PRESCRIPTION DRUG VENDING MACHINE

PRESCRIPTION DRUG VENDING

MACHINE

A Entrepreneurship Project ReportSubmitted in partial fulfillment of

the requirements for theDegree of Bachelor of Technology

Under Biju Patnaik University of Technology

By

Priyanka Mohanty Roll #EIE200775162 Sushant Kumar Roll #CSE200710164Kumar Saurabh Roll # IT200720449

April - 2011

Under the guidance of

Mr. Bhanu Prasad Behera

NATIONAL INSTITUTE OF SCIENCE & TECHNOLOGYPalur Hills, Berhampur, Orissa - 761 008, India

ABSTRACT

Prescription drug vending machine is a novel way to make getting medications easy.

The vending machines can be designed to be placed in doctors’ offices, clinics,

emergency rooms and other healthcare facilities. Each can hold 100 of some of the

most often used medications that can range from pills to drops to creams and so forth.

The machines require that physicians create prescriptions electronically, which are

then transmitted to the vending location. (Alternately, patients can take printed

prescriptions to their regular pharmacists.) The machines include several safeguards

to insure patients receive the proper medications their doctors ordered. Thus the

ordering process becomes relatively simple. They enter their prescription number and

birthday via a user-friendly touch-screen monitor, then insert either cash or credit

cards to cover co-pays, while their insurance companies are billed automatically. The

most important benefit these machines give is the easy availability of medicines in

times of emergency.

Besides saving time for patients, these machines also save pharmacists the slow and

potentially error-prone process of counting out medications by hand. The vending

machines, can be accessible 24/7, likewise could help alleviate a growing shortage of

pharmacists.

i

ACKNOWLEDGEMENT

We express our deep sense of gratitude to, Mr. Bhanu Prasad Behera, for his

valuable guidance and constant unfailing encouragement for completing this project.

We are also grateful to our friends for tirelessly and patiently pursuing us to finish this

report without whose help completion of the project report was the next thing to

impossible.

Finally, we would like to thank Prof. Sangram Mudali, our respected director, for

providing us proper environment for the completion of the report.

Priyanka Mohanty

Sushant Kumar

Kumar Saurabh

ii

TABLE OF CONTENTS

ABSTRACT....................................................................................................................i

ACKNOWLEDGEMENT.............................................................................................ii

TABLE OF CONTENTS..............................................................................................iii

1. GENERAL INFORMATION....................................................................................1

1.1 Name of the Entrepreneurs:..................................................................................1

1.2 Proposed Project:.................................................................................................1

1.3 Major Product / Services:.....................................................................................1

1.4 Proposed Locations:.............................................................................................1

1.5 Type of Organization:..........................................................................................1

2. ENTREPRENUER PROFILE...................................................................................2

3. TYPE OF THE PRODUCT / SERVICES.................................................................3

3.1 Type of the Project...............................................................................................3

3.2 Product / Services Description.............................................................................3

3.3 Major Consumers................................................................................................3

4. MARKET POTENTIAL............................................................................................4

4.1. Present Demand and Supply of the Product Competition...................................4

4.2 Target Clients:......................................................................................................4

4.3 Marketing Strategy:..............................................................................................4

5. MANUFACTURING PROCESS..............................................................................5

5.1 Technical Know How Availability:.....................................................................5

5.2 Steps by Step Description:...................................................................................5

5.3 Process flow chart................................................................................................6

Arrangement of all necessary equipments in the proposed location..........................6

6. PRODUCTION SCHEDULE....................................................................................7

6.1 Number of Working Days per Annum:................................................................7

6.2 Number of Working Shifts:..................................................................................7

6.3 Installed Capacity (%):.........................................................................................7

6.4 Utilized capacity (%):...........................................................................................7

7. DETAILS OF THE PROPOSED PROJECT.............................................................8

(A) Land And Building..............................................................................................8

(B) Machineries / Equipments...................................................................................8

iii

(C) Misc. Fixed Assets..............................................................................................8

(D) Preliminary And Pre-Operative Expenses...........................................................9

(E) Sales Revenue......................................................................................................9

(F) Raw Material (Monthly Requirement).................................................................9

(G) Utilities – Monthly...............................................................................................9

(H) Man Power (Salaries/Wages)- Monthly............................................................10

(I) Repairs And Maintenance- Monthly..................................................................10

(J) Selling And Distribution Expenses - Monthly....................................................10

(K) Administrative Expenses - Monthly..................................................................10

(L) Interest - Annual.................................................................................................11

(M) Depreciation......................................................................................................11

8. WORKING CAPITAL.............................................................................................12

9. TOTAL COST OF PROJECT.................................................................................13

10. MEANS OF FINANCE.........................................................................................14

11. PROFITABILTY PROJECTIONS........................................................................15

12. BREAKEVEN POINT..........................................................................................16

13. CONCLUSION......................................................................................................17

iv

PRESCRIPTION DRUG VENDING MACHINE

1. GENERAL INFORMATION

1.1 Name of the Entrepreneurs:

Priyanka Mohanty

Sushant Kumar

Kumar Saurabh

1.2 Proposed Project:

This Business Plan deals in setting up a company for providing drugs(mostly

for lifesaving drugs, essential medicines) through vending machines for the

ease of the customers who wander in the search of medicines . Our firm will

manufacture prescribed drug/medicine vending machine for different

pharmaceutical firms.

1.3 Major Product / Services:

Drug vending machine at Doctors’ offices, clinics, emergency rooms and

other healthcare centers.

1.4 Proposed Locations:

Khurda/Berhampur/Mancheswar

1.5 Type of Organization:

Product based medium scale unit (partnership).

0


2. ENTREPRENUER PROFILE

1. Name : Priyanka Mohanty

Educational Qualification: Bachelor of Technology

Technical Skills: C, C++, VLSI, Sensors, Process Control.

2. Name: Sushant Kumar


Technical Skills: C, C++, Oracle, Java.

3. Name: Kumar Saurabh


Technical Skills: C, C++, Oracle, Java, Advance Java.

1


3. TYPE OF THE PRODUCT / SERVICES

3.1 Type of the Project

Prescription Drug Vending Machine.

3.2 Product / Services Description

With automated facilities targeted mainly at doctors’ offices, clinics, emergency

rooms and other healthcare centers.

3.3 Major Consumers

Pharmaceutical firms and other healthcare centers

2


4. MARKET POTENTIAL

There's a new antidote for long lines at the drugstore pharmacy: machines that serve

up your prescription refills like a can of Coke or a Snickers bar.

The idea behind the machines, which look much like a typical bank ATM, is to

expedite a process that is often bogged down by long lines and frustrating waits.

Once customers have filled an initial prescription with the pharmacist, they can

register to retrieve and pay for their refills at a vending machine inside the store —

even when the pharmacy counter isn't open. A pharmacist then fills the script and

places packaged medicines in the machine. To pick up the order, consumers log on

with a user name and password and swipe a credit or debit card. Their pre-wrapped

package drops into the bin.

4.1. Present Demand and Supply of the Product Competition

Present demand is there mainly at doctors’ offices, clinics, emergency rooms and

other healthcare centers.. There are no competitors in India as there are no

manufacturers.

4.2 Target Clients:

We are looking forward for major cities of Orissa, West Bengal, Bihar and Andhra

Pradesh.

4.3 Marketing Strategy:

The Marketing Strategy will be advertising the product in the media and by

company’s representatives by visiting various target clients and by making them

aware of the features, application and the type of technology used in product.

Advertisements: –

Mainly by our representatives

Free service after sale for 1 year

3


Free demonstration while launching the product.

5. MANUFACTURING PROCESS

5.1 Technical Know How Availability:

Materials related to embedded systems, VHDL, fundamentals of VLSI, C-

programming, Xilinx, digital electronic circuits, sensors, basics of control systems.

Working platform is Windows XP.

Programming skills like C, C++.

Software used is XPS, ISE XILINX-8.1i, and Chip Scope Pro.

Hardware used is XILINX FPGA (Spartan3, Virtex)

5.2 Steps by Step Description:

1) Design of the cabinet by moulding machines to desirable shape and size.

2) Design of control unit by using the base system builder (BSB) developed

using Xilinx platform studio, sensors developed by the research department

and tested and certified by the quality department of the company.

3) Predesigned 8-bit microprocessor controlled by embedded systems.

4) Assembly of the above sections with the functional and quality testing.

5) Package and storage of the product in the inventories.

6) Supply of vending machines to the vendors and dealers

.

4


5.3 Process flow chart

Arrangement of all necessary equipments in the proposed location

START

Design of the cabinet by moulding machines to desirable shape and

size.

Design of control unit by using the base system builder (BSB)

developed by the research department and tested and certified by

the quality department of the company.

Predesign 8-bit microprocessor controlled by embedded systems.

Assembly of the above sections with the functional and quality

testing.

Package and storage of the product in the inventories.

Supply of vending machines to the vendors and dealers

STOP

5


6. PRODUCTION SCHEDULE

6.1 Number of Working Days per Annum:

The Firm will remain open for all weekdays except Sundays and National

holidays. Number of working days per annum=300 days.

6.2 Number of Working Shifts:

1 shift

6.3 Installed Capacity (%): 10 machines per day =>3000 machines per annum.

6.4 Utilized capacity (%):

I -year- 40%- 3 machines per day -900 machines per year

II -year- 50%- 4 machines per day -1200 machines per year

III -year- 60%- 5 machines per day -1500 machines per year

6


7. DETAILS OF THE PROPOSED PROJECT

(A) Land And Building

Sr.No. Particular Area Required

Total Value Remarks

1.

2.

Land

Building

1.5 acres

1 acres Plant, 0.25 acres Admin-officeand 0.25acres transportation

Rs.45, 00,000

Rs.30, 00,000

Rs.15,00,000

Total: Rs.90, 00,000

(B) Machineries / Equipments

Sr. No

Description Nos. Required

Rate (Rs.)

Total Value (Rs.)

1. Plastic Molding Machines 10 4,00,000 40,00,0002. Microprocessor kit 200 2600 5,20,0003. Desktops 30 20,000 6,00,0004. Display device 150 1000 1,50,0005. Scanner 150 1400 2,10,0006. Billing device 150 800 1,20,000

Total 56,00,000

(C) Misc. Fixed Assets

Sr. No

Particulars Nos. Required

Rate (Rs.)

Total Value (Rs.)

1. Office Furniture 1,00,0002. Furniture for factory canteen 50,0003. Motor vehicles

(For raw material and finished product marketing)

2 cars

2 trucks

5,00,000

8,00,000

10,00,000

16,00,000Total: 27,50,000

7


(D) Preliminary And Pre-Operative Expenses

Sr. No

Particulars Amount (Rs.)

1. Interest during implementation 7,15,688(initial six months)

2. Establishment Expenses 2,00,000

3. Start-Up Expenses 6,00,000Misc. Expenses Total 15,15,688

(E) Sales Revenue

Year Items(s) Quantity Sold/Year

Rate per Unit (Rs) Sales Realisation

(Rs)1. Drug

vending machine

900 48,000 4,32,00,000

Total 4,32,00,000

(F) Raw Material (Monthly Requirement)

Sr. No Items(s) Quantity Rate (Rs) Total Value(Rs)

1. 75 5000 3,75,000

Total 3,75,000

(G) Utilities – Monthly

Sr. No

Particulars Monthly Expenditure (Rs) Remarks

1.

2.

3.

Power/Electricity

Water

Any other item Total

83,333

25,000

16,667

1,25,000

8


(H) Man Power (Salaries/Wages)- Monthly

Sr. No

Particulars No. Wages/Salaries per Month (Rs.)

Annual Expenses (Rs)

1.

2.

3.

4.

Skilled

Semi Skilled

Unskilled

Office Staff Total

10

10

50

15

18,000

12,000

8,000

20,000

21,60,000

14,40,000

48,00,000

36,00,000

1,20,00,000

(I) Repairs And Maintenance- Monthly

Sr. No

Particulars Amount (Rs)

1. Machinery, Building, Roads, Plant 5,00,000 Total 5,00,000

(J) Selling And Distribution Expenses - Monthly

Sr. No

Particulars Amount (Rs) Remarks

1.2.3.4.

Publicity ExpensesTravellingFreightCommission

Total

33,333 16,667 4,167 4,167

58,334

(K) Administrative Expenses - Monthly

Sr. No

Particulars Amount(Rs) Remarks

1.2.3.

Stationery & PrintingPost/Telephone/FaxGuest Entertainment Expenses

Total

16,6678,33312,500

37,500

9


(L) Interest - Annual

Loan Amount (Rs)

Interest (Rs) Installment (Rs) Balance (Rs)

1,30,12,500 14,31,376 24,00,000 1,20,43,876

Total 1,20,43,876

(M) Depreciation

Sr. No.

Type of Asset Cost of Asset Depreciation (WDV)

Amount

1 Buildings 15,00,000 10 % 1,50,000

2 Plant & Machinery

30,00,000 33 % 9,90,000

3 Moulds andEquipments

56,00,000 50 % 23,00,000

Total 34,40,000

10


8. WORKING CAPITAL

Sr. No.

Item Rs.

1.2.3.4.5.

Raw-Material Salary/LabourAdministrative expensesRepairs and Maintenance exp.Selling and distribution expenses

3,75,000 10,00,000 37,500 41,667 58,334

15,12,501

Total

11


9. TOTAL COST OF PROJECT

Sr. No Particulars Total Value (Rs.)

1.

2.

3.

Fixed Capital

Working capital margin ( One Cycle )

Preliminary & Pre-operative Expenses

1,73,50,000

45,37,503

15,15,688

Total 2,34,03,191

12


10. MEANS OF FINANCE

Sr. No Particulars Percentage of loan

Amount (Rs.)

1.

2.

3.

Own Investment

Term Loan

Equity

17.98%

61.86%

23,40,319

1,30,12,500

80,50,372

Total: 2,34,03,191

Explanatory Note:

Term loan = Fixed capital x 0.75

Equity = Total cost of the project- (Term loan + Subsidy + Seed capital)

Seed capital= Total cost of the project 0.1

13


11. PROFITABILTY PROJECTIONS

Sr. No.

Particulars Amount (Rs.)

A Annual Sale Realisation 4,32,00,000

B Cost of Manufacturing/ Servicing

i. Raw Materials 45,00,000

ii. Utilities 15,00,000

iii. Salary / wages 1,20,00,000

iv. Selling and Distribution expenses 7,00,000

v. Administrative Expenses 4,50,000

vi. Repairs and maintenance 5,00,000

vii. Interest 14,31,376

viii. Depreciation 34,40,000

ix. Miscellaneous Expenses 27,50,000

Total 3,32,02,752

C Gross Profit/Loss (A-B) 99,97,248

14


12. BREAKEVEN POINT

Break Even Point = Fixed Cost x 100 Fixed Cost + Profit

= (1,73,50,000*100)/(1,73,50,000 +99,97,248)

= 63.44%

15


13. CONCLUSION

Our firm plans to expand its business in near future since there is a very good demand

in entire country and also in overseas. This is new concept of dispensing medicine to

consumers through ATM like machine. The export policy of the Govt. is very much

friendly to low and medium scale manufacturers. So, we have decided to export our

products by collaborating with our off shore partners. Our company is expected to

return the initial investment in 3 years. We are also trying to increase our range of

packaging by providing different medicines in different packages.

16

PRESCRIPTION DRUG VENDING MACHINE

Documents