BUSINESS DATA MANAGEMENT CAPSTONE

PROJECT FINAL SUBMISSION

CASE STUDY OF KERALA BIOMEDICAL SERVICES

NAME: MIDHUN RAJAN

ROLL NO: 21F1006973

NOVEMBER 2022

PROGRAM OF ONLINE DEGREE INDIAN

INSTITUTE OF TECHNOLOGY, MADRAS
CHENNAI, TAMILNADU-600036
 CONTENTS
SI TITLE PAGE

I EXECUTIVE SUMMARY AND TITLE 3

I.(a) BACKGROUND OF KBS 3

I.(b) PROOF OF ORIGINALITY OF THE DATA 4

II DETAILED EXPLANATION OF ANALYSIS PROCESS 6

III RESULTS AND FINDINGS 8

III.(a) Products growth- month wise: 8

III.(b) Month wise Volume Analysis: 9

III.(c) Revenue Growth Analysis: 9

III.(d) Revenue Contribution Analysis: 10

III.(e) Average no. of months required to recover Investment- 11

Analysis
III.(f) Purchase Analysis: 11

III.(g) Return Analysis: 12

III.(h) Return Vs Purchase Analysis 13

III.(i) Inventory Analysis 13

III.(j) Month wise Sales vs Returns Analysis 14

IV INTERPRETATION OF RESULTS AND 15

RECOMMENDATIONS

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I. EXECUTIVE SUMMARY- CASE STUDY OF KERALA
BIOMEDICAL SERVICES

Kerala Biomedical Services (KBS) has started their operations in 2019. During the

Pandemic time their business was very profitable. Post pandemic time, the sale is almost

becoming zero and they concentrated to rental services of life saving equipment. The purpose of

case study of Kerala Biomedical Services (KBS) is to identify the improvement areas of the

business by analysing sales and purchase data and extracting meaningful insights from it.

Have collected the data for four months (May to August 2022). It contains sales (sales is referring

as Rental), returns etc. In the revenue side KBS has provided income and expenditure data but its

not used here as it is. They have provided some averaged numbers for the same. The inventory

part of KBS is still in a developing stage. Every time the stock out will come and they will purchase

the product and sell it to the customer on the same day itself.

In this case study the complete analysis has done based on the data received. Some of
the inferences based on the analysis are revenue and sales is growing which is good,
purchasing of products were higher at the initial months and by August it came down
which indicates that the inventory is going to be in a saturated manner soon. Sleep
study category is a crucial area to concentrate since the investment is very much higher
than the other products. The sleep study category sales are growing but not utilized its
potential. In other words, average inventory days are higher.

The case study analysis is explained in a detailed manner in the upcoming sections.

Detailed inference of the case study can be found in the Results and Findings section.

I.(a). BACKGROUND OF KBS

Kerala Biomedical Services started their operations in 2019 at Kochi, Kerala. The
business is started by three people, Mr. Sayileshkumar C.A, Mr. Rahul. R. Kartha
(S/o Mrs. Ushadevi) and Mr. Renny John Koshy. KBS is a dealer of bio medical
products such as Oxygen Concentrator, Pulse Oximeter, CPAP, BPAP etc. Their
services include rental service of life saving health equipment, Sleep Study etc.

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I.(b). PROOF OF ORIGINALITY OF THE DATA
All the data is provided by Mr. Sayileshkumar C.A who is the Managing Partner of KBS. Letter
from the organisation, GST certificate of the business and a photograph of the business can
be found in below images (figure1,2,3,4) for validating the authenticity of the data.

Figure 1 – Letter from business

Figure 2 – Photo of KBS with a staff

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Figure 3- GST certificate page 1

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 Figure 4 - GST certificate Annexure B

II. DETAILED EXPLANATION OF ANALYSIS PROCESS

Collected sales data in a row unstructured format. Average rent and price of each products are

directly given by KBS. MS Excel is the main tool used for the analysis. After entering the raw data

into excel, basic data pre-processing has done like imputing, typing errors, sorting etc.

The pre-processed sales data have four columns (Date of issue, Order,
Day and Return date). The format can be check in figure 5. Data were
filtered and taken from May 2022 to August 2022 for the analysis.

Date of date of
issue Order Day return
01-11-2020 BP Sunday
13-03-2021 BP Saturday
01-04-2021 BP Thursday
16-11-2021 CP Tuesday
17-11-2021 OC Wednesday
21-11-2021 OC Sunday

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 05-03-2022 BP Saturday
14-03-2022 OC Monday
15-03-2022 OC Tuesday
21-03-2022 CP Monday
28-03-2022 OC Monday
03-04-2022 CP Sunday 14-0
06-04-2022 OC Wednesday 17-0
12-04-2022 OC Tuesday 09-0
Figure 5

The average selling prices of the products (figure 6) given by KBS. And
the revenue analysis is based on this price.

Category Product ID Avg rent Per

Oxygen Concentrator OC
C-PAP CP
BPAP BP
SLEEP STUDY SS
Figure 6
The averaged buying prices of the products (figure 7) also given by
KBS. The recovery of investment is analysed based on this price.

cost pe
BP
CP
OC
SS

Figure 7
The major case study objective is Perform a general analysis from sales data in order to
find out the average inventory days. The opening stock details of May 2022 is provided
by KBS. But no other stock details are not available for the cases study. If the inventory
is not available KBS purchases the products whenever an order comes and sell it to the
customer on same day itself. In short, Sale is maintained by purchasing products
according to the order. The monthly stock report has been made from the sale data.

OPEN CLSG OPN CLSG

Row STK SAL RETUR PURCHA STK STK SAL RETUR PURCHA STK
Labels MAY E N SE MAY JUNE E N SE JUNE
BP 5 5 0 0 0 0 28 9 19 0
CP 5 2 0 0 3 3 7 3 1 0
OC 15 12 1 0 4 4 25 11 10 0
Figure 8

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 Analysed the company's total revenue and sales. Though the original expenditure data

received from KBS, it can’t be used for analysing the expenditure and profit. They have

shared the monthly average expenditure amount but it is an aggregate amount. So, it is not

useful for analysing the expenditure. Estimated the average number of months it will take to

recover your investment in rental products by calculating the average monthly revenue.

For the case study analysis some columns have been derived from the entered data or
some columns have been removed as and when required in order to do the analysis in
an efficient manner. The usage of Excel's features is recommended for plotting patterns,
building pivot tables, and drawing insightful conclusions from the data. The data can be
viewed by using the following link https://docs.google.com/spreadsheets/d/1xOT2Xd--
u2cw7d4yQhgOM7CigPAZg5PZ/edit?usp=sharing&ouid=109321342314704694970&rtpof=true&sd

=true

III. RESULTS AND FINDINGS

III.(a). Products growth- month wise:
In products growth – month wise graph we can see that the sales of Oxygen
concentrator and Sleep Study is growing every month. But in the case of CPAP and
BIPAP the peak has been reached on July and in August their sales dropped. But still
BIPAP is highest selling product with very narrow margin from Oxygen concentrator.

PRODUCTS GROWTH- MONTHWISE

70
58
60 54
52
50

40 BP
VOLUME

28 28
30 25 26 CP

17
20 12 14 OC
9
7 7 SS
10 5
2
0
May Jun Jul Aug
MONTHS
Figure 9

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III.(b). Month wise Volume Analysis:

In Month wise Volume Analysis graph, we can clearly see that the sales volume is

increasing month by month. The growth rate is very close to linear. By analysing the volume

graph, we can say that the business is in a good shape. But from July to August there is a

slight drop in the growth percentage. It needs to addressed for the continuous growth.

MONTH WISE VOLUME ANALYSIS

160
141
140 127
120
100
74
VOLUME

80

60
40 28
20
0
May Jun Jul Aug
MONTHS

Figure 10

III.(c). Revenue Growth Analysis:

In Revenue Growth Analysis graph, it is obvious that the revenue is increasing as sales

volume increases. Similar inferences of Month wise Volume Analysis graph can be used here

because of the revenue generated by each product are similar. The growth rate is very close

to linear, but from July to August there is a slight drop in the revenue growth percentage.

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 REVENUE GROWTH ANALYSIS
800000 729500
652500
700000
600000
500000
380500
REVENUE

400000
300000
148000
200000
100000
28 74 127 141
0
May Jun Jul Aug
MONTH & VOLUME

Figure 11

III.(d). Revenue Contribution Analysis:

From revenue contribution analysis graph, we can conclude that most of the revenue is
contributed by Oxygen concentrator and BIPAP. But Sleep Study’s revenue contribution
also growing very fast. In primary analysis, we can say, focus more on the Oxygen
concentrator, BIPAP and Sleep study to generate more revenue.

Revenue Contribution Analysis

350000
290000
300000
270000 260000
250000

200000 168000
156000
140000
150000 125000 130000
84000
100000 60000 76500
54000
50000 25000 31500 31500
9000
0
May Jun Jul Aug

BP REVENUE CP REVENUE OC REVENUE SS REVENUE

Figure 12

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III.(e). Average no .of months required to recover Investment- Analysis

From average no. of months required to recover investment analysis table it is evident that CPAP

and Oxygen Concentrator recovers its investment in eight months. BIPAP takes 10 months to

recover its cost. All these are satisfying numbers because the product warranty is for 2 years. But

in case of sleep study, we need to get 100 orders to recover the cost. Sleep study’s fee/rent is for

one day. The monthly average order of Sleep Study is 7 only which means at lease 14 months to

recover the cost. This is not that much satisfactory because the remining warranty period we can

utilise is only 8 months. It’s an important area required attention.

Avg no.of months req to recover Investment- Analysis

cost per machine Avg rent Per order No.of m

BP 50000 5000
CP 35000 4500
OC 40000 5000
SS 600000 6000

Figure 13

III.(f). Purchase Analysis:

From Purchase Analysis graph, quantity of purchase is increasing up to July. In the

month of August its dipped. Since the business is rental sales, procuring the inventory
is important. That’s why the increase in purchase happened in first few months. As sale
increases purchase will increase also the product return will increase in the subsequent
months. It will reduce the purchase of products in upcoming months.

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 Purchase Analysis
35
30
25
20
Purchase

15

10
5
0
MAY JUNE JULY AUG
Axis Title

BP CP OC

Figure 14

III.(g). Return Analysis:

From Return Analysis graph, the number of returns is increasing every month. When the sales are

increasing the return also increases in subsequent months. When return increases the purchase

will decrease. That in turn reduces the investment and create a balanced inventory.

Return Analysis
60
50
50

40 34
volume

29

30
Retun

16
20 11
9 8 10
10 1 3
0
0
MAY JUNE JULY AUG
Months

BP CP OC
Figure 15

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 III.(h). Return Vs Purchase Analysis
The Return and purchase is analysed for the products Oxygen Concentrator, BIPAP and
CPAP. Sleep Study machine is not included. From the graph it is so evident that the
volume of return is increasing linearly. When the return quantity increases the purchase
quantity decreases. So, in few months KBS will have some inventory and they can run
without purchasing products. The purchase trend is clearly decreasing. But if the
purchase became zero, it means the sales is not growing as expected. So, the purchase
should keep at an optimum quantity by keeping an eye on sales growth.

Return Vs Purchase
100

80

60
Quantity

40

20

0
june july august
Axis Title

RETURN PURCHASE Linear (PURCHASE)

Figure 16

III.(i). Inventory Analysis

For Oxygen Concentrator, CPAP and BIPAP, sale is maintained by purchasing products according

to the order if there is no inventory available. According to KBS, this kind of inventory

management helps them to prevent the unwanted investment. But in the case of Sleep Study the

inventory handling is not efficient. From the below table, it is evident that around 30

% of sleep study sales are happening and the investment for the sleep study machine is

pretty large comparing to other products. These sales can be manged with 2 machines.

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 SLEEP STUDY

NO OF MACHINES
NO OF STUDIES CAN BE
CONDUCTED IN A MONTH
ORDERS IN AUG

Figure 17

III.(j). Month wise Sales vs Returns Analysis

In a rental business scenario like KBS, when sales increase the returns of the subsequent

month will increase. From the chart its so obvious that the sales are correlated to the returns

of the next month. For example, let’s take BIPAP’s (BP) case, sale of June is 28 return of July

is 29 (One sale of May could be returned in July that is why return number is 29). Sale of July

is 58 and return of August is 54. Same kind of pattern can be observed from the chart for

other products also. If the organisation will be able to maintain the sales in upcoming months

there won’t be required any purchase at all. But if the sale grows in a significant rate,

purchases will be required to meet the demand.

Monthwise Sales vs Returns

26 52
34
17
25 16 7 10

8
7 11 58 29 54 50

28 3

9
SALE RETURN SALE RETURN SALE RETURN
JUNE JULY AUGUST

OC 25 11 26 16 52 34

CP 7 3 17 8 7 10

BP 28 9 58 29 54 50

BP CP OC
Figure 18

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IV. INTERPRETATION OF RESULTS AND
RECOMMENDATIONS

The case study shows that the overall sales and revenue grows every month
and its good sign of a healthy business. From inventory management side
Sleep Study machines segment required good amount of attention.

One Sleep Study machine can be utilised for max 30 studies per month. Total 4 machines are
available here, so maximum of 120 studies can be done. But the sales number in August is 28
th
only. In the below table date wise sleep studies of August month can be seen. Only on 10
th
and 14 august more than 2 sleep studies conducted. That can be done with 2 machines by
adjusting the dates (Sleep study is not an emergency study so appointments are flexible) . In
other words, technically two sleep study machines are not selling at all.

SLEEP STUDY ORDERS – AUG

01-Aug 1
02-Aug 1
04-Aug 2
06-Aug 1
08-Aug 1
09-Aug 1
10-Aug 3
12-Aug 1
13-Aug 1
14-Aug 1
16-Aug 4
19-Aug 2
23-Aug 2
24-Aug 1
26-Aug 2
27-Aug 2
30-Aug 2
TOTAL 28
Figure 19

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Recommendations:
Need to reach out to more doctors and hospitals to get recommended for

sleep study. If the resources are not enough for marketing, hire a person.

If the sale touches 75 mark, it means an increase in revenue by 2.82

lakhs. Don’t purchase sleep study machine until the sale crosses 100.

The average number of months required to recover the cost of Sleep study machine is

14 months which is not a good figure. Once the above said recommendations

implemented the number of months required will come down automatically.

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