Assignment No.

1
Topic: Application of 8 Quality Management Principals on Fazal Dins Pharma plus

Submitted by: Muhammad Idrees Zaheer Mehmood Danish Shahzad Majid Ali Muhammad Waqas Farooq Subject: Total Quality Management Section: F Submission date: 13/10/2012 Submitted to: Prof. Zahid Hussain L1F10MBAM2052 L1F10MBAM2019 L1F10MBAM2029 L1F10MBAM2041 L1F10MBAM2256

Fazal Dins Pharma plus

Fazal Din's Pharma Plus is one of the largest retail chains of pharmacies in Pakistan. Mumtaz, son of Haji Fazal Din, migrated from Dalhousie to Lahore and set up a pharmacy store on The Mall under the name of Fazal Din & sons. In 1995, Ibrar Mumtaz, grandson of Fazal Din, opened a computerized pharmacy store under the name of Fazal Din's Pharma Plus, which quickly grew into a chain of retail stores across the country. The chain is now owned by Taimur Mumtaz, great grandson of Fazal Din.

Mission Statement
The mission of "FAZAL DIN'S PHARMA PLUS" is to improve the health and well being of individuals and the society as a whole by providing quality healthcare services.

Services
With 11 branches in Lahore the Fazal dins Pharma provides following services. 24 hours free home delivery. 24 hours availability of pharmacist. Patient counseling.

Products
Fazal dins Pharma has wide range of products under the line of Velvette brand name which includes Acne cream Fairness cream Anti oxidant cream Foot cream Revalorizing cream Baby oil Youth cream Hair oil

Quality management
The term quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general definition, but rather to ensure that an organization or product is consistent, can be considered to have four main components: quality planning, quality control, quality assurance and quality improvement. Quality management is focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of processes as well as products to achieve more consistent quality.

Quality Management Principals

Before we apply the quality management principals on the selected organization we need to know that what the quality management principals are? Basically quality management principles are a comprehensive and fundamental rule or belief, for leading and operating an organisation, aimed at continually improving performance over the long term by focusing on customers while addressing the needs of all other stakeholders. Following are the 8 Quality Management Principals Principle 1 - Customer-Focused Organisation Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations. Principle 2 - Leadership Leaders establish unity of purpose and direction of the organisation. They should create and maintain the internal environment in which people can become fully involved in achieving the organisation's objectives. Principle 3 - Involvement of People People at all levels are the essence of an organisation and their full involvement enables their abilities to be used for the organisation's benefit. Principle 4 - Process Approach A desired result is achieved more efficiently when related resources and activities are managed as a process. Principle 5 - System Approach to Management Identifying, understanding and managing a system of interrelated processes for a given objective improves the organisations effectiveness and efficiency. Principle 6 - Continual Improvement Continual improvement should be a permanent objective of the organisation. Principle 7 - Factual approach to decision making Effective decisions are based on the analysis of data and information. Principle 8 - Mutually beneficial supplier relationships An organisation and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value.

Quality Management Principals followed by Fazal Din Pharma

We visited a branch of Fazal Dins Pharma, shalimar Hospital, Lahore and we studied that following are the some of the Quality management Principals that they are following.

1. Customer Focus:
Fazal Dins Pharma is highly customer focus organization they provide free home delivery to their customers. They are satisfying the need of their customers 24 hours a day 7 days a week. They are not close on weekends. They understand the need of the customers and maintain their inventory according to the need of their customers. The customers can find all the medicine on the prescription from them. If they does not have any specific medicine with them written on the prescription, the arrange it and satisfy the need of their customer. They have following objectives in their mind for their customers: Providing high quality service Sustaining long term relationship with customers Enhancing the Quality of core business

2. Involvement of people:
People are the greatest asset of any organization, especially in the service industry. So, their involvement at the work is a lot important for the organization to function. According to our observation employees of the Fazal Dins Pharma are much involved in their activities, whenever a customer reaches on the counter some pharmacist will come to the customer in no time to provide him what he want. Basically the employee knows and understands the importance of their contribution and role in the organization. They know that what can result in case of their low performance to the organization.

3. Process approach:
The process of the Fazal Dins Pharma is good as compare to a lot other stores. The stores are of a lot big size which does not cause interruption for the employees as well as customers. For example, if a pharmacist is going towards a shelf to take a medicine and the other pharmacist is coming from that side, so, they do not cause hurdle in each others way because of the big size of the store. Except this if the pharmacist does not know about the destination of a specific medicine, I mean where the medicine is placed in the store. So, it does not mean that he has to go to every shelf to find that specific medicine, he just goes to the system (computer) and type the mane of the medicine in their software and he get the detail about the placement of the medicine, I mean he can get the shelf address where the medicine is placed from the computer. It not just saves the time of the customer and the organization it also increase productivity of the organization and build a good relation with the customer.

4. System approach to management:

There is computerized system in every branch of the organization which keeps track of the inventory and automatically updates the inventory as it is sold to the customers. Except this, the system automatically places the orders when stock of any medicine is low. The system also keeps record of the trend in sales of a specific medicine. The system contains the detail of the placement of the medicines as mention above. This system is very affective and it works efficiently.

Quality Management Principals Not Followed by Fazal Dins Pharma

According to our observation in the Fazal Dins Pharma we think following are the quality management principals they are not following.

1. Continual Improvement:
According to our observation we think the organization is not following this quality management principal of Continual Improvement. We think the company is not providing the training to their employees to update their knowledge. Except this we think that the organization, no doubt, has good software for the management of their inventory and billing process but they are not making any improvement in the software. The interface of the software is too old and the operator of the software can become bore.

2. Process approach:
We discuss above that the Fazal Dins Parma is following this quality management principal of Process Approach but there are some of the aspects of this approach which we think they are not following. The flaw in the process is that the customers have to wait in lines at the cash counter to make payment for their purchases. The pharmacists are more than one but the cash counter is only one, due to which the crowd at the counter, where the customers get their medicines or other items, is very low. Whereas the crowds at the cash counter, because of its singularity, is more.

Recommendations
According to our understanding and observation we think that the following modification can be made to the organization in apply Quality Management Principals. 1. The organization is operating at very limited scale it has only 11 branches in Lahore. The organization should open more branches in Lahore as well as other cities of the country through which they can serve more customers and can increase their sales. 2. The organization should provide training to their employees about the operations of the organization and to interact with the customers. Through this the organization can built strong customer relation. 3. The organization should update their software according to the requirement of the needs of the organization as well as make the interface good and easier to operate. 4. Sometimes there is a huge crowd on the cash counters. So the company should maintain minimum two cash counters to divide the crowd and decrease the waiting time for the customers to get their order.