AMITY UNIVERSITY We nurture talent --------------------UTTAR PRADESH-------------------- (Established by Ritnand Balved Education Foundation) THIS IS TO CERTIFY THAT PROJECT REPORT ENTITLED “PROBLEM IDENTIFICATION AND RECTIFICATION IN CLAIM SETTLEMENT”, IN JOHNSON & JOHNSON, NEW DELHI IS PREPARED BY DEEPAK BEHAL OF MBA (GENERAL) 3rd SEMESTER, AMITY UNIVERSITY, LUCKNOW CAMPUS, UNDER MY SUPERVISION. PLACE: LUCKNOW FACULTY GUIDE: DATE: (DR. NIMISH GUPTA) STUDENT’S CERTIFICATE Certified that this report is prepared based on the summer internship project undertaken by me in Johnson & Johnson from 4th June 2007 to 16th July 2007, under the able guidance of Mr. Ajay Rangaraj, Regional Manager, sales (north) in partial fulfilment of the requirement for award of degree of Master in Business Administration From Amity University Uttar Pradesh. Date: _____________ Signature: __________ Signature: __________ Signature: __________ Name: _____________ Name: _____________ Name: _____________ Student Faculty Guide Director ABS ACKNOWLEDGEMENT The satisfaction and Euphoria that accompany the successful completion any task would be without the mention of people who make it possible and whose constant guidance and encouragement leads all effects with success. I would like to express my sincere and profound gratitude to my project guide Dr. Nimish gupta who has been a constant source of inspiration throughout my project. I thank him for the guidance given by him to complete my project. I would also like to thank my Industry guide Mr. Ajay Rangaraj who has been of great help to me and helping me whenever I needed help. Last but not the least I would like to thank Mr. Sabharwal (ABI), Mr Harish rathuri(ABI), Mr Kashif Husain(ABI), Mr Ramesh Jaswani(ABI), Mr Suresh Nandwani(FLM), and all the staff of Johnson & Johnson who helped me in successful completion of the project without them it would have been very difficult for me to complete the project successfully. In the end I would like to thank my parents for their support and posiivity which they have inherited in me and made me an optimistic person. Company’s Name: Johnson & Johnson Address: a-2 community centre, naraina industrial area phase II, New Delhi-110028 Industry Guide Name: Mr. Ajay Designation: Regional Sales Manager Rangaraj Office Phone:011- Mobile:+919311099801 Res Phone 45035242 Email ID: [email protected] Duration Weeks: 08 Start Date:04-06-07 End Date: 04-08-07 Project Title: Study the claim settlement procedure and implement a rapid claim settlement process. Project Objective: Study the market of North india and learn the bottlenecks at RDS point, ABI level and FLM level. Also formulate an error free system to overcome these problems. Methodology to be adopted: Take a sample of 2 ABI H.Q, RDS in metropolitan market and also 2 ABI H.Q, RDs in upcountry and study the problems faced in filing of claim. Brief Summary of the Project: Johnson & Johnson has 314 distributors in North India which are being taken care by 20 A.B.I (Area Business Incharge) and further they have 4 F.L.M (Front line Managers). The company launches various invoicing and retailer schemes for promotion of sales and hence the RDs file claim for the retailer schemes which has been a complex task and till date we do not have a perfect system for the same. A problem free claim filing system is required to ensure the completion of claim filing within the specified time period and also free of any errors. Johnson & Johnson has 314 distributors in North India which are being taken care by 20 A.B.I (Area Business Incharge) and further they have 4 F.L.M (Front line Managers). The company launches new offers for the distributors in order to promote its sales and examples of such offers can be 3% scheme launched in April on savlon soap 75 gm and 125 gm. The claim filing procedure has been a complex task and till date we do not have a perfect system for the same. A problem free claim filing system is required to ensure the completion of claim filing within the specified time period and also free of any errors. CLAIM Claim is an amount asked to be reimbursed by the RDS on account of certain scheme been run by him in the market which was asked by the company to be run. Claims are not only limited to the schemes but also they are for the damages of goods. Claims can be any of the following types: Primary Claims Secondary Claims Permanent Window Display Visibility Damages Coupons Hanger Claims do not have any limitation, they can be for anything (for schemes run in the market, for any expense reimbursement, company parties etc) and every claim is different from the other. However all of have one thing in common and that is they ask for reimbursement from the company Procedure of Filing Claim DISTRIBUTOR ↓ AREA BUSINESS INCHARGE ↓ FRONT LINE MANAGER ↓ REGIONAL MANAGER As of today the claim filing procedure is very simple i.e the claims are filed by the distributor to their particular AREA BUSINESS INCHARGE and the ABI’s forward it to the FRONT LINE MANAGERS who further pass it on to the REGIONAL MANAGER. Appropriation Number Appropriation number is a specific number assigned to a particular scheme/activity for a particular period which may or may not be for a year. This number gives the appropriate amount assigned for the promotion of a particular product for a particular period which may or may not be for a year. This helps the marketing and sales department to have a control over the spending . Example of receipt of appropriation number: pl note... Regards, Sanjay -----Original Message----- From: Tiku, Ashima [JNJINBO] Sent: Friday, February 09, 2007 5:24 PM To: Machado, Reynold [JNJINBO]; Arora, Sanjay [JNJINBO]; Shettigar, Ganesh [JNJINMH]; Malini, P. [JNJINMA] Cc: Saran, Vaibhav [JNJINBO]; Dubey, Ashok [JNJINBO]; Aravind T. [JNJINBO]; Lobo, Doreen [JNJINBO] Subject: Aps nos for 2007 Importance: High Dear All, attached please find the list of APs for settling claims related to schemes on brands. The AP nos are for the schemes that would be run in the period Jan- June 2007. The brands like baby soap, powder etc include the schemes run on their variants as well. Regarding settlement of RDSSM incentives, we are awaiting the plans from the RSMs...the regional TPR APs can only be raised post that The AP nos to settle Key Account claims would be sent out shortly, post Aravind's revert Would request you to please let me know in case any clarifications are required on the above, Thanks and regds, Ashima App. No. Brand Amount (Rs. 000) TPR-276000 Band aid- Washproof 4000 TPR- 276001 Savlon Liquid 2575 TPR- 276002 Baby Soap 7450 TPR- 276003 Baby Powder 4840 TPR- 276004 Baby Oil 11000 TPR- 276005 Baby Cream 4350 TPR- 276006 Baby Lotion 1775 TPR- 276007 NMT shampoo 1575 TPR- 276008 Baby Hair Oil 775 TPR- 276009 Buds 1025 TPR- 276010 Nappy. Pads 750 TPR- 276011 Shower to Shower 4600 TPR- 276012 Clean & Clear 960 TPR- 276013 Band-Aid Regular 1420 TPR- 276014 Band-Aid Flexi 9375 TPR- 276015 Savlon Soap 4025 TPR- 276016 Capsicum Plasters 1400 TPR- 276017 Carefree Sanitary Napkins 1820 TPR- 276018 Stayfree Ultrathin Dry Max 5650 TPR- 276019 Stayfree Secure 22100 IMPORTANCE OF FILING CLAIM ON TIME Every claim carries importance and it should be submitted on time and timely receipt of claims is very important for the finance and accounts department. Also these claims tell us that how efficiently the scheme has been utilized. The appropriation number comes from the head office along with the budget allocated for that particular SKU and once the claims come we get the amount used out of that budget provided to us which is very important. So, these claims should come on time. AREAS TO WORK ON In order to make a perfect claim settlement system there are various areas which require special attention and to ensure the claim reaches the office on time and get sanctioned every month and those areas are: Distributor Area Business Incharge Front line Managers The claim submission system should not only be free of any problems but also simplified to ensure that there is less amount of hard work required for settlement and it should easily be cross checked. LIST OF PEOPLE TO MEET Area Business Incharge NAME AREA D.K.Sabharwal Delhi Harish Raturi Delhi Suresh Keswani Delhi Kashif Hussain Delhi Shalesh Pandey Uttar Pradesh Sunil Dutt Trivedi Uttar Pradesh Saurabh Awasthi Uttar Pradesh Sanjay Singh Uttar Pradesh Rajesh Babbar Uttar Pradesh R.K.Jaswani Uttar Pradesh Naveen Jain Uttar Pradesh Gaurav Sharma Uttar Pradesh A.M.Prasad Uttar Pradesh Y.P.Dhir Punjab Rajesh Gaur Punjab B.S.Lamba Punjab Anurag Srivastava Punjab Amit Pareek Rajasthan Anuj Rastogi Rajasthan Rohit Mehrotra Rajasthan Front Line Managers: NAME AREA Anil Sharma Delhi Gurmeet Singh Punjab, Haryana, Himachal Pradesh, J&K S.K.Dhar Rajasthan S.Nandwani Uttar Pradesh & Uttaranchal At Johnson & Johnson there is no mission statement that hangs on the wall. Instead, for more than 60 years, a simple, one-page document – Our Credo – has guided our actions in fulfilling our responsibilities to our customers, our employees, the community and our stockholders. Our worldwide Family of Companies shares this value system in 36 languages spreading across Africa, Asia/Pacific, Eastern Europe, Europe, Latin America, Middle East and North America. Johnson & Johnson’s Credo We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices.