CHAPTER – 1

INTRODUCTION

1

1.1 INTRODUCTION

India is the world’s largest milk producer. As India enters an area of

economic reforms particularly, live stock sector is positioned to be a major growth area. The fact

that dairy could play a more constructive role in promoting rural welfare and reducing poverty is

increasingly being recognized. In the late sixties, the National Dairy Development Board

(NDDB) drawn up a project called Operation Flood, meant to create a flood of milk in India’s

villages with funds mobilized from foreign donations. Producers cooperatives which sought to

link dairy development with milk marketing were the control plans of this projects. As part of the

second operation flood, TRCMPU Ltd was registered on 31 May 1985 under TRCMPU.

Milma is one of the major milk dairies in Kerala. It has a very high growth in

Kerala. Other than milk, they have many by-products of milk which are also very successful in

the market.

The organizational study at Milma conducted as part of the MBA

program is steam lined to have a focus on the major trends and practice prevailing in today’s fast

paced business environment. Organizational Study is the area where we put our theoretical

knowledge understudy with an organization to find out its overall working. Organization Study

helps to learn about the origin, growth and development of organization. It helps to understand

the structure and functions, to study the work culture of the executives and the workers, to make

awareness about the role of each department and analyze the quality policy of the organization.

The Organizational Study conducted by me about the Milma Kollam Dairy. Milma has an

excellent reputation among the common people .In fact, there is no one around who does not

know about Milma. Milk and its products are nearly used by everyone in Kerala.

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1.2 INDUSTRY PROFILE

Milk and milk based industries play a very important role in the world.

Internationalization reminds a key focus for almost of the world’s leading dairy farms. All the

world’s largest dairy farms operating more than one country and some of them are truly

international with activities in every part of the world. The availability and distribution of milk

and milk products, in the modern world is blend of the centuries old knowledge of traditional

milk products with the application of modern science and technology. Diary is a place where

handling of milk and milk products done.

In developed dairying countries, the year 1850 is seen as the dividing line between farm

and factory scale production. The rural areas were identified for milk production where as the

urban centers were selected for the location of milk processing plants and product manufacturing

factories. These plants and factories were rapidly expanded and modernized with improved

machinery and equipment to secure the various advantages of large scale production. Before

1900, nearly all the milk was delivered as raw milk. Milk was first delivered in bottles on

January 11, 1878.Once pasteurization was introduced, it developed rapidly. Mechanical

refrigeration helped in the rapid development of the factory system of market milk distribution.

A doubling in the price of wholesale milk over the past year is creating havoc among

food manufactures, prompting warning about the food price inflation in U.K .Aid organizations

have also raised concerns about the depletion of government stockpiles of milk power.

In the western world today, cow milk is produced on an industrial scale. It is by far the

most commonly consumed form of milk in the world. Commercial diary farming using

automated milking equipments produce the vast majority of milk in the developed countries.

The following are the major global players in this field,

Nestle (Switzerland)

Dean Foods(USA)

Kraft (USA)

Dairy Farmers of America(USA)

Fonterra (New Zealand)

Danone (France)

Parmalat (Italy)

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Arla (Denmark)

Nevertheless, in spite of these players, India is the largest producer of dairy products

and milk followed by USA and China.

Indian scenario

The dairy sector in India has shown remarkable development in the past decay and India

has now become one of the largest producers of milk and value added milk products in the

world. The dairy sector has developed through co-operatives in many parts of the state.

During 1997 – 1998 the state has 60 milk processing plants with an aggregate processing

capacity of 5.8 million litres per day in addition to these processing plants, 123 government and

33 co-operative milk chilling centers operate in the state.

More than 2445 million people economically active in agriculture in the

world.probably2/3 or even more ¾ of them are wholly or partially depended on livestock

farming. India is endeavored with rich flora and fauna and continuous to be vital avenue for

employment and income generation, especially in rural areas. India, which has 66% of

economically active population engaged in agriculture. In India the market milk technology may

be considered to have commenced in 1950, with functioning of the Central Dairy of Aarey Milk

Colony and milk product technology in 1956 with the establishment of Amul Dairy, Anand. The

industry is still in its infancy and barely 10% of the total milk production undergoes organized

handling.

India achieved the distinction of becoming the world’s largest milk producer in the year.

The milk production in India is over 110million tones with Utter Pradesh leading the highest

among Indian states. Started in 1970, the three phases of Operation Flood have pushed India’s

milk from 21 million tones to 110 million tones in 2008.The growth in the milk definitely

surpassed the growth in grains and cereals and today milk is India’s number one farm produce

worth Rs 1,00,000 crores annually.

In spite of being the World’s milk producer, India’s milk processing industry is not very

large. Only 12% of milk is delivered to dairies against the world average of 70%. Bulk of Indian

milk is utilized for drinking or in the unorganized sector processing industry can be divided in to

three segments

Government/ Semi government

Co-operatives

4

Private sector.

With expectation of a few units, the processing industry is largely involved either in a liquid

pasteurized milk of conversion of milk to milk powder and ghee. Most domestic processor does

not have the quality or the marketing knowledge to access the international market.

In India, majority of the milk market remains with the co-operatives which were formed under

Operational Flood all over India. The Milk Marketing Federations and its affiliated Districts

Milk Unions control majority of the milk market in the organized sector.

The major brands in India are

Amul (Gujarat)

Verka (Punjab)

Milma (Kerala)

Nandini (Karnataka)

Vijay (Andhra Pradesh)

Aavin (Tamilnadu)

Parag (Maharashtra)

Mother Diary (Delhi)

There are few other major private companies which are in the forefront of the diary product

marketing such as Britannia, Nestle and Cadbury etc. New international players such as Anchor

Fonterra, Compina, Landolakes etc are expected to enter the Indian market within a short period

of time.

Indian diary sector is said to witness a number of new alliances and partnerships. Consolidation

is already taking place in the market with Mother Dairy entering into the joint ventures with the

various state co-operatives and Britannia in tie-up with Fonterra etc. Overall the Indian industry

is experiencing an upheaval with the new products launches, repositioning of brands and entry of

newer players.

Operation Flood

During 1960’s milk production in India was concentrated only in rural areas. In Gujarat the

farmers owned Co-operative Societies formed namely Anand Milk Union Ltd (AMUL). It was

5

mainly integrated in production, procurement and processing and marketing on Co-operative

lines.

Operation Flood was launched in 1970 and the main objective of the program was to increase

the milk production in rural areas and to supply the excess milk to the nearest dairies. Operation

Flood was introduced under National Dairy Development Board (NDDB) which functions as the

technical consultant. This NDDB was stated under the Societies Act and these societies are

known as Anand Pattern Co-operative Societies (APCOS). These societies get financial aid from

Indian Dairy Corporate.

Operation Flood is intended to reduce regional imbalances in dairy development in

underdeveloped regions. It was a remuneration linking of rural milk procuring centers with urban

demand centers.

The various phase of Operation Flood include;

First phase aims at the procurement of milk from rural surplus areas to the urban

deficit areas.

Second phase was started during 1980’s its outlay was 29 crores and was utilized

for the construction of dairies. Kerala was included in the second phase of

Operation Flood.

Anand Pattern

A success story on the dairy scheme in India during the sixties was the farmer owned

Amul co-operative in Anand (Khaira district, Gujarat) with its integrated approach to production,

procurement, processing and making on co-operative lines. Over the years this evolved in to a

model based on self-rule by farmers ensuring maximum returns to them.

This model came to be known as Anand pattern. The efficiency of this model was worth

replication. There for a dairy programme called “OPERATION FLOOD” was launched in 1970

under the aegis of National Dairy Development Board (NDDB)

ANAND Pattern is a 3-tier structure consisting of

Village level primary co-operative society called “APCOS”

Regional co-operative milk producers union

State level milk marketing federation

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Kerala Co-operative Milk Marketing Federation (KCMMF)

Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called

Milma was established in April, 1980 with its Head office at Thiruvananthapuram for the

successful implementation of Operation Flood (a dairy program launched in 1970 under the aegis

of National Dairy Development Board (NDDB).

The name MLMA represents:-

2678 primary milk co-operative societies

8.31 lakh farmer members

Three Regional Co-operative milk producer’s union

Thirteen Dairies capable of handling 12 lakh liters of milk per day

Ten Milk Chilling Centers

Two Cattle Feed Plants with cumulative capacity of 600 MT per day

One milk powder plant of 10 MT per day capacity

A well established Training Centre

5200 retail outlets

Over 32000 people working either directly or indirectly for the functioning of MILMA

A part from these the company serve millions of consumers day-in and day-out

Network

The Motto of Co-operation of "of the people, by the people and for the people" is the foundation

of the "three tier system" followed by the organisation. At the village level we have the Village

Milk Co-operative Societies which have the local milk producers as its members. These Village

Co-operatives unite at the Regional level and form Regional Co-operative Milk Producers'

Unions. These Unions are federated at the State level to form State Federation namely Kerala

Co-operative Milk Marketing Federation( KCMMF).

Associates

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Milma is in constant touch with other Organisations in this sector. It is only through this active

exchange that milma grew from a small dairy co-operative to the position it holds in Kerala

today.

cheif associates are:-

National Dairy Development Board

NDDB, under Dr. V Kurien's guidance set up KCMMF in 1980. Ever since then, there

has been a very close co-operation between NDDB and the Federation. NDDB are the

originators of the Operation Flood Programme and have been our funding agent for the

Operation Flood Projects in Kerala.

Amul

The Dairy Co-operatives of Gujarat have been the inspiration for the development of

such a vast network of dairy co-operatives in Kerala. Among the co-operatives in

Gujarat, the Kaira District Co-operative Milk Producers' Unions (Amul) is the the first in

this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies"

following the illustrious lineage of "Amul".

Government of Kerala

The Phenomenal success of the Dairy Co-operatives in Kerala could not have been

achieved, without the foundation of animal husbandry activities, led by the Animal

Husbandry Department, Dairy Development Department and Kerala Livestock

Development Board, of the Government of Kerala.

1.3 COMPANY PROFILE

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MILMA KOLLAM DAIRY

Milma Kollam Dairy was established in 1985 as milk chilling plant in Thevally, Kollam

District and later it was developed in to a milk processing plant. This is an ISO 9001:2000

certified company. It was functioning under the THIRUVANANTHAPURAM REGION CO

OPERATIVE MILK PRODUCERS UNION LIMITED (TRCMPU) and the apex body is the

KERALA CO OPERATIVE MILK MARKETING FEDERATION (KCMMF). Now the Kollam

Dairy has a processing capacity of more than 1 lakh litres of milk per day. It consists of eight

departments and a dairy manager who is in charge of managing all activities of this unit. There

are 25 officers and 140 permanent employees and 60 temporary employees are working day and

night in the dairy in 3 shifts. The main product of this dairy is milk (Milma Smart & Milma

Rich) and also they producing Milma Ghee (AGMARK), Milma Curd, Milma Sambharam and

various other products like butter, ice cream, peda, etc. brought from other dairy for sale in

Kollam. Milma has a lengthy product line in the market. In these, many of the items are market

leaders in their segments and they hold a very big market share. Ghee produced from the Kollam

dairy has acquired ISO 9000 certification. ‘Quality’ is the key word of Milma. Now Milma

serves a thousand of customers in and out.

Vision

“To ensure prosperity through milk- be it for the producers or the consumer”.

Mission

“Farmer ’s prosperity through Consumer satisfaction”

Motto

“Your health is our concern”

The Objectives

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To channelise marketable surplus milk from the rural areas to urban deficit areas to

maximize the returns to the producer and provide quality milk and milk products to the

consumers .

To carryout activities for promoting Production, Procurement, Processing and Marketing

of milk and milk products for economic development of the farming community.

To build up a viable dairy industry in the State.

To provide constant market and stable price to the dairy farmers for their produce.

Quality Policy

Kollam dairy is committed to confirm to requirements to enhance satisfaction of

customers & producers by providing consistent quality products and services. They strive for

environmental care and market leadership through effective implementation and continual

improvement of quality management system.

Product Profile

The products of Kollam Dairy are,

Milk

Milma Ghee

Milma Curd

Milma Sambharam

Milk

Kollam dairy mainly produces two types of milk on the basis of fat including in it. They

are,

Milma Smart

Milma Rich Plus

Milma Smart

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Milma Smart contais 1.5% fat and 9% SNF (Solid-Not-Fat). It is used for several

domestic and non domestic purposes. It is available 500ml packets.

Milma Rich Plus

Milma Rich Plus contains 3.8% fat and 9.0% SNF. This is most suitable for those

requires comparatively more energy such as growing children, women, etc. this variety much

profitable for hotels, canteens, catering services, etc. It is mostly suitable for making desserts,

paneer and such other sweets. The maximum retail price of Milma Rich Plus is Rs. 13. It is

available in 500 ml packets.

Milma Ghee

A product of high demand and quality. Milma Ghee is produced from pure milk cream.

Milma Ghee also possesses AGMARK certification which no other similar production have yet

obtained. Milma Ghee is available in 50gm, 100gm, 200gm, 1kg, 15 kg as per the customer

requirements.

Milma Curd

Milma Curd is produced from pasteurizing skimmed milk using curd culture. It has 9%

SNF contents. Milma Curd is available 500 ml packets.

Milma Sambharam

The best drink to quench our thirst produced from diluted curd and other ingredients such as

chilly, salt and curry leaves and without adding chemicals or preservatives. It is available in 200

ml packets. The maximum retail price of Sambharam is Rs. 3.50

Other products like Butter, Chocobeats, Drinking Water, Ice candy. Mango, Milk Cream,

Palada Mix, Paneer, Peda, Ice Cream, etc. are brought from other dairies for sale in Kollam

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CHAPTER – 2

FUNCTIONAL DEPARTMENTS

2.1 PROCUREMENT AND INPUT DEPARTMENT

12

MILK PROCUREMENT OFFICER

ASST. PROCUREMENT OFFICER

STAFFS

ASSISTANT MANAGER

This department is headed by the assistant manager. Under assistant manager there are

veterinary officers, milk procurement officers and office staff. Office staff takes care of accounts,

establishments and sales and attendance. Milk procurement officer is assisted by assistant milk

procurement officer and by senior and junior supervisors. There are two veterinary officers for

input divisions and 10 supervisors that form the core of this department. Procurement and input

department consist of 22 employees. This department mainly deals with

Procurement of milk from the producers and provide sufficient input to the

producers

Welfare measures to the milk producers

Milk Procurement

Milk is procured on the basis of A P C O S (Anand Pattern Co-operative

Societies) Pattern. In Kollam dairy there are 266 affiliated A P C O S. The milk brought by the

farmer is readily accepted by the society which in turn is sent to the dairy for processing. The

producers are paid milk value based on quality i.e., in terms of fat and solid portions of the milk.

The equipments, chemicals and machines required for checking the quality of milk samples are

given from the co-operative unions. The milk can and other utensils required for collection of

milk is also given from the union.

13

P & I department are providing supervision to 199 societies. Milma collect milk from

these societies twice a day, i.e. morning and evening. Milk routes are designed which will

operate within the prescribed time. Each truck is given a specific time for arrival and departure

from each society and also time of arrival at dairy dock. There are 17 milk routers in which three

are tanker routes. Once in every ten days payments are given to societies. They make weekly

payments to milk producers.

In units milk is manually measured. Milk procurement per day is one lakh litters which

contains 3.8% fact and 8.25 % SNF. Milk is bought to the dairies with he help of vehicle for

which transportation charge are paid. They have established bulk milk chilling unit at 11

APCOS. Each centre 5000-3000 capacity tankers to collect milk from other societies. From these

centers the milk transported to the dairy through tanker lorries. There are 7 supervisors from P

& I.

Procurement and input department is providing technical inputs in service for milk

production. They are providing veterinary first aid service for societies. They arrange training for

society staffs.

They also arrange cattle feed supply to milk producers through societies. They

render emergency veterinary services through decentralized veterinary units, 10 veterinary

doctors are appointed on contract basis. Veterinary doctors are also doing artificial insemination

services.

Production enhancement activities are also done at these societies like:

Mastitis control activities

De – worming of cow, heifers & mulch cows

Cattle insurance program

Production enhancement camps

Urea treatment of paddy strew

Seminars as per their requirement

Welfare measures of the milk producers

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Several welfare measures also provided to the milk producers in order to motivate them.

These welfare measures include:

Women self- help group at societies for developing their skills and economic

development.

Financial assistance is given to active milk producing members for higher education for

their wards.

1. Active milk producing members should supply minimum of 180 days or 500 liters

every day consecutively for two years. Scholarship are provided to their children.

2. In case of death of active member, the unit financially helps his/her family with

certain amount of money or by giving job to one of his/her family member.

3. Insurance is given associated to HDFC, HUB.

4. Bank loans were arranged to farmers to buy cow, fodder cultivation etc.,

5. Milking machines are given to farmers with 50% subsidy.

6. Equipments & chemicals are supplied to societies for their use in society while collecting milk.

7. Fodder seeds are supplied to farmers through societies.

Important records maintained in the department are payment registers of milk transport contractors, distance certificates registers, procurement cost analysis register MIS files, etc.

15

TRCMPU LTD KOLLAM DAIRY MIS- REPORT APRIL 2011

1 No. of Apcos registered(Cumulative) 266

2

No. of Apcos functional

214

3 No. of Apcos pouring milk 199

4 No. of Apcos under super vision 199

5 Total milk collected by Apcos 1644632

6 Total milk supplied to dairy by Apcos 809073

7 Total Transportation cost including tanker hire

charges paid for BMCC trips

844870

8 Total milk collected by cans plus tanker 861899

9 Cost per litre of milk procured 0.98

10 No. of societies started suppling milk in the month 0

11 Farmer members in the Apcos 63541

12 Members supplying milk to Apcos 8194

13 No. of cases treated by Dvu Doctors 751

14 No. of Dvu units functional 10

15 total service charge paid to Dvu doctors 132300

16

16 Total service charge collected from producers 49490

17 Average quality of milk (fat and Snf ) 4.4/8.21

18 Milk procured (Ltr/day) 28730

19 Milk received from Apcos (Ltr/day) 26183

20 No. of non Apcos pouring milk 13

21 Milk received from non Apcos(ltr/day) 1761

22 Apcos procurement pattern

No. of Apcos supplying less than 100ltrs 37

100-200 Ltr 61

200-300 Ltrs 34

above 300 Ltrs 67

23 Procurement transportation cost

Actual milk transported in am shift/

max load of all vehicles=(513063/966000)

0.53

Actual milk transported in pm shift/

max load of all vehicles=(348836/966000)

0.36

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24 Emergency treatment

No. of cases 751

Cost of medicines 26322.34

Service charge 132300

Total cost 109132.3

Cost/case 145.32

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Assistant Manager (Production)

Technical Officer

Technical Superintendent

Plant Operators

Plant Attenders

Manager (Production)

2.2 PRODUCTION DEPARTMENT

The production department is headed by the Production Manager followed by an

Assistant Manager, Technical Officers, Technical Superintendents, Operators/ Technicians, and

Plant Attenders.

FUNCTIONS OF PRODUCTION DEPARTMENT

Design and development of production process

Planning and control of production process.

Implementation of the plan and related activities to produce the desired output.

Meeting the sales requirements.

Maintaining the Plant Accounts.

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RESPONSIBILITIES OF PRODUCTION MANGER

To produce the required quantity of milk, in time for delivery.

Resources are disposed in the best possible manner.

To select most efficient and economical method to perform the operation.

To find the most appropriate method of performing various operations involved in

production.

FEATURES OF PRODUCTION DEPARTMENT

The Kollam dairy mainly produces:

MILMA TONED MILK

MILMA RICH PLUS MILK

MILMA SMART MILK

MILMA CURD

MILMA SAMBHARAM

MILMA GHEE

The work of production department starts from the milk is collected from the APCOS.

The milk is collected both morning and evening. There are three shifts operating in production

department. The morning shift is from 7 am to 3 pm and the evening shift is from 3 pm to 11pm.

The third shift is operating only for refrigeration.

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PROCESSING OF MILK

RECEPTION OF MILK

↓

MILK CHILLING

↓

PROCESSING

↓

STORAGE

↓

PACKAGING

↓

FINAL STORAGE

↓

DESPATCHING

Reception

In this section milk is collected from different APCOS is brought in to the Diary

and it is received at the reception section. The milk is pumped through the pipes and taken in

to the Raw Milk Tank (RMT).There are 2 RMTs with a capacity of 15000Ltr and a SILO

tank with capacity 30000. Before the milk is poured in the tank, it is tested to ensure that the

milk procured is good. The milk from each society is weighed electronically and samples are

taken for the purpose of determining quality and price. The quality of milk is checked by

using lactometer.

Milk Chilling

In this section the collected milk is stored in a Raw Milk Tank and is chilled to 4°C to keep

the milk clean in all scenes. It helps to prevent spoilage. This is been done by passing the

collected milk through the chillers where plates are arranged in a special manner through

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which milk be passing to one direction and in the opposite side of the plate chilled water will

be streamed in the opposite direction.

Processing

There are two types of processing:

Pasteurization

Pasteurization is the process of heating every particle of milk to at least 72°C for 15sec in

approved and properly operated equipment. After pasteurization, the milk is immediately cooled

to 5°C or below to kill the pathogenic organisms.

In this process the milk is transformed through a container which consists of steel plates.

This container is divided in to heating section and cooling section. This milk chilled at 4°C is

transformed in to the container and heated to a maximum temperature of 72°C for 15 seconds.

Then rapidly cooled below 5°C and then stored. In this pasteurization process there include other

activities like filtration in which the small particles like hair, dung particles etc… are filtered.

Standardization

In this process it is seen that the quality of milk is attained according to PFA standard

fixed. For this the milk is taken as samples and tested to see the amount of fat and SNF

are above this level. For toned milk there should be 3% fat & 8.5% SNF. The excess fat

is separated and used other purpose. All the other test regarding the quality is taken into

consideration and then the process of cream separation is done.

Storage

The cream from the milk is separated and is used for other byproduct production and the

separated milk is stored in the 4 Pasteurized Milk Tank (PMT) tank, which has a capacity

of 15000Ltr/tank and also stored in 2 SILOs which has a capacity of 60000Ltr/silo.

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Packaging

The stored milk is then passed out for packaging. In which milk is packed in half liter

packet. For these highly sophisticated and newer technology machines are used for this

purpose. The sachets are formed from a reeled film over a shoulder and tube forming

sealer. Their size is changed simply by pushing a button without stopping the machine.

The packaged milk is collected in trays, each tray should contain 26 packets or sachet of

milk.

Final Storage

The milk so packed are then stored below 7°C. This is done so as to maintain the

temperature until dispatched.

Dispatching

The milk is then dispatched to the various booths in the morning and in evening, through

contract vehicles. Production supervisor, marketing staff and security staffs are associated with

dispatching for proper supervision.

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Processing of Curd

Curd in actually made from skimmed milk. The fat content will not be more than 5%.

The skimmed milk heated to 50°C and skimmed milk powder is added to it to get 9% SNF. It is

then held in child water. At room temperature 2% culture is added to the skimmed milk culture

usually used is streptococcus, tactus, cremorue, etc. The incubation period of good culture 7-8

hours.

It is then filled in to 500 ml packets and is placed in chilled water. After 5-6 hours the

curd is shifted to the chiller. The curd is then tested for fat, and SNF and total solids. After the

examination by quality controlled department, it is dispatch from the dock.

Processing of Sambharam

Curd is thoroughly agitated and to it equal quantity of chilled water is added. Small

proportion of chilly, ginger, salt and curry leaves are added and mixed. The sambharam is filled

in packets and kept in cold storage. It is later dispatched for sale.

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Assistant Manager

Clerical staff

Technician

Apprentice

2.3 PURCHASE AND STORES DEPARTMENT

Purchase and stores department ensure timely availability of all other material other than

milk powder, veterinary medicine and procurement and input items as per needs specification of

user or customer sections.

The department covers packing materials, machine spares lab chemicals, re agent

and apparatus, electrical items and spares and capital equipment.

Kollam dairy maintains list of approved suppliers for regularly purchased

materials and evaluate their performance on the basis of criteria defined. The criteria should

specify quality, delivery schedule, price, etc. subsequent to re-evaluation of suppliers, those who

are not performing well are detected. New suppliers are also added to the approved list of

evaluation.

Order is prepared in the prescribed form by the concerned store keeper or purchase

assistant. Purchase order should have detail quantity, specifications and standards, price as

applicable and other terms and conditions and is reviewed and approved by the office in charge

of purchase and stores.

Purchase procedure is initiated after the receipt of purchase section in the

prescribed format duly approved by the section head. Purchases are made directly from local

market or available sources.

The quotations are invited from known manufactures or suppliers. The quotations

thus received are tabulated and send to head office with recommendations.

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Deputy engineers

Manager

Filling Section Boiler Section Generator

Milk Filling Product Filling Operators Operator

Operator

Maintenance staff

Apprentice

2.4 ENGINEERING AND MAINTANANCE DEPARTEMENT

The Engineering and Maintenance department is headed by the Manager under him

comes Deputy Engineer and Technical Superintendent. Then comes various technical assistants.

The department is concerned with the maintenance of the various plants, both annual and

periodic maintenance is carried out, provide spares and items to technicians and smooth

functioning of the plants.

Maintenance department has various plants.

a) Boiler

b) Effluent Treatment Plant

c) Electricity substation

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a. Boiler Room

There are two boiler units which are closed steam vessels, generating steam used for

pasteurization, can washer unit, tray washing and ghee melting. The boiler used in fire tube

boilers and have a 2 ton steam capacity per hour. Furnace oil, water and electricity are the main

constituents used. The boilers are licensed under the explosives Act. The boilers are inspected

regularly and periodic maintenance is carried out. One of the two boilers is used as stand by

which is used when the other have some problem. The boilers have been acquired from the

Industrial Agricultural Engineering Company.

b. Effluent Treatment Plant:-

It processes the water of Kollam dairy. Wastes like water, milk, chemicals, involving

acids and alkalis are processed. Through a series of processes and steps, the waste is precipitated

by the agitation of the waste water by an agitator. The precipitated sediment is separated from

the water and dried. This water is let out into the Ashtamudi lake. The dried sediment is cleaned

from the tank once in a while. The pollution control board and the public laboratory observe the

plant and check for toxic wastes. The effluent treatment plant works all 24 hrs a day.

c. Electricity Substation

The Kollam dairy also possess an electricity substation maintained by the dairy. The

transformers capacity is 315 KV. 400 KVA is used when there is no KSEB supply. The

maintenance department also looks after the maintenance of Dairy vehicles and the plant.

Periodical inspection and maintenance is carry out in the substation on a regular basis and spares

are obtained from the stores department.

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Marketing Officer

Asst. Marketing Officer

Marketing Organizer

Marketing Assistants

Marketing Apprentice

Manager

2.5 MARKETING DEPARTMENT

Marketing department is headed by the manager and he is assisted by the assistant

manager, marketing officer and his assistant and his field staff.

The marketing department mainly looks after the pulse of the market. It finds out the

requirement and fills it does it by conducting marketing research frequently thus keep in touch

with the selling of milk and its products. Selling actually involves the tackling of a number of

problems such as advertising, facing competition, creating demand for new products and

supplying goods at the right time at the right place.

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Marketing of Milma

The organization has been pursuing a production oriented strategy for several years due to the

monopoly in pasteurizing milk in market. In Kollam & Ernakulam regions there are few competitors.

Milma is having strong and efficient marketing teams in each region.

There are mainly two distinct system of milk distribution in Kollam district under the

organization. Firstly the manufacturer directly the milk to the consumers through the booths and secondly

the manufacturer supply to the retailer and then to the consumer. At present they are supplying milk

through 21 various routes with the help of vehicles hired on an annual contract. The company is

distributing three types of milk, toned milk, double toned milma and Milma rich. The supply is done in

two times daily.

Distribution

The distribution area of Kollam dairy covers the entire Kollam district, majority area of

Pathananmthitta district, a part of Aleppy district which includes Kayamkulam, Chengannur, and

Mavelikkara and a part of Trivandrum District which covers Attingal, Varkala etc.

Kollam dairy distributing milk and other products. There is a exclusive marketing store for marketing

department, products are stored here other than milk. There is a selling outlet for the sales of milk

directly to customers. Some products are imported from other milma dairies for sales in kollam.

Chocolate, ice cream, are from Trivandrum dairy and mango juice, drinking water, flavoured milk are

from Alleppey dairy.

The retail agent’s specific their requirement of milk and paying the money in one day advance at the cash

counters of the dairy. The wholesale agents pay at the time of the receipt of the dispatch. The stall remits

their daily collection of sales to the dairy bank accounts. The next day payments from private hotels are

made advance payments on average by a month.

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Sales promotion

Sales promotion is an organized effort applied to the selling job to the greatest effectiveness for

advertising and for dealers help. Sales promotion has become a necessary part of marketing activities for

a firm like Milma. Now days in Kollam dairy use some of the promotion tools and techniques. Since the

demand for the product is good sales promotion can bring about favorable result for the Kollam

dairy.Some of the promotional activities are; To help the agents to provide to door to door service to the

consumers, Milma given Rs. 1000/- for the procurement of cycle to each agents. The top 5 agents who

sell the maximum milk is given Rs. 5000/- for purchasing a freezer. The agent has to make the purchase

and bill is show to the dairy.

For the other products an off season discount is given to the products like ice cream, ghee etc.

Advertisements

Compared to other products of Milma they are not giving much advertisement to milk but they

are using the banners, posters and sign boards. They are having their stalls in the exhibitions.

Agency

1800 agencies are functioning in Kollam. Agency is given 4% commission on milk on a

minimum retail price. The agents have to give the dairy cash one day in advance i.e. cash remittance on

the previous day of the milk collection, no credit facility is given to the agents. Super markets like

Supreme, Dhanya, is given check facility. Credit facilitity is given to sub jail in Kollam and some

residential schools. The milk has an average sale of 120000 litre/day, ghee has an average sale of

26000kg/month, sambharam has 4000 litres/month and curd has an average sale of 55000 litre/month.

The cash collection in the following ways:

Direct Cash remittance

Agents directly given cash in the counter between 9.30 am and 3.30 pm

Route Cash

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There is a cash box in the vehicle. the agents fill in the invoice and put both cash and invoice in a

cash book/.According to the number of packets mentioned in the invoices, the milk is sent to the

next day through the vehicle.

Milma Products

Milma include the marketing of these products:

Milk

Ghee

Butter

Sambharam

Milk Cream

Curd

Toned milk: 3% fat, 8.5% SNF pasteurized and homogenized and presented in 500ml and 1 ltr sachet.

Milma rich: 3.8% of fat 9% SNF. Pasteurized and homogenized and presented in 500ml sachet.

Ghee: Fat from cow’s milk, free from added flavor or color or any other additives. It is presented in 50 &

100g tins, 200 & 500g sachet and pet jar.

Butter : Salted and plain varieties and is presented in 100g 200g 500g packets and

Sambharam: Fat free traditional thirst quencher added with chilly, ginger presented in 200ml sachets.

Milk Cream: Ice cream made from milk and cream from chocolate, mango, pineapple, strawberry, flavors

chocobar and butter scotch presented in 50 ml, 100ml, cup and also 4 liters pack.

Curd: fat free, thick and uniform and is presented in 500ml sachet.

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Main Competitors of milma are:

Millk : KCA , AI , Shakthi

Butter: Amul, Nambeesan, Vijaya

Ghee: RKG, Ambadi, Nambootiri

Important book and records maintained in the department are credit suppliers register, agency

document, institution document, registers of institution, supply details, complains register, etc

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Accounting Officer

Jr. Superintendent

Sr. Assistant

Jr. Assistant

Attenders

Assistant Manager

2.6 FINANCE DEPARTMENT

The department is headed by the accounts manager and he is assisted by the assistant

manager, junior superintendent with senior and junior assistant and office attenders at the lower

level.

This department deals with financial aspect of the organization. Finance and accounts

department prepare annual budget, balance sheets, estimating the source and application of

funds. Its main duty is procurement of fund and determination of the sources of fund and

utilization of procured fund.

The finance and accounting department has 5 functions. They are,

a. Finance functionb. Accounting functionc. Budgeting functiond. Auditing functione. Reporting function

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Finance function

The Capital for the organization is provided by NDDB. This organization is given shares to only

the member framers of the societies and the share value is paid as dividend from the profit. The fund

needed for the requirements of the dairy is provided from the head office. For each 15 days the diary

sends a statement including their requirements to the Managing Director. After receiving the statement,

required fund is transferred from the account of head office at Indian bank to the diary’s account at

Canara Bank

Accounting FunctionThe accounting system in the dairy is the double entry system. All the transactions are

computerized. Trail balance and Profit and loss accounts are prepared monthly. A uniform account

system is designed according to the NDDB. Separate books are maintained for each item.

Auditing functionThe section is computerized, hence auditing is an easy task. There are three types of audits

internal audit and statutory audit. Internal audits reports are prepared quarterly and presented to the board

of directors. Government does the statutory audits and there remuneration is paid by the union. Statutory

audit is done once in every year and the report is submitted to the general body.

Budgeting functionThe budget is prepared every year considering the procurement, sales, increment in salary and

other expenses. Budget is prepared on the policies set by the KCMMF. All the payments and allocation of

funds to the other department are strictly on the basis of budgets. Each department if needed to be

renewed should check the amount allocated to each department. The budget prepared is submitted to the

general body and get approved. Budgets are prepared considering the annual turnover.

Reporting functionsAll the above functions such as finance, accounting, auditing, and budgeting are make as a

detailed report with supporting documents. This report is submitted infront of the Board of Directors for

approval.

2.7 QUALITY CONTROL DEPARTMENT

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Quality Control Officer

Dairy Chemist

Lab Technician

Lab Assistants

Manager

Quality control department is headed by quality control manger, under him there is

quality officer, dairy chemist, lab technicians, and lab assistants. The department works 24 hours

and hence the employees in work in three shifts. Milma products are tested each and every stage

of production. The department is mainly for checking the quality of the product and thus

providing the customers the best quality products.

Quality Inspection Process

When raw milk collected from societies, Organoleptic test is done. ie color and flavor of

the milk is tested using sense organs. A test called the “clot on boiling test” is conducted.

Here 5ml of milk is taken in a test tube and is heated to a good temperature. Good milk

does not fuse or clot on the side of the glass when heated to a high temperature. If it fuses

then the milk is rejected.

The quality control department ensures that Milma toned milk has 3% fat and 8.5% SNF.

The quality control department assures the chemical quality of the milk. After processing

the milk from each storage tank is tested. For this the milk from each tank is subjected to

Methylene Blue Reduction Test (MBRT). This test in done to ensure the keeping quality

of the milk. If the bacterial load is high the milk will get spoiled and hence the MBRT

test will give us an idea of bacterial load. Here 10ml of milk is mixed with 1ml of

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Raw Milk at diary

Methylene Blue. This mixture is shaken and kept in a water bath of 37°C. The mixture

will be blue in colour and the time is noted when the test tube is place in the water bath.

In the case of milk that has good quality and low in bacterial load the MBR time is below

4hours and above i.e. by this time the blue mixture turn black to white.

Quality control analysis is also carried out for ghee, sambharam and curd. Their quality is

checked and, only then it will be sending for dispatch. The quality control department

assures the quality of such products to the consumers.

Quality standards followed by Kollam dairy

Product Fat % SNF Acidity MRBT Phosphate TS

Tonned milk

3.0 8.5 0.13-0.15 >5hrs -ve NIL

Rich Plus 3.8 10.0 0.15-0.17 5hrs -ve NIL

Curd 0.5 10.5 0.8-1.3 NA NA NIL

Sambharam 0.5 NIL 0.5-0.7 NA NA 4.0-5.0

MBRT - Methylene Blue Reduction Test.

SNF - Solids Not Fat

SPC - Standard Plate Count

TS - Total Solids

Specification for ghee agmark requirements

Moisture 0.3 (maximum)

Free fatty acid 1.5 (maximum)

RM value 28

BE value 40-43

The Quality Process

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Jr. Superintendent

Assistant Manager

Where:

MBRT - Methylene Blue Reduction Test.

SNF - Solids Not Fat

SPC - Standard Plate Count

TS - Total Solids

2.8 HUMAN RESOURCE DEPARTMENT

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The department is headed by the HR assistant manager. He is assisted by junior

superintendent and his assistant with junior and senior assistants, stenographer, typist and office

attender.

All the service matters of the industry are the control of this department. The main

aim of this department is to ensure welfare of employees salary, wages and welfare measures are

the control of this department. Recruitment, selection, training, etc are also done by this

department. Attendance and leave taken by the employees are also monitored here.

Working period is from 10am to 5pm. Working days are from Monday to Saturday.24

hours working in production, quality and maintenance and product department. So there are three

shifts per day i.e. from 7am–3pm, 3pm–11Pm, 11pm-7am.

The important functions of this department are:

Recruitment

Training & Development

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Promotion & Transfer

Industrial Relations

Wages & Salary Disciplinary procedures Health & Safety

Recruitment

The Kollam dairy is having both temporary and permanent employees. The permanent

recruitment is done by the managing director at the Head Office. Temporary recruitment is done

through employment exchanges, District Salnic welfare Board etc. Part time employee can work

up to 180 days. Usually the workers recruited temporarily are plant –attendees, cleaning staff and

technician. In some cases officers may also be recruited temporarily. But this is done by the

Head Office. For permanent recruitment, advertisements are given monthly through Malayalam

News paper dailies. From the approved applications, candidates are selected on the basis of

written test. Approval is mainly based on qualification required for the concerned posts. Those

who passed the written test are called for job interview. Candidates who succeed in the interview

are placed in the concerned posts. Usually the top positions in the dairy are filled by the existing

employees themselves through getting a promotion. People from outside the dairy are recruited

mostly for lower level position.

Training and Development

Training is conducted based on need. Training is given to permanent employees both off

the job and on the job. Experts outside and inside the organization give training to the

employees.S

The candidates who passed for both test and interview will be selected and placed by the

committee itself. Induction training programme of 3 to 6 months is mainly given to the

permanent employees who are selected.

They have a tie up with NDDB and thereby offer training for those staff. KCMMF has got

raining centre at Thrichur. Mostly training is conducted from outside the organization by some

agencies. These agencies are identified through Kerala State Productivity council, National

Institute of Personnel Management, Milma training centre etc.

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Promotion & Transfer

Promotions are of two types, seniority based and merit based promotion. Office level

employees are promoted on the basis of their seniority and top level employees are promoted on

the basis of their performance. There is a staff regulation rule for the promotion of officers and

standing order act for employee’s promotion.

Attendance ManagementThere is a well managed attendance system. The IN and OUT of each and every

employee is recorded at time office register. A card is provided to the employees to punch when

they enter and leaves the plant. An advanced electronic punching card is going to implement in

plant.

Industrial Relation

The Kollam dairy maintains very good industrial relations. The three main trade unions in

operation are CITU, INTUC and AITUC. These trade unions operate for the welfare of the workers. The

Milma Kollam dairy is a strike free organization. For more than 5 years there had been no strikes

registered. This gives ample proof of the industrial relations at Kollam dairy. The main aim of the trade

union is to maintain a good relationship between the employees and management.

Wages & Salary

The Salary constitutes Basic Pay, DA and House Rent Allowance. The D.A. is 70% of the

basic pay where as the house rent allowance is 10% of the basic pay, PF is 12% and ESI 1.75%. Group

medical insurance also provided. Attendance is considered while calculating salary. Payment is given in

last day of every month for permanent staff and before 5th of next month for the temporary staff.

Disciplinary Proceedings

The HRD department is responsible for maintaining discipline in the organization. At the

Kollam dairy, the rules and regulations for office staff and workers are different. Staff regulations are

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Security Supervisor

Security Guards

concerned with the office staff and standing orders are concerned with workers. If there is any in

disciplinary action arises from a worker standing order will be issued.

Health & Safety

Special care is taken for the health and safety of every worker. Some health and safety

measures are, providing uniform, shoes, warm clothes are given to the employees who are working in

cold storages. Floors are cleaned thoroughly. Dangerous machines are grilled for worker safety.

Welfare Measure

The employees enjoy canteen facilities, recreation facilities, toilet etc, in addition to this employ

welfare activity such as employees’ state insurance. They are provided with medical benefit, sickness

benefit, disablement benefit, financial benefit. Employee’s provident fund, disablement pension, widow

pension etc are covered under the employees provident fund scheme.

SECURITY DEPARTMENT

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The security department is headed by the security supervisor and 9 security guards are

working under him. All security guards are Ex. Military service men and they are working on

contract base.

This department work 24 hours and there is two shifts. They working continually 2days and the

next day will be off. Two guards are in the main gate, the visitors and staff should report here.

Here will be some registers for recording the details of visitors and employees. One security staff

is in reception and his duty is to attend the telephone call, transfer calls to various departments,

answer for enquiries, etc. This security staff will move to dispatch dock at 2.30pm for

supervising the dispatch of milk. And there will be a security guard in the dispatch dock from

morning till evening.

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CHAPTER – 3

CONCLUSION

3.1 SWOT ANALYSIS

Strength

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Milma’s products enjoy the reputation of high quality and healthy as most of its products

are made with milk collected from farmers in rural areas.

Milma plant having all necessary equipments and machineries to meet the present

demand of quality milk and milk products.

There is good communication system and co-operation among all department of milma

and it has good organization structure to help thing are going smoothly.

The employees selected in milma are efficient enough to take responsibilities and

challenges and able to do their maximum to achieve organizational goal.

.

Opportunities

A fair growth in production and increasing scenario of houses as well as families gives

milma a good opportunity to make good market strength in kerala.

The gradual change of society in to disposable culture make big need for packet milks in

their daily life

The increasing number of super markets and margin free markets gives new opportunity

to enter urban markets.

Weakness

Because of having less margin most of the sellers in rural areas ignores milma products

instead of other company’s products except milk.

Milma giving more care to farmer’s prosperity, it leads much more difficulties to meet

employees and other parts of organization’s objectives.

Milma requires more advertisement in the competitive environment.

Threats

Deficiency of fodder in summer creates lesser production of milk. It makes difficulties in

achieving customer demand and makes more expenses.

Milma never gets much more attention from the government side, but it suffers unusual

interferes from government side.

Because of increasing cost milma is facing threat of price rise.

3.2 CONCLUSION

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The organizational study gave a greater learning experience to me. The experience of

doing one month long study gave me opportunity to explore in to the areas of practicable

knowledge of management and nature of a company. This organizational study also showed the

important roles played by every single functions of the management. Milma is the present milk

marketing leader in Kerala. But in this changing condition the marketing of milma products has

become more challenging as it now faces several competitions from private milk producers and

local producers. This entire problem can be met through professional management approach and

target oriented training and proper planning. So the company should give the attention

in ensuring the quality of products and introduce more promotional activities to overcome the

competition.

3.3 BIBLIOGRAPHY

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Direct Interview

Annual Reports

www.milma.com

www.google.com

www.trcmpu@sify.com

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