Summer Project
Summer Project
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SUMMER PROJECT IN PRODUCTION AREA AND OPERATIONAL AREA M.B.A [PHARMA] 2010
CONTENT PAGES
TITLE College Certificate Company Certificate Declaration Preface Acknowledgement Executive summary Project Content And Detail Description Company Profile Mission, Vision, History and Growth, Product Profile, future Prospects Findings Recommendation / Suggestions Limitations of study Conclusion Bibliography / References TOTAL Pages : Submission date: 15st July 2010
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Evaluation of Production Management and Operational Management of Gujarat Terce Laboratories Ltd.
Submitted in partial fulfillment of the requirement for Master of Business Administration (Pharmaceuticals)
Project Guide
Ronak A. Patel
Center for Pharmaceutical Management Studies, KSV University, Gandhinagar
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This is to certify that the contents of this report entitled Evaluation of Production management and Operational Management of Gujarat Terce Laboratory Ltd by Ronak A. Patel, Roll No. 61 submitted to Centre for Pharmaceutical Management Studies, KSV University, Gandhinagar for the partial fulfillment of award of Master of Business Administration (Pharmaceuticals) is original research work carried out by him. This report, to the best of my knowledge, has not been submitted either partly or fully to any other University or Institute for award of any degree or diploma.
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Place: Gandhinagar
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DECLARATION
I, Mr. Ronak A. Patel, student of the MBA (Pharma) affiliated to Kadi Sarva Vishwavidyalaya, Gandhinagar hereby declare that this project is a result of culmination of my sincere efforts.
I declare that this submitted work is done solely by me and to the best of my knowledge. I have tried at my level best to collect precise detail to provide useful information to the company.
I also declare that all the information collected from various sources has been duly acknowledged in this project report.
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PREFACE
Pharmaceutical Management colleges provide their students theoretical knowledge but it remains incomplete without practical knowledge. Moreover students of MBA (Pharma) are required to gather maximum practical exposure towards corporate world.
Through this project report work I can better understood the different aspects like Management design, measurement, data collection, analysis and interpretation. Through this report I can understand business management methodology in practical term.
I have selected here the subject Evaluation of Production management and Operational Management in production department in Gujarat Terce Laboratories Ltd.. Through these report work I have tried to improve knowledge, skills, and working style and different management criteria and techniques. I have collected primary as well as secondary data from available sources.
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ACKNOWELGEMENT
Knowledge in itself is a continuous process. At this moment of my substantial enhancement I rarely find enough words to express my gratitude towards those who were constantly involved with me during my project and making it a success. Men become good through practice than by nature.
First of all I wish to express my profound gratitude and sincere thanks to my esteemed learned Dr. Gurang B. Shah, Principal, KBIPER, Gandhinagar who allowed me to conduct summer project. I would like to thank my professors Mrs. Mallika Babu and Dr. Shrikalp Deshpande who was always there to help and guide me when I needed help. Working under them was an extremely knowledgeable and enriching experience for me.
We are highly obliged to MR. Natwarbhai P. Prajapati, MD, Gujarat Terce Laboratories Ltd. for allocating such an interesting project. In spite of being very busy, they were ready to help me whenever required. The whole staff of Gujarat Terce Laboratories Ltd. was co-operative and I am thankful for all the support they extended to me.
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EXECUTIVE SUMMERY
The project includes the study of Training and Evaluation of Productin management and Operational management at Gujarat Terce Laboratories Ltd which is one of the good pharmaceutical companies. It is a Public Limited Company with a large shareholder. It has its own manufacturing facilities, covering all the major dosage forms, like Tablets, Capsules, Injectables, Syrups, etc. Its present manufacturing activities are located near Kalol (N.G.).
The entire project includes the introduction to the training, the definition, objectives and Production management and operational management in plant premises. Training is the systemic development of the knowledge, skills and attitudes required by an individual to adequately perform a given job.
Lastly, the entire project focuses on the steps to be taken by the organization for their future prospect taking in to consideration of their recommendations. As the production management is an important part for the growth of any company.
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PROJECT CONTENTS
Topic Numbe r Topic -1 Content of Topic Page No.
11 14 15 16 17 20 21 22 23 27 28 31 32 35
Topic -2
Topic -3
Topic -4
Inter relationship of Production management with other areas of management Types of Production Systems
Topic -5
Topic -6
Topic -7
Stages of Production
Topic -8
and
Factors effect to
36 39
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Topic -9
Detail description about Production and Operations Management and some strategies
40 44 45 48
Topic -10
Production and Operational management strategy which benefit for Gujarat Terce Laboratory Ltd. (One of the Case from Company Premises)
Topic - 1
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Production:
The word production is described in various as the act of producing, manufacturing as of a play or other performance. The word production implies to us for all practical purposes as Creation of a Utility or Services.
Management:
The word management is described in the various dictionaries as managing or handling, control, direction, administrative skill, act or art of managing, to conduct the working of.
Production Management:
In short production management is The Art of Managing the Production. It basically concerns itself with the conversion of inputs into outputs.
In any production function 3 basic factors will be there Input Transformation Output
A series of sequential activities and operations, which transforming material from a given form to a desired form, indicates production.
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Hence it is very vital and important to know all aspects of this management science with proper depth and detail and empower us with the skills of production management to emerge as a versatile and efficient manager. Production and operations management concerns itself with the conversion or transformation of inputs into outputs using physical resources so as to provide the desired utility/utilities of form, place, possession or state or combination. Almost all business firms perform two basic functions Production and Marketing.
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Let us analyses three basic factors or elements associated with the subject of production management in more detail.
INPUT Raw Materials (Solid, Liquid or Gas, semi finished or finished components, equipments etc.).
CONVERSION Manufacturing
Outputs can be in form, state, possession, place, time, physical products, or availability of services or combination thereof.
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Topic - 2
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Outputs to the System Management 1. Profit 2. Cash Flow 3. Added Value Workers Job Security, Higher Pay, Job Satisfaction
Feedback
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Topic - 3
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Production
Marketing
A production system must be designed in the context of overall corporate effectiveness, for even the most efficient business system is virtually useless if there is no market for its output.
Practically Oriented
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Maintain Stability & Growth Optimality in Fulfillment of Multiple Objectives with prioritization of objectives To be Viewed in terms of Short Term & Long Term Horizons Not Be only Profitable and/or Efficient but also necessarily satisfy many Customers Ability to Adapt External environment factors of competitors Supply & Demand Trade Unions Banks/financial institutions Government
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Production System
POLICY PLAN PRODUCTION FUNCTIONS
POLICY
The overall specification of production system must commence at policy stage by determining companys aims in market terms within the corporate strategy.
PLANNING
To achieve this objectives tool employed is production planning. The future can not be for seen, economically and efficiently the best course of action among the available alternatives is chosen and all the pros and cons, strengths and weaknesses of available means are weighed and then the course of action is determined this is termed as planning phase. A good planning will ensure systematic procedure, improved methodology, control
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PRODUCTION FUNCTIONS
Once company has formulated the policy and plans the next logical step is to go for production. Production Management subject deals in detail about various production functions, which we will deal in detail in subsequent chapters.
Topic - 4
Inter relationship of
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Personnel Recruitment, hiring and firing of people Training Labor relations Motivation to workers & Safety factors.
Research & Development For ideas concerning new products, process and new tools for production
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Topic - 5
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Intermittent
Continuous
Job
Batch Mass
Process
Production is an organizational function, which is responsible for the management process intended to convert a set of inputs into a predetermined set of outputs in the form of goods and services in accordance with the objective assigned to the management.
The function of production management is putting together inputs of men, capital, information & energy and transforming them into products and services in the quantity, quality, time and location that will best meet the organizational objectives.
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Job production is the manufacture of a single complete unit Goods are produced according to definite customer Manufacturing status depends on the receipt of specific items There is no assurance of continued demand This type of production is intermittent in nature
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In the batch production the work on any production is divided into operations, it means that the work content of each unit is broken into a number of operations not necessarily of equal work content, and the operators are again divided into groups. The first group will then complete the first operations of all the units, passing the batch as a whole on the next group and so on until the manufacture is complete on that operation.
Capital investment is low The planning required to ensure freedom from idle and waste time is considerable. The planning of resources can be done sufficiently and adequately, however possibility of underutilization of certain machines and man power can not be ruled out
Cost minimization is one of the criteria for considering the size of a batch
The production control department can derive greatest benefits Example: Base on stander batch size production in Pharmaceutical company.
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Salient features of Mass Production are as hereunder: Planning for optimum utilization of resources can be ensured. A product wise layout and balance production line can be designed
Semiskilled or even unskilled labor can be utilized; very small numbers of skilled workers are required.
High output rating automatic machines can be utilized. Maintenance or breakdown must be attended most efficiently and promptly otherwise it may result into heavy loss of production There is lot of scope for introducing productive techniques to increase productivity Example: Active Pharmaceutical Ingredients Production in API plant.
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Topic - 6
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The functions of production management were limited and also simple in the earlier days where production was conducted on a low scale using very simple methods and techniques and products manufactured were very simple. With the progress of time new technologies have developed resulting into advance products with large volume being produced. This has necessarily increased the importance of the production management at the same time added responsibilities.
Production and operations management functions can broadly be divided into the following four areas:
1. Technology selection & Management 2. Capacity Management 3. Scheduling/Timing/Time Allocation 4. System Maintenance
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1. Planning:
Effectiveness and economy while engineering the production can be studied as manufacturing the required quantity of a product of required quality in tune with the required time by the best and economical method. To realize this objective the tool employed is known as production planning.
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2. Operations:
The second phase is operations. The production plan set the standard. The actions are performed in tune with these pre-set details in this phase.
Quality
Process
Capacity
Inventory
Work force
QUALITY: it is an important operations responsibility, which requires total organizational support. Quality decisions must ensure that quality is built into the product in all stages of production. PROCESS: these decisions determine the physical process or facility utilized to produce the product. The decisions include type of equipment and technology, process flows, layout of facilities etc. CAPACITY: capacity decisions are aimed at providing the right amount of capacity of the right place, at the right time. In short run, available capacity must be allocated to specific tasks and jobs in operations b scheduling people, equipment and facilities. Long run capacities are determined by the size of the physical facilities, which are built. INVENTORY: these decisions determine what to order, how much to order and when to order. Inventory control systems are used to manage materials from purchasing, raw materials through semi-finished products or work in process to finished products. WORK FORCE: people who make the product are ultimate to any production system without which nothing will be produced. Hence this is area of very crucial decisions. It includes selection, hiring, firing, supervision, training, and above all compensation. Managing work force in a creative productive and humane way is key task for operation.
3. Control:
It is always desirable to compare where we are standing at present and where we want to go and accordingly corrective action can be initiated to bridge the gap
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Topic - 7
Stages of Production
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STAGES OF PRODUCTION:
information
3. Design work to start to produce as basic unit. 4. Development work to start to develop a designed product 5. Prototype production done to evaluate the product design, prepare,
nearly as designed are produced under as much as possible. Actual factory conditions using the tools, equipments, raw materials, which ultimately are to be used on the production, line. These samples are very critically tested with micro accuracies for type tests and performances. Some of them are sent to customers for field trials and feedbacks and criticisms.
7. Manufacturing: the product after all the above steps and after all the
corrections are frozen for design and other parameters and then put into full production, Initially a predetermined build up of finished product is manufactured to ensure and take care of contingence, rejection etc. This is a confidence building stage for all concerned. Even after all the above steps and pre-production stage all bugs are not ironed out and it is advisable to plan for initially low level to have the damage control within manageable limits.
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8. PROCESS DESIGN: Designing is the most important & crucial stage of production system. Many companies have a separate Design & Development department. Services of Industrial Designers are being taken for the development of product & process designs. This is a pre-requisite stage before initiating the production Design indicates the determination of size, shape, standard and pattern of the products to be produced. It also includes functional parameters and technical specifications. Functional designs are transformed to product design so as to make manufacturing easy and feasible. Product designs are further integrated to process designs to establish production systems. Computers have proved to be boon to the designing industry and CAD (Computer Aided Designs) and other specially developed soft wares are available to help the product designers and drafts men. It not only helps in efficiency of designing but also for better accuracies and selection of best designs apart from storing and retrieving of the drawings. It also ensures best possible layout for the machines, material and men power to achieve highest degree of efficiency in the production process with the least degree of rejections and wastages of material, labour and time. Thus ensuring optimum utilization of production capacities. Process design is the most important step of the production system and requires best of the engineering expertise, knowledge and management. It must take care of all the marketing needs including short term and long term corporate goals and visions of the company. Total capital exposure and layout of facilities have direct relativity with the process design. Thorough study and knowledge of latest technological developments in the field is a prerequisite to process design. In nutshell adoption of a particular process design is the most important and crucial decision of the production management.
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Topic - 8
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Plant:
The Physical means of production such as buildings, machineries, dies tools, jigs fixtures, service machineries and/or workshop equipments erected and equipped at a given location for the purpose of converting the raw materials to finished goods using men, machineries and materials is called plant.
Location:
Location may be defined as a particular area/site/place selected for setting up of a manufacturing/production unit or plant. Biggest question that needs to be answered before one sets up the production plant is where should our main operations be based? Once the manufacturing plant is erected it is a long-term commitment on the capacity created. Capacity not only in terms of the machinery and equipments but also in terms of arrangements and development for the resources such as raw material suppliers, labor force, market and distribution channels, conveyance and transport arrangements and adjustments with the environments. Once a decision is taken in favor of a particular location, then the organization has to live for a long time with the prospects and problems of that location in regards to the raw materials, labor, other resources and market etc.
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Thus selection of site and location of the plant has to be done with considerable thought, taking into account the various aspects leading to the end profitability of the enterprise. The ideal location for the plant will be one where lowest cost and maximization of profitability is possible. To help in selection of the best and most ideal location for the plant number of factors needs to be analyzed. They can broadly be grouped into two areas, Primary and Secondary factors.
Primary factors:
Market Raw Materials Labor Availability Transportation Fuel & Power
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Secondary Factors:
Climate Water Supply and infra structure development Legislation/ Government and Local authorities industrial policies Political factors Socio-economic factors Emotional factors Law and order situation Availability or Expiry of the lease arrangements Financial Aids availability Banking facilities Geographic Locations like Urban, Rural, City, suburb etc. Draught prone, Seismic Zones or other climatic hazards. Developing Zones/Industrial Zones Proximity of Ports, Airports, Railway Stations or Highways. Topography & Contour of the land Governments incentive Schemes etc. Availability of land for future expansions. Existence of auxiliary industries. Facility of technical research Religious & Vastu Shasta Principles
For International operations-Selection of country of operations Region- State or province Locality City or suburb Exact Site for the plant.
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Topic - 9
Detail description about Production and Operations Management and some strategies
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Inventory Management Quality Assurance and Control Motivating employees Deciding where to locate facilities
What: What resources/what amounts Why: The work is needed to be done When: Needed/ scheduled/ordered Where: Work to be done How much: Quantity to be produced or served, How: Designed/capacity planning Who: To do the work
Decision Making
Production and Operating Manager spends most of their routine hours in making decisions under certainty or uncertainty. The various tools available to an Operations Manager include 1. Models 2. Quantitative approaches 3. Analysis of trade-offs 4. Systems approach Applications of Models in Operations Management Models Are Beneficial and effective to an Operations Manager primarily because of the following reasons Easy to use, less expensive Require users to organize Systematic approach to problem solving Increase understanding of the problem Enable what if questions Specific objectives Consistent tool Power of mathematics Standardized format
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Mission: Live a good life Goal: Successful career, good income Strategy: Obtain a Business Degree. Tactics: Select a business field of your interest and high market value Operations: Register, buy books, take courses, Study, graduate, apply & get job
Examples of Strategies
1. Low cost ( Cost Leadership/Economical ) 2. Scale-based strategies ( Critical Value) 3. Specialization ( Specific characteristics) 4. Flexible operations ( To change production design of products on the same infrastructure) 5. High quality ( exceeds customer requirements and satisfactions) 6. Service ( meets minimum standard specifications) The special attributes or abilities that give an organization a competitive edge are: 1. Price 2. Quality 3. Time 4. Flexibility 5. Service 6. Location
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PRODUCTIVITY
Productivity is a measure of the effective use of resources, usually expressed as the ratio of output to input .Also called Efficiency at times Productivity ratios are used for Planning workforce requirements Scheduling equipment Financial analysis Productivity Partial measures is output/(single input) Multi-factor measures is output/(multiple inputs) Total measure is the output/(total inputs)
Example What is the multifactor productivity MFP? if 7500 Units Produced and Sold for Rs.10/unit with
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Topic - 10
Production and Operational management strategy which benefit for Gujarat Terce Laboratory Ltd. (One of the Case from Company Premises)
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Problem in GTLL Company in Production, Packing and Quality area of Liquid Department in GTLL
There are separate areas for Production, Packing and visual checking for Liquid Product. All areas is situated as a way that it cause to increase time to move product and some brakeage occur at the time of travel the products from One area to other. Here problem arise due to, Improper separation of all different areas which leads to contamination of product and also increase the Men movements in these areas.
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Change taken place to improve Quality and easy Production and Operational management in Liquid department of GTLL
Made some partition to separate areas which leads to minimize the contamination of product and also decrease the men movement in these areas and also arrange all areas step by step its use in this department as per its general procedure.
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Company Profile
Vision :
Adopting a competitive approach towards health and well-being. Strenghening our team.Adopting customers a reason to smile. a more balance approach. Redefining our Goals. And Renewing our Commitment to give our
Mission :
With its Local and some what global presence in many areas is contributiong to the improvement of health and quality of life of people. We intend to expand its bussiness in Pharmaceutical Sector.
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Gujarat Terce Laboratories is engaged in the manufacturing of tablets, capsules, syrup and injections pertaining to the product group, pharmaceutical formulations. The company is selling its product in the domestic as well as international market. Date of Establishment Revenue Market Cap Financials 1985 3.32899 ( USD in Millions ) 71.34435 ( Rs. in Millions ) Total Income - Rs. 168.58597 Million ( year ending Mar 2009) Net Profit - Rs. 0.28377 Million ( year ending Mar 2009)
Product Profile :
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ANTIMICROBIA LS
NUTRITIONA L SUPPLEMEN T
HEEMATIN IC
Almocef tab Almocef dt tab Almocef cv tab Alaska-200 tab Aziter sus. Aziter tab Aziter dt tab Chlo tab Ciprobact500 tab Combimox cap Codimol dt tab Moxxil duo 625
Algin-p tab Brenum-p tab Brenum drop Dicloter-p tab Dicloter inj Nimeter-a tab Nimeter sus Serditer tab Srditer-p tab Tynol-650 dt tab Tol inj. Tol-a tab
Amedil inj Normaga n syp Normaga n-kid syp Novoter tab Protil tab
Acolate tab Acolate plus tab Acolate kid syp Acolate nasal drop Aroget cough syp Normakof cough syp Tekof cough syp Zolong tab
Becap-c syp Becap-cz cap Cipron tab Cipron drop Elcad-forte tab Lycos-cz cap Promo-z powder Vitfol tab
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ANTIMALARIAL
UTERINE RELAXANT
HORMONE S
Rabter cap
Ciprobact-tz tab
Alprater tab
Pridilan tab
Ferliter cap
Arteo inj 75 ml
Rabter-sr cap
Ofloter-plus
Asulter tab
Pridilan 40 sr tab
Pro-dt inj
Malarce tab
Cid syp
Fluxater cap
Sensinorm inj
Z-OZOLE CAP
HALODEP TAB
Z-OZOLE DD CAP
PROMEXYHF TAB
TAZETOL TAB
TERCAM TAB
TRIHEXY TAB
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FINDINGS
The wastage of the materials , products and time are being avoided.
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SUGGESTIONS
the performance of employees so, the training should be provided to all the Manager level employee at regular interval for continuity of their performance.
will ultimately increase their performance and commitment towards the organization.
The frequent brain storming process for the Managers should be arranged.
etc. should be arranged at the regular interval to improve the communication and team work.
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LIMITATIONS OF STUDY
This research reflects on individual manager of Gujarat Terce Laboratories Ltd. and therefore findings and suggestions given on the basis of this research cannot be extrapolated to the entire pharmaceuticals field.
As a Data collected very less, the proper and legal conclusion cannot be made.
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CONCLUSIONS
From the above survey it can be easily concluded that the performance of
the company is increasing due to the better level of management provided to them by Gujarat Terce Laboratories Ltd.
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Bibliography: -
Websites
http:// www.hotfrog.in/.../GUJARAT-TERCE-LABORATORIES
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http://www. info.shine.com/company/Gujarat-Terce-
http:// www.indianexporters.com/gujarat-terce-laboratories-ltd.-
http:// www.connect.in.com/gujarat-terce-laboratories/profile-
http://www.scribd.com/upload/upload_interstitial?
http://www.scribd.com/doc/10041934/Development downloaded
on 12/06/10
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http://en.wikipedia.org/wiki/Training_and_development
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http://en.wikipedia.org/wiki/Pharmaceuticals_in_India
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