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Chapter II

2.1 Process and function at Danapha


2.1.1 Definition of process and function
A process generally is a logical result of activities converting input into output. The
business process is a collection of related activities. These activities which are structured
will create product for a particular consumer of business. The purpose of business
process is to achieve business goals.

A business function is an area that the organization wants to pay attention to. The reason
why is to support its business goals. A business function performs a part of mission of an
organization. A typical organization has its functions such as Administration, Sales and
Marketing, Quality, Human Resources, Research and Development, Production and
Finance & Accounts. Each of these functions needs to work together. Then every
department has same aims as well as objectives and contributes towards achieving
organizational goal.
it is undoubted that process of an organization have relation to functions. And each
functions of the organization are also related to each other. For instance, Finance
department prepares a budget for the organization with the discussion of all functional
managers. And then each department has its own target for the year. According to the
target, Production department will produce the services or goods. After that Marketing
department has the responsibility to sell those products or services. Thereafter, Human
Resource department employ employee to meet the organizational goal. To sum up,
every department is linked with each other.

Defining Processes - Carl F. Lehmann


http://www.ittoday.info/ITPerformanceImprovement/Articles/2012-04Lehmann.html

2.1.2 Process and function at Danapha


2.1.2.1 Process at danapha
There are three types of business processes at Danapha including management
processes, operation processes and supporting processes. First of all, the management
processes at Danapha are about the operation of a system. Strategic management
controll this system. To be specific, strategic planning in management processes is very
important. This is because strategic planning consists of financial objectives, business
plans, contingency plans, continuity plans, quality control, risk assessment, risk
management and management responsibility and so on.
Secondly, the operational processes which is the most essential of three types of the
business processes. They develop, make, sell, and deliver products and services.
Operational processes aim to execute an organization's business strategy. Examples of
operating processes would be product manufacturing, raw material refinement and
customer services. At Danapha, it tries finding, researching and manufacturing new
drugs by using modern technology to meet the people's needs of treatment and health
care.
Another type is supporting processes. Supporting process at Danapha not directly
produce any product. However, they give support to the management and operational
processes by facilitating or assisting the execution. For examples, they support operating
processes by supplying procurements, inventory replenishment, and machine
maintenance. And they support management processes by administrative, typically
associated with finance, accounting, sales, or human resources.

2.1.2.2 Function of department at Danapha


In terms of function, take a look at Danaphas organization structure. There are 7
function departments including Administration, Sales and Marketing, Operation and
Manufacturing, Quality, Human Resources, Research and Development, Production and
Finance & Accounts.

Administration: it will be responsible for planning and implementing the strategy


regarding to the corporate-level. The strategy is planned for the whole

organization.
Sales and Marketing: it is responsible for the brand management, reservation

channels, relationship marketing, loyalty programmers, and sales strategy.


Operation and Manufacturing: it is responsible for overseeing the factory of
manufacturing facility and its materials needs, work schedule and medicine

process.
Quality: it is responsible for building Danaphas prestige as the provider of the best

medicine to satisfy people who concern at Danapha (Danaphas motto).


Human Resources (HR): it is responsible for the development and implementation
of company-wide HR strategies, human capital management programmers, policies
and strategies in order to maintaining the HR retention. The main focus would be
leadership

development,

talent

development,

career

service,

performance

management and employees communication as well as engagement.


Research and Development (R&D): the main mission is to conduct researches for
new medicine and develop new technology. In order to be competitive, Danapha
continuously needs finding ways for new technological development of medicine
range. During researching and developing new products, both the R&D managers
and their staff members have to ensure the new medicion meets the product
specification. They take responsibility to research the product according to
allocated budget and checking if the product meets production costs as well. Not
only stop from that, they also developing medicine to comply with regulatory

requirements and specified quality levels.


Production: it take responsibility to make sure that the medicine plans are met on
time and products of the right quality are produced

Finance and account: it is responsible for planning the commercial finance,


strategy and corporate development, investor relations, procurement, monitoring
the financial reporting.

RESEARCH AND DEVELOPMENT DEPARTMENT FUNCTIONS


http://www.taskmanagementguide.com/solutions/departments/research-developmentdepartment/research-development-department-functions.php

Organisation - Business Departments


Author: Jim Riley Last updated: Sunday 23 September, 2012

http://www.tutor2u.net/business/gcse/organisation_business_departments.htm

2.2 Interrelationship between function and process at danapha

Danapha function department have the interdependent relationship with each other
together. Production departments main duty is to produce the goods. For producing
goods, it needs raw material, labor and other expenses. For paying all expenses,
production department needs money and fund which will be fulfilled by finance
department. Finance department checks the budget of production department and allow
funds for production department. With this view, we can understand that production
department is dependent on finance departments decision. Now, if production
department performs his duty honestly and products are produced and sold on time, it
will be helpful for increase sale and profitability and it will again recycle the fund with
high profit in finance department. So, we can say both are dependent on each other.
Both are players of business team. Both should be adopt co-operative view for each
other. After this, business team can succeed in business.

HR department manages the employees of company. Finance department manages the


money. If personnel department and finance department work together with cooperation, both departments can satisfy the objectives of Danapha. It is the objective of
company to satisfy employee by fulfilling their financial needs like salary. Moreover,
financial decisions are also very necessary in human resource department. Corporation
are trying to inprove the development of employees. They are human resource capital of
company. Now, investment in training of employees, incentive schemes and retirement
schemes etc should be calculated like other investment and both departments should
take maximum advantages from this asset.

Human Resources (HR) department will be responsible for the whole organisation
internal policy. For the selection, HR department give out the interview standards, job
analysis and job descriptions in order to help Danapha have the guidelines to select the
right employees for other departments. Moreover, the HR is also responsible for planning
the policy, regulations and other employees programs. The two important procedures
from HR are training and performance management. While training especially the
orientation training helps the employees feel confident when starting the job and
encourage the harmonic collaboration among departments. The performance
management will help the department head to catch up with the performance of the
employees and help them in doing the personal development plan. For example, there is
a sales standards at Danapha with the Key Performance Indicators (KPI) that help the
managers to assess the performance of staffs. After that, they will discuss together
about the Personal development plan (PDP) to enhance and improve the performance.
HR will be responsible for manage these Personal development plans.

What is the relation of finance function to other functions of a business enterprise?

http://www.bayt.com/en/specialties/q/39586/what-is-the-relation-of-finance-function-toother-functions-of-a-business-enterprise/
tham khao them http://www.marketingteacher.com/marketing-and-other-functions/
http://www.yourarticlelibrary.com/material-management/relationship-ofmaterial-management-with-other-areas-of-management-functions/26125/
http://www.citeman.com/1279-production-and-other-functional-areas.html

2.3 Methodology in map process


2.4 Quality gateway and process output

Quality of products creates companys image and reputation. It could be negative or


positive depending on quality of product. Therefore, Danapha set a high requirement of
standard for each product they produce. And then Danapha apply quality gateway to
meet product requirement. The quality gateway is the point of organization in which all
requirements have to pass in order to avoid the incorrect requirements from getting
through the design and implementation stages (Robertson & Robertson, 2006). Quality
gateway can help Danapha provide information of product such as expiry date, function,
application for customers as well as potential investors. Each product of danapha has it
own key requirement specification, so the quality gateway are set up to make decision
whether these requirements specifications be mainly able to pass physical, functional,
behavioural or not. In order to achieve good quality regarding to requirements, ISO
9001:2008 has been applied for quality management.
Marterial requirement
Good quality of raw material requirement from supply process is really needed for
Danaphas manufacturer to produce high quality product. The quality managers will take
complete details of raw materal requirement including:

Raw material

Conditions

Herb
Labotory

Fresh, general tonic


infusorial facilities, temperature of 298.15 K (25 C,

77 F) and an absolute pressure of exactly


100 kPa (14.504 psi, 0.987 atm)

Manufacturer
Packaging

Automatical production line


Harmless and can be recycled

Gateway process
Physical
Requireme
nt
Size
Weight
Coating
Packaging

Specification

_Improving mental
alertness, ambition and
awareness

Barrier film with


antimicrobial coating
Blister pack and in

_Reducing eye diseases that


can cause loss of vision

Physical

_Weight

_Reducing risk of heart


disease

12 to 16 months from the time


of manufacturer.

Requireme
nt
_Size

Specification

8 mm diameter round
tablets
100 mg

folding carton

Shelb life

Functional
Requirement

_Increasing immune
function

Functional
Specification

Requirement

Specification

_8 mm
diameter
round tablets

_Improving
mental
alertness,

_Supply about 20%


of the bodys intake
of oxygen

_Supply about 20% of the


bodys intake of oxygen
_2,500 mcg of folic acid reduce risk
of developing eye diseases

_ control blood levels of


homocysteine, an amino
acid that may be
associated with heart
disease.
produce hormones,
red blood cells, and cells
of the immune system

Behavioura
l
Requireme Specification
nt
_look and
_Look like
feel
tablet and feel
hard

_Coating

_100 mg

_Packaging

_Barrier film
with
antimicrobial
coating
_Blister pack and

_Shelb life

in folding carton

_12 to 16 months
from the time of

ambition and
awareness
_Reducing eye
diseases that can
cause loss of
vision

_Reducing
risk of heart
disease

manufacturer.

_Increasing

immune
function

_Usability
_2,500 mcg of folic acid
reduce risk of developing
eye diseases

_Security

_ control blood
_Legal
levels
restrictions
of homocysteine,
an amino acid that .
may be associated
with heart
disease.
_producing h
ormones, red
blood cells, and
cells of the
immune system

_Take by
mouth with or
without food,
usually once
daily
_Pretty safe

Business Process Measurement

CSF (Critical Success Factors)


Customer satisfaction level
Quality of outputs
Reliability of outputs
Number of rejects
Amount of waste
Risk level
Output units /worker/day

Target
95% extremely satisfied
99%
90%
03%
05%
01
100

Size, Shape, and Other Physical Attributes of Generic Tablets and Capsules
http://www.fda.gov/downloads/drugs/guidancecomplianceregulatoryinformation/guidance
s/ucm377938.pdf
Vitamin B6 (Pyridoxine)

http://umm.edu/health/medical/altmed/supplement/vitamin-b6-pyridoxine
Vitamin B6
http://www.nutri-facts.org/eng/vitamins/vitamin-b6-pyridoxine/at-a-glance/

2.5 Plans to achieve goals and objectives

There are objectives of

Objectives of top level: the plant is designed to have a capacity of 235 million tablets per
year. Danapha is expected to have an annual turnover of VN110 billion and employ about

300 locals in 2019


Objectives of middle level
Objectives of supervisory

Inauguration of GMP-WHO herbal drug plant in Da Nang

http://www.vietnambreakingnews.com/2010/11/inauguration-of-gmp-who-herbal-drugplant-in-da-nang/
http://www.tutor2u.net/business/strategy/objectives.htm
https://www.linkedin.com/jobs2/view/14965135?
trk=job_view_browse_map&trk=job_view_browse_map
http://smallbusiness.chron.com/examples-marketing-objectives-20231.html

2.6 Implementing the system at Danapha


Critical success factors

Critical success factors ( CSF) are things that help move organization forward and gain results, so
Danapha need to focus on those things to achieve their goals. To evaluate how organization is
doing, a quality improvement tool that Danapha use is Critical success factors. It helps to
measure how well Danapha is accomplishing its strategic plan and objectives. Having too many
measures can make it difficult to achieve results. Having too few limits Danaphas ability to get
next level. Therefore, Danapha has eight measures to fulfill its mission and vision through

strategic objectives.

CSF (Critical Success Factors)


Customer satisfaction level
Market share
Quality of outputs
Reliability of outputs
Number of rejects
Amount of waste
Risk level
Output units /worker/day

Target
95% extremely satisfied
18%
99%
90%
03%
05%
01
100

http://www.mindtools.com/pages/article/newLDR_80.htm
http://smartchurchmanagement.com/example-church-goals/
http://smartchurchmanagement.com/critical-success-factor-examples/
Critical Success Factor Examples
http://smartchurchmanagement.com/critical-success-factor-examples/
Controlling employees and system
Controlling risk
There are many unexpected risks in business enviroment. The factors causing these risks are
human, environment and system factors

Environment factors
_Natural disaster:
typhoons, and floods,
as well as accidents,
acts of terror,
infectionstorm
_Dynamic risks

Human factors
_The theft or cheat

System factors
_Computer virus

_Competitiveness

_Technical error

_strikes and lock-outs _Internet disconnetion


by trade unions
_negligence

_Information hacker
and

_Poor quality material


_Change

in

dishonesty

of

an

industrial employee

policy and trade policy

_accidents or deaths in
the industry
_Incompetence of the
manager
_Failure of suppliers to
supply the materials or
goods on time
_Default in payment by
debtors
Table 3 The Risk Management Factors

Danapha must control risk in the workplace. Natural disasters can cause considerable loss to
Danapha. It can be controllThe effects of natural disasters could damage the Danaphas
facilities and equipment and make a stop to manufacturing. These disasters such as
typhoon and flood could consequently cause severe damage to Danapha. Danapha has
managed several preventive plans, Business Continuity and various insurances.
However, these plans and insurances are not guaranteed to cover all the losses. Not only
stop from that, Danapha also need to thorough study before make a decision about which kind of herb
or chemical will they choose to make medicine or who is the most reliable material supplier they should
cooperate. Danapha also need to hire and train a security guard team works 24 hours per day to secure company
and the warehouse. Besides, they need to buy insurance not only for equipment, machinery, vehicles but also for
staff to avoid unexpected risk like damaged, stolen or unexpected accidents. In addition, they need to make sure
that employees, especially IT department know how to use and repair computer to block technical errors.
Keeping all records of receipt is also necessary to ensure the purchasing performed correctly. When the
electricity was cut off, company have to prepare generators to avoid delay in production process. Besides, when
the distribution channel has the problem, Danapha need to contact with other delivery service to make sure the
process will not delay.
http://business.gov.in/growing_business/types_business.php

http://www.renesas.com/ir/company/risk.html

Customer-orientation
Customer orientation is a group of actions. These actions are taken by an organization to
improve its sale and service staff taking into account regarding client needs and
satisfaction.
Many companies today particularly in the service sector carry out some form of customer satisfaction measurement.
When it comes to budget setting, the vast majority of organisations approve the budget for asking their customers
for feedback on how they perceive the organisations performance.

http://www.customerchampions.co.uk/creating-a-customer-orientated-culture/
http://careweb.care.org/help/devplan/Customer_Oriented.htm

A group of actions taken by a business to support its sales and service staff in
considering client needs and satisfaction their major priorities. Business strategies that
tend to reflect a customer orientation might
include: developing a quality product appreciate by consumers; responding promptly and
respectfully to consumer complaints and queries; anddealing sensitively
with community issues.
Read more: http://www.businessdictionary.com/definition/customerorientation.html#ixzz3UB3FD120
Controlling employees / system? 1. Policy, 1. Procedures (Detail steps) (1 example each in
Appendix) guidelines, etc..
Controlling Risk?
Customer-orientation
Product policy / Quality management

http://www.thuongmai.vn/danh-ba/danh-ba-tong-hop/doanh-nghiep-xk-uy-tin-2011/1568xuat-khau-duoc-va-thiet-bi-y-te/108760-cong-ty-co-phan-duoc-danapha-.html
http://danapha.koreayellowpage.net/
http://danapha.toancauxanh.vn/vie/thong-tin-nghien-cuu-san-pham-chi-tiet/thong-tinnghien-cuu-sp/doi-net-ve-trung-tam-nghien-cuu-phat-trien.html
http://www.exporters.com.vn/shop/DANAPHA-PHARMACEUTICAL-JOINT-STOCKCOMPANY/35585/about.html
http://123doc.org/document/1316733-title-research-on-factors-influencing-customersatisfaction-a-case-study-of-danapha-pharmaceutical-company-vietnam.htm?page=7

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