for poor students in Govt. run schools for obtaining uniforms, note books etc. HLL has also been providing assistance for the noon meal scheme for students of the Govt. UP School at Peroorkada. The company has also provided computers, furniture and uniforms for various schools in the city. Computers were provided to the Mahilamandiram UP School, Trivandrum, Govt. L.P. School, Mangad, Trivandrum and Anandamarg LP School, Trivandrum.. It has also helped in providing the furniture for the computer labs in Govt. Girls High IMK Kollam Page 34 Organisation Study School, Peroorkada and Govt. UP School at Peroorkada, Govt. L.P.School, Mangad, and Govt. UP School, Palkulangara. The company also assisted the Sisu Vihar UP School, Trivandrum and the Govt. UP School at Elamad at Kollam for acquiring books for their Library. Infrastructure Development: As a corporate responsibility, HLL has renovated the Kowdiar Park - a major Park in the heart of the city, in front of the Kowdiar Palace at Thiruvananthapuram. The company also added recreational facilities for Children at the Children’s Park, adjoining this Park. The park is today a major attraction for the citizens of the city who converge here in vast numbers. Other Initiatives There is a Govt. Mental Health centre very close to the factory of the company at Peroorkada, with hundreds of inmates. The company has provided a bread-baking unit for the centre at a cost of around Rs.1.35 lakhs. The employees of the company provide breakfast and arranges for feast to the inmates during Onam, the main festival of Kerala.The company has also provided job opportunities to local people while engaging contract works in the Factory.Employees also provide new clothes to the inmates at the Mental Health centre during Onam. Also, with HLL’s support, a voluntary association (“VALSALYA’) has been set up by the company employees, to undertake the social activities in the vicinity of the Peroorkada Plant. The Company accorded assistance of over 3 lakhs to two children Benson and Bensy, affected by AIDS who lost their parents, for their medicines and care. Hindustan Latex Family Planning Promotion Trust (HLFPPT) a not for profit organization promoted by HLL has been supporting implementation of population stabilization and HIV AIDS prevention and care programme in partnership with international development agencies, state governments and MOHFW. HLFPPT has been pioneering implementation of social marketing programmes for enchancing the access and demand for condoms, oral contraceptive pills and other health products. IMK Kollam Page 35 Organisation Study Internal CSR Several Employee related activities are being undertaken at the Plant and in the offices aimed at emotional, motivational, skill development and empowement of employees. Some of these activities were: • Counselling for personal as well as emotional problems affecting work. • Visit the Family of absentee employee to understand their problems and counseling. • Employees are given all assistance including financial support to acquire higher qualifications, an area of empowerment which would enable them to go up the ladder in the company as well improve their knowledge and confidence levels. • Extending career guidance to employees children and organizing summer camps for their personality development and other skills. • Have set up a Yoga and Meditation Centre for the employees to handle their stress related problems and also a well equipped Health Centre. • Initiated a social forestry programme - for tree plantation in the factory premises by retiring employees Our focus is towards restorative, preventive as well as promoting, holistic health of our employees. For the above-mentioned activities we have collaborated with various Non Government Organisations, to deliver best services for our employees and their family members. IMK Kollam Page 36 Organisation Study CHAPTER IV DEPARTMENTAL ANALYSIS IMK Kollam Page 37 Organisation Study ORGANISATIONAL HIERARCHY Chairman & Managing Director Director Senior Executive Director General Manager Joint General Manager Deputy General Manager Assistant General Manager Manager Deputy Manager Senior Assistant Plant Manager/Senior Assistant Manager Assistant Plant Manager/Assistant Manager Executive Trainee IMK Kollam Page 38 Organisation Study FUNCTIONAL DEPARTMENTS HLL Lifecare Ltd consists of the following departments namely, Production Department • • Primary Production Secondary Production Human Resource Department Marketing Department Material testing Department Research and Development Department Stores and Savings Department Sales Department Safety and Security Department Finance and Accounts Department Purchase Department Engineering Department • • • • Utility Electrical Mechanical Instrumentation Project Department Information Technology Department IMK Kollam Page 39 Organisation Study 4.01 PRODUCTION DEPARTMENT MISSION Diversity for providing total healthcare products to the society. VISION Integrated with corporate vision of achieving the production department has a vision of “achieving a target production of 1 billion pieces as a first step towards corporate vision”. 4.01.1 PRIMARY PRODUCTION The primary production department of the PFT does one of the core activities of the unit which is the production of condoms. The department has 4 plants working 24 hours s day producing an average of 2.6 million pieces per day. Each plant has two machines except the 4th plant. The machines are named as M1, M2, M3, MA, MB, MC, MD, M5 and M6. Except for the 4th machine, each machine has two lines of production. The capacities of three plants are listed below • • • Plant A - 3 Barrel Plant B - 6 Barrel Plant C - 12 Barrel The raw material for the production of condoms is latex which the company buys from the Kerala rubber board as well as from private plantations. An estimate of 25000 kgs of latex is used every day. The latex goes through the process of compounding, moulding and vulcanizing to turn into the finished product of a condom. The primary production process involves, • • • Compounding of raw latex Moulding of condoms Vulcanization of molded product IMK Kollam Page 40 Organisation Study PRODUCTION PROCESS Compounding of raw latex Raw latex supplied by various suppliers is tested at lab for ensuring that it meets the requirements or not. The latex procured is stored for one day before processing. The chemicals- Sulphur, Zinc oxide, Nocrac are grinded finely by passing through ball milling unit for 48 hours and then through sand grinding unit for 4 minutes. This is then mixed with liquid chemicals- Nozzler TP, set sit and 1% ammonia. The mixed chemicals are fed into the tanks containing matured lated. The mixture is then let to boil for 14 hours at 550c and then cooled at 200 c in 20 minutes. This mixtures is kept for maturity (ageing) for 4-5 days. After 4 days, the mixture is fed into the supplier tanks of capacity 650-700 litre, where , it is again kept for 4-5 days before production. Moulding of condoms The processed latex is fed into the dipping room of the plant using vacuum technique. The dipping room consists of dipping tank kept in an enclosed unit consisting of ammonia air. The dipper glass moulds passes twice through the tank consisting of latex. As it moves on, it solidifies. Then, it is dipped in swelling tank so that condoms strip off without sticking on the mould. This is then passed through a tank consisting of anti- sticking solution. It is then stripped off the mould by jetting silica powder slurry on the edges. It consists of the following processes 1. Mould drying and cooling 2. Compounding 3. First dipping Drying 4. Second dipping and drying 5. Edge rolling 6. Drying and vulcanizing IMK Kollam Page 41 Organisation Study 7. Dipping and swelling solution tank 8. Dipping and anti sticking solution 9. Stripping Vulcanizing of molded product The stripped condoms pass through a pipe to the vulcanizing section for drying. The vulcanizing operations are done in automatic vulcanizing machines in order to improve the physical properties of the products. The condoms enter the agitator, where they are agitated in rotary motion. Silica powder is fed for agitating. After that, it goes into the vulcanizing machine for further drying. The process gives elasticity, burst volume, burst pressure and shelf life to the product. PRODUCTION PROCEDURE COMPOUNDING MOULDING VULCANIZING MANUAL QUALITY CHECKING . INSPECTION PIN HOLE TESTING FULL PRODUCT QUALITY CONTROL PRIMARY PACKING SECONDARY PACKING IMK Kollam Page 42 Organisation Study DESPATCH LINE STRUCTURE OF PRODUCTION DEPARTMENT G O P M E R A T I O N S M P a n a g e r r o d u c t i o n D P Y r o . d M u a n a g c t i o n e r S M o A d P M e r n S i z e d P l a nN t e A w P M P E x e c u l a n t t i v e S C e r v i Ss o u r p e r v i Ss o u r p e r v i Ss o u r p e r v i s o o m p o M u o n u d l di n i ng g C & o m V up l o Mc u a o n n u d i lz di na i ng g & ( 4 ) ( 4 ) ( 4 ) ( 4 ) u p r V u l G r a d e - VG I r a d e - VG I r a d e - VG I r a d e - V I G r a d e - VG r a d e - VG r a d e - VG r a d e - V G r a d e - I GV r a d e - I GV r a d e - I GV r a d e - I V G r a d e - I GI I r a d e - I GI I r a d e - I GI I r a d e - I I I IMK Kollam Page 43 Organisation Study 4.01.2 SECONDARY PRODUCTION Secondary production department consists of the following departments • • • Quality Assurance Department Electronic Testing Department Packing Department QUALITY ASSURANCE DEPARTMENT This department is divided into three main departments • • Half Product Quality Assurance Full Product Quality Assurance Half Product Quality Assurance Production time for a lot of 6000 pieces is 45 minutes. These lots then go for half product testing. Half product is the product that comes out of vulcanizing machine.This type of testing mainly consists of visual checking. A sample of 40 randomly selected condoms from each lot is tested for the following: Oil Dust Bad edge roll Breakage Wrinkle & Lip-cut Inside sticking Water dripping Inclined thickness Foam IMK Kollam Page 44 Organisation Study Bump Weak spot or scratch Dirt,stain,grease in edge roll Weak nipple Improper vulcanizing Visible hole 20 samples are tested for electrical resistance and 10 are tested for dimension. Thus tested lots are sent to the Quality Control Department for further testing. These are then sent to the Inspection Department, and from there to packing section. Full Product Quality Assurance In this section various tests are conducted to measure strength of the condoms, presence of holes etc. Different type tests conducted in this sections are • • • • Burst Volume / Burst Pressure Test Water Leakage Test Package Integrity Test Lubricant Quantity Test Burst Volume/Burst Pressure Test: In this test the condoms are subjected to pressure.The pressure and volume will determined in advance normally the pressure is chosen as 1kilo pascal and volume is 18.51 for 53mm and 14.81 for 49mm condoms.If more than 8 pieces of 310 samples are failed in this test ,then the batch will be discarded. Water Leakage Test: In this test condoms are partially filled with water from circulation tank.There are mainly two types of water leakage test, IMK Kollam Page 45 Organisation Study • • Integrity Testing: Hang and Squeeze Method Hang and Roll Method This test is done to ensure packing quality.In this testing about 3 condoms from one batch are taken. JIS Testing This is called Japan Integration Standard test.This is wishly efficient test for standing out the presence of any pin holes.The testing is conducted once in every 45 minutes. Lubricant Testing: Each condom should contain minimum 200mg of lubricant,if the oil content is less than prescribed amount,then the whole lot will be rejected. ELECTRONIC TESTING DEPARTMENT The half products are sending to inspection department, where 100% electronic testing is done. The condoms had been tested for pinholes using electronic pinhole testing machine. The process follows manual, electrical and mechanical device. There are two types of pinhole testing machines: • • Wet-type Dry-type The wet type machine is used to remove the powder, which fills the small holes in the condoms, detects any hole in the condoms, and makes the condom clean and dry the condom by passing it through a heating chamber. The dry machine consists of a carbon-rubber mechanism, which is provided with a high voltage which separates had condoms from the good ones. In this test, the condoms are wrapped on steel moulds IMK Kollam Page 46 Organisation Study and passed through a carbon brush which has charged by electric voltage up to 1600 volts. When the mould passed through the brushes, any pinhole on the condom can be detected.The good condoms are send to the packing department. Before the condoms are tested electronically they should be kept for two days.There are mainly 8 testing machines.There is a safe forum consisting of 16 members.The main duty of the safe forum is work improvement,safety and training,training about entry protocol and house keeping.The heads of the committee is manager and deputy manager. Line Structure of Quality Assurance Department CONTROLLING OFFICER(QA) Section officers(QA) Supervisors(FPQA) Supervisors(HPQA) Supervisors(ETD ) Grade Employees/Graduate Trainees/ITI PACKAGING DE Grade Employees/Graduate Trainees/ITI Grade Employees/Gradua te Trainees/ITI PACKING DEPARTMENT Packaging is a process by which it designs and produces the container and wrapper for a product. It is done to protect the contents in transit, storage and inuse. In the packing section, the condoms are arrange in the automatic machine manually, where rolled naked condoms are input. Condoms are packed with the help IMK Kollam Page 47 Organisation Study of semi-automatic machines. There are two kinds of packing methods which differentiates the condoms: •Squeeze packing •Square packing Squeeze packing: Here, less lubricating oil is used (250 mg per piece) compared to square packing. This consumes only less foil. The expiry period is four years and is sold in domestic market. Square packing: This contains more lubricating oil( 400 mg per piece) and more foil. Expiry period is five years. Export quality condoms are packed in this method. Line Structure of Packing Department DEPUTY MANAGER SAPM(4) SUPERINDENT(2) WORKERS IMK Kollam Page 48 Organisation Study 4.02 HUMAN RESOURCE DEPARTMENT VISION Fostering employee excellence in support of building the Nation’s best Health Care Company. MISSION To provide companywide leadership in formulating human resource policies and programmes that enhance the quality of employee services and encouraging employee contributions towards sustaining HLL Lifecare Limited’s continued excellence. To collaborate with all other departments in supporting effective recruitment, development and maintenance of a highly competent workforce. To be a strategic partner in creating a work environment which fosters individual achievements, teamwork, integrity, professionalism and accountability. To foster a meaningful, environmental friendly and productive work environment and ensure positive contribution to the community around us. OBJECTIVES Exercise leadership in modeling and implementing successful human resource policies and practices that help unleash employee potential. Create an organizational ambience where talents can bloom and support the management’s efforts to foster a high performance workforce. Support local efforts to recruit, develop and retain a highly qualified work force by building market practices and effective employer practices into human resource methodologies. Encourage, support, reward and recognize creativity, innovation, and individual and team performance. Provide competitive terms and conditions of employment to the work force through building up a reward and recognition mechanism that provides value for people. The company ensures high quality manpower through selective training and development programmes. IMK Kollam Page 49 Organisation Study Human resource process includes: Human resource planning Job work and design Staffing and T & D Performance appraisal and review Compensation and reward Employee protection and representation Organisation improvement MAIN FUNCTIONS OF HR DEPARTMENT Recruitment and selection Training and development Industrial Relations Promotion and transfer Performance Appraisal Labor welfare Estate management Implementation of official language Employee – Welfare benefit RECRUITMENT AND SELECTION Recruitment is the process of identifying the sources of potential employees and encouraging them to apply for jobs in the organisation. Selection is the process of screening the candidates who applied fro the jobs and selecting suitable ones for the respective jobs by matching the qualifications of the candidates with the requirement of the posts to be filled. Recruitment in Hindustan Latex Ltd. is through Employment exchange, National dailies, Campus interviews etc Page 50 SELECTION PROCESS IMK Kollam Organisation Study Preliminary interview Selection tests Employment interview Checking of reference Medical examination Final approval TRAINING AND DEVELOPMENT HLL Lifecare Ltd. conducts technical and non-technical training and development activities to its employees. The training for different categories is: • Executive training programmes (ETP) for all officers from general manager to assistant plant manager Supervisory training programmes (STP) for supervisors and fore man Workers training programmes (WTP) for all workers from grade 1- 6. • • HLL also sponsors employees for external training programmes in specialized areas of functioning. Training in HLL is conducted as per the training needs identified for various categories of employees. INDUSTRIAL RELATIONS Industrial relations in Hindustan Latex Ltd. is concerned with wage administration, settlement of demand of unions, remittance of tax, reports on accidents, disciplinary actions against misbehaving staffs and employees etc. industrial relations in all units of Hindustan Latex Ltd. have been cordial and peaceful and the welfare measures are improved from time to time. During Feb. 2001 the company entered into ten -year long - term agreement with the recognized trade unions. The terms and conditions of service and the productivity norms were settled .Its functions include • IMK Kollam Operating the grievance cell Page 51 Organisation Study • • • • • • • Settlement of disputes Disciplinary action Collective bargaining Correspondence between trade union and management Proceedings regarding statutory returns Remittance of property taxes Reports on accidents PROMOTION AND TRANSFER Promotion depends on the basis of seniority, merit, and vacancy. The HR department deals with promotion when vacancies are available on higher grades base on • • • • Seniority Reservation list Performance appraisal Pay fixation and grade seniority list Performance appraisal Performance evaluation is done annually for workers, supervisors, and executive separately. Factors affecting the key performance indicators (kips) of each job are identified and evaluated as per the importance Each factor has five descriptions The evaluator selects the best one that describes the factor of performance of each employee. Performance of the executives is evaluated by the corporate hr. The employees who get “excellent” rating for two continuous appraisals will be recommended for the fast track promotion. And also if an employee gets “VERY POOR” rating for two constructive periods, he will be recommended for termination. Welfare section IMK Kollam Page 52 Organisation Study The Section looks in to the Welfare Activities of all the employees of the organization. These Welfare initiatives by HLL have strengthened the bond Employee – Welfare Benefit: Employee welfare benefit is otherwise known as fringe benefits, canteen facility, recreation facility, transportation facilities, etc. Members of employee welfare fund receive sickness benefit, debt relief, and scholarship to children of members, etc.The employees are given liberalized leave rule. Welfare Measures HLL Lifecare Ltd. provides a lot of statutory as well as non-statutory welfare measures. They include: Welfare activity • • • • • • Medical facility Canteen facility Co-operative society Accidental benefit scheme First aid Recreation facility ESI (Employee State Insurance) • • • • • Sickness benefit Disablement benefit Dependent benefit Maternity benefit Funeral benefit Advances Festival advance Home building advance Allowances IMK Kollam Page 53 Organisation Study • • • • • • • House rent allowance City compensatory allowance Shift allowance Conveyance allowance Education allowance Washing allowance Stitching charges allowance Official Language Implementation Being a central Government undertaking HLL is committed to promote the national language. The Hindi Section under an Assistant Manager is responsible for this all orders and records are translated in to Hindi. The library is also functioning under the Personnel Department. EMPLOYEE – WELFARE BENEFIT Employee welfare benefit is otherwise known as fringe benefits, canteen facility, recreation facility, transportation facilities, etc. Members of employee welfare fund receive sickness benefit, debt relief, and scholarship to children of members, etc. The employees are given liberalized leave rule. There are 20 days of half-pay leaves a year. Casual leave-12 days in a year Earn leave- 15 days for first 6 months and 15 days for next 6 months The company provides 2nd class AC fare for the employee and family for Darshan programme once in 4 years apart from the LTA provided every year. Loans: Housing loans: For purchasing or construction of house, loans are given which categorizes Hindustan Latex Ltd. workers into officers and staff. Officer – Rs. 4 Lac Staff – Rs. 3 Lac Maintenance of house: Officers – Rs. 1.5 Lacs IMK Kollam Page 54 Organisation Study Staff – Rs. 1 Lac Vehicle loan: Officers: Purchase of car – Rs. 1,00,000/Purchase of two-wheelers – Rs. 25,000/ Worker: Workers get Rs. 1000 for purchasing of cycle Interest free loans are also given as festival allowance, school re-opening advance, etc. WELFARE MEASURES Hindustan Latex Ltd. provides a lot of statutory as well as non-statutory welfare measures. They include: Provision for office facilities like type-writer, table, chair Provision for all types of advances to employees Welfare society and canteen Recreation club First - aid Rest room, workmen lockers, drinking water facilities, etc. There are three shifts. Office timings: First shift – 6am – 2 pm Second shift – 2 pm – 10 pm Third shift – 10 pm – 6 am General shift – 9.15 am – 5.15 pm Punching system is followed for all persons till the super visors or superintendent level, which is connected to the computer to record the attendance. The factory siren also functions efficiently keeping time. IMK Kollam Page 55 Organisation Study SECURITY: A well – equipped security force is provided for safe guarding factory premises and prevents pilferage of machines and materials. One superintendent of police is appointed as security and chief vigilance officer. Line Structure of HR Department SENIOR MANAGER HR DEPUTY MANAGER JUNIOR OFFICERS SUPERINTEND HR ASSISTANT TRANSLATORS(HINDI) AND DESPATCHERS IMK Kollam Page 56 Organisation Study 4.03 MARKETING DEPARTMENT With two decades of dedicated efforts in brand building and market development, HLL has developed a sound marketing infrastructure and introduced an extensive range of its contraceptive, hospital and healthcare products, in the domestic and global markets. The company has identified marketing as one of the thrust areas to increase its marketing share. The company’s Head Office is situated at Poojappura in Trivandrum. The regional office of the marketing department is operated at other places like- New Delhi, Chennai, Calcutta, Bangalore, Mumbai and Lucknow. HLL’s large marketing network has been delighting its customers over the last two decades. Servicing 200000 retail outlets, covering 3500 hospitals, reaching over 30000 medical professionals, it has over 2800 stock points, 700 frontline team members placed in every town, with offices in all metros and mini metros, and reaches over one lakh villages in the country. HLL is also one of the leading social marketing organizations in the country in the area of contraceptives - with a market share of over 70 percent in the rural and semi urban markets. On the global front, HLL brands today reach more than 115 countries. HLL is a professional marketing organization comprising of the following divisions : Consumer Business Division(CBD) Hi Care Division(HCD) Government Business Division(GBD) Vending Business Division(VBD) International Business Division(IBD) Women Healthcare Division(WHD) Consumer Business Division CBD product mix includes a range of world-class products reaching its customers through a network of 2800 stockists and over 200 thousand retail outlets, comparable to any of the leading FMC companies in the country. Page 57 IMK Kollam Organisation Study HLL is also one of the largest Social Marketing Organizations (SMO) for the Ministry of Health and Family Welfare (MoHFW), ensuring sales of over 70 percent of the Government brands - Deluxe Nirodh and Mala-D nationally, and FC2 - nitrile female condoms, to the vulnerable and high-risk groups of women, under the programme initiated by National Aids Control Organisation (NACO) Hi Care Division HiCARE Division offers a wide range of critical hospital products and services to healthcare professionals in the field of transfusion services and advanced patient care. The product range includes Blood Collection Bags, Surgical Sutures, Hydrocephalus Shunts, Tissue Expanders, Surgical and Examination Gloves, Blood Transfusion Sets, Intravenous Sets and Blood Banking equipments. HCD has a strong team servicing over 20000 medical professionals directly as well as reaching to over 3500 hospitals in the country. Government Business Division (GBD) The Government Business Division (GBD) partners with the Union and State Governments for their requirements of contraceptives and hospital products under the National Family Welfare Programme (NFWP) and the National Rural Health Mission (NRHM). Vending Business Division (VBD) In order to provide any-time access for condoms, HLL took the lead to install CVMs in public places such as toilets, bars, parks, cinema halls - particularly at places frequented by high-risk groups. HLL has installed over 24000 CVMs during the past four years across the country with funding assistance from NACO/GOI and also sold a wide range of vending machines to public and private corporates. The Moods Planet Condom Shop of HLL in Thiruvananthapuram, is a one-stop facility for the complete range of HLL contraceptives, with a Moods Condom Vending Machine on 24/7 mode IMK Kollam Page 58 Organisation Study International Business Division (IBD) HLL is aiming to be a global leader in the area of contraceptives and healthcare products. The IBD manages the distribution of HLL's products to over 115 countries worldwide. HLL has also made inroads into Peru in South America, for its Nonsteroidal Contraceptive Pill marketed here under the brand name Ivyfemme. HLL supplies its products to world bodies such as the UNFPA, PSI, Mission Pharma and IDA, in addition to various governmental procurement organizations. Women Healthcare Division (WHD) Women Healthcare Pharma Division is to cater to the reproductive health care needs of women- covering all age groups. The division will focus initially on the Gynaec segment, the products, of which will be promoted through Doctors. All products for this division are being manufactured at HLL Lifecare’s kanagala Plant near Belgaum in Karnataka. The product range will cover all sectors of women’s health viz, auto immune diseases, gynaecological infections, sexually transmitted diseases, hormonerelated disorders (including menopause, contraception and sexual dysfunction), osteoporosis, cancer and urinary bladder diseases. MARKETING AND DISTRIBUTION STRATEGY OF THE COMPANY Company keeps a concrete distribution policy for the efficient supply of HLL products to its customers or interested parties. The distribution system can be classified into: Government Supply Direct Marketing Government Supply IMK Kollam Page 59 Organisation Study The Company distributes its products like Nirodh, Deluxe Nirodh, Super Deluxe Nirodh, Mala-D, Mala-N, and copper-T directory to the Government. The distribution process starts with the placement of order from the ministry followed by the production and distribution of required products to the Government’s Medical Stores and Department. Direct MarketingThe direct marketing strategy was adopted by HLL in the year 1991. This strategy has bought a 5 fold increase from Rs.3.01 crore in 1994-1995 to a turnover of Rs.17.15 crore in 1999-2000. It has enabled the company to establish a distribution network covering more than 100000 retail outlets in India. This achievement was possible by a switch over from the earlier three-tier distribution system to a more direct two-tier distribution system which includes the appointment of Clearing and Forwarding Agents. Direct Marketing is split into four divisions:i. ii. iii. iv. CBD HCD IBD : : : Consumer Business Division Hi Care Division International Business Division Women Healthcare Division WHD : MARKET SEGMENTATION HLL Lifecare Limited has segmented the Indian market into four regions:1. Southern Region - Kerala, Tamil Nadu, Karnataka, Andhra Pradesh 2. Northern Region - Delhi, Haryana, Himachal Pradesh, Rajasthan, UP 3. Eastern region - Bengal, Orissa, Bihar, Assam 4. Western Region - Gujarat, Maharashtra, Madhya Pradesh, Punjab PRICING Pricing is a major stage in marketing.HLL Lifecare Ltd. sets its price according to the variances of products and the market secured by each product. The prices are basically fixed on the basis of cost-plus pricing. IMK Kollam Page 60 Organisation Study In the contraceptive market, HLL acquires 16% market share and comes behind JK Group and TTK. HLL is trying to is trying to position itself as the market leader. PROMOTIONAL ACTIVITIES The promotional activities of HLL Lifecare Ltd. includes advertising, sales promotion, and personal selling. Advertising- HLL Lifecare Ltd. is assisted by a number of advertising agencies. This activity is undertaken by its branch in Chennai. It consists of both indoor and outdoor advertising. The indoor advertising consists of press publicity and broadcasting (television, radio). Personal Selling- HLL has a team of sales representatives in different parts of the country who helps in promoting sales to great extent. Spot incentive offers, monthly or quarterly incentive schemes are offered as a part of Personal Selling. Sales Promotion- As a part of sales promotion HLL offers incentives to stockists and retailers. Free cartons are allocated to the dealers when they purchase a specified number of cartons. This in turn motivates the dealers to purchase more and become loyal customers of HLL. Occasional gift schemes , scratch and win schemes etc. are provided to retailers. PRODUCT MIX It combines the physical product services, brand and packages. HLL manufactures various products like condoms, blood bags, contraceptive pills, surgical sutures, gloves, tissue expanders under different brand names. E.g. condom has different brands like Nirodh, Moods, Rakshak, Ustad etc. HLL has both O.T.C products like condoms and ethical products like blood bags , sutures and so on. IMK Kollam Page 61 Organisation Study 4.04 MATERIAL TESTING DEPARTMENT To maintain high quality products providing to society, HLL Lifecare Limited has a material testing lab which checks the quality of raw materials supplied to the company. This section keeps a constant watch over the inputs and reports its findings to the concerned departments. This section also entrusted with the design and art work of packages and cartoons and ensures that all displayed as per statutory requirements. 4.05 RESEARCH AND DEVELOPMENT DEPARTMENT HLL Lifecare Limited gives more importance to Research and Development department. As the company is in contraceptive and healthcare industry, which is highly consumer sensitive industry, more care has to be given to research and development activities .During the year the company proposes direct investment to strengthen its R & D. Objectives of R&D Development of new products. Development of new technologies Absorption / Adaptation / Assimilation of new technologies Activities comes under R&D Development of better quality raw materials in the manufacture of natural rubber based male contraceptives Research on Technological improvement Studies on package development Environmental studies and resource conservation System improvement and standardization Customer complaint handling including investigation, corrective and preventive action etc Improvement in the quality of product and packing IMK Kollam Page 62 Organisation Study Line Structure of MT AND R&D SR.MANAGER(MT AND R&D) SUPERVISORS TESTING HANDS 4.06 STORES AND SAVINGS DEPARTMENT Stores basically consist of 5 sections namely: 1. 2. 3. 4. 5. Receipt store Chemical and packing material store Engineering store Stationary store Finished good store The store has two depots: 1. Peroorkada factory depot 2. Menomkulam (central ware corporation) HLL follows 5S • • • Sort Set in Order Shine IMK Kollam Page 63 Organisation Study • • Standardize Sustain Functions: • • • Identify the material on each level. Stock of inventory. Issue of materials as per the requisition received from the concerned department. • Receipt of finished goods, storage and preservation of goods in depot. • Internal audit. The store is based on the FIFO system that is First In First Out. The items are coming first are to be dispatched first, only exception if there is a genuine reason like export quality under the special note. There is no EOQ policy in HLL. The store has a regular auditing system. Annual requirement for all the departments are to calculated and intended from sales. Material received and stored through MAN (Material Arrival Note). The lab will check the quality and quantity and accept the material, otherwise reject, these boxes have red tag and supplier will be intimated and they have to take back at their risk. Then a Material Receive Record is prepared and it is given all the information about the supplier. Before the inspection a yellow tag is knotted which gives all the information about the supplier, batch number, quality. After the inspection a green tag is noted. If any of the items is excess to the order, then it is packed separately and a blue tag is noted. The green tagged items are then stored in respective stores and racks and is sequentially recorded in the database with all the information like the section, rack number. Then according to the MRF ( Material Requirement Forum) from the departments items are dispatched all the items will be IMK Kollam Page 64 Organisation Study detected from rack through the ORACLE data base and is dispatched to different departments. Line Structure of Stores and Savings Department AGM(STORES & SALES) DM (STORES & SALES) JUNIOR OFFICER STORE KEEPER HEAD LOAD WORKER 4.07 SALES DEPARTMENT The finished goods are stored in depot. Sales department deals with supply of product to government of India. Dispatch of branded condoms for domestic sales and export as per detailed advice from HLL’s marketing departments arranged by sales department. The territory officers canvas orders, then intimate in region head, then to the sales department. Sales department plays a pivotal role in HLL. There is a good coordination between production and sales departments. IMK Kollam Page 65 Organisation Study Objective • • To ensure proper dispatch in time To ensure prompt payment of receipt from ministry of kerala in specified period Function • Sales department mainly takes care of government orders. HLL Lifecare Ltd , has signed a MOU with Govt of Kerala . So all Govt. Orders are routed to sales department directly and from there to production department invoicing, billing etc are done by the sales department. • A second main function is to sell the miscellaneous items especially waste materials, metal scrap, and rejected condoms etc. Metal scrap trading corporation (MSTC) usually purchase it by getting an intimation and raising quotation. Integrated MIS is being upgraded for placing production details. Order for purchase by Govt agencies is placed through sales & purchase MIS system. Sales procedure must contain following details: • • • • • • Order number and date Accounts number and date Quality order Unit Rate per unit Total cost per unit Page 66 IMK Kollam Organisation Study • • • • • Total cost price Address of consignee Date of delivery to each consignee Details of inspecting authority Terms of delivery The Transportation cost is free, because HLL has one year tender for the transportation. VAT, Cess all is applicable to HLL Products. Line Structure of Sales Department GM OPERATIONS AGM SENIOR ASSISTANT MANAGER JUNIOR OFFICER ASSISTANT STENOGRAPHER IMK Kollam Page 67 Organisation Study 4.08 SAFETY AND SECURITY DEPARTMENT MISSION To create and maintain a safe and environmental friendly work area for the employees by providing work standards, training, resources and updated regulatory compliance and maintain a procedure for emergency preparedness and response system to protect the factory and public. The company has 3 systems which are: • • • Fire Hydrant system Fire Extinguisher Fire Detecting System or Fire Alarm The above mentioned systems are installed in each department of the office and employees are also given training upon how to implement these systems or to take further steps in case of emergency. In order to achieve the mission, the safety department also take pre accident and post accident strategies. Hll Lifecare Limited has integrated safety measures of peoples and environment protection with the production activities of the company. In addition to this, there is SHE Policy for the company. The company has a safety officer. The statutory requirements regarding safety & environment management measures are being complied with as and when required. OBJECTIVES The Safety & Environment Department has a role in Devising incident prevention strategies Maintain healthy work environment Devising strategies to meet emergency situations Evaluate all legal compliances related to PCB Prepare and send all monthly ,quarterly or annual returns to the KSPCB and will be responsible for renewal of air hazardous waste consent water and IMK Kollam Page 68 Organisation Study Interrelationship with other Departments The objectives of Safety & Environment Department are achieved by participation of all departments for Implementation of incident prevention strategies, emergency situation strategies and environment management system in the factory. Internal communications, safety audit observations, safety inspection reports, incident investigation reports, Employee Representative Meeting and Safety Committee meetings are the media used for interacting with other departments Representative meeting is conducted by Head of Personnel Department. Pre-incident strategies include risk assessment, engineering application, issue of safety work permit, education, training, creating enthusiasm and enforcement of instructions. Safety department will devise incident prevention steps in consultation with concerned section-in-charges. HR department will make necessary arrangements for conducting training. PROCEDURE As per the requirement of Factory Act 1948, there is a Safety department to devise safety measures in the factory. Three strategies pre-incident strategies, postincident strategies and emergency situation strategies are devised by Safety & Environment Department to ensure safe working condition within the factory. Incidents/Accidents are investigated and measures for non-recurrence of similar situations are also recommended. Safety committee and Employee Representative meetings are formulated and operated as a part of employee’s participation approach. Safety Committee meeting is conducted by Unit Chief and Employee Safety audits are conducted in various sections and observations are For creating enthusiasm among employees safety awareness materials shall be displayed by concerned department at different locations. Competitions on various cultural items shall be conducted on an annual basis. IMK Kollam Page 69 Organisation Study Safety manual is prepared based on the requirements of ISO 9001, ISO 13485,ISO14001&OHSAS:18001 . Monitoring of ammonia, dust and noise shall be conducted for monitoring for maintaining a health work environment. The post-incident strategies include first-aid treatment to the injured employees, reporting of incidents, investigation of incidents and devising incident prevention steps for the future. In case of incidents the first-aid is given at the Ambulance room and subsequently, if needed, at the nearby hospitals. Preliminary reporting, investigations of the incident are initiated by the concerned section. Safety officer, wherever applicable, will do detailed investigation. Safety officer also does incident analysis on annual basis along with suggestion for corrective measures for eliminating repeated incidents. Factory buildings are protected with fire hydrant points, smoke detectors and fire alarm systems. Emergency preparedness activities are made to control eventualities. Relevant Act/Rules in connection with Safety & Environment protection are complied. IMK Kollam Page 70 Organisation Study 4.09 FINANCE AND ACCOUNTS DEPARTMENT The finance and accounts department is headed by the finance manager. OBJECTIVE The objective of the company is the proper and optimum utilization of the financial resources of the company together with profit maximization and wealth maximization. FUNCTIONS This department undertakes all the investment decisions, cash flow planning and management, budgetary planning and monitoring and fixing the budgetary norms. The finance department helps the management by introducing and operating proper internal audit system and also helps CMD in corporate planning and in financial vetting of all proposals from the basis for decisions and forms the financial policies of the company. Earlier, the company’s bankers were 1. 2. State Bank of India Punjab National Bank Now, the major bank is SBI. The major customer of Hindustan Latex Ltd. is the ministry of health & family welfare. Production of condom is based on the orders received, which is normally placed 2 months in advance. IMK Kollam Page 71 Organisation Study Line Structure of Finance Department ED Finance AGM AM Finance Junior Officer Trainee DM A/c Spt Cash Tr Spt Sr Clerk Sales Asst Spt Export Asst Bills Tr Asst PR Peon Peon Accounts Prepared 1. Ledger section 2. Party bills section 3. payroll section 4. cash and computer section 5. internal audit section 6. costing and finalization of accounts 7. Working capital 1. Ledger section IMK Kollam Page 72 Organisation Study Ledger section performs functions such as passing and settlement all miscellaneous advances, freight advances, local purchases, personal accident claims of all employees, bills connected with work/ telephone / water charges / excise duty etc 2. Party bill section In this section the accounts department certifies the bills and releases cash cheques accordingly. This section deals with service bills related to computer, typewriter etc. Bills are mostly related to contract work. 3. Payroll cash and computer Salary is dispersed by the section number of leaves taken by the employee is taken into consideration while disbursing the salary. Data relating to attendance is obtained from both the time office and from personal department. Deductions are made from salary as payments to provident fund, income tax, canteen etc. this section also sanctions vouchers and issue cheques. Payroll data is fully computerized. 4. Internal audit Functions • scrutinizes all the files of the employees relating to annual increment, promotion , transfer etc scrutinizes all purchase proposals, comparing statements connected with supply order and purchases various other work assigned to them Costing Section • • 5. Costing section deals with the preparation of Quarterly Financial reports, monthly profitability reports, Budget, Bank statements etc. Profitability trend & Wage analysis is done on the basis of Monthly repots. 6. Finalization of Accounts IMK Kollam Page 73 Organisation Study This section deals with the preparation, Co-ordination & assists in the preparation of Final accounts of the Company. It also assists the statutory auditors of the company. 7. Working capital HLL kept Ten core rupees as working capital. This amount is kept in State Bank of India. The amount will issue based on Inventory, credit ratio etc ANALYSIS OF FINANCIAL STATEMENTS Financial statement analysis is the process of determining the significant operating and financial characteristics of a firm from accounting data. The Profit & Loss Account and the Balance Sheet are indicators of two significant factorsprofitability and financial soundness. Analysis of financial statements means such a treatment of the information of the two statements as to afford a full diagnosis of the profitability and the financial soundness of the firm concerned. Objectives 1. To estimate the earning capacity of the firm. 2. To gauge the financial position and the financial performance of the firm. 3. To determine the long term liquidity of the funds. 4. To judge the solvency of the firm. 5. To determine the debt capacity of the firm. 6. To decide about the future prospects of the firm. 7. To know the progress of the firm 8. To measure the efficiency of operations. 4.10 PURCHASE DEPARTMENT IMK Kollam Page 74 Organisation Study Purchase department in HLL Lifecare Ltd was set up right form its inception. Functions The purchase department is concerned with the purchase of any material required for the smooth working of the company - right from stationery needed for the office to raw materials or machines needed for the plant. The major decisions concerned with the purchase department are regarding the purchase of materials required for the plant. At first market demand is assessed or projected. The proposal comes to the purchases department. They decide on whether to make it or buy. Along with production plan, material requirement plan also takes place. Purchase department contacts marketing department and arrive at consensus regarding production and bill of materials are made. Tenders are invited thereafter. Depending on the value of indent, the type of tender is decided. In an open tender, bid system- technical or commercial /price bid, is followed. Followed CBC guideline, whoever qualified in technical bid, price bids are opened. After recommendation is made, proposal is forwarded to stores purchases committee. After SPC approval, the company releases order. Once materials are received, material arrival note is made. Testing department tests it if parameters are met and approves it. Material receipt report is made. Bill, purchase order and MRR are needed to make payment to vendor. If material is rejected, rejection note comes from testing department to materials department and the lot is rejected. The raw materials are procured in the following ways: Purchase by limited tender Purchase by open tender Normal purchase Local purchase The functions of purchase departments are Receive the intend IMK Kollam Page 75 Organisation Study See what is the item, whether it is capital or revenue Evaluation of the item The functions of this are as follows: • Decide on the tender whether it is open, limited, single, floating or closed tender Vendor rating is to be done based on quality, final performance, delivery and price Receipt of order Getting recommendation from the user or negotiation if required Getting the Stores Purchase Committee approval as per the delegation of powers Releasing orders Liaison with other party, store, inspection departments and with accounts Bill, Purchase order, MRR are needed to make payment to vendor. If material is rejected, rejection not comes from testing department to materials departments and the lot is rejected. • • • • • • • 4.11 ENGINEERING DEPARTMENT Based on the nature of operation the Engineering Department is further divided into the following sections with separate section heads. 1. Mechanical Section 2. Utility Section 3. Electrical Section 4. Instrumentation SectionOrganizational Set up IMK Kollam Page 76 Organisation Study Engineering Department Mechanical Section Utility Section Electrical Section Instrumentation Section MECHANICAL SECTION Mechanical Section plays a key role as a service section to keep the plant and machineries in satisfactory condition according to the standards set by the management. The primary functions of Mechanical Section include: 1. Maintenance of plant and machinery 2. Inspection of all incoming mechanical materials / spares / equipments indented by Mechanical Section 3. Modification, New Installation, Technology up gradation and continual improvement of equipments / machineries Inter relation with other departments 1. Stores Department All the materials / spares required for the Mechanical Section shall be issued by the stores department based on the Material Requisition Form (MRFs) from the mechanical section. 2. Purchase Department All spares / materials / equipments required for the Mechanical Section shall be procured by Purchase Department based on the indent from stores / mechanical section. IMK Kollam Page 77 Organisation Study 3. Operating Department Breakdown / Preventive maintenance of all mechanical equipments in the Primary Plant, ETD, Packing etc. shall be attended by mechanical department as per Standard Operating Manual (SOM) procedure. 4. Utility, Instrumentation, and Electrical Section Liasoning with Utility, Electrical and Instrumentation departments for maintenance of machineries and equipments. UTILITY SECTION Utility Section mainly does Pipeline works. There are different types of pipelines, like Steam line, Airline, Waterline, Pumps etc. Repairing of these pipelines is one of their major responsibilities. Air compressor, generator set, fork lift, chiller plant, a/c maintenance, operations & repairing are their other major functions. ELECTRICAL SECTION Its objective includes the provision of uninterrupted power supply to the company by maintaining the incoming supply and distribution system in good condition. Company continue to strive to reduce losses by eliminating breakdowns, defects and accidents while enhancing the profitability of the company and creating a favourable working environment for all employees thus marching ahead towards excellence in every area of business. Electrical Section plays a key role in the service section regarding the power receiving and distribution system and to keep the plant and machineries in satisfactory condition according to the standard set by the management. Primary functions of Electrical Section include: 1. Power receiving and distribution 2. Preventive maintenance 3. Breakdown maintenance 4. Winding and overhauling of motors IMK Kollam Page 78 Organisation Study 5. Inspection of incoming electrical materials 6. On the job training to all electrical technicians INSTRUMENTATION SECTION Instrumentation Section is in charge of the following activities. 1. Repair and maintenance of process control equipments used in process line. 2. Calibration of test and measuring equipments as per ISO standards. 3. Breakdown maintenance of instrumentation system. 4. Periodic, Preventive and Scheduled maintenance of instrumentation system. 5. Inspection of incoming materials. 6. Training for instrument technicians. Line Structure of Engineering Department DGM MECHANICAL ELECTRICAL UTILITY INSTRUMENT ATION MANAGER DM MANAGER MANAGER APM JUNIOR OFFICERS JUNIOR OFFICER JUNIOR OFFICERS PROJECT ENGINEER PERMANENT EMPLOYEES SUPERVISORS SUPERVISORS JUNIOR IMK OFFICER Kollam Page 79 Organisation Study 4.12 PROJECT DEPARTMENT The main function of the project department is the implementation of projects. Top management takes the decisions about the projects. There is a project team consists of four or five experts and has a team leader. They make project feasibility studies and its evaluation. Cost benefit analysis and break even analysis are also done. They consider the project in terms of profit, it’s payback period, annual returns, incoming and outgoing cash flow. The project which gives return within four or five years is considered as feasible and is accepted. For this the internal Store Purchase Committee approval and administrative sanction is needed. If the project is of above fifty lakhs the Board of Directors’ approval is needed and if it is below fifty lakhs the Chairman’s sanction is needed. After getting approval the next step is the implementation of project. Planning, scheduling and following up (monitoring and controlling) of project is done till the completion of the project. Implementation process has different steps, tendering, preparing proposals, comparison and negotiation. 4.13 INFORMATION TECHNOLOGY DEPARTMENT It provides the binding network within the organization on the case of facilitating the information flow. For routine and crucial process that has earned and attained enormous advantage for the company in the form of cost advantage speed better communication and for standardizing various operations of the company. The depreciation provides the resulting service and the support for the software, hardware, networking and security devices required for the company. The software support includes the development of maintenance of various software services like EIMIS, internet site, website etc. The EIMIS is an ERP like software applied custom made and developed within an organization itself. It is currently the back of the information and the system services within an organisation presently it is seen on 8 linuxsame server with orade database as the background. Hardware related an operation of the IMK Kollam Page 80 Organisation Study department included the purchase and maintenance of the hardware resources which includes their repair replacement and their upgrading. The network services include the implementation of the LAN and the WAN services. IMK Kollam Page 81 Organisation Study CHAPTER V COMPETITIVE ANALYSIS IMK Kollam Page 82 Organisation Study 5.1 SWOT ANALYSIS STRENGTHS • Over thirty years experience in the manufacture of latex based products and over the past decade of Polymer based products. • Highly proficient expert team of Technical and other personnel to envision and implement any task. • HLL have strong support of the Government of India , State Governments and the valuable patronage of millions of customers within the domestic and global arena. • Job satisfaction is relatively more among workers in HLL the prominent reasons being job security , better wages and working condition. • Eventhough HLL Lifecare is Public Sector Company it functions like a Private Sector Company special emphasis to the work environment and dedication of the employees to the organisation. • Thoroughly modernised its existing manufacturing units indigenously, utilising the expertise of its own technical personnel. • • Technical expertise in the area of Technology Transfer. Setup indigenously world class production facilities for the manufacture of Blood Transfusion Bags, Hydrocephalus Shunt and Copper-T’s. • Providing Consultancy Services for setting up of a Blood Bag Unit in West Bengal. WEAKNESS • • • Consumer promotional programs are less effective. Huge price of raw materials in home state. The damage replacement facilities are not effective. Page 83 IMK Kollam Organisation Study • High transportation cost because of wide spread market OPPORTUNITIES • Demand for healthcare products are infinite. • Orders from international countries and agencies like WHO and Central Government. • Exporting opportunities for all products are high. Existence of a large market for condoms and healthcare products • New female condom market thrown open by HLL. • THREATS • • • Overdependence of Government for orders. Decision making should essentially percolate to lower levels too. Emergence of private companies with cost efficient quality products. 5.2 PEST ANALYSIS Political Political and government has close relationship with the economic situation and economic policy • • Government legislation Trade unions Economic IMK Kollam Page 84 Organisation Study The economic conditions,economic policies and the economic system are the important external factors that constitute the economic environment of a business. • • • Unemployment rate increases sex rate. Exchange rate-exports Economic growth affects the sexual desire Social The buying and consumption habits of the people,their beliefs and values,customs and tradition,taste and preferences,affect the business. • • • • Lifestyle of people Population growth rate Education level Age distribution Technological A firm which unable to cope with technological changes may not survive • • Substitute like contraceptive pills. Distribution channels like online retail outlets IMK Kollam Page 85 Organisation Study CHAPTER VI PORTER’S FIVE FORCE ANALYSIS IMK Kollam Page 86 Organisation Study Power of Buyers Threat of new entrants Competit ive rivalry within the Industry Power of Suppliers Threats of substitutes Existence of a large market for condoms and healthcare products Fig. Porter’s Five Force Model PORTER’S ANALYSIS AT HLL Threat of new entry HLL has attained economies of scale as its per unit cost of production is low. It was established in 1966 and hence gained much experience in the business. It has the capacity to retaliate when new firm enter into the industry IMK Kollam Page 87 Organisation Study The products are differentiated the products from the competitors. hence the customers can easily differentiate Plant and machinery is expensive hence it acts as an entry barrier to new firm Raw materials are easily available and thus not a problem for HLL. HLL enjoys a high brand loyalty among its customers. Thus the threat of new entry is very low for HLL. Bargaining power of Suppliers HLL has fixed certain standards in terms of price and quality for their suppliers. Raw materials like latex and chemicals used in the products are not easily available in the local market. The suppliers increasing their bargaining power. are not concentrated thus So the HLL has less bargaining power of suppliers. Power of Buyers Concentration of buyers are more hence the company’s bargaining power is high. Undifferentiated products are more as the healthcare products of almost all the firms are similar hence the bargaining power of buyers is high. IMK Kollam Page 88 Organisation Study Customers are not so concerned about production cost of the product. Hence the power of buyers are high in HLL. Threat of Substitutes Switching cost of customer towards the company is low. In matters of price and availability of the product, switching cost of the company is low. So there is very less threat from the substitute of HLL. Competitive Rivalry HLL has many competitors like TTK, JK groups, Polar latex, Ethicon etc which are of same size. Players have similar pricing, distribution and promotional strategies. Exit barriers is high because it is a Government undeertaking. Hence there is high competitive rivalry forHLL. IMK Kollam Page 89 Organisation Study CHAPTER VII FINDINGS, SUGGESTIONS AND CONCLUSION IMK Kollam Page 90 Organisation Study FINDINGS Name change of the company help the promotion of new diversification of business, into different products, condoms and healthcare products. Name change and pink addition in logo spread a fresh touch, which makes a feeling of care. HLL has an excellent work culture and the top management is really committed towards the organization development. Welfare facilities provided are very good. HLL having market share of over 70% in the rural and semi urban market. In Kerala it has the market share of 15 %. HLL Lifecare limited exporting products worldwide. There exists a healthy and safe working environment for employees in the organization. The employees have relatively high job satisfaction because of job security and better working condition. Employees are considered as their asset and their health welfare and safety is given prime importance. IMK Kollam Page 91 Organisation Study SUGGETIONS The company can reduce the cost of production by giving the full control of issue of inventories to the Store department. The company can reduce the costs of production by procuring raw materials from nearest suppliers. The company should be more aggressive in marketing especially in the case of new products. The company must launch new premium varieties of condom to overcome the threat posed by the competitors. Employees are the major assets of any organization. Hence, retention of the skillful employees needs to be focused on. Depending heavily on Government for orders may not be good. Direct Marketing is an area to be concentrated much to increase the over dependency on Government orders. IMK Kollam Page 92 Organisation Study CONCLUSION The organization study was conducted at HLL Lifecare Ltd., Peroorkada. HLL LIFECARE LIMITED is the one and only public limited company in India that produces a wide range of contraceptive aids and health care products. Organization study helped significantly to get a feel of the real world industry and organization climate. The study about various departments and their functioning contributed to bridge the gap between the theories and practical knowledge. HLL has been the flag bearer of the change that is sweeping across the country in recent years. The company establishes itself as the leader of the products segment in the market. Social Marketing is the key areas of the company. HLL has recorded consistent excellent working results, high productivity and good work atmosphere, which has also lead to the reduction of rejection of wastage at different stages of production. The company, with its vision of ‘INNOVATING FOR HEALTHY GENERATIONS’, hopes to become a world leader in the area of reproductive healthcare. With all these company will be able to achieve its objectives of becoming a world class health provider with by 2011 will a turnover of 1000 crore company. IMK Kollam Page 93 Organisation Study BIBLIOGRAPHY www.lifecarehll.com Department manuals of HLL Lifecare Ltd. Annual Reports of HLL IMK Kollam Page 94