Incepta Pharmaceuticals is Bangladesh's second largest pharmaceutical company. It has two manufacturing plants and employs over 6,500 people. The company focuses on research and development to introduce new drugs and has registered over 700 products globally. It uses a process layout for batch production of various drug types. Incepta follows quality standards and has received several certifications. It uses forecasting software and seasonal demand patterns to predict production needs. While generally well-run, opportunities exist to improve capacity utilization, quality management, and inventory practices.

1. Incepta Pharmaceutical Limited started its operations from the year 1999 and now is the second
largest pharmaceutical company of the country. Currently it has two manufacturing plant in Zirabo
and Dhamrai. Zirabo consist of 15 acres and Dhamrai consist of more than 100 acres of land. The
company consists of 6500 workforce which includes managers, employees and so on. Ostaril is
the first medicine that the company launched in Bangladeshi market. It was launched in the year
2000 and sales began to take place during the year. From the beginning Incepta has always focused
in launching something new in the market.
The company has successfully introduced 429 generics with 783 presentations. In between these
158 was launched for the first time in Bangladesh. The company is now manufacturing Human
Vaccine, Monoclonal antibodies, Biotech products, Hormones, Natural products, Animals health
products, Hygiene products in addition to these they also produce hospital devices in dosage forms.
After its operation began in 1999 it became 2nd largest medicine manufacturing company within
8 years. From the very beginning the company has hugely invested in research and development
that is why it is able to produce quality products and being able to be in competition. It has its own
large distribution channel which consists of 21 depots all over the country which made it easier for
the company to supply its products to every corner of the country. Incepta exports over 60 countries
in the world which includes many developed and developing countries. In 2015 the company
attracted attention from worldwide media as it launched Hopetavir which is a lifesaving anti-viral
drug which cures chronic hepatitis C infection in adults.
Incepta is also concerned about the health of animals so it has produced wide range of poultry
vaccine for animals. These attempts are taken to improve the health and well-being of the animals.
Incepta has registration of approximately 700 products in different countries of the world. After
receiving certificate of GMP compliance in 2008 from European union it got the opportunity to
expand its footstep in Europe. Incepta became global supplier to UNICEF, UNDP, UNRWA,
UNFPA after the company got acceptance by global headquarters of UN agencies. The company
also received accreditation for GMP from UK, EU, Turkey, Yemen, Kenya, Ethiopia, Uganda and
Democratic republic of Congo.
Products of Incepta Pharmaceutical:
Sterile Products: Liquid dosage forms (LVP & SVP, terminally sterilized and aseptically filled
ampoule, Eye Drops, Solid dosage forms (Solid fill, Dry vials and Freeze-Dried Products)
Non-Sterile Products: Liquid dosage forms (Oral Liquid, Nasal Solution, Nasal Spray),
Semisolid dosage forms (Creams, Ointments, Gel, Solid dosage forms (Tablets, Capsules,
Powders, Granules)

2. Biological Products: Aseptically prepared injectables: Erythropoetin, Enoxaparin, Insulin,
Insulin Glargine (rDNA), Filgrastim
Cephalosporins (Dedicated manufacturing facility): Solid dosage forms (Tablets, Capsules,
Powder), Sterile Powders (Aseptically filled vials)
Analysis of the existing production, operations strategies & the business's facility layout
Incepta has one fully operational plant at Zirabo, Savar, Dhaka and another at Dhamrai, Dhaka.
The second site is currently under development. Manufacturing and packaging operations are
performed according to the validated processes through systematically qualified machines with
full documentation at all stages of operations. The production sites follow the CGMP guidelines
for environmental requirements of the manufacturing and packaging area, as well as comply with
the EHS requirements. Their designs of the room and air-conditioning systems are unique. The
outstanding methods assure:
Removal of contamination of product.
Maintenance of the environment.
Preservation of people.
Prevention of the ingress of vermin, insects, birds etc.
At the Zirabo plant the following activities are enacted.
Pharmaceutical Manufacturing
Logistics and Warehousing
Engineering or Industrial Engineering
Quality Assurance or Quality Control
Research and Development (R&D)
Plant HR or Administration
The following product forms are manufactured on site:
Sterile Products.
Non-Sterile Products.
Biological Products and Cephalosporin.

3. Operation Strategies of Incepta
Price As Incepta produces medicine, they have to maintain an efficient pricing strategy
so that every people can afford to buy the medicine. The cost of their various
medicines is between 50 paisa to 1500 taka.
Quality Incepta always focuses on the quality of their medicine. Every year they are
upgrading their equipment and introduce newest technologies to ensure their
medicine quality.
Time They always have to be ready to give delivery of their medicines. When an order
comes into their system they manage their production such a way so that they can
meet the demand within the given time.
Flexibility There are a lot of variety products for instance tablets, capsules, oral liquid sprays,
eye drops, creams, lyophilized injections, human vaccine etc. So that Incepta
maintains a high level of flexibility in their production line up.
Service Incepta make avail their goods for everyone such as superior, moderate and
inferior customers. They want to extend their services not only in Bangladesh but
also in many other countries.
Location Incepta is located in Zirabo and Dhamraiwhich are very nearto the Capital Dhaka.
So, the company is getting comparative advantages in selling their products and
purchasing raw materials.
Facility Layout:
As Incepta is a manufacturing company they have to run their production through repetitive
process. Every day they have to produce different types of medicine. As they deal with sensitive
product they have to produce different medicine batch wise. Each batch they produce 2 million of
medicines. Batch wise their production times are different. Incepta uses process layout in their
manufacturing medicines.
Their production process is given below:

4. In general, their main process layout for productions are: dispensing (0.5 min/unit), granulation
(0.6 min/unit), blending (0.8 min/unit), compression (0.4 min/unit), coating (0.3 min/unit) and
packaging (0.2 min/unit). Their working hour per day is 10 hours. And their desired output 500
units per day.
Incepta are utilizing their work stations about 77.78% efficiently. Every day they are trying to
increase their efficiency level by this process they are getting high rate of output, low unit cost,
Low material handling cost. They also make sure the high utilization of their labor and equipment.
Application of Production and Operations Management Concepts
Capacity Planning:
First of all, there are two types of capacity, Design Capacity and Effective Capacity. Design
capacity is the maximum output capacity which is 700 units per day for Incepta. Effective capacity
is capacity which is effective after many allowances such as free time, prayer time, personal time
and etc. This effective capacity for Incepta is 600 units per day. Actual output is 500 units per day.
So,
Efficiency = (Actual output/Effective capacity) = (500/600) = 83.33%
Utilization = (Actual output/Design Capacity) = (500/700) = 71.43%
Even though Incepta have huge capacity there are some problems with their capacity usage. There
is a bottleneck in their production process that is machine cleaning. Machine cleaning is necessary
before each batch of production as raw ingredients of one medicine can be harmful for another
medicine. They are trying to add more advanced machines which can clean the raw ingredients of
one medicine during production process. By which they can utilize their design and effective
capacity more efficiently.
Incepta have three core department to run their production and operation management:

5. Supply Chain department:
Demand forecasting is under this department. They give emphasize on seasons and patients age to
do this forecasting. For an example they produce more medicines for cold and fever in winter
season as these diseases increase in this time. They also produce more vitamins for children and
old people.
For providing best quality medicines Incepta Pharmaceuticals buy all the raw materials from
foreign countries.
Manufacturing Department:
Dispensing: In this process they take all the necessary ingredients in perfect measurement.
Granulation: It’s a step for mixing up all the powder together and make granulates.
Blending: By using modern machines they blend those granulates.
Compression: this procedure shaped the medicines.
Coating: It is the final layer before packaging.
Packaging: After coating they make blister packaging.
Sales and Distribution:
After packaging they keep their products in warehouse. Then distributors take those and supply
them to pharmacies, hospitals and clinics. Incepta pharmaceutical’s main target is the doctors for
prescribing their medicines. They have own representatives for providing samples of the medicines
to the doctors.
Triple Bottom Line Approach:
Incepta being one of the leading medicine producer in the country always care about its
surroundings. Nowadays businesses no longer stick to only profit maximization but also have to
take measure to ensure sustainability. for maintaining sustainability John Ellington introduced a
concept named triple bottom line approach which focuses on maintaining sustainability. Triple
bottom line has 3 components people, planet, profit, Incepta being one of the top market player on
the production sites follow the GMP guidelines for environmental requirements of the
manufacturing and packaging area, as well as comply with the EHS requirements. Incepta also
uses highly sophisticated HVAC systems to condition, monitor and supply clean air to the working
zone according to the manufacturing zone concept, capture and control any dust, vapor, gas or
fume generated, as well as treat re-circulated and/or exhausted air so that temperature and moisture
level are maintained at the desired level through this system and environment don’t get polluted.

6. They also maintain different environment zones in the production area. Incepta considers
employees to be valuable assets and protects their rights and delivers a full range of staff facilities
including life insurance and disbursement of 5% of the company profit to them. So Incepta follows
the triple bottom line approach to keep the sustainability.
Incepta manufactures medicines in a batch process. As they have to produce different variety of
medicines in a process. Incepta through different workstations produces medicine with variety.
For producing the medicine, they need skillful worker as the medicines are needed to be made in
such an impeccable precision so that they work easily. If any of the process or work is being
compromised in slightest degree the medicine does not work. As they use batch processing method
it reduces the capital outlay because a single production line can be used to produce variety of
drugs. Below a picture has been attached that shows the process of batch production.
.
Though Incepta uses batch processing method for some medicines they use the repetitive
production as well. For instance, there are some medicines like Paracetamol which are needed to
be produced in bulk quantity.
Inventory Management:
Incepta for managing the inventory uses perpetual inventory counting system. A system that keep
track of inventory removals from a current level of inventory. This Perpetual inventory system
updates each inventory after transaction is made. For This purpose, they use SAP software.
Safety stock: Though medicine industry works on order basis, need for medicines are learnt from
different hospitals, pharma shops, doctors and exporter so they produce the medicine following
this. They don’t keep a bulk amount of medicines in safety stock but they keep some safety stock
of raw materials of medicines as this medicines are being imported from different countries and
sometimes the lead times gets high due to different factors.
Process Map
Process Mapping is the technique of using flowcharts to illustrate the flow of a process. As Incepta
Pharmaceuticals Ltd is one of the biggest pharmaceutical company in Bangladesh they have a very
systematic and modern process map for their whole activities. We can use a flow chart to explain
their process map.
Analysis of Quality Control Issues

7. The Incepta Pharmaceuticals Limited is built up in a way to describe its operations in several
records and practices which is based on the standards of WHO rules. The Quality Manual describes
the Quality Arrangement of Incepta Pharmaceuticals Limited. The duties for the specialized
viewpoints of Quality Confirmation are characterized within the Quality Manual. It includes all
exercises necessary to produce, keep up and confirm the quality of drugs. Incepta uses the Good
Manufacturing Process (GMP), they have done it routine wise as per needed to check. The Zirabo
Plant consists of Quality Control, Quality Compliance and Quality Observation. The most
assignments and obligations of Quality Control have been described within the Quality Manual.
In process of making drugs the quality control department uses six sigma process, USP (United
State Pharmacopeia) and BP (British Pharmacopeia). These processes help Incepta that they are
making qualitative products also making safest medicine for consumer. Usually, when they go for
production, at first ACP (upgrade version of ERP) approves the raw materials, secondly quality
control approves it then sampling and lastly testing before start the production process. In process
of making medicine they use:
Six sigma process
Upper Control Limit & Lower Control Limit
Parameter Checking
Kaizen
By using this processing systems, Incepta is making qualitative product for consumer. They also
have got Quality Certification of ISO 9000 and ISO 14000. This helps the company for achieving
their ultimate goal of success. Incepta have to monitor their production process carefully when
making their products, because one mistake can damage their reputation in pharmaceuticals
industry.
Analysis of Demand Forecasting
Incepta uses SAP which stands for Systems Applications and Products in Data Processing for
forecasting. It is also known as the ERP (Enterprise Resource Planning) software. They use this
software to forecast their future production quantity. According to the Supply Chain Manager of
Incepta after the use of SAP software their production forecast were 95%-98% accurate in their
previous sessions. They can take precautionary measures according to the forecast which helps
them to meet the customers demand. They use seasonal forecasting as they produce medicine
(During winter season they increase their productions of Cold and Cough medicines). Sometimes
they use linear trend equation for their forecasting.
OMENIX 20mg capsule is one of their best selling medicine which is prescribed for Peptic ulcer.
We use Linear Trend Equation to forecast the production of OMENIX for Week 7 and
8. We have plenty of historical data to forecast. There is about 6 weeks data present here.

8. So, Incepta have to produce 3.42 million units of OMENIX for the 7th week and 3.66 million units
of OMENIX for the 8th week.
Operational Problems
As Incepta Pharmaceutical has a state of art facility, they have not faced any big problems yet now
during their supply chain management and manufacturing period except few small problems. As
a medicine factory is very sensitive for health, it requires a long time to clean their machines for
manufacturing a new medicine because of different formulation and in this way, their valuable
time is wasted. In general, they do production batch wise so they do not face many bottle neck
problems during production. They use SAP software for their supply chain management and
production scheduling, this software provides all planning and schedules according to required
demands. If they have to do any emergency production then they do some adjustments manually
in their schedules and can do the emergency production. Sometimes, breakdown or little problems
in their machines hampers their production. But most of the time, they manage these problems by
their own mechanical team. If the problem is beyond their own mechanical team’s capacity to
solve then they take assistance from other technical company from outside. There is no chance to
produce and market a faulty product in their factory. Because, before receiving each raw material
they make sure the quality of the raw material by laboratory testing. They also do tests in different
steps in and after manufacturing period. All the productivity affecting factors (capital, technical,
quality and management) are very positively balanced in this company. They use the latest
technology. They have a very good management team and also, they have enough money to invest
in their business. They ensure the quality of everything of their facility and also deliver the quality
full products. Their facility is very clean and beautiful.
Recommendation
After looking at all the data and judging them, we can see that there are many approaches that
needs to be improved by Incepta Pharmaceutical Limited.
First of all, their forecasting should be improved and more accuracy and expertise is needed there.
The way they forecast may not provide accuracy all the time. They use their intuition which is not
accurate for forecasting demand all the time. They should use more better methods. Then, their
capacity is unused about 28.57%. They have a very big facility but they have underutilized it. They
should use more specialized machines in their production process specially in cleaning process as
it creates bottleneck.
After that, their quality management can be improved if they follow TQM. They should create
teams with highly trained people to check and inspect. They should try to find out the problem at

9. source. As a medicine producer, they should take care of all silly matters which are related to
quality. A small mistake can bring disaster for them as the people are becoming more health
conscious day by day. So, quality management should be their first priority.
Their inventory management can be improved further. Sometimes they have a high lead time
which is bad. They should try to reduce their lead time as this might affect them adversely.
On the whole, Incepta Pharmaceutical Limited is not a new company in the market. They have
expertise for all of their works. As a private owned company of Bangladesh, Incepta
Pharmaceutical Limited earned name and fame in a very short time. The company is in a growing
trend as we have seen in our analysis.