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http://www.scribd.

com/doc/58960907/A-ProjectReport-on-Recruitment-and-Selection-inGlaxoSmithKline-Pharmaceuticals ACKNOWLEDGEMENT

I consider it pleasant privilege to express my heartiest gratitude and indebtedness to those who have assisted me towards the completion of my project report. The project wouldn t have seen the light of day without the help and guidance of many people I take an opportunity to convey my deepest gratitude to all those individuals.

My first words of thanks go to Mr. Jadish Rao (General Manager) & Mr. Munish Kaushal (Manager Finance & IT) for giving me the opportunity to work on this project.

I feel highly obliged and indebted to my learned guide Mr. Rixon Singla, Mr. Sunil Sharma, Mrs. Pooja Sharma, Mr.Usman Ali, Mr.Sumit Bansal, Mr.Virender Kumar, Mr. Anoop Wadhwa of Finance department GSK for not only providing all the moral and organizational support but also for inspiring encouragement during the course of this work. Without their help it wouldn t have been possible for me to accomplish this task in time. Words at my command are inadequate both in form and spirit to express my sincere and profound gratitude to all these persons for their meticulous guidance,

keen supervision, and constructive criticism. Friendly attitude and whole-hearted help throughout the course of this project. Their unforgettable, positive approach and freehand acumen made this project possible. PREFACE The problem of unemployment is one of our major problems. This problem has been troubling us ever since we gained independence. One reason for growing unemployment in the country is our faulty education system. Students are given bookish knowledge without any training for specific jobs. To solve this problem to some extent training programmes are being introduced. This helps the students to increase their job perspective. Training can be done in industries, business-houses, sales and income tax department of various central, state, local, government societies etc.

A project work programme in industry is to get an overall view and exposure of the industry and its working environment. It enhances the confidence and boosts the morale of the students who go for their project in the industry. These programmes are included in the curriculum of studies for development of the personality of the finance students and get a first hand experience about the working of the industry.

EXECUTIVE SUMMARY

1st part of the report contains introduction to GSK, which includes company profile showing the company status, ISO certification etc., Historical background which shows how GSK comes into being? Then various Packaging stations, Manufacturing process which shows how Horlicks is manufactured in company? After that there is Supply chain process which shows that how the Horlicks reaches to the final consumer?

It contains the brief information about the GSK Nabha plant like no. of employees, shift timings, milk collection centers etc. After this there is product profile, which shows range of products offered by GSK Consumer Health Care Ltd., Department overview, which shows how various departments works for the company, Then comes GSK mission which shows company s dedication towards the society and an overview about its financial and marketing implications.

2nd part contains the Research Methodology, which includes justification about the topic selected, the objective of the study, Unit where the study is conducted, time period for which the study is conducted. Scope of the study and sources of

information (primary as well as secondary). It also includes various limitations during the course of the project.

3rd part contains the introduction to topic Inventory Management this includes the information, as to what is Inventory Management all about, the aspects of Inventory Management, its importance, the objectives for Inventory Control and scope, Inventory Control techniques, etc. and all this is well supported with the data of GSK.

4th part is about the analysis of the data which includes the present scenario of inventory management in GSK , NABHA, the ways in which inventory could be utilized, the various inventory control tact s such as ABC, FSN, etc.

5th part of this report is about the findings and suggestions, the various proposals that the company could apply for maintaining the inventory and the suggestions for the improvement in inventory control that could be helpful to the organization, management. some techniques for practicing good inventory control

The last part of the report is that of Bibliography in which the various books, web sites and articles consulted for the preparation of this report are mentioned.

COMPANY PROFILE

COMPANY NAME

Glaxo SmithKline Consumer Healthcare Ltd

Head office Registered Office Status

Gurgaon (Haryana) Nabha (Punjab) Multinational Company. Originally U.K. Firm

Quality Status

AWARDED Latest Version OHSAS 18001, ISO 9001:2000 and

ISO14001:2004 Rajahmundry Plant Received

ISO14001Accreditation

and

SA8000

Nabha & Sonepat Plant certified for HACCP (Hazard Analysis Control Point for Food safety). Turnover (2008) Rs. 17014 (Millions),

Profit(BeforeTax) (2006)

Rs.2451 (Millions), 17.3%

Export To

Bangladesh, Myanmar, Sri Lanka, Middle east, Nepal, Hong Kong,

Malaysia, Fiji

INTRODUCTION TO GSK

GlaxoSmithKline Consumer Healthcare Ltd. (GSKCH) is an Indian associate of GlaxoSmithKline plc, U.K. GSKCH is one of the largest players in the Health Food Drinks industry in India. The Company, with its manufacturing plants located in Nabha, Rajahmundry and Sonepat, has a total workforce of over 2700 people, each driven by a spirit of enterprise. Its flagship product, Horlicks, is a highly respected brand, which is over 100 years old in India. The Company also manufactures and markets Boost, Viva, Maltova, and Biscuits and in addition promotes and distributes a number of products in diverse categories, including prominent brands such as Eno, Crocin and Iodex. GSKCH has a strong marketing and distribution network in India comprising over 1800 wholesalers and direct coverage of over 4,00,000 retail outlets.

HISTORICAL BACKGROUND GlaxoSmithKline Consumer Healthcare Ltd. is a pharmaceutical and healthcare company born out of the merger of two leading international organizations SmithKline Beecham and GlaxoWellcome. GSK Consumer Healthcare Ltd and

GSK Pharmaceuticals Ltd are the two businesses of GSK in India of which former are headquartered at DLF Gurgaon and the latter at Worli, Mumbai. Its global mission is

To improve the quality of human life by enabling people to do more, feel better and live Longer ".

In the Indian market, GSKCH's journey began with Horlicks.

PLANT LOCATIONS IN INDIA

PRODUCTION STATIONS

FOOD POWDER BISCUITS ENO CROCIN IODEX PACKING STATIONS

: : : : :

NABHA, RAJAHMUNDRY & SONEPAT SAHIBABAD RAJAHMUNDRY BANGLORE BANGLORE

The company started packing Horlicks in Kg and 1kg pouches. Packing machines were imported and installed. As the main market for sale of Horlicks was in the South and East India, need was felt for the sale of Horlicks in small units of the country. Therefore was opened at different places. At present Horlicks is dispatched from Nabha in bulk quantity to the following packing stations: Mangaldoi (Assam) Kompally Baddi (Himachal Pradesh) Hamira (Punjab) Parson The marketing of the company's products is done through various Regional Sales Offices (RSO) situated at: North (New Delhi office) West (Mumbai office) East (Kolkata office)

South (Chennai office)

The company has its head office in Gurgaon. Bulk-malted food manufactured in Nabha is dispatched to different packing stations in drums for packing in unit s container or gusseted pouches (GPs).

GSK MISSION

Our global quest is to improve the human life by enabling the people TO DO MORE, FEEL BETTER, AND LIVE LONGER .

People at Glaxo SmithKline consumer healthcare limited are dedicated ourselves to delivering medicines and products that help million of people around the world LIVE LONGER, HEALTHIER AND HAPPIER LIVES

CULTURE Successful companies have developed something special that supersedes corporate strategy, market presence, or technical advantage- distinctive culture. What it is, whether it is important or not, what you deal with indirectly. Why? Because culture is an intangible shadow. You cannot garb hold of culture. it has no handles, nothing you can touch directly. Having said all that, it is an important issue GSK s culture is the set of norms that create powerful precedents for acceptations around acceptable risk, change orientation, creative and innovation, group versus individuals effort, customers orientation, extra efforts

ABOUT THE NABHA PLANT

GSK s Nabha plant is a huge manufacturing unit. Glaxo SmithKline Consumer Healthcare Ltd. is having three factories, which are at Nabha, Rajahmundry and Sonepat. The factory at Nabha is the mother unit and products manufactured by this company fall under two categories of consumer healthcare: Nutritional Health Drinks Horlicks and its variants

Gastrointestinal ENO Fruit Salts

The food powder (HORLICKS & BOOST) is manufactured in Nabha. The requirement of workforce changes with change in production policy. The plant at present employs a work force varying from 1500 to 2000 out of which approximately 1100 are permanent. There is a staff and management of about 145 persons. There is a wage agreement for 3 years. The workers also getting weekly off according to Labors Act.. The plant runs 365 days a years in 3 shifts daily

which work from 5.15 a.m. to 1.15 p.m., 1.15 p.m. to 9.15 p.m. & 9.15 p.m. to 5.15 a.m.. The office opens 6 days a week.

About 12 Milk collection centers were opened at a radius of about 40km around Nabha, to meet the requirement of 20 tones of Milk per day. The main purpose of opening collection centers at village level was to get good quality of Milk directly from the producer and pay them good price, thus, raising their standard of living. Nabha and Sonepat production facility has already been certified for HACCP (Hazard Analysis Critical Control Point for Food Safety).During the year the Nabha site received The Best Environment Protection Initiative 2006 award from the Punjab Pollution Control Board.

DEPARTMENTAL OVERVIEW

The various departments in GSK Ltd. Nabha are:

OPERATIONAL EXCELLENCE

MANUFACTURING

ENVIORNMENT HEALTH & SAFETY

ENGINEERING

HR & A

QUALITY ASSURANCE

FINANCE & I.T.

WAREHOUSE SUPPLY CHAIN MANAGEMENT

PROCUREMENT

MAIN FUNCTIONS OF FINANCE DEPARTMENTS

FINANCE DEPARTMENT Main Functions of Finance Department Are As Follows: Vendor payment When an article arrives at the gate, an entry permit is made and they are sent to the GOODS INWARD DISPATCH section (GID). A goods inward from (gif) is filled up and sent to the finance department for payment .the vendor submit the bill to purchase department .the finance department also receives a hard copy of the corresponding purchase order (PO). There is online passing and payment system .This Contains a database of all purchase order issued .these are checked against the bills for the GIF, PO references after which the bill is posted for production of the payment slips.

Disbursement of salaries The HR Department sends a compile list of all employees on the payroll together with their monthly working records .The salaries are paid mainly through the bank to all the employees.

Payment to government bodies Excise is paid to all suppliers for goods manufactured. The company takes credit of the payment of excise from the govt. According to the CENVAT. Excise is however paid for the finished goods. Octroi is paid to Local authorities for goods arriving from outside Nabha. Property tax, insurance and sales tax are also paid in

case of accidents; breakdowns are called for assessment, when a claim is filed. VAT is paid to Excise and Taxation Department of Punjab.

Milk accounting Every milk supplier has a code, the first two digits indicating whether the milk is from cow, buffalo and the next three digits indicating the supplier. Payments are made after 10 days by cheque/MT/DD..

Payment of services The finance department pays for various services like rent, truck hire etc.

Capital budgeting Every department submits an annual budget, which is allocated quarter wise . The concern department also sends a capital investment proposal, which has to be approved in different forums depending on the investment required.

DEPARTMENTAL CHART OF FINANCE & IT Mr. Jagdish B. Rao

General Manager- NABHA

Mr. ARUP CHAKROBARTY

Sr. Manager- Finance, IT & Compliance

Surya Kant Jain DY.. Manager- Finance Budgeting, MIS, Audits AP, Product Costing, OE financials, Indirect Taxation, Debtors, Site Oxygen Champion Ajay Kansal Asst. Manager- Finance Accounts Payroll, Milk/ DOA/ DOB/ Services/ Freight, Audits, Compliance.

Rixon Singla DY. Manager Finance Fixed Assets & Capex, Payroll RM, Costing, Insurance, OE Coordinator.

Usman Ali Officer Finance DOA, DOB, Services & Related Compliance, KP co-coordinator Pooja Sharma officer Finance Costing, Raw Material/ FG accounting & Related Compliance Vikas Gupta Officer Finance Budgeting, MIS Banking, OE Financials New product Costing, Record Retention

Sumit Bansal Officer FinanceCentral Excise, TCS, Debtors, VAT, eTDS, service Tax Virender Kumar Officer Finance Milk Accounting, Freight Accounting Sunil Sharma Officer Finance Fixed Assets A/c, Capital WIP, Payroll, Insurance, Employee Services, EHS, 5 S

Narinder Verma Executive IT Infrastructure, Servers, Notes Mail, Applications Support, IT Training

MANUFACTURING PROCESS

The Manufacturing process for Horlicks is as Follows:

The First step in the production process involves the mixing of wheat flour with Malted Barley.

In The Second step water is added to the above mixture and the material is mashed thoroughly, as a result of which the outer cover of malted barley is moved and remains after it is called Husk.

After mashing the material it becomes thick slurry in which the solid content is above 50%.

The fourth step involves the adding up of water to the above mixture.

The next stage is the stage of evaporation in which the material is evaporated and the result is thick slurry of the material in which the solid content is around 80%.

After evaporated comes the step of spreading out of material in plates and keeping them in the oven for about half an hour.

Once the material is completely dried, the plates are taken out from the oven and the food item is scrapped out, which comes out in the from of thin layers. Then the vitamins and other essential nutrients are added to the food items which is then ground and the result is our final product HORLICKS.

SUPPLY CHAIN PROCESS

The supply Chain Process at GSK; Nabha is as follows:

Horlicks manufactured at the Nabha plant, after it is put in drums with a capacity of 184 kgs. Is either bottled or packed in pouches and then sent to sales depots situated across the country. Its chain is as follows:

Consumer

Drums

(at factories)

Retailers

Bottles (at packing stations)

Wholesalers

Sale Depots

RESEARCH METHODOLOGY

OBJECTIVES OF STUDY

The present study has been undertaken in respect of Glaxo SmithKline at Nabha the main objectives of study are as follows: -

To know that how a company apply the controlling technique on the inventory. To know that how the recategorisation of the inventory is done through the ABC analysis. To know that how the purchase orders have an impact on inventory and hoe it simplifies the complexity. To know that how a company actually get the benefit of the controlling technique. To know that how other techniques can be better applied on the existing controlling technique.

SCOPE OF STUDY

The scope of the study is designed in terms of unit worked, the concept adopted and the period under focus.

The unit

The study is done in the Finance department & stores department of GlaxoSmithKline Consumer Healthcare Ltd. at Nabha plant.

The concepts The concept of various tools and techniques of general inventory control are used and analysed.

The period The study is supposed to be relating to the period of last years consumption i.e. from April 2006- March 2007.

Sources of Data: Secondary Data: - The study is based on mainly on the secondary data including Annual Report, Store Records & for theoretical portion various books. Primary Data: - The only mode of collecting primary data was the non-structured direct intersection with the concerned persons of Finance & Stores Department.