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47
AN ORGNIZATIONAL STUDY KMF-GUMUL
INTRODUCTION OF KMF:
Karnataka milk federation [kmf] is a cooperative apex body in the state of Karnataka
representing dairy farmer’s organization and also implementing dairy development activities to
achieve the following objectives
Providing assured and remunerative market for the milk produced by the farmer
members.
Providing quality milk to urban consumers.
To build village level institutions in cooperative sector to manage the dairy activities.
To ensure provision of milk production inputs, processing facilities and dissemination of
know how.
To facilitate rural development by providing opportunities for self employment at village
level, preventing migration to urban areas, introducing cash economy and opportunity for
steady income.
The philosophy of dairy development is to eliminate middleman and organize institutions to be
owned and managed by the milk producers themselves, employing professionals. Chive
economics of scale to ensure maximum returns to the milk producers, at the same time providing
wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of
cooperative organization should build a bridge between masses of rural producers and millions of
urban consumers and archive a socio- economic revolution in the hinterland of the state.
INDUSRTY PROFILE:
In the early days, milch animals were domesticated for the fulfillment of household needs and
purposes, but with the passage of time, growth of population and development of business and
commerce, people started using their animals as a source of their earnings. In the first instance,
the surplus milk was collected, stored and sold out in the open market with a limited number of
persons, but their activities gradually swelled and assumed a complete form of business. The
actual beginning of modern dairying has been in the middle of the nineteenth century. But,
significant changes in the structure of dairy have been marked during the past hundred years or
so. However, it was in the second quarter of the twentieth century that the creamery ice cream
factory, fluid milk bottling plant, condenser and dry milk plant were established and dairying was
run in modern ways and dairying assumed a form of full-fledged industry.
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On the path of revolution in the recent years, milk production evolved as the primary rather than
the secondary occupation of farmers. Moreover, the industry is employment oriented as it
provides employment to a large number of persons. A good number of people in Indian
population is engaged in the production, processing and marketing of dairy products and many
persons are needed to process, bottle and deliver fluid mills and other dairy products. Thus, it
helps in combating the unemployment conditions caused by seasonal industries and casual
opportunities of employment.
Farmers in many regions grow fodder in their land for the purpose of cattle raring and have made
dairying as their primary occupation. Milk and milk products are also very important from
nutritional point of view as they contain almost all the essential food constituents required in
human diet. Milk and milk products are very rich in protein, calcium, vitamins and milk sugar
and they provide the nutrients for people in proper proportions. Dairy Industry also fits in well in
diversifying farming programs and reducing the farmer’s link involved in agriculture. It provides
a regular and at least a subsistence income to the farmers.
Even the annuity over the world business argument having adverse effect on dairy industry has
not stopped the growth of milk producer’s societies and unions, which is seen to be increasing
day by day.
The establishment of Karnataka Milk Federation (KMF) in Bangalore, and milk producer’s
societies and unions in various districts (and their products under the corporate brand name)
Along the lines of Gujarat AMUL (Anand Milk Union Ltd) has changed the scenario of milk
production and totally revolutionized the dairy industry in Karnataka.
The confidence of continuous and permanent market for milk has encouraged large number of
people to take up cow and buffalo rearing. This scenario is restricted to northern, southern and
central districts of the state. The Hyderabad – Karnataka region says a different story. For
example, the growth of milk production in Gulbarga district (where the rivers Krishna, Bhima,
Amarja, Mullamari, Bennitore flow) is very meager.
Even in the face of such an adverse conditions the Gulbarga milk producer’s co-operative
societies union, that covers both Gulbarga and Bidar districts, has been continuously trying to
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restructure dairy industry in the region. They domesticate milk-yielding cattle but also collect
milk directly from the rural areas through their own refrigerated milk tankers. They generally
produce standardized type of milk products, such as milk pouches, Ghee, Cream etc., GUMUL in
this effort though having to face losses has never left doubt in its determination.
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AN ORGNIZATIONAL STUDY KMF-GUMUL
DESIGN OF THE STUDY:
1.1 Objective of the Study:
To get an overall view and exposure to the functioning of organization, origin and growth
of the organization, objectives of the organization, organizational structure, product profile
and functional departments of the company.
To acquaint myself with the real practical situations.
To study several business goals, problems, facts, conditions, conflicts and personalities
obtained in organizational settings.
1.2 Scope of the Study:
The scope of the study is indeed vast to be started in brief; the study helps to analyze the
functioning of the organization with reference to various departments. This study would serve as
the basis for any future studies on departments and other functions.
1.3 Study Methodology:
The Research Methodology used for the collection of data needed mainly by the organization
induction manuals, conversation with the officials and the employees, observation and visiting all
the departments.
1.4 Limitations of the Study:
This study was limited to that particular organization.
This study was restricted with in the organization campus.
This study cannot be taken as representative of the other milk unions in the state.
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1.5 Mission, Corporate Objectives and Strategic Goals:
1.5.1 Mission:
Product excellence, hard work and continuous self improvement.
To encourage individual ability and build effective teams.
To contribute for the advancement and development of the nation and improve
human life.
Become market leader by continuously adding new capacities and incorporation
of technology to produce quality milk dairy products at least cost for the complete
satisfaction of customer and to enter into related fields and maintain core
competencies.
1.5.2 Corporate objectives:
To lower the cost of wastes and equipment maintenance.
To impart the knowledge and skills to the new entrants which they can use for an
intelligent performance of their tasks.
To lower turnover and absenteeism.
To assist employees to perform their tasks more efficiently.
1.5.3 Strategic goals:
To become best milk producer’s organization in the country.
To maintain quality of product.
To develop skill up gradation programs for employees.
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AN ORGNIZATIONAL STUDY KMF-GUMUL
Company Profile and Product Profile
Company profile:
In June 3, 1974, an integrated project was launched in Karnataka to restructure and recognize the
dairy industry on the co – operative principle and to lay foundation for a new direction in dairy
development. Work on the first ever World Bank aided dairy development project was initiated
in 1975. Initially the project covered 8 southern districts of Karnataka, and Karnataka dairy
development was setup to implement the project. The multilevel, multiunit organization with
vertical integration of all dairy developmental activities was setup with dairy cooperative
societies at grass – root level. Milk unions at the middle level and Dairy development
cooperation at the state level as an apex body, vested with responsibilities of implementing Rs.51
Crore project. At the end of September 1984 the World Bank aided project ended and the dairy
development activities continued under operation Flood – II. The activities were extended to
cover the entire state except coastal Taluks of Uttar Karnataka District and in April 1984 KMF
came into existence.
2.2 Organization Status:
The union which started with 30 dairy cooperative societies (DCS) had an average collection of
5700 Liters / day. Till the year 2003 – 2004 it increased to 199 dairy cooperative societies (DCS)
with an average milk collection of 18,089 Liters / day.
In the year 2004 – 2005 having 203 dairy cooperative societies (DCS) with an average milk
collection of 21,334 Liters/day.
2.3 Operation status:
The economic position of the Gulbarga – Bidar cooperation milk producer’s society union
limited has improved in a great way since last 3 years. This organization has gained the profit of
49.75 lakhs in the year 2004 – 2005.
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2.4 Manpower Coverage:
The present level of activities encompasses about 15.22 lakhs of dairy farmers as primary
members. Of these, the schedule caste members are 1,49,525, scheduled tribes members are
86,911 and women members are 2,88,035 Nos. A total of about 5,500 numbers of employees are
working.
In various capacities, in all the units of KMF and affiliated milk unions with direct employment.
The indirect employment generated through various project activities of veterinary services, milk
transportation through trucks and tankers. Milk sales through agents, parlors, booths, etc is
around 37,000 which cover about 4,500 Nos. of milk by parlors / booths and about 700 people in
veterinary services. About 810 route contract vehicles directly employing 1800 people are
working in milk transportation. About 14,000 numbers of persons are employed as village level
functionaries in the dairy cooperative societies.
2.5 Dairy Cooperative Society Role:
Dairy cooperative is a basic organization unit functioning at the village level. Democracy is
practiced at the grass root level in these societies, which are organized on the cooperative
principles. By training local to organize and manage the activities, village level inspection
buildings and development of local leadership is promoted. All milk cattle owners are eligible to
become members of the dairy cooperative societies.
2.6 Dairy Corporation Societies Function:
The DCS function dairy and act as a marketing outlet for the milk produced in the village. Input
facilities are also canalized to the dairy farmers through these societies and include veterinary
first aid, sale of cattle feed, supply of fodder seeds, seedlings, provisions of mobile and
emergency veterinary health cover, dissemination of know – how, etc. Payment for the milk
purchased is also arranged through the society. A string of DCS is organized to form a milk
procurement route linked to chilling center or a dairy.
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2.7 GUMUL: Background and Profile:
Karnataka Milk Federation (KMF) is a cooperative apex body in the state of Karnataka
representing dairy farmer’s organization and also implementing dairy development activities to
achieve the following objectives.
Providing assured and remunerative market for the milk produced by the farmer
members.
Providing quality milk to urban consumer at reasonable bill.
To build village level institutions in cooperative sector to manage the dairy activities.
To ensure provision for milk production input facilities and dissemination of know how.
To facilitate rural development by providing opportunities for self – employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for steady income.
The philosophy of dairy development is to eliminate middlemen and organize institutions to be
owned and managed by the milk producers themselves, employing professionals / achieve
economies of scales to ensure maximum returns to the milk producers, at the same time
providing wholesome milk at a reasonable price to urban consumers. Ultimately, the complex
network of cooperative organization should build a bridge between masses of rural producers and
millions of rural consumers and achieve a socio – economic revolution in the hinterland of the
state.
2.7.1 Establishment:
The Gulbarga milk producer’s societies union came into existence on 19 th August 1985, with an
initial capital of Rs. 39.34 lakhs where the producer.
Membership and Societies: As of latest, the number of societies of milk collection is 308, of
which only 203 are working successfully, the other being out of order due to milk shortage and
mismanagements. The total number of members registered is 47,645 out of which 16,005 are
small farmers, 10,352 are lower agriculturist, 12,262 are landless labors and others are 9026.
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2.7.2 Board of directors:
There are 12 board of directors out of which 5 are Government appointed, 5 are elected directors
and 2 government nominated directors.
2.7.3 Competitors:
Arokya Milk, Rajhamsa Milk, Sai Milk, Shivamrutha Milk, Dudh Pandhari.
2.7.4 Milk collection and Sales:
Average collection of milk per day is around 21,344 Kgs with an average collection of 105 Kgs
of milk per day per society. The average sale of milk per day is around 29,675 liters.
Dairy Expansion:
The capacity of the Gulbarga dairy has been increased from 30,000 liters to 60,000 liters. The
national dairy development board has implemented this as a part of its 3 rd plan. Chilling centers
of capacity 20,000 are started in Krishna Kada (Shapur C.C) and Gulbarga district on
03.10.1979. One chilling center of 10,000 capacities was started in Hudgi taluk of Bidar district.
A minimal dairy with a capacity of 30,000 liters was opened at Bidar City.
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2.7.5 Product Profile:
Sl. No. Name of the Product Packaging Design Quantity
I MILK
1. Toned Milk
(3% Fat, 8.5% SNF)
Sachets 500 ml,
1000 ml
2 Standardized Milk
(4.5% Fat, 8.5% SNF)
Sachets 500 ml
II GHEE Sachets 200 ml, 500ml
Sl. No. Name of the Product Packaging Design Quantity
III CURD Sachets 500 ml
IV PEDA Cartons 250 gm
V JAMOON MIX Sachets 100 gm
VI BADAM POWDER Sachets 100 gm
VII MILTON STERLISED MILK Bottles 200 ml
2.7.6 Performance Highlights
1. 13 out of 15 taluk that come under the scope of the union are engaged in milk collection
and the sales permitted to all the cites of the district.
2. Elected boards in position in the union and also all the cooperative societies coming under
the scope of the union.
3. The milk from chilling center from Hudgi district is procured by the GUMUL.
Pasteurized, made into packets and then sent to the market.
4. 164 DCS out of 180 working DCS are earning profits.
5. The union collects on an average (9,402 bags of milk/day and distributed Rs.1474 lakhs
to the milk producers per day).
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6. The union also seals on a monthly average of 48.25 MT of cattle fodder.
7. With the help from the state and central government, the providence of loan at a lower
interest from the state SC/St, backward and minorities Development Corporation has been
made possible.
8. By the union scheme of “Bharat Dharshan”, 30 progressive dairy farmer members were
sent on 10-day training tour.
2.7.7 The History of Gulbarga Milk Union is given here under:
24.1.1971 In Karnataka, Gulbarga Milk Union was established
01.06.84 Production and input unit commenced its milk procurement operation in
the village societies
26.10.84 The procurement milk route was started
31.10.84 The first village level society was registered
1984 Shahapur heifer project was started
19.08.85 Gulbarga Milk Union was registered
01.09.88 The training center was handed over to Gulbarga Milk Union
July 1990 The Gulbarga Milk Union recorded in procuring more than 50,000 kg of
milk from village level societies
1991 Bidar Mini Dairy construction work was inaugurated
01.08.91 The Gulbarga Dairy under the control of KMF handed over to Gulbarga
Milk Union
21.08.97 The Gulbarga Dairy plant capacity was increased to 60,000 LPD
03.10.97 The Gulbarga Milk Union new training center building was inaugurated
03.10.97 Shahapur Milk Chilling center was inaugurated
20.11.98 Gulbarga Milk Union started distributing liquid nitrogen
2000 The Bidar dairy started its operation under the control of Gulbarga Milk
Union
June 2002 MIS dept was introduced
2006 Sale of avg 43000 lpd of milk, highest in GUMUL history
In fact with the above year wise performance, the Gulbarga Milk Union is venturing into a new
era in achieving its tasks at the optimum level. Overall 19-20 other hands of milk are competing
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with Nandini Milk. In this circumstances also, Nandini Milk captured a giant share with around
24% of market share in Gulbarga and 54% of market share is captured by local milk vendors and
remaining 22% is by private vendors. The union is pioneer in satisfying the interest of the milk
producers, customers and the employees. Its basic structure is in there tier system, which is at
village level societies, districts with the representation of milk producer’s and controllability.
Table:
ACTIVITY PERFORMANCE
Milk procurement and transportation Dairy industry
Processing and manufacturing Procurement section
Marketing Sales division through parlors & agents
Technical input services Union training center
Training to farmers Veterinary section
Accounts section
Milk route division for procurement
2.7.8 Membership of Gulbarga Union:
Gulbarga co-operative milk union is run on co-operative principles. And it is a voluntary
association of member and is established on the “Anand Pattern”. The bye laws of Gulbarga Milk
Union govern its membership. It has provision for three types of members as shown below.
1. “A” class members: A class membership is open to registered milk producers co-
operative societies operating in the area.
2. “B” class members: B class membership is open only to state government.
3. Nominal Members: Nominal members are those having financial dealings with the union
as suppliers. Contractors selling agents, shall have to pay Rs.100 which is not refundable,
such members have no right to vote or to participate in the management meetings.
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2.7.9 Board of Directors:
Board of directors of union shall consists of 18 members of which 12 are elected presidents of
primary milk co operative societies (A class members) and the remaining 6 directors are
nominated as follows
1. One Director from Joint Register of co-op society.
2. One Director from National Dairy Development Board.
3. Two nominees from Karnataka Milk Federation.
4. One Director from Animal Husbandry.
5. One from Milk Diary and managing director as Director of milk union as
6. Special Ex-office Director
The director from “A” class members will be elected once in a three years. For discharging
various decisions making functions. The board of directors constitutes a number of subs –
committees involving officers of Gulbarga cooperative milk union.
2.7.10 Area of Operation of Gulbarga Cooperative Milk Union:
The Gulbarga Milk Union functions in the two districts, namely Gulbarga and Bidar as shown
below:
1. Gulbarga
2. Aland
3. Afzalpur
4. Chitapur
5. Chincholi
6. Jewargi
7. Sedam
8. Shahapur
9. Sholapur
10. Yadgir
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Bidar District covers 5 Talukas namely
1. Bidar
2. Bhalki
3. Basavakalyan
4. Aurad
5. Humnabad
Bidar district is a center of Milk procurement and Gulbarga district is a center for milk
marketing.
2.7.11 Objectives of Gulbarga Co-operative Milk Union:
As per the Bye laws of Gulbarga cooperative milk union the objectives of the union shall
beached out through activities conductive to the economic and socio economic development of
the milk producers by organizing effective production, processing and marketing of
commodities.
To attain the above objectives the union carries out.
1. Purchase, pool, process, manufacture, distribute and market commodities of the members
and others without effacing the increasing of the members.
2. Own or hold on lease of otherwise moveable or immovable properties and dispose of the
same.
3. Purchase or erect buildings, plant and machinery.
4. Organize new milk producers co-operative society and develop affiliated societies advice.
5. Organize, supervise affiliated societies and for this purpose fix and collect the supervision
charges with the permission of the register of cooperative society.
6. Undertake and exchange production of milk and growing fodder and agricultural
products.
7. Provide veterinary and artificial insemination services. And other technical inputs for
milk production, enhancement and other technical inputs for milk production,
enhancement and medicines for prophylactic and preventive purposes.
8. Own cattle for breeding programmes.
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9. Carry on Cooperative propaganda and impart among the members cooperative knowledge
and its application to business method.
10. Arrange for training to its employees and to its members.
11. Create Trusts and raise funds for the benefits of the employees of the
union, and its members.
12. Establish research and development association.
13. Organize and encourage savings scheme
14. Union shall take advice and guidance from Karnataka Milk Federation.
15. Undertake housing schemes to the diary employees.
2.7.12 Milk Collection of Union:
Gulbarga cooperative milk producers union is procuring milk from two sources.
1. From primary milk producers co-operative societies of the area.
2. From other unions (branch divisions) during slack seasons.
In the case of milk collection from area of operation, there have been 21 routes involving
252 societies at present. Milk routes are shown in the below mentioned table.
Sl. No. Year Routes Societies Involved
1 2003-2004 24 286
2 2004-2005 25 305
3 2005-2006 21 252
Source: Field Investigation
It is evident from the year 2005-2006 Gulbarga Dairy management have reduced milk routes
from 25 to 21 and number of societies are also reduced from 305 to 252.
It is a significant change that has been brought to reduce the loss of the union.
The Gulbarga Milk Union has made a decision to close off nonviable routes and discourage sick
societies, which do not function properly. This important decision is taken during 2005-2006.
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2.8 Marketing of Milk and Milk Products of Gulbarga Co-operative Milk
Producers Union, Gulbarga.
The dairy business in Gulbarga commenced from 1971 the Karnataka Government started dairy
business through its animal husbandry department sale was only limited to Gulbarga city. Diary
plant was inaugurated on 24.01.1971 the then plants capacity was 10,000 liters per day.
Subsequently, the importance of Diary has increased in the district in the meanwhile the
government. Handed over the district in the meanwhile the government. Handed over the dairy
business to the control of Karnataka milk federation.
The Karnataka milk federation in turn after managing the diary business from January 1985 to
01.08.1991 has handed over Gulbarga diary to Gulbarga Milk Union which was functioning
since 19th August, 1985. Since 1985 Gulbarga diary area was fixed in Gulbarga and Bidar district
Bidar district is a center for milk procurement and Gulbarga is a center for milk marketing.
Similarly Raichur is a procurement center and Bellary is a marketing center.
The total sale of milk and milk products of Gulbarga milk union is presented in table.
Sale of Milk by Gulbarga Co-operative Milk Producers Union Ltd, Gulbarga
Year Milk Sold (In Ltr) Amount Rs.
1 1,04,30,409 10,76,52,600
2 1,13,20,853 11,24,05,015
3 1,11,63,665 10,18,43,320
Source: Annual report of Gulbarga cooperative milk producer’s union ltd. Gulbarga.
Other products include 1) Sterilized milk 2) Butter Milk 3) Curds 4) Khava 5) Lassi and 6)
Srikand.
Ghee sale varied from Rs. 38.86 lakhs to 1,10-64 thousands average of Rs.73.46 thousands. Peda
sale varied from 168.77 to 550.15 averages of 312.24 thousands. Sales of skimmed milk powder
during 1995-96 was to the tune of Rs.326.50 thousands, sale of flavored milk was Rs.16.05 and
Butter sale was 3795.09 thousands and other products sale stood to 225.51 thousands.
It is concluded that, Gulbarga co-operative milk producers union ltd. Sold more milk products in
2005-06 i.e. Ghee, Skimmed Milk Powder, Butter and other products than 2004-05 and less milk
than in 2004-2005.
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2.8.1 Taluk Wise Co-operative Milk Societies:
Co-operative Milk Societies in Gulbarga and Bidar Districts
Gulbarga District:
Taluk Villages Villages having co-operative societies
Gulbarga 147 35
Aland 129 26
Chitapur 121 06
Yadgir 142 10
Sedam 111 --
Afzalpur 91 06
Chincholi 145 12
Shahapur 157 157 05
Shorapur 185 28
Jewargi 158 --
No. of Societies 128
Co-operative Milk Societies in Bidar District
Taluk Villages Villages having co-operative societies
Bidar 123 43
Bhalki 120 57
Taluk Villages Villages having co-operative societies
Basavakalyan 82 34
Aurad 149 66
Humnabad 113 58
Total societies 91 258
Source: Field Investigation
The present scene of Taluk wise milk cooperative societies reveal that most of the Talukas of
Bidar and except 2 Talukas of Gulbarga district have cooperative milk societies procuring the
milk. As per the record of Gulbarga cooperative milk producer’s union ltd, Gulbarga is having
128 societies, Bidar having 258 milk societies.
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The share of each taluk shows that Gulbarga taluk ranks at the top on Gulbarga district and
Humnabad ranks in cooperative societies in Bidar district.
In the year 2006 March average milk procured was 23306 KPD (Kgs per day) and average milk
sales during the year 2005-06 was 30767 liters per day.
Gulbarga – Cooperative Milk Producers Society’s Union Ltd, Gulbarga
The causes for the loss incurred by Gulbarga co-operative milk producer’s union ltd. Areas as
follows:
1. The increased rate of milk procurement
2. The increased rate fat content milk i.e., 4.5%
3. The excessive expenditure in the procurement trains potation of milk.
4. Lagging behind in the sale of milk or kid crease in the sale of milk.
5. Decreased allocation of Government grant.
6. Increasing administrative expenditure.
The union made a concerted effort in 2005-2006 and earned profit through the following steps.
1. Decreasing the milk rate during the harvest season by 0.50 paisa.
2. Decreasing the fact content from 4.5% to 3%
3. By reducing procurement transportation routes and minimized the expenses. In 2004-05
procurement transport expenditure was reduced by 16 lakhs.
4. By reducing veterinary expenditure
5. By reducing the administrative expenditure to the extent of Rs.4 lakhs.
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PRODUCT PROFILE:
1. TONED MILK: Karnataka’s most favorite
milk. Nandini toned milk. Pure milk containing
3.0% fat and 8.5% SNF. This is available in
500ml and 1ltr packs.
2. FULL CREAM MILK: Pure milk containing 6% fat
and 9% SNF. Rich, creamier and tastier milk. This is
available in 500ml and 1ltr packs.
3. HOMOGENISED MILK: Nandini
homogenized milk is pure milk which is
homogenized and pasteurized.
Consistent right through, it gives you
more cups of tea or coffee and is easily
digestible. This is available in 500ml packs.
4. CURDS: ‘Nandini’ curds are made out of pure
Milk. It is thick and delicious, giving all the
goodness of homemade curds. It is available in
200gms and 500gms packets.
5. GHEE: ‘Nandini’ ghee is made from pure butter. It is fresh and pure will a
delicious flavor. Hygienically manufactured and packed in a special pack to retain
the goodness of pure ghee. Shelf life of 6 months at
ambient temperature. This is available in 200ml,
500ml, 1-liter sachets, 5-liter tins and 15kg tins.
6. BUTTER: Rich smooth and delicious, ‘Nandini’ butter is made out of fresh
pasteurized Milk cream. Any preparations made from this will be a delicious treat.
It is available in 100gms (salted), 200gms and 500gms cartons both salted and
unsalted.
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7. PEDA: peda is sweetened heat desiccated product obtained from milk. It is rich in
Fat, proteins, lactose and minerals especially iron content. On an average 25kg peda
is produced and sold in units’ o 250gms box. Each box contains 10 pedas weighting
25gm each.
8. UHT MILK: It refers to ultra high temperature
heat-treated Milk. The concept of UHT milk is
absolute i.e. bacteria free besides retaining the
nutritional quality of milk. During the process,
milk is exposed to a temperature of 137ºc for 4
sec and immediately cooled a room
temperature packing it aseptically.
At present two types of UHT Milk are being produced one “Nandini Good Life”
with 3.6% fat and 8.5% SNF and another one is “Nandini Smart” with 1.5% fat and
9% SNF. Nandini Smart being low fat products
good for health conscious people. Both the milks can
be stored for at least 45 days at room temperature. It
needs no boiling before drinking on an average
25,000 of both the Milk is being sold per day.
9. MASALA BUTTERMILK: Masala buttermilk is
manufactured and sold in the summer season, especially
form month of March to July, the only period during which
it gets demand. On an overselling mounts to about
1000Ltrs. per day in 250ml sachets.
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Chapter-2
Organizational Structure:
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Managing Director
Deputy Manager Dairy Manager Administration Staff
Assistant Manager
Veterinary Officer
Purchase Officers
Production& Quality Control
Officer
Technical Officers and Dairy Supervisor
Chairman
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1). Human resources department:
4.1 Human Resource Department Human resource is the most important part of any business
organization. The human resource can be defined as the total number of human employees
employed in any business organization. These days a lot of importance is being given to the
human resource of the business organizations. This is because the other resources like technology
and assets can be easily acquired by the competitors. But, the human resource cannot be acquired
that easily and can be used as a strategic advantage in the competition.
Uses of H. R. M:
Contribution to Team Performance
Works with others member in the team to accomplish departmental goals by way of:
Building Relationships.
Participating in Team efforts towards attainment of output providing inputs and sharing
ideas.
Appreciating / accepting the diversity of ideas.
Resolving conflicts.
Problem Solving Ability
Uses discipline process to define problems, identify root causes, and evaluate data,
reflected by numerical or financial information or through other variety of sources.
Generate alternative solutions and chooses the best solution.
Identify cause and effect relationship by considering the impact of decisions on other
areas.
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Contribution to Customer Satisfaction:
Providing prompt efficient and personalized service, serving clients with equal care and
attention, ensure that client needs are met or exceeded with each transaction.
Generating and evaluating customer options.
Detailing the customer plan.
Bringing the customer into the business.
People Orientation.
Valuing Diversity.
System Thinking.
Empowering Subordinates.
Team building Ability / Contribution to Team Performance.
Works effectively, with others, inside and outside the lines of formal authority to
accomplish organizational goals and to identify and resolve problems. Uses cross-
functional resources for optimal solutions and commitment.
Works well and co-operates with other to produce quality work, approaches issues and
problems through collaborative efforts, is openly involved and participates in the team
decisions.
Potential Identification:
For Potential Identification, the Assessor is required to rate the employee on various other
attributes, which will be relevant in identifying the potential for taking the higher responsibilities.
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The evaluation on these attributes will be in terms of Excellent, very Good, and Unsatisfactory
levels.
Integrity:
Fairness, equity, respect, dignity in treatment towards people.
Trust – worthiness.
Self – confidence.
Analytical Ability.
Cognitive Capacity (Ability to solve multi – faceted problems)
Anticipate potential roadblocks.
Creativity / Innovativeness.
Remains open – minded.
Recognizing the importance of continuous learning.
Communication Ability.
Use clear communication style to ensure messages are understood.
Effective use of communication for inters personal effectiveness.
Risk Behavior.
Confident in undertaking the challenging assignment.
Ability to visualize calculative risk in challenging assignment.
Confident in undertaking the challenging assignment.
Quality Consciousness.
Should be aware of all quality aspects.
Able to bench mark quality norms with high standards.
Adherence to the quality standards.
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4.1.1 Human Resource Management:
The total number of employees in the organization is 157 which include the following
Managing Director
Deputy Manger
Assistant Manager
Extension Officer
Accountants, superintendents
Technical Officers
Technicians
Accounting Assistants
Administration Assistants
Lab Assistants
Store Keepers
Purchasers
Helpers
Personal Management is concerned with the human resource of the enterprise. Before we define
personnel management. It is appropriate to understand the meaning of the term personnel. The
term is used in the broadest since as the human factor is the enterprise. It is not merely restricted
to the operative workers.
Personnel management may be defined as that area of management that deal with planning
organizing, directing and controlling the functions of procuring, developing and utilizing the
work force in the enterprise.
4.1.2 Human Resource Planning (Technical):
In accordance with the capacity of plant operation and production turnover, the required qualified
technical staff will be planned in executive level with the consent of the Register of Co-operative
societies, government of Karnataka. The necessity of the technical staff, their qualification,
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experience etc will be fixed by the expert panel committee, after considering the technical
feasibility and changing circumstances etc. The expert panel committee comprises of union
president and representative from KMF central office, NDDB, animal husbandry department.
4.1.3 Recruitment / Selection / Induction Methods:
Recruitment will be done for the sanctioned post by Government of Karnataka through
publication in the leading news papers, by conducting competitive exams and selection through
interviews.
Recruitment within the department is subject to availability of post by giving opportunity to the
qualified experienced candidates within the department through competitive examination and
selection through interviews.
The expert panel committee comprising of Union President and representative of KMF central
office, NDDB, animal husbandry, department will conduct interview and after considering
eligibility criteria and fitness, suitable candidates will be inducted for employment as per service
rules of the organization.
4.1.4 Employee Interview – Types:
Expert panel committee comprising of union president and representatives of KMF central office,
NDDB, animal husbandry department will do the task of interview for open and inside
recruitment process. The same committee will review and timely recommend for the periodical
salary benefits, promotions, time bond advancement etc.
Type: This interview is of face to face.
Labor Turnover in Last 5 Years:
Apart from the recruited staff, due to necessity, the contract labors were also taken for the
production activities.
The staff turnover from 1993-2006 is around 24. The contract laborers are engaged for the
unskilled work.
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4.1.5 Welfare Provisions:
EPF:
Organization employees are covered under employees provident fund act.
EPF amount deducted from employee 12% and employer contribution 12% out of which 8.33%
goes to EPF pension fund and remaining 3.67% goes to employee account, EPF deposit is paying
8.5% interest on both contribution amount calculated at 9.5% interest. This is fixed on the basis
of inflation rates of the country. This account can be withdrawn by the member on retirement,
Marriage of daughter, son and in case of medical expenditure.
ESI:
Organization employees are covered under the employee state insurance act, whose salary is less
than Rs 10000/- per month, the contribution towards ESI from employee is 1.75% and employer
contribution is 4.75% . The employees covered under this act will get all the medical treatments
on accident and also regular treatment of his/her family members.
Bonus Act:
Employees are covered under the payment of bonus act, minimum bonus eligible members are
paid annually.
Gratuity:
Employees are covered under the payment of gratuity act, employees group linked insurance, and
employee’s death linked insurance.
Other Benefits:
Other benefits are provided by employer like, House and Building advance interest subsidiary,
Concessional rate from purchase of milk, and yearly half Kg ghee is given two times.
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4.1.9 Performance Appraisal Methods Followed:
The performance of the job entrusted in various sections is being reviewed once in 6 months
confidentially. The performance is appraised based on the judgment on the following issues.
Contribution rendered to organization
Taking qualitative making pertaining to general matters.
Working hard with devotion to the organization.
Concentration on the entrusted job and interest in rendering service to the organization.
Expatriation in terms of technical requirements with regard to organization.
Capacity in giving decision
Taking responsibilities, decision making
Speedy disposal of work entrusted
Honesty and sincerity to organization
Dependence
Conduct and character
Asked on the above information the performance on the job will be reviewed and by giving
general report as good or fair or average.
4.1.10 Retirement Benefits:
They are getting contributions from both employer and employees.
Pension benefits from PF authority
Gratuity benefits
Employee’s group insurance scheme contribution among along with interest.
4.1.11 Employee Record Keeping (Time Keeping):
Recording employees both in and out timings
180 minutes per month allowed as a grace time. If an employee comes more than 180
minutes late his salary will be deducted according to his late hours.
Electric punching machine is installed. It can be handled manually also.
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Punching cards is maintained, recording employees scroll number and displayed
accordingly.
4.1.12 Wage Structure + Incentive Schemes:
Pay scale is fixed in accordance with the rules of the government of Karnataka. Comprising of
Basic + DA and other incentives, such as:
Attendance hours will be given for employees who come regularly in a month without
any absence. Rs.30/- will be given as attendance hours.
If employee will work more than 8 hours. O.T. allowances (single wage) will be given to
the subordinate staff.
For technical officers if they come on second Saturday depending upon necessity they
will be given O.T. allowance (single wage).
If employees come on holidays and weekly holidays they will be given OT allowance
(single wage) for 8 hours.
Every year uniform will be given to the employees
4.1.13 Job Evaluation Methods:
Job chart will be given to the employees according to their eligibility and responsibility and is
fixed to accomplish the assigned work. Performance will be evaluated based on the job chart and
disciplinary action will be taken for any lapses.
For lower level employees (helpers – technical in plant) they will be assigned particular work on
routine day to day basis.
4.1.14 Employee Motivation:
With the provisions of following incentive
Attendance Bonus
Special Pay
The employees are motivated to discharge more work. Rewards are given to the outstanding
technical employees.
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4.2 Marketing Department:
4.2.1 Departmental Structure
The term marketing has been defined differently by different authors. However all the definition
may be classified in two types viz., product orientation came to be recognized because the
manufacturing concern keep in mind either by product of the consumer.
4.2.2 Product Lines:
1. There are two types of milk
Toned milk. It contains 3% Fat, 8.5% SNF (solid not fat) 65% half litre packets,
35% one liter packets.
Standardized Milk. It contains 4.5% fat, 8.5% SNF, and 100% 500 ml packets.
2. Ghee
200 ml and 500 ml packets
3. Curd
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Marketing Department
Manager (Dairy)
Deputy Manager (Marketing)
Marketing Superintendent
Marketing Assistant Salesman Marketing Assistant
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100% 500ml packets
4. Pedal
250 Gm packet
5. Jamoon Mix
100 Gm packet
6. Badam Powder :
100 Gm packet
7. Miltone sterilized flavored milk bottles
4.2.3 Package Design:
Milk is being packed in sachets of different colors. Blue color is used for toned milk. They are
packing 65% half liter packets and 35% one liter packets.
Red color sachets are used for standardized milk. They are using 100% 500ml packets. Ghee is
being packed in sachets. The color of sachets is yellow. They are packing 200ml and 500ml
packets. 15 kg. Ting for bulk selling flavored milk is in 250ml and bottles.
Peda is being packed in 250 grams blue colored cartons.
Brand policy: Uniform brand policy all over Karnataka i.e. Nandini.
Distributors – Policy, terms/conditions:
They are not selling their milk and milk products through distributions. They are selling only
through agents.
4.2.4 Price Policy methods:
They are following cost of production method. According to raw material price, agent’s
commission, electricity bill, expenditure, variable and fixed overheads transportation, the price
will be fixed.
4.2.5 Pricing Strategy:
According to quality of the product and after considering all fixed and variable expenses, the
final price is arrived at.
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Details on Sales Promotion undertaken in last 3 years:
School children programmes.
Mahila Mandal programmes.
Qualification testing programmes.
Customer’s Dairy visit.
Telephone contacts with customers.
Door-to-Door consumer awareness programmes.
Hoarding, pole advertisements, wall paintings, supply of sign boards to agents, glow
signboard, flute boards and supplying of Nandini milk carry bags to agents.
4.2.6 New Product Development – Approach Procedure:
They are planning to install ice cream plant for the production of ice cream. Considering the
market survey, market situation, price availability of competitor’s milk availability and
considering the distribution strategy they are going to launch a new product. The introduction of
new product will be published in the newspapers, TVs, picture theaters to enlighten customers.
4.2.7 Sales Budget:
For 2005 – 2006 the expected budget is 10,00,000/- per annum towards sales promotion and
advertisement expenses such as hoarding, glow signboards, pamphlets flute boards, wall
paintings etc.
4.2.8 Training to Sales Staff:
For training purpose Field Staff National Dairy Development Board at Erode, Tamilnadu and
KMF a Central Office – Bangalore to impart necessary training to their sales staff.
4.2.9 Remuneration to Sales Staff
Against fixed salary as per Government rules the sales staff is working.
4.2.10 Invoice Procedure:
Main dairy sales (milk and milk products) are made on delivery channel, compiled to trip sheet.
The cash will be collected on basis of trip sheet. Scrap items are sold on invoice method on the
payment of cash on the spot.
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4.2.11 Billing:
Regarding milk sales the salesmen collect the amount from agents as per the trip sheet and same
is remitted to main Dairy cash reception. The trip sheet is prepared on the bases of Delivery
challan.
4.2.12 Milk procurement:
Against suppliers of milk from villagers based on the fat and SNF the rate per kg of milk will be
arrived at and detail billing will be done on this basis and sent to the villages along with the
payment.
4.2.13 Methods of selling:
Usually they are selling through agents. In some cases they are taking money in advanced and
giving door delivery.
4.3 Production department:
Managing Director
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Quality control in chargePlant in charge Engineering in charge
Technical Officer Technical Lab Asst Dairy Supervisor
Shift Officer Second Division Asst Mechanical Asst
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4.3.1 Inventory / Replenishment Policies:
Inventory levels for the essential materials such as pouch film, plant cleaning chemicals,
mechanical spare and lab testing materials etc were maintained up to the point of reordering
level. Keeping the procurement and supplies of milk without any dissipation. If the inventory is
not maintained for such material and given up to danger level there will be every chance of
hampering the process of milk procurement and distribution.
Replenishment policies were adopted by following purchase procedures such as by making
enquires, calling quotations and giving order for purchases. In case of exigencies the required
material will be drawn by their nearest sister concern. Further in accordance with the purchase
orders of central purchase committee of KMF central office, the required material will be
purchased. Sometimes consolations will be made with the CPC (Central Process Committee) of
KMF office to procure required material.
4.3.2 Milk Processing Unit:
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MILK TANKER
WEIGHING M/C
DUMP STORAGE
MILK CHILLER1
2 MILK CHILLER
S1 30000 LTRS
S2 35000 LTRS
STORAGE TANK
2
2
2HT/ST
1
STORAGE T1 5000 LTR
STORAGE T2 3000 LTR
LTR PACK
1 LTR PACK
Milk Pump 9hp
Non Return Valve
1
2
HT/ST Heat Exchanger Unit Capacity Pasteuriser 10klph
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TEMP 860c
COOLING TEMP 40C
4.3.3 Production Plant:
Milk production contain following units:
Milk Tankers:
The milk is collected from different societies and the respective chilling center the brought to
main plant for further processing of milk through the tankers as per the time allotted.
Weighing Machine:
The milk stored in the can of each 40 capacity is dumped to the weighing machine through
conveyor. At the same time sample of milk is taken from each can of different societies for
testing fat and SNF%. Then results are documented under total quantity of milk received. This
milk is called raw milk (unpasteurized).
Dump Storage:
Milk from the weighing machine is collected in the dump storage having a capacity of 1800 liters
for temporary storage. From this storage milk is pumped to a chilling unit for primary stage of
pasteurization.
Plate Heat Exchanger:
It is primary unit of chilling in which raw milk is chilled to a temperature of 2.50C without
heating.
4.3.4 HST2:
Raw milk from chiller is made to enter into HST2 for a temporary storage which is used for
compensating milk distribution inside the plant during milk processing. This storage tank has a
capacity of 15000 liters and it is well detected.
4.3.5 S1, S2, HST1:
These are the storage tanks having a main supply from the chiller having a storage capacity of
30000 each and 15000 its respectively the milk is transformed from chiller these units by
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controlling the valves so that milk is distributed uniformly and to maintain uniform prod4uction
of milk and its products.
4.3.6 HT/ST Plant:
This is a core unit of milk process plant containing a consecutive heating and cooling and inlet
for raw milk. In this unit raw milk is converted into pasteurized milk.
When the raw milk enters into this chamber it is first heated to 760C so that all the inflectional
bacteria’s present in the milk is destroyed. Then another cycle, milk enters into a chilling
chamber in a same heat exchanger so that, milk is allowed to cool up to a temperature of 40C
such that there will not be any bacterial growth under this temperature. This milk is called
pasteurized milk`and free from all pathogenic infection. It can be preserved fro long time under
packing.
4.3.7 T1 & T2 Storage Units:
These are the storage for packing unit. The pasteurized milk from HTST plant is made to enter
into these storage units having capacity 5000 liters. Each these storages have proper control for
packing machines.
4.3.8 Packing Unit:
This unit includes a pouching machines and a storage chamber. The machines are designed in
such a way that there is an arrangement fro packing ½ liters and 1 liter, ¼ liters pouches for milk
and its products.
4.4 Milk Products:
They are preparing two types of milk.
1. Toned Milk: It contains 3.0% fat and 8.5% SNF. For this milk if the fat % is less than
3.0% they add powder to cream separate to reduce the fat %
2. Standardized Milk: It contains 4.5% fat and 8.5% SNF. For this also they are following
the same method which is following for toned milk. The excess cream will be sent to
ghee and Peda section.
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Then the processed milk will be sent to the package section. The milk will be packed in 500ml
and 1000ml sachets them it will sent to the cold storage. From that it will be sent to the different
marketing areas.
Ghee:
A taste of purity. Nandini Ghee made from pure butter. It is fresh and pure with a delicious
flavor. Hygienically manufactured and packed in a special pack to retain the goodness of pure
ghee.
This production plant is an integrated plant of the earlier one consists of following units. Cream
separator, pasteurized from HTST plant before going to storage T1 & T2 it is made to pass
through cream separator to remove excess fat contained. Then cream is separated from the milk it
is further converted into Ghee.
Ghee Boiler:
It is having capacity of converting butter 360 kg into Ghee at temperature 1200C. From Ghee
boiler Ghee is entered into clarifier for filtration and stored in 40 kgs, and also stored in settling
tank have 1300-1400 kgs capacity.
Packing Unit:
Ghee from storage tank is made to enter into pouching machine packet at a standard of ½ kg and
1 kg and it is preserved under cold temperature.
Toned Milk:
Karnataka’s most favorite milk Nandini Toned fresh and pure milk containing 3.0% fat and 8.5
% SNF. Available in 500 ml and 1 liters packs.
Butter Milk:
Nandini spiced butter milk is a refreshing health drink. It is made from quality curds and blended
with fresh green chilies, green coriander leaves, asafetida and fresh ginger, Nandini spiced butter
milk promotes health and easy digestion.
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QUALITY CONTROL DEPARTMENT:
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4.3 Quality Control department:
The Quality control Division at the Apex Federation aims at not only controlling the quality but
also development of Quality Standards from time to time for milk & milk Products manufactured
under the Brand Name “NANDINI” All these products pass through quality standards. The
standers are not only mandatory or statutory but also meet the latest Quality Parameters.
Consumer’s complaints also get investigated at the apex level quality Control Division. As a part
of on – the spot inspections of milk plants, the Central Quality Division has its own Quality
Assurance officers stationed at the Dairies of milk Unions to assess the quality of milk and milk
products manufactured. They too are responsible for inspecting the quality of raw – material
used, processing parameters followed. And quality of final products in their work place.
The department has a vital role in this organization. On the basis of quality of milk the rate is
fixed. The type of milk and its composition factors decides the quality of milk. The milk
composition includes fat and SNF percentage. The other factors like atmospheric condition and
the preservation period of milk influence the quality of milk and its product.
4.4.1 Inspection Procedure: For Raw Milk:
1. COB testing (clot on boiling):
Purpose: To test the acidity in the milk
Procedure: First they take 5ml milk in test tubes. Then they heat it on spirit lamp to find out the
acidity. The acidity will be measured through filtration test. It the acidity is more than 0.18 it will
clot during boiling.
Adulteration Test: For raw milk:
Purpose: To check the adulteration of milk
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Procedure: The good mild contains standard lactometer reading of more than 28.0 – 31.0 if the
lactometer reading show below 280 then it will be very clear that the milk is added is with water.
In order to increase the lactometer reading to more than 280 the milk is adulterated by adding
salt, sugar, caustic soda, and uria specific titrating testing will be done to identify such
adulterated milk in the laboratory.
4.4.2 Quality – Standard etc:
The quality of the incoming milk will be tested in sophisticated laboratories established at area
chilling centers and at main dairy. The substandard, milk will be rejected at the time of reception.
Milk supplies to the customers will be at standardized fat and SNF which are as follows.
For toned milk – 3% fat, 8.5% SNF
For standard milk – 4.5% fat, 8.5% SNF
One then the milk will be accepted for supply.
Standards:
ISI standards, Agmark standards and KMF standards for milk and milk products and packing
material.
Routing and Scheduling:
1. Raw milk from producers to area milk chilling centers.
2. From milk chilling centers to main dairy.
3. The milk will be stored in dump tank by maintaining temperature and quality.
4. According to requirement the milk will be sent from dump tank to processing unit.
5. From processing unit milk will go to packing section after pasteurization in accordance
with the standard fat and SNF.
6. The excess fat and SNF over the standers i.e. cream will sent to Ghee and Peda section.
7. The packed milk will be stored in cold storage rooms and finally milk and milk products
will be handed over to finished goods sections.
Various Techniques used:
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They are using techniques like milk chilling, standardization, pasteurization, cream separation,
homogenization, Ghee classification, CIP (Clean in plant entire processing unit).
Machinery equipment maintenance:
There are two types systems, in maintenance of machines and equipments.
Periodical Maintenance:
According to the working hours covered by the individual equipments as per the manufactures
recommendations replacement of filters, lubricants and cleaning will be undertaken, as per the
fixed schedule to monitor the smooth running of equipment.
Breakdown Maintenance:
Whenever the equipments performance is found to be inefficient due to the breakdown of any
parts of the equipment to make it good maintenance work will be taken up.
Note:
Some of the equipments are maintained by giving the AMC (Annual Maintenance Contact) to the
manufacturers, like power generating sets and weighing machine.
Safety Standards:
In the defreeze room siren has been fixed to call during closing of the store doors
unknowingly.
Necessary guards are fixed to the all the flywheels of the moving equipment.
In front of all the electric panel boards shock proof rubber matting are provided.
In H.T. substation and in the generator room, fire fighting equipment, electrical shock treatment,
manual chart and first aid box are provided as per the electrical standard of electrical inspectorate
of Gulbarga
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And the different tests to quality consciousness. The different tests are as follows.
1. Orgnolaptic test
2. Keeping quality test.
3. MBRT test
4. Acidity test.
5. Fat and snf percentage test.
ORGNOLAPTIC TEST:
This test is carried out for raw milk to study the bacterial infection on the milk in other words, it
is a visual observation test done by sensing the smell. Taste and foam present in the milk. If
above observation are not within the desired quality level the milk is rejected before subjecting to
further process.
As per study analysis raw milk should be chilled within six hours after milking Otherwise there is
chance of bacterial growth which increases acidity percentage in the milk this doesn’t favor the
further milk processing.
KEEPING QUALITY TEST:
This test is carried out for pasteurized milk. Here packed milk is kept under observation from
time to dispatch to time of customer reach. The milk is tested for temperature and acidity
percentage to their optimal limits. This test is carried out fore every hour to avoid customer
complaint as well as to take precaution for reservation of milk. During the course of processing.
The temperature and acidity data are systematically tabulated on record book different type’s
milk such as toned milk and standard milk.
MBRT TEST:
It is also called methyline blue reduction test. It is carried out for pasteurized milk for analysis of
bacterial of bacterial contamination present in the milk. In some times due to cross contamination
of machines and heat exchange there is chance of presence of bacteria in pasteurized milk. To
overcome from this hurdle MBRT test is carried out.
In this test quality of milk is judged on the basis of time span taken by indicator to change its
color from blue to calories when methylene (indicator) is added to the test quantity of milk.
Following are some observation done by this test on different type of milk.
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CONCLUSION:
As from above observation time taken to change its color form blue to colorless is more in
pasteurized milk hence, the quality of pasteurized milk up to the standard level. On other hand it
indicates percentage of bacterial contamination is comparative less in pasteurized milk as
compared to other two types of milk.
ACIDITY MILK:
This is a chemical analysis test carried out on pasteurized and chilled milk using phenolphthalein
indicator, taking 10 ml test quantity of milk citrated against 0.1 normal NaOH sol. and
phenolphthalein indictor. Observation is made color of the indicator changes from colorless to
pink. This is a confirmation test for acidity in milk by using chemical formula acidity percentage
in milk is calculated. If acidity limits are within 0.1356 then 0.156 then it is good quality milk if
it exceeds limit the milk is termed as spoiled milk.
FAT AND SNF TEST:
This test is carried out for all type of milk i.e. raw milk. Chilled milk and pasteurized milk. The
percentage of fat is calculated by electronic testing machine and SNF percentage by lactometer in
quality labs. Following observation shows percentage of fat & SNF.
Milk Type Fat % SNF %
Cow milk 3 to 4.5 8.5
Buffalo milk 6 to 10 9
Standardized milk 4.5 8.5
Toned milk 3 8.5
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Raw milk Blue to colorless 10 min
Chilled milk Blue to colorless 1 to 3 Hrs.
Pasteurized Blue to colorless 1 to 5 Hrs.
Milk
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4.5 Purchase department:
Stores Department:
It is located very near to plant section. The entire purchase and stores department is controlled
by purchase officer. All the materials comprising of its essentially is stored systematically. The
stock position of essential materials is updated every day and displayed on Notice Board for
ready reference. The materials are stored in a manner which can be identified very easily. The
materials are bifurcated according to the daily requirement, considering it’s essentially. There are
7 rooms where all the materials are stored separately.
4.5.1Nature of Purchase Policy:
They are purchasing major materials like ELPD film; nitric acid etc on credit basis and few
materials are on advance payment and lesser value items on cash basis depending upon the
circumstances.
4.5.2 Policy:
Central purchases committee in KMF central office will issue the orders to various portions on
behalf of their organization as regards to major materials such as ELDP film, caustic soda, liquid
detergent, nitric acid, veterinary drugs etc. The CPC orders stands for all the federation union of
Karnataka which is finalized on yearly rate contract. For consumable materials, mechanical
spare, stationers etc will be purchased directly by the district union by following purchase
formalities.
4.5.3 Credit System Followed:
The material payment on credit basis is normally released within a span of 20-30 days.
For few materials the payment will be released initially, 90% within 30 days and remaining 10%
after obtaining quality report.
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4.5.4 Method of Purchasing:
1. For certain things key directly go to manufacturers.
2. For certain things they directly go for floating the enquiries for the concern suppliers.
3. In some cases they directly go for government agencies.
4.5.5 Purchase Procedure:
By making enquiries, obtaining quotations, by receiving quotations, by purchase committee after
giving due consideration about the rates quality, suitability of required material. Then issuing
purchase orders to the suitable party in accordance with the terms/conditions of the organization.
4.5.6 Issuing of Material – Procedure:
The materials are issued according to the requirement of various sections against the indent
authorized by the superior officers.
4.5.7 Procedure:
They receive the purchased materials from various suppliers or from government agencies or
from manufacturers and they count it and they enter it in purchase register. Then they enter in
stock register. They issue it to various sections where they are required. These issues will be
made on indent basis. In the indent the requirement of the materials section for which it is
required along with the signature of the indenter, authorization by superiors is essentially found.
Types of items purchased:
1. Packing materials like ELDP film, cartoons, the 15 kg Ghee tins.
2. Plan cleaning chemicals like caustic soda, liquid detergent nitric acid.
3. Equipment and spare purchases.
4. Daily consumable and stationary items.
5. Veterinary medicine.
6. Dairy cooperative societies milk testing equipments and chemicals and related books.
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4.6 Stores Department
4.6.1 Stores management:
PURPOSE OF STORES:
Stores play a vital role in the operations of a company. It is in direct touch with the user
department in its day – to – day activates. It is having functions of stores.
1. To receive raw materials. Components, tools, equipments.
2. To provide adequate and proper storage.
3. To meet the demands of the consuming departments.
4. To minimize obsolescence, surplus and scrap through proper codification preservation
and handling.
5. To highlight stock accumulation, discrepancies and abnormal consumption and – effect
control measures.
6. To ensure good housekeeping so that material handling, material preservation. Stocking,
receipt and issue can be done adequately.
7. To assist in verification and provide supporting information for effective purchase action
In India, owing to stiff supply positions. 4 to 6 months’ inventories are not uncommon and, in
fact for certain imported items. It could be as high as 24 month’s stock. In this context. Stored
management assumes greater importance.
4.6.2 PURCHASE SYSTEMS:
INTRODUCTION:
In organizations, depending on the size and nature of operation, the quantum of purchase varies
anywhere between thousands of rupees and hundreds of crores of rupees. We can classify the
system in the following manner.
1. Pre – purchase system.
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2. Ordering system.
3. Post – purchase system.
The salient features in features in each of the systems mentioned are as follows.
1. PRE – PURCHASE SYSTEM:
Initiating the purchase through requisitions, requirements programmers, selection of suppliers,
obtaining quotations and evaluating them, are broadly the pre – purchase activities.
(a) Requisitions. The department concerned, in need of a material, usually present a competed
requisition made by any one in the concerned department. However, it has to be countersigned by
a senior officer. In any organization only a limited number of officers are empowered to
countersign the requisitions as it amounts to authorization of the expenditure. Purchase
department must have the list of such officers so as to check the validity of the purchase
requisition normally; there is a delegation of authority in authorizing a requisition. This is
expressed in terms of the financial limits up to which an officer can authorize a requisition
This form contains:
a. Department requiring the material.
b. Requisition reference number.
(b) Traveling requisitions: This document is widely used for requisitioning items that are
required frequently in bulk quantities over a long period. During each stage a purchase order is
initiated. Factors such as specification and supplier details are write permanently and provisions
for entering date, quantity required names of requisitioned and authorizer are available. This
reduces paper work and eases the operation. Standardized clerical system can be devised and the
bulk of the work can thus be efficiently handled. For repeat ordering this is the ideal procedure.
This form consists of;
a. Material description
b. Part number
c. Annual usage.
d. Name of the supplier.
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(c) Enquiries. Many organizations often invite suppliers to quote rates for supply of materials.
For this purpose a standard format is used which is similar to a purchase order in an aspects
except that word such as “this is only a request for quotation” or “this is not a purchase order” are
printed so as to ensure that the supplier does not consist the request for quotation as a firm order.
2. ORDERING SYSTEM:
Having selected the supplier and the rates agreed, the buyer places the purchase order on the
supplier, expressing the term and conditions. The purchase order once accepted becomes a
binding contract. The details that are normally furnished in a purchase order are listed below.
a. Purchase order reference number (which will be quoted in all subsequent follow – up
measures pertaining to that order).
b. Description of the materials and detailed specification.
c. Quality required and delivery schedule.
d. Price and discounts.
e. Shipping instructions.
f. Location where the materials are to be shipped (usually the name and address if the
buyer).
g. Signature of the materials manager who can authorize the purchase order, and
h. Detailed terms and conditions (as a common practice these are printed at the back of the
purchase order).
2. Post – purchase System:
This includes follow – up procedures, receipt and checking invoices.
(a) Follow – up procedures: Follow – up implies commitment of time and money and
therefore it has to be selective. Certain priorities could be established for follow – up.
Only critical items require continuous follow – up. Depending upon the movement.
Items can be classified into fast moving and slow moving. For fast moving items,
follow – up can be initiated whenever the stock level depletes to one month’s
consumption For slow moving items also similar norms can be established A few
organization also have decentralized inspection facilities for on – the spot inspection
and acceptance. Purchase Order (P.O) status reports are generally prepared so that
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selective follow – up is ensured. The status report can be printed part number wise or
supplier wise for suitable follow – up.
(b) Receipt: A systematic record of the consignments received, carrier details and
descriptions are to be maintained in chronological sequence, to help in quick
identifications of materials so that inspection can be arranged prior to acceptance.
Many organizations have a separate central receiving section for this purpose. As
mentioned earlier. A copy of the purchase order is sent to the central receiving section
for reconciling purposes.
(c) Invoice Checking: The supplier normally sends the invoice for the materials supplied
for payment. It is essential that this invoice is matched against the receipt details,
quantity accepted and rejected so that payment’s can be made within the
Discount period or provisions be made which will keep in funds planning. Normally invoices are
sent to the buyer’s finance and materials management department is necessary.
4.7 Finance Department:
4.7.1 Departmental Structure:
Managing Director
Asst. Manager (Finance)
Superintendent A/C
Methods of Depreciation followed any change in method in the last 5year:
They are following straight-line method on Written. Down Value basis of depreciation. They are
charging different depreciation percentage for different assets according specify rules.
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No changes in the rates and methods for last 5years.
Source of Capital – structure:
Share capital raised from members of DCS (Dairy Co – operative Societies) i.e. Village Dairy Co
– operative society).
The organization is borrowing working capital for the operation of Dairy activities form KMF
Central Office and from Co – operative Banks i.e., DCC Bank Gulbarga and Bidar, Krishna
Grameena Bank, Gulbarga, refundable along with interest. The working capital is drawn mainly
for the payment towards cost of raw milk to village level DCS members.
4.7.2 Cash Management:
As organization business is daily consumable and essential products i.e., milk, etc., total turnover
is on cash basis and Daily dairy sales proceeds deposited to banks and making payment on
priority basis, by ascertaining priority payment such as payments to milk products, vehicle
contractors, power and electricity, ELDP film etc.
4.7.3 Credit Management:
Organization is selling its products on credit basis to the Government institutions like General
Hospital, air Force station Remand Home etc on monthly billing basis.
4.7.4 Risk Policy:
The organization is selling its milk products on cash basis, except Government Institutions, under
any circumstances credit facility will not be extended to any to any of the customers. Hence,
organization is operating its sales and other activities with no risk policy.
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4.8 Inventory Control and Management:
4.8.1Inventory:
In Gulbarga Dairy the inventory comprises of
a. Raw material (raw material)
b. Spare parts and components
c. Factory supplies (Liquid detergent, caustic soda, nitric acid etc)
d. Packing material (ELDPE film, corrugated boxes etc).
These items may be either direct or indirect materials and being biggest cost factor, afford a wide
scope for saving in costs.
4.8.2 Inventory Control:
It is a systematic control over purchasing, storing and consumption of materials so as to maintain
a regular and timely supply of materials at the same time avoiding over strucking. It is being
achieved in the dairy by systematically organizing the procedures and activities relating by
Purchasing
Properly storing
Issuing as per requirements
Keeping record on consumption of material
Systematic overall record keeping
4.8.3 Inventory Classification:
In Gulbarga Dairy, the inventories are classified according to its requirement based on its
essentiality to avoid dislocation of production process and over strutting of materials.
Category 1:
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Comprises of consumption materials which is needed for day to day requirements such as cattle
feed LDPE film, caustic, soda, nitric acid, lab testing chemicals fuel and lubricants to plant and
machinery, general stores, etc.
Category 2:
Comprises of mechanical spares, electrical stores, lab testing equipments, vehicles spare etc.
Category 3:
Comprises of stationeries, DCS materials such as aluminum cans, can lids, centrifuge machine
for milk testing etc.
The inventory classification is made according to its day-to-day consumption. Its essentiality,
value of the material, storage capacity etc is to ensure continuous production process as Dairy
comes under the purview of essential and commodities Act.
Inventory Management:
In the dairy, inventory is beginning managed systematically giving importance to the requirement
of materials to keep continuous production process to avoid over strucking of materials. These
inventories are stored in a systematical manner and maintained with regular and timely supply of
materials. The process of purchasing, reception and inspection of material storing and issuing and
consumption of materials, record keeping are systematically organized in the Dairy. All these
processes are prejudiced on routine basis by the representatives of chartered accountants and
monthly as well as yearly consumption of overall materials are being interpreted in the financial
statements which will be certified by the Government Co – operatives Auditors. The
responsibility of inventory management is being fixed by purchase Officer, purchase
4.8. Control: 4 Objective of Inventory:
Ensuring timely availability of right type of keep the continues production process.
Avoiding overstocking of materials to ensure minimum capital investment by removing
unnecessary blockage of funds.
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Economy in buying and controlling expenses by organizing ideal order quantity of each
item.
Prevention of leakage, deterioration of waste material by arranging systematic, suitable
storage facilities by fixing allowable waste percentage.
4.8.5 Material Requirements Planning:
According to requirement the material for ensuring continuous systematic, suitable storage
facilities by fixing allowable waste percentage.
Based on the requirement and nature of material
Value of the materials
Availability and sources of materials
Time taken for the materials reach to the dairy
Means of transportation and its cost
Storage capacity and facilities
4.9 Sales and Distribution Department:
4.9.1 Introduction:
The organization has covered market area comprising of totally 800000 of population covering
both Gulbarga and Bidar cities. It acquired a giant share in the field of marketing and built up its
Nandini brand name so widely. It is meeting the sales demand at present ranging from 29000 to
35000 LPD. There are totally 300 milk agents appointed under the channel of 6 milk distribution
routes in Gulbarga city and 5 milk distribution routes which covers outside Gulbarga i.e.
Shahpur, Bidar, etc. In order to deal with the marketing operations so effectively and efficiently
the organization has put more qualified, experienced, and market oriented sales staff. Presently
there are 22 sales staff engaged in dealing with the marketing operations. The Deputy manager,
marketing Superintendent, marketing Assistant and marketing Salesmen are working hard to
achieve the targeted goals and under the consultation advice and suggestions of managing
Director.
4.9.2 Sales Management:
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In time supply of milk
Available of milk to customers
Getting feed back of competitors
Motivating agents to sell more milk to providing the advertisement materials and
conducting agents and customers meetings
Customers attraction
Attending customers, complaints immediately
Their ultimate objective is to satisfy the customers by providing good quality of milk,
service and availability etc.
4.9.3 Function of Sales Department:
Dispatching of milk route vehicle in time
Collecting indent from agents and salesmen as per the intend milk supplies.
Attending replacement of milk and milk products
Attending agents and consumers complaints.
4.9.4 Duty of Sales Manager:
At the time of dispatch of milk a surprise checkup is conducted.
Attending the grievances of milk agents by route survey.
Giving concentration on sale of milk by competitors.
Replacement of milk and milk producers in case of any complaints.
Keeping the sale of milk and milk products at the optimum level.
Giving reasons to higher officers regarding reduction of milk and milk products sales.
Conducting sales promotion activities, consumer awareness programmes etc.
Reporting to higher officers any desecripenses noticed in the marketing of sale of milk
and products.
Conducting periodical Salesmen meetings in the presence of higher authorities.
Review of milk sales and forecasting future strategy to be adopted.
4.9.5 Duty of Salesmen:
Supply of milk to agents point in time as per their indent.
Collection milk and milk product indent from each and every agent, same to be intimated
to marketing section.
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Collection of milk and milk product sales amount from the agents, same will be remitted
in the main Dairy.
Achievement of monthly target.
4.9.6 The selling concept Vs Marketing Concept:
Selling Concept:
For special demand, supplying door to door to customers and agents
For marriage, supplying milk to marriage function hall
The ultimate objective of selling concept is creating availability of milk in the market
near to customer
Selling the product which the consumer would prefer.
Marketing Concept:
To be market leader
Supplying good quality products
As per the needs of consumers milk and milk products will be supplied
Considering the competitors weakness, these will be converted into their strength.
The ultimate objective of marketing concept is satisfying the customer and to be a market
leader.
Sales Forecasting:
They are doing forecasting through,
Forecasting of monsoon
By getting day – to – day market feed ack.
4.9.7 Marketing Mix:
Price:
On cost of production they are going to fix the price of milk and milk products.
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Place:
1. Based on customers they are appointing a sales agent point.
2. Through agents and subagents and hawkers delivery will be supplied.
3. Appointing refrigerator shops on a day counters to sell milk around the clock for creating
availability of milk in the market.
Product:
As per the specification of KMF central office product will be launched into the market and after
considering the competitors and the consumer point of view the product design will be made.
Promotion:
Conducting agent motivation programmes, consumer’s awareness programmes, quality
awareness, programmes, telephone and hoarding, role advertisements, glow sign boards etc.
4.9.8 Channel of Distribution:
Milk Dairy Agent Door Delivery Boy Customer
Or
Milk Dairy Agent Customer
Or
Milk Dairy Agent Subagent Customer
Or
Milk Dairy Day Counters/Refrigerators shop Customer
4.9.9 Advertising:
They are advertising about their milk and milk products through picture slidings, hoardings,
publishing in local newspaper, wall painting, flute board, glow sign boards, bus painting / boards
etc.
Year Wise Milk Procurement & Sales Avg. Per Day (In Kgs)
YEAR PROCUREMENT SALES
2000-01 18370 26882
2001-02 18857 25294
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2002-03 19083 25258
2003-04 18089 29383
2004-05 21344 29675
2005-06 23954 30842
Special Task
Problems:
The main problem which Nandini milk is facing relates to its variation in quality.
Most of the Agents & Consumers have complaint pertaining to Nandini’s quality.
They have complaint regarding variation in thickness and bad smell that arises on account of
mixing of milk powder whenever there is a shortage of milk this kind of dissatisfaction amongst
costumer may force them to switch over to other brand and permanently abandons the idea of
purchasing Nandini milk in future
Another serious change prevailed against Nandini brand is having bad smell which comes while
boiling the milk
Suggestions:
Nandini milk having bad smell, as feeded in the customer mind to fully reduce the smell,
and it should be as a good. Milk should be maintaining an equal level, don’t change day
by day.
Nandini milk can maintain proper quality, with a good thick quality; don’t fluctuate every
day.
Nandini can produce a new product for children, i.e. pure filtered cow milk.
Nandini can give special offers to their customer, like gifts, vouchers and etc so that
customer can divert to Nandini products.
Nandini should give effective advertisements and a good wall print
Credit is the backbone of the business; Nandini should give credit facilities to their
dealers.
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FRAME WORK:
The 7-s model is better then as McKenzie 7-s. this is because the person who develop this model, Tom Peters and Robert waterman, have been consultant at McKenzie. They published their article “structure is not organization” (1980) and in their books “the art of Japanese management” (1981) and “in search of excellence” (1982).The model starts on the premise that an organization is not a structure but consist of seven elements namely:
THE 7-Ss ARE: Structure
Shared values
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System
Style
Staff
Skills, and
Strategy
These seven elements are distinguished as, so called herds and soft’s. The elements are feasible and easy to understand and indentify. They can be found in strategy statements, corporation plans, organizational charts, and documentation.The four softs however, are hardly feasible. They are difficult to describe since capabilities, values, and element of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore, it is much more difficult to plan or to influence the characteristics of the soft elements.
1. SKILL:
The term skill includes those characteristics which people use to describe a company, the
dominate skills or the distinctive competence of an organization are part of the organization
character.
Training in BRPL is aimed at the systematic development, skills, attitude, and team
work .Training and development of personal skills is considered a high priority area and it forms
an integral part BRPL people and its organization development. Suitable training is imparted to
enhance the multiple skills of the executives and to enrich the functional tasks.
Technical Skills
Human Skills
Conceptual Skills
CLASSIFICATION OF SKILL:
Executives
Non Executives
Technicians
Workmen
The qualification required for the staff in the Gomal are described according to the authority and
responsibility and nature of work carried.
1. EXECUTIVES:
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At the top level management the executives require more of conceptual skill, human skill and
low of technical skill. The qualification for the executive is described as under:
QUALIFICATION:
They must have Engineering, MBA, MSW, CA, ICWA and an experience of 5 to 8 years of
experience in the respective position.
SKILLS REQUIRED:
Forecasting, Policy framing, Establishing objectives, Formulating supporting plans.
2. NON EXECUTIVES:
At the middle level management the need for technical skill decreases human skill are still
essential and the conceptual skills gain importance.
QUALIFICATION:
They must have bachelor degree B.com, B.A; B.Sc requires relevant experience in the respective
positions.
SKILLS REQUIRED:
Clerical skill, accounting knowledge, finalization of accounts, statistical skill.
3. TECHNICIANS:
At the low level the need for technical skill increases, human skills are also helpful in the
frequent interaction with subordinates & conceptual skills are not critical for lower level.
QUALIFICATION:
Diploma in mechanical, electrical & electronics and ITI.
4. WORKMEN:
At the shop floor the need for technical skill, human skills requirement decrease.
QUALIFICATION:
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Basic education i.e. 7th, SSLC, PUC.
SKILLS REQUIRED:
Machines handling, work under the supervision of the technicians.
SYSTEM:
Systems are formal and informal procedures that govern everyday activity, covering everything
from management information systems, through to the point of contact with the customer.
Finance department is doing enough to properly plan and control the funds. There is regular
program verification.
INVENTORY CONTROL SYSTEM:
Raw materials will be held in the stores for maximum of 4 days only.
Finished goods will be held in the stores for maximum of 2 days.
MANAGEMENT INFORMATION SYSTEM:
In company the management information system is well developed. The MIS department
maintains the data of the company. They capture information from different areas of organization
through network spread around the company. This department gives the information for report to
the management. All the data will be stored in main server of MIS. The purpose of MIS is to give
the timeless information to the internal and external customer. It enables the management to take
quick decision and reduced much of paper work.
The internet and extranet is well connected to all the systems and provided good communication
tools. All the staff members are well aware with the systems. The integrated information system
is used to maintain time lines information for employees. At present
“Enterprise Resource Planning” is installed in the company to well aware of the day to day
activities.
FUNCTIONS OF MIS:
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Look after the development of new programming
Collect day to day information
Take requisition from each department and decides whether it can be designed or not
Take care of communication through e-mail
The department has an e-mail server connected to 5 users.
1. STYLE:
Style refers to the employees shared and common way of thinking and behaving - unwritten
norms of behavior and thought:
LEADERSHIP STYLE & ORGANIZATIONAL CULTURE:
Here style implies the leadership approach of top management and the company’s employee’s
way of thinking and behaving. The style is the tangible evidence of what management considers
important, the way it collectively spends time and attendance and uses symbolic behavior.
Participative style of leadership:
The company is following participative style workers in management (usually the management
will discuss with workers and enter into memorandum of settlement under sec 12(3) of industrial
dispute Act, which comprises terms and condition, labour compliments i.e. number of operation
required to work per day (standard strength) and work load category wise).
Centralized decision making:
The company is follow centralized decision making style only management people can
participate in the process of decision making.
2. STRATEGY:
Strategy refers to the systematic action and allocation of resources to achieve the companies aim.
The integrated vision and direction of the company as well as the manner, in which it drives,
articulate, communicates and implements that vision and direction. It can also be defined as the
choice of direction and action that the company adopts to achieve its objectives in a competitive
situation.
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3. SHARED VALUE:
It refers to the core or fundamental values that are widely shared in the organization and serve as
guiding principle that are important. These values have great meaning because they focus
attention and provide a broader sense of purpose.
Values are things that you would strive for even if they were demonstrably not profitable. Values
act as an organization’s conscience, providing guidance in time of crisis.
The values and beliefs of the company ultimately they guide employees towards valued behavior.
It refers to the simple goal statements in determining corporate destiny to fit the concept; most
people in an organization must share these values.
As per the value of the company “Quality and purity that’s unmatched” the company has
implemented many techniques to see that this values are implemented.
The company tries to satisfy every which is dependent directly or indirectly
The company tries to satisfy employees, shareholders, customers, government, families of
employee, community.
6. STURECHER:
Basis for specialization co-ordination influenced primarily by strategy and by organization size and diversity.
7. STAFF:
There is no proper HR department and recruitment is mainly employees reference or through promotion on its website. The assistant General Managers are the head their respective departments. Promotion or the promotion gradation of the employees is clearly based on Merit-cum-seniority basis.The company secretary takes up the member or secretarial work. He prepares the needed reports to be provided to the top management. The registration of the new clients is the responsibility of the senior executives. Inspection work is the duty of respective mangers of the department. The mangers take up administration. The depository help desk handles the queries regarding the depository services. Various desks are responsible for clearing the queries and communicating with the clients.
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5.1 Strengths:
1. It has wide distribution network.
2. Capable to quote competitive prices and reduces price.
3. The quality of milk is good
4. Consumers good will
5. Better financial strengths
6. Good brand name
7. Institutional support.
8. Economics of scale of production/operations, which leads reduce the cost of productive.
9. Geographical location in order to quick supply of milk in the market.
10. Good distribution and transportation system.
5.2 Weakness
Varying Quality:
The most significant and visible weakness of Nandini milk is its variations in quality this survey
upholds our above remarks. Most of the institutional buyers have complaint pertaining to
Nandini’s quality. They have complaint regarding variation in thickness and bad smell that arises
on account of mixing of milk powder whenever there is a shortage of milk.
This kind of dissatisfaction amongst customer may force them to switch over to other branch and
permanently abundance the idea of purchasing Nandini Milk in future. Another serous change
leveled against Nandini brand is bad smell which spreads while failing many customers revealed
that because of its bad smell, they have dropped the idea to purchase.
Discouraging Margin and Insensitive:
The driving force for any agent is commission i.e., how much they get from selling each packet.
We believe that commissions to the agents are crucial for success or failure of Nandini in future.
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Many dealers contended that the holding cost of Nandini milk is much higher than the
commission, which they derive from selling. Just because of some loyal customers they are
maintaining the stock of Nandini milk. There are some agents who are selling only Nandini milk
for the last 10 to 15 years and that there is no change in their financial portion.
WEAKNESS:
Freezing of marketable area.
Lack of flexibility in system.
Rivalry among sister unions.
Government influence.
Lack of personalize service to channel members.
High overheads.
Turns are not expected.
5.3 Opportunities:
1. Favorable government policy like incentives and grants and infrastructure facilities.
2. Institutional supports
3. Introduce new products
4. Tapping the un served market.
5. Servicing the below poverty or low income people with new schemes.
6. Evening time milk should be supplied
7. It has to focus on Kirana shops and General stores in slum areas under special schemes.
5.4 Threats:
1. Cut through competition from emerging competitions.
2. The bad smell of milk
3. Rapid growth in Technology
4. Research and Development facilities.
5. Threat forms agents and dealers to increase commission.
6. Lack of consumer awareness
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5.5 Recommendations:
1. The main problem which Nandini milk is facing relates to its quality. Many hotels used to
use Nandini before abandoning the idea completely due to its quality. The revealed that
there is no standard quality and the quality varies. They also have complaints regarding
thickness and bad smell. According to their opinion Nandini milk, some time is thicker
sometimes less. This kind of variation has forced them to switch to other brands. Many
complaints have been registered by hotels regarding bad smell, which comes while
boiling the milk. We believe that there are serious issues and should address immediately
without any delay if at all Nandini brand wants to survive in the market.
2. As we said earlier, there are only two impediments
a) Low thickness and b) Bad smells
Further we suggest you to stop the mixing of powder, in the event of insufficient
procurement, we believe in serving the market with quality product. We need not to
mix anything to meet the demand. Price was not an issue for them and this will not be
a barrier in future. They are least bothered about price in fact; they purchase milk at
15 to 16 hours from loose vendors. They seek thickness and ability to last far
maximum buyers. They do not have any complaints regarding packing, availability,
delivery system and behavior of agents.
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6.1 Findings:
The departmental functioning is on the lines of proper co-ordination and managerial
decision making.
Inter departmental communication is satisfactory but is not up to level of perfection.
The emphasis on some cheques and balances is not strong which would lead to more
problems at the level of marketing.
Procedures related to decision making is satisfactory but time consuming.
Although organization is good as for training and development is concern, it has to
improve much more in this direction.
Regarding the quality of Nandini milk and milk products it has been proved that the
quality is best.
It is observed that management unnecessarily spending huge amount on transportation for
the purpose of procuring less quantity of milk (less than 10 to 20 liters of milk).
It is also observed that GUMUL management is spending huge amount of money for
engaging indirect expenses.
GUMUL is spending huge amount on engaging private securities and contract laborers.
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6.2 Suggestions:
The company is having the capacity of producing 60,000 lpd. But presently, they are
utilizing only half of the capacity i.e., they are producing only 30,000 lpd. This can be set
right and can also be streamlined.
By utilizing remaining half of the capacity, the company can manufacture more milk with
the same amount of electricity which saves the electricity and would lead to the cost
reduction.
By reducing the production cost the company can reduce the price and increases its
market share.
The company can introduce money back scheme i.e., if any customer purchases 100 liters
per month they will be giving some money as incentives for purchase. The company can
increase their sales.
The company should conduct a competition analysis.
They should advertise more and TV and printing media
The company should improve the present tones of distribution.
GUMUL should ensure that quality of milk should be maintained at any cost as per the
norms of the TQM there is no compromise with quality. The best quality of milk at
reasonable price should be provided to the consumer.
GUMUL is a co-operative society AMUL pattern and as per the norms of the KMF and
NDDB (National Dairy Development Board) ANAND, GUJARATH.
GUMUL management should have annual action plan for procuring more and more milk
and also induction of high yield milching cows or buffaloes.
The GUMUL management should make provision for providing Jersey cross breed cows
to the farmers in GULBARGA and BIDAR districts, and AI (Artificial Insemination)
centers should be established within the GUMUL premises itself.
THE management should reduce overhead costs.
It is observed that maximum number of employees needs motivation, promotional aspects
and other service benefits in order to improve their efficiency and achieve organization
goals.
GUMUL should recruit highly qualified and suitable persons, right person at the right place.
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Conclusion:
Gulbarga Milk Dairy that is providing milk and milk products under the different kind of brand
names, have made a sufficient name and fame in the minds of people for its quality, availability
and relatively satisfying the needs of the ultimate consumer and it has made a sufficient mark an
established brand among the milk and milk products.
Initially when Gulbarga Milk Dairy was started, its capacity of production was less, as for now it
has uplifted itself for higher production capacity.
By large the study has revealed that the product mix of Gulbarga Milk Diary is excellent and the
pricing strategy is also excellent. By this I can conclude that Gulbarga Milk Diary has a very
good market share for its brand name and also it products.
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LEARNING EXPERIENCE:
Learning is synonymous to experience. This is because every human being learns hence only out
of experience and experience is the way of life. In life a person enhances his / her knowledge
only when exposed to real world situations, and by being exposed to the real conditions in a
systematic manner. He / she understand how to live and face various unforeseen situations. This
is exactly what the MBA course does to its students. The MBA course has the “in-plant training
program” as the part of its curriculum to make the students experience the actual corporate world
and learn its ways of functioning. In this competitive world this kind of an approach is extremely
indispensable. Students coming out, as MBA’s would be ready to have an interface with the
corporate world with determination, confidence and competence. Today’s corporate world
demands for all these qualities, without which facing the corporate world is a difficult task.
The working of the dairy is well planned. Especially the production department, Quality control
and the packing section. Every human being consumes milk but not everybody knows how it
reaches him or her pure and fresh. Before interacting with dairy I had thought of the complication
and quality standards to be maintained for getting the packed milk. After my experience in
GOMAL, I have understood that milk is not a simple thing to be just procure, packed and sold to
consumers it involves a lot of procedures, efficiency in maintaining the quality and overall a
commitment to sell the best to the consumers for whom it is an important drink consumed
directly or indirectly. Systematic and committed working is the most important lesson that I have
learnt by studying the entire organization. I have also understood that organization do not exist
only to make profit but to serve the society by producing the quality goods.
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Bibliography:
[1] “Human Resource Management”, K. Ashwathappa
[2] “Marketing Management”, Philip Kotler
[3] “Financial Management”, Prasanna Chandra
[4] “Organizations Induction Manual”, KMF
[5] “Harbinger”, KMF
[6] www.indiainfoline.com
[7] www.indiandairyindustry.com
[8] www.nddb.org
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7.5 Finance Statements:
Profit & Loss A/c 1st April 2004 to 31st march 2005
Particulars Amount Particulars Amount
Opening Stock 40,91,807.92 Sales account 17,26,52,795.23
Purchase account 10,91,61,813.05 Closing Stock 46,40,533.36
Direct expenses 2,03,28,093.08
Gross Profit 4,37,11,614.54
17,72,93,328.59 17,72,93,328.59
Indirect expenses 4,30,21,939.76 Gross profit 4,37,11,614,54
Net profit 39,15,745.26 Indirect income 32,26,070.48
Total 4,69,37,685.02 Total 4,69,37,685.02
Balance Sheet as on 1st April 2004to 31st march 2005
Liabilities Amount Assets Amount
Capital Account 3,73,83,176.29 Fixed Asset 5,64,00,522.15
Loans (Liability) 2,31,93,654.36 Investment 83,500.00
Current Liabilities 3,76,38,024.15 Current Assets 1,74,63,361.99
Branch Division 63,88,247,62 Net Loss 3,06,55,718.28
Opening Bal 3,47,71,463.54
Current Bal (-) 39,15,745.26
Total 10,46,03,102.42 Total 10,46,03,102.42
Profit & Loss A/c 1st April 2005 to 31st march 2006
Particulars Amount Particulars Amount
Opening Stock 46,40,533.36 Sales account 18,24,17,590.92
Purchase account 11,77,51,675.90 Closing Stock 86,63,788.85
Direct expenses 2,30,75,792.35
Gross Profit 4,56,13,378.16
19,10,81,379.77 19,10,81,379.77
Indirect expenses 4,73,06,079.67 Gross profit 4,56,13,378.16
Net profit 7,39,731.74 Indirect income 24,32,433.25
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Total 4,80,45,811.41 Total 4,80,45,811.41
Balance Sheet as on 1st April 2005 to 31st march 2006
Liabilities Amount Assets Amount
Capital Account 4,66,99,230.57 Fixed Asset 5,74,46,594.68
Loans (Liability) 5,12,62,409.96 Investment 96,500.00
Current Liabilities 93,64,803.72 Current Assets 2,34,13,942.54
Branch Division 58,24,043.50 Net Loss 3,21,93,450.53
Opening Bal 3,08,22,204.75
Current Bal (-) 7,39,731.74
Total 11,31,50,487.75 Total 11,31,50,487.75
YEAR WISE PROFIT/LOSS (IN LAKHS)
YEAR PROFIT
2000-01 -119.48
2001-02 -58.79
2002-03 -61.07
2003-04 4.31
2004-05 37.52
2005-06 7.39
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