Gujarat Glass (P) Limited

The 100 billion rupee Indian market for packaging material (of which 9 billion is glass containers) has
witnessed the emergence of a company, Gujarat Glass (P) Limited (GGL) that has been extremely successful
through a strategy of being "totally fixated" on the needs and expectations of the customer. Gujarat Glass (P)
Limited is a leading manufacturer of glass packaging for pharmaceutical and cosmetic products. A dynamic
venture of Piramal Enterprises, Gujarat Glass was acquired in 1984. In 1990-91, the company was merged into
Nicholas Piramal India Limited, a major pharmaceutical company of the group. In 1998, Gujarat Glass was
formed as an independent subsidiary of Nicholas Piramal, with 54% of the shareholding with Nicholas Piramal
and 46% held by a consortium of international investors.

Since the time Gujarat Glass was acquired, its products were strategically for the healthcare industry, unlike
other glass companies catering to diverse industries. Gujarat Glass has focused on being the leading provider of
"flaconnage" (glass containers for the quality conscious pharmaceutical and cosmetics industries). With a
compounded annual sales growth of over 35%, GGL enjoys a leadership position in the niche pharmaceutical
packaging segment that it operates in. Its market share has jumped from about 20% a few years ago to over
40%. GGL is the only company in India and one of the few in the world who manufacture and market the entire
pharma range of glass bottles and vials (amber and flint, bottles and vials, sodalime and borosilicate).

Our infrasturcture
GGL has invested extensively in modern manufacturing facilities. The company has 3 manufacturing facilities -
in Kosamba, near Surat, about 300 kms. Northwest of Mumbai, Jambusar near Baroda, about 100kms beyond
Kosamba, and at Ratmalana, in Sri Lanka.

Our Jambusar plant is the world's largest pharma amber bottles manufacturing plant at a single location. In all,
the 7 furnaces of the company with 27 automatic production lines, many of which are electronically controlled
state-of-the-art machines, produces 7 million glass bottles and vials every day throughout the year for quality
conscious customers in the healthcare and cosmetics industry. Power is an important input in glass
manufacturing. To ensure regular and high quality power supplies, Gujarat Glass has two natural gas based
captive power plants at Kosamba and Jambusar to meet its power requirements.

Total Quality Management

In its various business processes, Gujarat Glass has imbibed all the elements of a systematic approach to
excellence in results. Gujarat Glass is the first in our industry to receive ISO-9002 certification from the
internationally recognized Bureau Veritas Quality International (BVQI) in 1996, and was re-certified for
continued adherence in 1999. The company is also the first and only one in our industry to attain the ISO-14001
certification for the Jambusar location. Gujarat Glass has been extremely TQM-focussed and has invested
extensively in people development and information technology. The ERP system in use is MFG-PRO and aims
at bring in increased efficiencies in the various business processes. Very recently, a major B-to-B initiative has
been the enabling of transactions between Gujarat Glass and its customers through our website
(gujaratglass.Com), with the launch of our application: "cyberglassmart". All this is towards enabling us to
provide speedy, prompt and better service.

Gujarat Glass has been the proud recipient of the Best Vendor Award in packaging from the Organisation of
Pharmaceutical Products of India (OPPI) for two years in succession (1996 and 1997), leading it closer to
becoming the most admired packaging company in India. OPPI rules prevented two-year-consecutive award
winners from being rated for 2 subsequent years. After a forced gap of two years, Gujarat Glass has, once again,
been rated Best Vendor in packaging for the year 2000. While internally conducted regular customer satisfaction
studies rate Gujarat Glass as superior to others in the industry, a recent study conducted by Gallup MBA India
Pvt. Ltd. Rated Gujarat Glass as a company with an admirable customer satisfaction index. Ratings for Gujarat
Glass on various parameters were as high or even higher than those obtained by various companies from the
hundreds of studies conducted by Gallup. Gujarat Glass's strong relationship with the customer, leading to high
levels of delight, as measured by Gallup has been commended by them, and is seen as an example of strong
barrier through customer orientation.

Gujarat Glass has been relentlessly striving to raise the standards of our performance on the quality front.
Working together with many pharmaceutical companies has, indeed, helped us. In some cases, the task forces
formed jointly by customers and Gujarat Glass, have led to significantly better performance where objectives
were set. Gujarat Glass focuses on the just-in-time concept to ensure that customers do not have to hold huge
inventories. Warehousing facilities at our plants and elsewhere are ample evidence of this desire of Gujarat
Glass to lower customers' inventory carrying cost.

Future Outlook
Gujarat Glass seeks to further strengthen its leadership in the domestic market. The company is keen to increase
its shares with existing customers and looks forward eagerly to new business. There is also a major thrust
planned on the exports front to tap the huge potential that exists in the international market. Gujarat Glass seeks
to consistently meet and exceed the needs and expectations of its quality conscious customers in India and
around the world.

ISO 9000

The ISO 9000 family of standards relate to quality management systems and are designed to help organizations
ensure they meet the needs of customers and other stakeholders (Poksinska et al, 2002 [1] ). The standards are
published by ISO, the International Organization for Standardization and available through National standards
bodies.

ISO 9000 deals with the fundamentals of quality management systems (Tsim et al, 2002 [2] ), including the eight
management principles (Beattie and Sohal, 1999 [3] ; Tsim et al, 2002 [4]) on which the family of standards is
based. ISO 9001 deals with the requirements that organizations wishing to meet the standard have to meet.

Independent confirmation that organizations meet the requirements of ISO 9001 may be obtained from third
party certification bodies. Over a million organizations worldwide [5] are independently certified making ISO
9001 one of the most widely used management tools in the world today.

Reasons for use

The global adoption of ISO 9001 may be attributable to a number of factors. A number of major purchasers
require their suppliers to hold ISO 9001 certification. In addition to several stakeholders’ benefits, a number of
studies have identified significant financial benefits for organizations certified to ISO 9001. Corbett et al (2005)
[6]
showed that certified organizations achieved superior return on assets [7] compared to otherwise similar
organizations without certification. Heras et al (2002) [8] found similarly superior performance [9] and
demonstrated that this was statistically significant and not a function of organization size. Naveh and Marcus
(2007) [10] showed that implementing ISO 9001 led to superior operational performance [11] . Sharma (2005) [12]
identified similar improvements in operating performance and linked this to superior financial performance.
Chow-Chua et al (2002) [13] showed better overall financial performance was achieved for companies in
Denmark. Rajan and Tamimi (2003) [14] showed that ISO 9001 certification resulted in superior stock market
performance [15] and suggested that shareholders were richly rewarded [16] for the investment in an ISO 9001
system.

While the connection between superior financial performance and ISO 9001 may be seen from the above, there
remains no proof of direct causation, though longitudinal studies, such as those of Corbett et al (2005) [17] may
suggest it. Other writers such as Heras et al (2002) [18] have suggested that while there is some evidence of this,
the improvement is partly driven by the fact that there is a tendency for better performing companies to seek
ISO 9001 certification.

The mechanism for improving results has also been the subject of much research. Lo et al (2007) [19] identified
operational improvements (cycle time reduction, inventory reductions, etc.) as following from certification.
Buttle (1997) [20] and Santos (2002) [21] both indicated internal process improvements in organizations leading to
externally observable improvements. Hendricks and Singhal (2001) [22] results indicate that firms outperform
their control group during the post implementation period and effective implementation of total quality
management principles and philosophies leads to significant wealth creation. The benefit of increased
international trade and domestic market share, in addition to the internal benefits such as customer satisfaction,
interdepartmental communications, work processes, and customer/supplier partnerships derived, far exceeds any
and all initial investment according to Alcorn [23].
ISO-9002 Quality Systems aims at preventing and detecting any non-conformity during production &
installation and implementation of the means to prevent the occurrence of the non-conformity

ISO 9001:2000 specifies requirements for a quality management system where an organization

1. needs to demonstrate its ability to consistently provide product that meets customer and applicable
regulatory requirements, and
2. aims to enhance customer satisfaction through the effective application of the system, including
processes for continual improvement of the system and the assurance of conformity to customer and
applicable regulatory requirements.

All requirements of this International Standard are generic and are intended to be applicable to all organizations,
regardless of type, size and product provided.

Where any requirement(s) of this International Standard cannot be applied due to the nature of an organization
and its product, this can be considered for exclusion.

Where exclusions are made, claims of conformity to this International Standard are not acceptable unless these
exclusions are limited to requirements within clause 7, and such exclusions do not affect the organization's
ability, or responsibility, to provide product that meets customer and applicable regulatory requirements.

ISO 14001

ISO 14001 was first published in 1996 and specifies the actual requirements for an environmental management
system. It applies to those environmental aspects which the organization has control and over which it can be
expected to have an influence.

ISO 14001 is often seen as the corner stone standard of the ISO 14000 series. However, it is not only the most
well known, but is the only ISO 14000 standard against which it is currently possible to be certified by an
external certification authority. Having stated this, it does not itself state specific environmental performance
criteria.

This standard is applicable to any organization that wishes to:

• implement, maintain and improve an environmental management system

• assure itself of its conformance with its own stated environmental policy (those policy commitments of
course must be made)
• demonstrate conformance
• ensure compliance with environmental laws and regulations
• seek certification of its environmental management system by an external third party organization
• make a self-determination of conformance

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from design stage to installation, commissioning and operation. The goal is to ensure reliability and integrity of
their operations as well as compliance to Quality, Health & Safety and Environmental regulations when
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Our services include conformity assessment to European directives, international regulations and private
schemes, up to assistance in production monitoring and asset integrity management. Specific missions include
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ABOUT OPPI

| About Us | OPPI Office Bearers | OPPI Committees | OPPI Past Presidents |

 OPPI MISSION

To make continuing contribution towards achieving healthcare objectives of the

nation while professionally addressing the collective interests of its members and
encouraging innovation for inclusive growth.

• Organisation of Pharmaceutical Producers of

India (OPPI) established in 1965, is a premier association of research based international and large
pharmaceutical companies in India and is also a scientific and professional body. It caters to the
needs of Research based Pharmaceutical Industry thereby creating and sustaining an environment
conducive to innovation and growth, simultaneously, facilitating industry and stakeholders
partnership through various advisory and consultative processes to achieve the Healthcare
objectives of the Nation.
• OPPI Members Follow:
o Good Manufacturing Practices (GMP)
o International Code of Pharmaceutical Marketing Practices
o OPPI’s position on Intellectual Property Rights (IPR)
• OPPI functions mainly on the following areas:

1. Continuous dialogue with the stakeholders

2. Actively engage in knowledge creation & knowledge sharing with value addition
3. Engage in ‘Corporate Academia’ Interaction
• OPPI identifies itself with the country’s national healthcare objectives and encourages its members
to make substantial contributions to social concerns and actively promotes Corporate Social
Responsibility (CSR).
• OPPI is an active member of International Federation of Pharmaceutical Manufacturers
Associations (IFPMA), Geneva.

VISION OF OPPI

To be an Active Partner with Government, Non-Governmental Organisations (NGOs) and other healthcare
providers in improving the health and quality of life of our people through reduced morbidity and mortality
by discovering, developing and making available safe, cost-effective and quality medicines. In particular, to
play an important role in improving the access to medicines of people in rural areas and those living at or
below the poverty line.

To build on India's existing strengths in manufacturing and Distribution and substantially enhance the
beginnings made in R&D in order to become one of the leading players in the global pharmaceuticals
market.

To develop a realization that the degree of success that the Industry attains in these areas will be a direct
function of the emphasis given to the development of a sound system of Intellectual Property Rights,
Biological Sciences Research (particularly genomics and proteomics), Clinical Research & Development
and Innovative Process Chemistry.

To make India a global sourcing base of high quality pharmaceuticals to international consumers.

To be one of the major creators of intellectual capital and wealth for the economy.

Just-in-time (business)

Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing
in-process inventory and associated carrying costs. Just In Time production method is also called the Toyota
Production System. To meet JIT objectives, the process relies on signals or Kanban (看板 Kanban?) between
different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but
can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT
focuses on continuous improvement and can improve a manufacturing organization's return on investment,
quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee
involvement and quality.

Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at
the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this
work is often misunderstood.

For instance, its effective application cannot be independent of other key components of a lean manufacturing
system or it can "...end up with the opposite of the desired result."[1] In recent years manufacturers have
continued to try to hone forecasting methods (such as applying a trailing 13 week average as a better predictor
for JIT planning,[2] however some research demonstrates that basing JIT on the presumption of stability is
inherently flawed.[3]

Effects

A surprising effect was that factory response time fell to about a day. This improved customer satisfaction by
providing vehicles within a day or two of the minimum economic shipping delay.

Also, the factory began building many vehicles to order, eliminating the risk they would not be sold. This
improved the company's return on equity.

Since assemblers no longer had a choice of which part to use, every part had to fit perfectly. This caused a
quality assurance crisis, which led to a dramatic improvement in product quality. Eventually, Toyota redesigned
every part of its vehicles to widen tolerances, while simultaneously implementing careful statistical controls for
quality control. Toyota had to test and train parts suppliers to assure quality and delivery. In some cases, the
company eliminated multiple suppliers.

When a process or parts quality problem surfaced on the production line, the entire production line had to be
slowed or even stopped. No inventory meant a line could not operate from in-process inventory while a
production problem was fixed. Many people in Toyota predicted that the initiative would be abandoned for this
reason. In the first week, line stops occurred almost hourly. But by the end of the first month, the rate had fallen
to a few line stops per day. After six months, line stops had so little economic effect that Toyota installed an
overhead pull-line, similar to a bus bell-pull, that let any worker on the line order a line stop for a process or
quality problem. Even with this, line stops fell to a few per week.

The result was a factory that has been studied worldwide. It has been widely emulated, but not always with the
expected results, as many firms fail to adopt the full system.[4]
The just-in-time philosophy was also applied to other segments of the supply chain in several types of
industries. In the commercial sector, it meant eliminating one or all of the warehouses in the link between a
factory and a retail establishment. Examples in sales, marketing, and customer service involve applying
information systems and mobile hardware to deliver customer information as needed, and reducing waste by
video conferencing to cut travel time[5].

[edit] Benefits

Main benefits of JIT include:

• Reduced setup time. Cutting setup time allows the company to reduce or eliminate inventory for
"changeover" time. The tool used here is SMED (single-minute exchange of dies).
• The flow of goods from warehouse to shelves improves. Small or individual piece lot sizes reduce lot
delay inventories, which simplifies inventory flow and its management.
• Employees with multiple skills are used more efficiently. Having employees trained to work on
different parts of the process allows companies to move workers where they are needed.
• Production scheduling and work hour consistency synchronized with demand. If there is no demand for
a product at the time, it is not made. This saves the company money, either by not having to pay
workers overtime or by having them focus on other work or participate in training.
• Increased emphasis on supplier relationships. A company without inventory does not want a supply
system problem that creates a part shortage. This makes supplier relationships extremely important.
• Supplies come in at regular intervals throughout the production day. Supply is synchronized with
production demand and the optimal amount of inventory is on hand at any time. When parts move
directly from the truck to the point of assembly, the need for storage facilities is reduced.

Enterprise resource planning (ERP) integrates internal and external management information across an entire
organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP systems automate this
activity with an integrated software application. Its purpose is to facilitate the flow of information between all
business functions inside the boundaries of the organization and manage the connections to outside
stakeholders.[1]

ERP systems can run on a variety of hardware and network configurations, typically employing a database to
store data.[2]

ERP systems typically include the following characteristics:

• An integrated system that operates in (next to) real time, without relying on periodic updates.[citation needed]
• A common database, that supports all applications.
• A consistent look and feel throughout each module.
• Installation of the system without elaborate application/data integration by the Information Technology
(IT) department.[3]

Advantages

The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves
time and expense. Decisions can be quicker and with fewer errors. Data becomes visible across the organization.
Tasks that benefit from this integration include:[citation needed]

• Sales forecasting, which allows inventory optimization

• Order tracking, from acceptance through fulfillment
• Revenue tracking, from invoice through cash receipt
• Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the
vendor invoiced)
ERP systems centralize business data. Benefits of this include:

• Eliminates synchronizing changes between multiple systems—consolidation of finance, marketing and

sales, human resource, and manufacturing applications
• Enables standard product naming/coding.
• Provides comprehensive enterprise view (no "islands of information"). Makes real–time information
available to management anywhere, anytime to make proper decisions.
• Protects sensitive data by consolidating multiple security systems into a single structure.[23]

[edit] Disadvantages

• Customization is problematic.
• Re–engineering business processes to fit the ERP system may damage competitiveness and/or divert
focus from other critical activities
• ERP can cost more than less integrated and/or less comprehensive solutions.
• High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade
expenses.
• Overcoming resistance to sharing sensitive information between departments can divert management
attention.
• Integration of truly independent businesses can create unnecessary dependencies.
• Extensive training requirements take resources from daily operations.