1.1 scope of the study

1.2 objective of the study

1.3 limitations of the study

1.4 research methodology

2.1 Co-operative movement in India

2.2 Co-operative movement in Kerala

2.3 Industrial co-operative societies

2.4 Dairy co-operative in India

3.1 certification received

3.3 Commercial units

3.4 Organizational chart-MRCMPU

3.5 MRCMPU

3.6 Kannur dairy

3.7 Growth and development

3.8 Quality policy

CHAPTER- 1 INTRODUCTION

DECLERATION

ACKNOWLEDGMENT

CHAPTER-2 INDUSTRIAL PROFILECHAPTER-2 INDUSTRIAL PROFILE

CHAPTER-3 COMPANY PROFILECHAPTER-3 COMPANY PROFILE

3.9 Mission

3.10 Objectives

4.1 Procurement and input department

4.2 Production department chapter

4.3 Marketing department

4.4 Personnel department

4.5 Finance department

4.6 Maintains departments

4.7 Stores department

4.8 Quality control departments.

CHAPTER -4 VARIOUS DEPARTMENT CHAPTER -4 VARIOUS DEPARTMENT

CHAPTER- 5 SWOT ANALYSISCHAPTER- 5 SWOT ANALYSIS

CHAPTER- 6 SUGGESTIONSCHAPTER- 6 SUGGESTIONS

CHAPTER-7 CONCLUSIONCHAPTER-7 CONCLUSION

CHAPTER-8 BIBILOGRAPHYCHAPTER-8 BIBILOGRAPHY

ACKNOWLEDGEMENT

I would like to thank god almighty for enabling me to complete this project work successfully.

I would like to thank miss for having provided me with the opportunity to conduct this organizational study.

I express my sincere gratitude to our beloved principal for her continued and un falling support in all my academic period.

I also express my immense gratitude to miss M Priya faculty and project guide T JOHN COLLEGE, Bangalore who provided total able guidance in planning this study.

My sincere thanks to all members and staffs of MBA departments for their guidance support.

I wish to thank especially Mr. Account officer and Mr. Marketing officer and also other members of Milma kannur dairy who have helped throughout my project work.

NASEEHUDEEN AHMAD A A

DECLARATION

I hereby declare that this project report titled “AN ORGANIZATIONAL STUDY ON MILMA KANNUR

DAIRY has been prepared by me under the supervision of Miss M PRIYA faculty, T John College, affiliated

to Bangalore University in partial fulfillment of the requirement of the award of the Master’s Degree in

Business Administration during the Academic year 2008-2010

I hereby declare that this Project Report has not been submitted to any other University for the award of any

other degree, fellowship, associate ship or any other similar title.

Countersigned

M PRIYA NASEEHUDEEN AHMAD A A

Reg No. RWCM 6096

DATE:

PLACE:

CHAPTER -1

1.0 INTRODUCTION

Milk occupies a number position in India’s diet. According to nutrition advisory committee of

Indian council of medical research a balanced diet for an adult Indian should include ten

ounces of milk per day.

Most of milk produced in India is from rural areas, farmers had a difficulty to take it in to the

city. The small farmers faces a number problems such as in adequate transport facility ,non

availability of veteniery services, and absence of proper system of processing and

marketing of milk. The production of the milk is done rural areas by small marginal farmers

who find it difficult to market but the profitable market is in urban areas. The system of

processing, preserving and marketing the milk in villages seem to be a problem so in order

to solve this problem co-operative milk supply societies and milk unions have been

established.

Government of India launched a dairy program called “flood program” called with National

Dairy Development Board (NDDB).the main aim of the program was to organize milk

producers co-operatives in several probable places of India taking the kaira district

(ANAND) co-operative milk producers union is (AMUL)of Anand , Gujarat as the model with

the above object in the view. The diary societies in the Gujarat are properly known as ‘white

revolution”..NDDB has now India’s 1,17,575 village dairy co-operatives federated in to 170

milk union and 15 federations procured an average 25millions liters of milk every

day.12.4million framers are presently members of village dairy co-operatives.

All the above mentioned information leads to the conclusions that in the absence of proper

machinery to collect and supply milk, milk producers existence in dangerous situation. This

lightened the path of establishment of” MILMA.”

1.1 SCOPE OF THE STUDY

Milma is one of the most brands in milk industry of Kerala having a rigid organizational

structure carrying out various managerial functions. And also milma is in prominent position

in the milk market of country by adopting various marketing techniques and professional

management system in this co-operative union. So the study is mainly concentrated to

know how these marketing techniques and management system are applied in practice And

what are the assistance providing the various department in this union to achieve their

organizational goals. The study also aims to giving suggestions which can help them to

improve market share.

1.2 OBJECTIVE OF THE STUDY

To study the organizational structure of Milma kannur dairy

To get fairly acquainted with professional work culture

To understand the industrial practice

To find out various managerial process handled by milma

To study the various functions of each department.

To identify the strength and weakness of workers an organization.

To study how the theoretical knowledge is made use in real situation

1.3 LIMITATIONS OF STUDY

The time is critical limitation factor in this study

Most of data required is kept in head office

The unwillingness to disclose all the information from certain departments

The study includes all limitation since there is no structured questionnaire form of

research.

Lack of proper experience on the part of researcher in conducting such studies in the

past.

1.4 RESEARCH METHEDOLOGY

Duration of the study

The duration of the study was 6 weeks from 26-06-2009

Data collection method

The collection of data refers to a purposive gathering of information relevant to the subject

matters of the study from the units under investigation. The method of collection of data

depends mainly upon the nature, purpose and scope of enquiry.

Primary data

Primary data are those which are collected for the first time and it happens to be original in

nature. The primary data were collected mainly through,

Personal interview with managers

Interaction with workers

Secondary data

The secondary data were obtained through,

Company journals

Company websites

Magazines

Company annual reports

2 - INDUSTRIAL PROFILE

CHAPTER-2

INDUSTRIAL PROFILE

Co-operation means working together jointly. It implies living, thinking, and working

together. All organization of the society ranging from family to nation are built upon the

strong foundation of the co-operation.the workers co-operation in their activities should be

guided by the principles “each for all and all for each” and show honesty in their dealings. It

is a joint action joint possession and management. At present the word co-operation go

beyond in its general concept’ working together’. In its technical sense it denotes a special

method of doing business and it also stands for deliberate organization of human being for

the attainments of their common economic goals.

2.1 Co-op movement in India:

The co- operative movement in India in the last decade of 19th century with two

objectives in view, i.e., to protect farmers from the hands of private money lenders and to

improve their economic condition. It introduced as a government sponsored movement

started after India became freedom. Within two decades of independence the membership

of primary societies had increased four times while share capital and working capital had

increased 23 and 31 times respectively.

Madras province was the birth place of this movement. In 1904 on the basis of

Edward law committee the first co operative society act was passed. There were only

formed credit societies according to this act. With the reforms of act 1919 co operative

movement entered another phase of expansion. By this act a co- operation become

provincial subject and the provinces and princely state made there’re own acts.

2.2 Co-operative movements in Kerala:

The Kerala state was formed in the year 1956. At that time two different laws are

existed. Travancore Cochin co-operative societies act and madras co operative societies

act. The Kerala government passed the first co operative act in 1969 which came in to force

on 15th may. The co-operative societies in Kerala are divided in two are Agricultural

societies and Non agricultural societies.

2.3 Industrial co-op societies:

Industrial co-operative societies are formed by small producers and artisans and

craft men to undertake small scale cottage industries on co-operative basis. There are also

known as producers’ co-operatives. They are formed with the objectives of eliminating the

capitalist’s class from the system of industrial production. A number of industrial have been

formed in India in the handloom industry, coir industries, and certain village industries. The

industrial co-operative in under developed countries have been organized with mainly two

objectives-social and economical. from the social point of view he industrial co-operative

safe guard the interest of the poor section of the community against exploitation of the

capitalists lead to the capitalists., lead to the dispersal of wealth and create opportunities for

the equalization in the distribution of wealth.

From the economic point of view they generate new incomes, increase employment

opportunities, argument productive capacity, enhance competitive ability of the poorer

section of the society and accelerate the rate of the capital information in the country.

The village and small scale industry are providing an independent as well as

subsidiary occupation to a sizable proportion of rural and urban population. The lack of

interest on the part of the government was the most important factor contributing to the

decline of these industries.

2.4 Dairy co-operative societies In India:

Dairy is a place where handling of milk and milk products is done and technology

refers to the application of scientific knowledge in the practical purpose. During the pre

independence period the dairy co-operative movement was limited to a few pockets of

Calcutta, madras Gujarat and Bangalore. The most notable of this venture was the kaira

district co-operative milk producers union limited of anand Gujarat. The total membership of

these societies is more than 70000.but after the independence the national government

took initiative in setting new dairy co-operatives in many parts of the country. In 1965

National Dairy Development Board (NDDB) was set with the increasing demand of milk

especially in urban areas as well as developing rural economy through the enhancement of

milk production of the country.

In 1970the national dairy development board took up, operation flood programmers’

in order to organize milk producers co-operatives in several probable places of India taking

the Anand co-operative milk producers union limited.(AMUL)of Anand, Gujarat as a model

with the above object in view.

The major success of this mission was achieved through the World Bank financed

operation flood, which lasted for 26years from 1970 to 1996 and was responsible for

making India as world’s largest producers of milk through the combination of energy and

wisdom of farmers and combination of effective professional management. NDDB has now

integrated 96000 dairy co-operative called as the ANAND PATTERN, linking the village

society to the state federation in three tier structure.

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

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

world. The dairy sector has developed through co-operative in many parts of the country.

During 1997-98 the state hade sixty milk processing plants with an aggregate processing

capacity of 5.8 million liters per day. In addition to this processing plants123 government

plans and 33 milk chilling plants operate in the state. Maharashtra now regularly exports

milk in to the neighboring states. It has also initiated a free school feeding scheme

benefiting more than three million children from over 19000 schools all over the states.

The Kerala state government has implemented a project called as ksheeradhara with the

object of making of state as independent milk supply state. The ksheeradhara would

provide for an artificial insemination regime using frozen premium bull sperm samples.

3 - COMPANY PROFILE

CHAPTER-3

COMPANY PROFILE

The Kerala co-op milk marketing federation (KCMMF) popularly known as MILMA was set

up in the year 1980 with head office at Trivandrum, as an implementing agency for

operation flood (a dairy program which was launched in 1970under the sponsor ship of

national dairy development board (NDDB).KCMMF is an organization of farmers and they

are the producers of raw milk, and share holders. The KCMMF is the apex body of all the

Anand pattern co-operative societies (APCOS) in the state. APCOS are organized in the

three tire structure, the basic unit of the organization the primary dairy co-operatives. Those

who are the actual dairy farmers are the only entitled to become members of the society.

The president of APCO’s is elected form the general body meeting. The elections to the

post of APCO are held on once in fifth year. The main activities of these societies to collect

milk from all its members ensure that the milk sent to the chilling centers and dairies in the

time, channel subsidized cattle field for the farmers etc. Each primary co-operative society

is an autonomous self governing organization with its own board of directors elected among

the farmers. The primary co-operative societies unified in regional levels called regional co-

operative Milk Producers Union. At present there are three regional units.

Ernakulum regional co-operative milk producers union (ERCMPU) covers the district of

Kottayam, Idukki, Ernakulum, and Trichur.

Trivandrum regional co-operative milk producers union (TRCMPU) covers the district of

Trivandrum, kollam, Alapuzha, Pathanamthitta.

Malabar co-operative milk producers union (MRCMPU) covers the districts Wayanad,

Kasargode, kannur, Palakkad, Malappuram and Kozhikode.

Regional co-operative milk producers union provide various input like regular vet nary care

and the P&I staffs instinct farmers on improve practice of cattle management and fodder

production. The union collects the milk from primary societies process it in the dairy run by

them and marketing their product both inside and outside of the state.

The motto of organization “of the people by the people and for the people is the foundation

of three tier system. At the village level it is APCOS.The village level APCOS are organized

at regional level as regional co-operative milk producers union. These unions are federated

at state level to form state federation that is Kerala co-operative milk marketing federation.

3.1 CERTIFICATION RECIEVED

All the dairy milk chilling plants and procurement and input unit under the union are

certified for ISO 9001-2000 and AGMARK.

3.2 TRINING CENTERS

Milma started an orientation program in a rented building in 1984 at Edappally in

Ernakulum district. At the initial period NDDB came forward to help Milma in providing

financial assistance and grant for meeting training centre expenses. At 21-1-1992 Milma

established and started functioning a fully fledged training centre with hostel facility in the

land adjacent Trichur dairy under North Kerala Dairy Project phase -1 and Swiss

Development Co-operation. It provided training course for presidents, secretaries, milk

testers, milk collectors of Anannd Pattern Co-operative Societies, Milma agents and Milma

staffs.

3.3 COMMERCIAL UNITS

Alapuzha dairy is directly managed by KCMMF as a CENTRAL PRODUCT DAIRY.

An aseptic packing section and milk powder factory are also established in the dairy

compounds which are only of its in Kerala. Facilities in milk powder factor are made for the

production of skim milk powder, whole milk powder, baby foods .Milma has a Central

Product Dairy (CPD) was commissioned on 1987 with a capacity of 60000 LPD.

3.4 ORGANISATIONAL CHART (MILMA)

KICMMF

TRCMPU ERCMPU MRCMPU

Trivandrum Kollam Alapuzha Pathanamthitata

Kottayam Ernakulum Idukki Trichur

PalakkadKozhikodeKannurKasargodewaynadMalappuram

3.5 MALABAR REGIONAL CO-OPERATIVE MLK PRODUCERS UNION

This is one of the regional co-operative milk producers unions processing and

marketing fluid milk and other milk products in Kerala state. The area of operation is in six

northern districts Palakad, Malapuram, Kozhikode, Wayanad, Kannur, and Kasargode with

its head office at Peringulam near Kunnamangalam, at the distance of 15 km from

Kozhikode city.

MRCMPU was registered on 29-06-1989 and started functioning on 15-01-1990.from

15-01-1990 the administrative committee constituted by the government was governing the

organization and from 16-04-1993 MRCMPU has been governing by an elected board of

directors .Before the federation of MRCMPU, Kannur and Palakad dairies were managed

by KCMMF.

3.6 KANNUR DAIRY

The kannur dairy under MRCMPU is situated in Pallikunnu, Kannur was inaugurated

on august 30th, and 1979.the MRCMPU took over the kannur from KCMMF on 1-06-

1990.the dairy manufactures milk, ghee, and sambaram. Now has the capacity of

processing100000 LTR milk per day. Turnover of the dairy increased to 9.34%and

10%incerase in the sales up at the end of March 2007-2008.

3.7 GROWTH AND DEVOLEPMENT

Milma has concentrated on infrastructure development with financial assistance from

NDDB. As on the date there are ten milk processing plants with a combined capacity of

9.90 lakh per day. There are14 milk chilling plants scattered over to state. The milk power

plant is set up in Alapuzha having production capacity of 10 MT per day. There has been

increase of 5000 LTRS milk sales by introduction of homogenized milk also production

capacity has reached 100000LTR per day.

3.8 QUALITY POLICY

MRCMPU is committed to provide consistently safe, hygienic and healthy milk and

milk products to achieve and enhance customer satisfaction. Milma has got the market

leadership by achieving quality and economy in all their activities adopting quality

management system.

3.9 MISSION

The mission statement of MRCMPU is as follows:

To bring about socio economic development of farmers on a suitable basis and

providing quality milk and milk products to the customer at a reasonable price.

The above statement shows the aspirations of MRCMPU and its determination to

achieve the mission. When we look in to the various activities of MRCMPU it is good

alignment with mission statement.

3.10 THE OBJECTIVES

To channelize marketable surplus milks from the rural areas to urban deficit areas to

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

consumers.

To carry out activities for promotion of production, procurement, processing, and

marketing of milk products for economic development of the community.

To buildup available dairy industry in the state.

To provide constant market and state price to the dairy farmers for theier products

The name MILMA represents

2100 primary milk co-operative societies

7.5 lakh farmer members

Three regional co-operative milk producers union.

11 dairies capable of handling 9.90lakh litters of milk per day

Fourteen milk chilling centers

Two cattle feed plants with cumulative capacity of 500MT per day

One milk powder plant of 10mt per day

A well established training center

5200 retail outlets

Over 32000 people working either directly or indirectly for MILMA

Serves a million of consumer day in day out.

4- VARIOUS DEPARTMENTS

CHAPTER-4

VARIOUS DEPARTEMENTS

Milma has different departments, which control different functional activities of the

organization. Each department has one departmental head that has the ultimate control

over the departments.

The various departments are:

5 Procurement and input department

6 Production department

7 Marketing department

8 Personnel department

9 Finance department

10 Maintains departments

11 Stores department

12 Quality control departments.

4.1- PROCURMENT AND INPUT DEPARTMENT

ORGANISATIONAL STRUCTURE OF PROCUREMENT AND INPUT DEPARTMENTS

Officer in charge

Junior Superintendent

Senior Superintendent

The procurement department comes under the direct control of the head office at

Kozhikode. The department is mainly concerned with organizing and supervising APCOS

through the field level activities as the functions related to the production enhancement,

procurement of the milk and input supply to the societies and farmers. The P&I departments

arranges milk procurement from APCOS through milk routs to its dairies and milk chilling

plants o annual contract basis. There are milk collection routs and distribution routs of

which routs collection and distribution routs are linked to reduce cost’s main function

other than this as follows,

Cattle feed distribution

Artificial insemination

Comparative development camps

Giving insurance for both farmers and cattle.

The main objective of the procurement and input department is to promote and strengthen

the dairy co-operative network to ensure sustainable socio economic development of dairy

farmers by providing effective support system for profitable production and procurement

and to take up other activities so as to achieve objective of the union.

There are seven P&I units in the union. The p7i units are monitored from the head

office .there are 14 officers and 29 supervisors in the P&I departments .Under each P &I

department there are 3-6 P&I supervisors and an officer in charge who is the head of the

unit. At present there are officers and supervisors in the department.

The ISO quality objective of procurement departments are

Starting and stabilizing of newly formed APCOS

Increase and sustain milk quality

Support farmers to reduce production cost

Make APCOS vibrant development co-operative organization

Monitor procurement cost by efficient organization of milk rout

Function as an effective communication channel between union and APCOS

4.1.1Following are the extensional activities of the department

Institution building effort

Institution building effort (IB) model societies with strong institution base will be

created in training, knowledge and skill improvement of the staff and management of the

dairy co-operative societies.

Women cattle care program:-

A women cattle care program is usually implemented as a 3 year package. As per

the strategy developed by the union, a women promoters selected and placed in a society

is engaged for three years. Training women groups in villages by a trained woman

promoter. About 100 women promoters are working now. As on31-3-08 there are 18

women promoters working and these 18 promoters would be trained and retrained till the

competition of three year term.

Quality assurance program

All the 856 societies supplying milk to the union, including traditional societies ,

including traditional societies would be cover under the quality assurance program(QAP).As

the result of intensive quality assurance program implemented at the field level and

continuous monitoring the compositional quality of raw milk had improved from the level

from 4.15%fat and 8.38%snf to 4.16%fatand 8.41%snf.the improvement in quality of raw

milk as shown had helped the union to sell quality milk, apart from financial gain.

Union programs

Co-operative development program

This program aims to sensitize the farmers and create ownership and belongingness

feelings among the members of the co-operative societies. Women managing committee,

members and staffs would be trained under this program.

Feed and fodder program

In order to support the dairy farmers to economize milk production, the union has been

providing balanced cattle feed to the dairy farmers on no profit and no loss basis through

the diary co-operative societies.

Artificial insemination programs:

In order to get good and healthiest cattle to make more production MILMA has been

providing artificial insemination centers on in needed place and arranging training for

farmers.

Ksheera Karshaka Suraksha Scheme

Milma has started the insurance program known as Ksheera Karshaka Suraksha

Padathi (KKSP) for the farmer members, non members, dependents and society staffs

under tie-up with new India Assurance Company. The insured is covered for accidental

death and permanent total disability.

Reward to the best farmers and APCOS

The best farmers and societies at the district level and the union level would be

selected and rewarded a sum of RS 2000is awarded at the district level and RS 5000 at the

union level.

Scholarships

A scholar ship for the higher education is providing from Milma to the wards of the

farmers.

4.1.2 DSC BASED ACTIVITIES

Testing chemicals

Acid and alchahole for milk testing would be supplied to the societies as a grant in

under IDDP (Intensive dairy development program). The EDTA powder, emulsifier and

antifoaming agent required for milk testing with electronic milk testers would also be

supplied for free cost.

Milk cans

Milk cans had been supplied to the societies under IDDP and under CMP (centrally

sponsored scheme) during 2007-08.

Group gratuity insurance

A group gratuity scheme for the employees of APCO societies was started during

December 04 in association with LIC of India.

Malabar regional employee’s fund

MRCMPU has made a provision of 2 lakhs during the year 2008-2009towards the

initial contribution of the fund.

Milk procurement plan

The milk procurement would be increased by 10% till 2010and will be enhanced to

444000 LTR by the year 2009-2010.it is expected that the union would collect milk from 125

new societies by the year 2009-10.it is e4xpecte that new societies would contribute

2000LTRper day and exciting societies about 424000LTR per day by 2009-10.

4.1.4 Procurement and sales 1991-2009

YEAR MILK

PROCUREME

NT

MILK

SALES(LTR

S)

GHEE

SALES(LTRS)

CURD

SALES(LTRS

)

SAMB

ARAM

(PACKETS)

91-92 56873 72014 21556 _ _

92-93 83383 82524 22638 _ _

93-94 106742 102920 29407 _ _

94-95 128532 119805 34836 692 442

95-96 138766 144593 36778 3992 5254

96-97 141966 159835 40250 6561 10371

97-98 172831 167430 40040 7976 11664

98-99 180615 177812 43195 10153 15641

99-00 217342 181099 58026 11263 10710

00-01 225997 197165 53462 13048 12380

01-02 228066 201714 66388 14593 11243

02-03 229987 215095 74907 17419 22452

03-04 241584 231600 84184 19589 12112

04-05 273373 242532 83917 21901 11803

05-06 308986 253828 93514 23807 14565

06-07 325035 277631 118241 27191 17199

07-08 320201 302267 129833 29192 19174

08-09 350831 319579 121251 32508 20750

4.1.5 Procurement and sales of milk (91-09)

t

Procurement and sales from april 2008-march 2009

4.2 PRODUCTION

Organizational structure of production department

Manager

Assistant manager

Technical superintend

Senior grade officer

Operator grade

Operator senior grade

Plant at tender

Production and manufacturing is a very basic function in every organization. The production

means conversion of raw material in to finished goods. Here raw material is raw milk itself is

converted in to pasteurized toned milk, double toned milk, standardized milk. Milma kannur

dairy currently produces milk curd ghee and sambaram. The main functions of production

departments are as follows,

To undertake production in hygienic condition

To maintain right temperature combination for production.

To produce according to the order given by the marketing departments.

Production quality product with law cost

Milk production is not uniform in a year. It may vary according to the weather. In

summer milk production is very law while consumption is more. During rainy season the

production is more than consumption because of the availability of green fodder and water.

So this surplus milk is taken to the milk powder plant located in Alapuzha district and

converted in to powder and storage. When milk availability is law in summer this milk

powder and fat is used for producing fresh balanced milk. This is perfectly scientific, safe

universally accepted and legal for meeting the required milk around the year.

The production department must make sure that the production is done hygienic condition.

Maintain the right temperature; maintain the right combination of fat and SNF. The

production department has to make sure that the goods produced on the basis of order

given by marketing department with minimum cost of manufacture.

4.2.1 Milk.

Milk is essentially contains their main constituents that are fat, Solid Not Fat (SNF), and

water. The non fat solid includes protein, lactose, minerals and vitamins. Even though milk

is a complete food it also a very fertile media of bacteria to grow in at milking itself. If it is un

checked the bacteria including to cause diseases in human being multiply fast and spoil the

milk.

Mainly three types of milk produce by milma kannur dairy. Those are toned mik,

homogenized milk, and standardized milk. The standardized milk having 4.5% fat and 8.5

%SNF.it comes in green colored sachets of 500 ml.The toned milk having 3.75 fat and 8.55

SNF.its produced by removing the cream for decreasing fat percentage in to the required

level. This milk comes in blue packets. Homogenized milk is another product made by

splitting of fat globules in to smaller sized globules. This process called as homogenization.

To obtain this the milk is made to pass through narrow slit under high pressure. It is the milk

having law percentage of fat.

The production process

Receiving the raw milk

The raw milk from the various societies are brought in by the contact vehicles in cans .the

cans are then un loaded from vehicle then it is loaded in to belt conveyer.

Clarification

The received milk quality has to be tested by the lab technician to know whether milk is

spoiled. For this purpose the lab technician smells, tastes, make color tests. This test is

called organoleptic test.doubtfull tests are send for clot on boiling test and cob is positive, it

is rejected.

Weighing

After clarification milk is poured in to weighing bowl. Then sample are taken in to test the fat

and SNF. The details of milk of various societies’ weight are transferred from weighing

machine computer. At the period of deficit the tankers coming from another district would

send to weighing machine located in front yard of the company.

Chilling

The milk is chilled up to 40c in the chiller. The chilled milk is stored in separate silo tanks

of 30000ltrs capacity in the same temperature which will prevent milk from spoilage.

Standardization

The milk is standardized as per the requirements. Then the operators can confirm type of

milk to be p produced and can calculate cream for separation. Here the cream is separated

using the cream separator to adjust the fat percentage and milk powder is added if required

to adjust SNF.

Pasteurization

This is one of the process that milma undertakes in its dairy plants. This is the scientific

method of destroying decease causing bacteria in the milk without destroying nutrient in the

milk. The milk is heated up to 720c for about 15 second.

Chilling and storage

After pasteurization the milk is again chilled at 40c stored in separate tanks for toned milk,

standardized milk, and homogenized milk

Packing

The milk is then pumped to the filling machine to filling in the packets(law density

polyethylene).the machine is fully automatic then only required milk filled in each packets

and then the packet is sealed and collected in to trays as 20 number in each tray. After

packing milk is again tested in lab to ensure that PFA specification are satisfied.

Cold storage

The packets collected in the plastic trays are placed to the cold storage and then stored in

50c that help to keep milk long laster without losing its quality.

Production process of milk flow chart

Start

Receiving raw material

Clarification

Weighing and sampling

Chilling

Standardization

Chilling

Pumping to the filling tank

Packing

Cold storage at 5 c

End

4.2.2 Curd

To produce curd fresh milk is heated to 420-450c and it is standardized from 10-

10.5%SNF.it is done to get good body and texture of finished product. Then it is

pasteurized at 850-900c for 20-25 minutes and cooled to 450c then. The firm curd is formed

after adding 5-1 5 active culture in it. The major constituent of curd is water, fat 88-

89%,protien,lactose,lactic acid, calcium, and phosphorous. This method is adopted

successfully in kannur dairy. After normalizing the production sachets are filled in just after

incubation by using fill pack machine. The curd will be usable after three hours of packing.

Production of curd flow chart

Start

Receiving of skimmed milk

Standardization

Heating to 87-90 o c

Holding for one hour

Cooling to 40-44 0c

Incubation

Packing

Incubation (6-10 hrs)

Testing for acidity

Shifting to cold storage

End

4.2.3 Sambaram

Normally sambaram is the byproduct of butter. But in milma the method making

sambaram is quiet different from homely method. To prepare sambaram, curd with

minimum acidity of 1.65 is to be used. After addition of pasteurized water in the ratio of

60:40 processed extracts are added. For that 2.5%of curd volume ginger, washed chilies

and curry leaves are added. All these are mixed and filtered and then heated at 750c for 2

minutes. Added salt require 2%of curd volume. The processed extracts are pumped to the

curd tank and mixed well with the curd. They are circulated through the chiller till 5 0c

temperatures is attained. After that sambaram can be packed and placed in cold store and

distributed according to the customer order. The processed sambaram with greater acidity

distributer at first.

4.2.4 Production process of sambaram-flow chart

Start

Receiving skimmed milk curd (10.5% SNF)

Adding processed abstract of vegetables

Cooling the milk mix to 5 0 c

Packing

Cold storage

End

4.2.4 Ghee

The pure clarified fat is known as ghee. Ghee is the mixture of fatty acids and glycerol.

The ghee is prepared using cream i.e. fat content of milk .there is around 70%cream

content in the milk. The cream is stored in tanks and pumped in ghee vats of capacity 700

kg and 1000kg after the cream separation process. The vats containing two layers of

stainless steels. There are steam coil on inner side of outer stainless steel and thermo coal

layer on outer side of inner stainless steel .thermo coal prevent escape of heat from the vat

to atmosphere. Cream in the vat is heated at 120 degree as well as agitated

simultaneously. And then it is clarified by further removal of residues impurities. Before

clarification it is allowed to settle it’s temperature drop to 600-700c.

Te clarified ghee is stored then in tanks. The residues s assembled at the bottom of the

vate are removed and poured in to open tanks. The residue is actually the burnt SNF in the

cream. The residue treatment is done by running chilling water over the residue and allows

settling. Any fat content is left in the bottom is collected, re melted, and again poured in the

water. Then the ghee is poured in the bottle and labeled. The bottles being used should be

sterilized .after labeling the bottles are seeded. Seeding require maintenance of

temperature at 380c .the bottles are carefully placed in to cartoon and placed into ghee

stores until they to be distributed.

4.2.5 Production process of ghee- flow chart

Start

Receiving the cream

Testing of cream(FAT%)

Heating (120 0c)

Pumping ghee to setting tank

Clarification of ghee to cans

Labeling of cans

Seeding of cans

Shifting of cans to ghee store

End

Plant lay out

4.3 MARKERTING DEPARTMENT

Marketing department

Marketing is a comprehensive term which includes set of activities that direct to flow of

goods and services from producers to consumers. Marketing department is an important

department in the organization. It is one of most dynamic field within management arena.

This department is mainly concerned with activities regarding the milk and milk products.

The milk marketing system has been influenced by characteristics of production process

and products. The main functions of the department are,

Market development and supply management

Study new markets

Identifying marketing problem and measures to solve the problem

Finding new customers

Canvas for bulk orders

Increasing sale and networking

The marketing officer is the head of the department. The assistant marketing officers

and field officers comes under marketing officers. Assistant marketing officer

concerned with activities regarding supply management. That means the distribution

of milk and milk products giving details to the production departments about how

much to produced to next day. He is also responsible about the marketing

accounting and market development activities.

4.3.1 Product mix

It is a complete set of all product line that a particular seller offers to the public for sale.

Product mix has key important in marketing product mix helps to find out whether the

product is profitable or not. In case of milma main product is mik.mik is of divided in to three

types based on quality. The Malabar regional co-operative society introduced lots of

products to the public .that are

1. Pasteurized milk

Milma pasteurized vitamin A rich milk comes in three varieties.

A) Toned milk

This milk is the most commonly used by the domestic consumer. Its available 500ml

packets costing of rs 10.the milk contain three present fat and 8.5snf.it comes in blue

colored packing.

b) Standardized milk

This milk contains 4.55fat and9.55 SNF. it costs RS 11.50per 500ml milk. It uses green

color packing.

c) Homogenized milk

This is the special type of milk specialized for tea. Hotels are the main consumer of this

milk. It is fat free milk. It costs RS 11per 500ml.and it comes in dark blue color packet.

2 curd

It’s the fermented product prepared from pasteurized milk using curd culture from the

national dairy institute. It is delicious, free from cholesterol and available in 500ml and in

bulk. It comes in green colored packing. It costs 12.50per 500ml.

3 sambaram

Sambaram is the favorite beverage of Kerala the only product of its kind in the market. It

comes in convenient sachets of200ml.

4 lassi

It is sweetened and flavored product which is prepared from the curd which is a healthy

drink for alleged group. Its available in 200ml packets.

5) Ghee

Ghee is the key ingredient of the most delicacies. Milma produces pure good quality ghee

fro butter or cream at all dairies. It is available in 100 gms to 15 kg.it comes in glass plastic

bottles tin and packets. Price is RS 128per 500mg.

6) Butter

It is prepared from cream of milk contain81% of fat and less than 15.6%of water. This is

available in 100gms200gms,500gmsand family packs are available in salted and un salted

varieties.

7) Peda

An indigenous milk product manufactured by evaporating water content from whole some

cow milk and sweetened with cane sugar it is a nutritious and sweet bit which is available in

25gm packets and 250gm carton.

8) Sterilized flavored skimmed milk

It prepared from pasteurized skimmed milk which is sweetened can sugar and flavored

with cardamom. It is very tasty in chilled condition and has keeping quality of sixty days. It

comes in 200ml bottle for RS 12.

9) Refresh

In addition to the milk drink milma has also mango drink which is a favorite drink in the

fruit drink sector. It comes in tetra pack of 200ml.

10) Milma sip up

It is made from pasteurized skimmed milk sweetened and flavored. It is available in 25 ml

polyethylene tube flavor like vanilla, pineapple, strawberry, mango and also rose in chilled

condition.

11) Cream roll

It is mixture of tasty ice cream and tasty fruity encircled over fresh sponge cake. This is

delicious snack rich in milma ice cream.

12) Milma ice cream

It is available in range of lip smacking flavor vanilla, chocolate, mango strawberry, and

fruit and nut .the only ice cream manufactured in the dairy hence most fresh ice cream.

13) Milma dairy whitener

Milma has a plant in Alapuzha for producing the milk powder from milk.

14 milma instant palada mix

Milma is also manufacturing instant palda mix.

15) Cattle feed

Milma is producing 600MT cattle feed a day. Milma produces both mash and pellet from

cattle feed and mixed called milmamin. It is distributed to farmers at reasonable rate

through dealers, APCOS, agencies. it has most accessibility in between farmers.

The kannur dairy MRCMPU currently producing fat free milk, toned milk, standardized milk,

ghee, curd and sambaram.other product like flavored milk ,sip up, refresh ice cream,

produced at Kozhikode dairy.mik powder produced at Alapuzha ,cattle feed produced at

Pattanakad and Malmbuzha

Segmentation and target market of milma milk

The segmentation of milk is mainly based on price and fat percentage and profitability. in

the case of milma its standardized milk and curd are more profitable. But in the market

both rural and urban areas milma toned milk is sold more, than homogenized and rich.

Normally toned milk is targeted for law class people and milma rich is targeted for domestic

and luxury hotels.

4.3.2 Product line and product mix

Milma product line

Milk Curd Fat products Ice-cream Beverages Sweets Cattle feed

Standardized milk

Milma smart

Toned milk

Curd

Sambaram

Lassi

Fat products

Butter

Chocolate

Mango

Strawberry

Fruit nut

Kulfi

Refresh

Cardamom milk

Mineral water

Peda

Cream roll

Sip up

Pellet

Mash

4.3.3 Packaging

The milk is packed in law density packs(plastic packs) is provided in cans to jails,

hospital, defense etc. the cover has details like brand name ,brand mark, details regarding

the type of milk, quantity ,price of milk, technical specification, temperature to be stored,

date of packing, expiry date ,place of processing, and address of the company. These milk

packets are put in plastic trays ie secondary packing for the distribution .one tray contains

20 packets of milk.

4.3.4 Distribution

Distribution of milk and milk products is one of the major activities of the marketing

management. There are many agent, whole sailors; retailers for the distribution of the

products to the consumer. There is booth run directly by the milma.

In kannur dairy, distribution mainly takes place by agents and credit institution. The agent

gets commission from milma as paisa 47, 45, and 41 for milma rich, homogenized, and

toned milk respectively. They also get 65 paisa for curd of 500ml, RS 15.8 for 500g ghee

and66 paisa for one piece of milk peda.the credit institutions are mainly hospitals, defence,

schools, and factories etc. milma gives milk to credit institution for one month credit period

where the agent gets only by pre paid.

a)area of operation

Mostly the sales are made in the urban areas. That is around 80% sales are made at

town areas of kannur district. Towards the north the main areas include Payyannur and

Thalipparamba, towards south Aazhiyoor and Mahe towards east Irrity and coastal areas of

kannur.

b) Physical distribution

The physical distribution is done by contact vehicles. There are running 39 vehicles

including 20 puff body vehicles and 3 of coming soon. The puff body is provided by milma

so as to deliver milk without losing its chillness.

C) The channels of distribution

The milk or milk products reaches retailer or wholesalers then reaches to customer who

is the end user. The milk is distributed from dairy to consumer through the booth or

retailers. The booth owners may employ distribution boys for home delivery. Milma also

gives milk directly to credit institutions for one month credit period where retailer’s gets only

by prepaid. The credit institutions are mainly hospitals, defense, schools, factories etc. the

other products are distributed from dairy to wholesalers to retailers to customers. In kannur

there are 4 wholesalers.

Distribution chart of milk

Distribution chart of milk products

D) Distribution activities

The vehicles for the distribution on different rout are given a time sheet where each

vehicles are allotted time for each rout. The milk required for a day’s evening is distributed

mainly during morning 9am to 11 am. For that here are 15 routs operated for next day’s

requirement the distribution started from 2.30 pm on wards.

The milk is produced according to next day’s intent orders received form agents. The

cash is collected through distribution vehicles, direct payments and banks. In older days

cash boxes kept in the vehicles where dealers had to deposit next day’s intent along with

cash. But now the dealer has to give cash along with intent to the driver and should receive

a receipt from the driver.

Dairy Retailers Consumers

Dairy Wholesalers Retailers Consumers

Indent form

The dealers are provided a intent form in which he has to fill the details like dealers

name, agency code, place, how much quantity of the specified product is required and cash

details, signature of the agent etc for the next day. Intent form details are entered in to the

computers and on the basis of that route abstract sheet and dispatch sheet are prepared.

Dispatch sheet

Dispatch sheet contains detail about agencies to get milk. It specifies the details of vehicle

that this dealer should be given this much product. It contains details like product

dispatched and product returned, place, name of the agent.

Rout abstract sheet

This is prepared on the basis of indent form. It specifies details how much things to be

loaded to vehicles from the dock. It consists the rout name, product quantity, number of

trays, total number of sets and trays etc.

Gate pass

The details of gate pass and dispatch sheet should be same.the security matchs it with the

dispatch sheet.

Invoice

It is the bill given to the dealers through the drivers of the carrier to the remittance by drivers

of the carrier.

4.3.5 Sales position

MRCMPU has achieved the sales of 116646184 liters milk, 1543581 kg ghee,

118653338ltrs of curd and 7573864 packets of sambaram during this financial year. Kannur

dairy has made more than 20524 liters sale of milk from previous year.

4.3.6 Price list of kannur dairy products

KCMMF fixes price for all the products of milma. The fixed price has to be followed y all dairy.

SL.NO ITEMS PACKING

UNIT

PRICE/Rs COMMISSION/RS

1 TONED MILK 500ml 10 .41

2 MILMA RICH 500ml 11.50 .47

3 HOMOGENISED 500ml 11 .45

4 CURD 500g 12.50 .65

5 SAMBARAM 200ml 3.50

6 GHEE 500g 128 15.80

4.3.7 Promotional activities

Milma also does promotional activities to boost their sales. They give emphasis on dealer

promotional activities. They are not frequently giving advertisement through Medias. But

they provide advertisement during the festival season through broadcast Medias and print

Medias. They often try to emphasis quality of their products comparing others.

Promotional activities for dealers .

The dealers are given flex board, stand boards of the products as point of purchase

advertisement.

They are given painted board with dealers name written on it

Helps booth owners for painting their Boothby giving 75%of the cost.

The dealers are given subsidy of RS 2000 for refrigerator, Rs 5000 for freezer, Rs

1000 for cycle, and RS 5000 for two wheelers.

Compensation for spoilage, leakage of products to dealers.

Yearly prizes of Rs 3000 by the union and RS 2000 by the dairy to the agents are

given those who attain maximum results.

Agent clubs are formed for dealing the problem and promoting the sales

Milma will provide 50%of cost those who wish to start booth of milk and milk

products in national high way side. special discount for ghee whole sailors.

Other promotional activities

Advertisement in television at time of onam, vishu in order to boost the sales.

Milma opens special stalls at exhibition, festival stalls.

Decoration of booth during festival.

Banners at special function

Painting of traffic circles hoardings

Dairy visit program is conducted for most frequently purchasing consumer that is

dealer has to collect that consumer .they are given offer to visit dairy and see the

working of the dairy.

Hotel incentives: Rs 300 is given as apprize to new hotel users those who lift at least

30 liter per day continuously for 120 days.

Caps, rain coats are given for the distribution boys.

4.4 PERSONAL DEPARTMENT

Organizational structure of personnel management

Manager

Assistant personnel officer

Junior superintend

Senior assistant typist

Junior assistant typist

Office attainder

Personnel department is the department in every firm which is concerned with each

employee. Personnel department is responsible for the execution of policies regarding the

recruitment, discharge, classification of employees and wages which had been laid down by

the board of directors.

The total number of people working in the company is 330 including temporary and

permanent workers. Out of this 10 officers and 85 are permanent while 3 officers and 8

workers are temporary. This personnel and administration department includes one officers

and two clerks and one typist. And anadditional clerks and apprentice.

.

4.4.1 Duties of the department

Keeping the personnel files of the employees

Keeping the service books which contain all the details regarding the job

performance ,transfer, punishment etc

Preparation of the salary bill

Employees provident fund recovery and remittance in time

Employees state insurance recovery in time

Prepare half yearly statements and connect registers on the above

The preparation of journal ,vouchers /payments connected with this department

Preparation of stipend bill for apprentice

Preparation of salary bill of the employees on daily wages appointed on contract

Leave posting and leave u[dating

Attendance registers updating. There is an electronic thump punching system is

assembled in the unit

Recruitment and probation

Long term settlement of workmen

Travelling allowance bill passing

Motor conveyance advance processing

Courier register maintenance

Security arrangement

Training

Trade union

Preparation of o t bills

4.4.2 Training and development

Milma has centralized training facility at Trissure providing training to society staff,

farmers, and the employees of milma. It also provides organized training in all aspects of

cattle management and society management. There are three types of training in this

institution.

1) Induction training

It is the training program used for newly appointed employees’ where new

employees is introduced to job situation and company environment

2) On the job training

Under this workers are given training during time of working within the

organization.

3) Refresher training

This training is for the previously appointed workers for improving their abilities and

skills. And also for making them full of intimated with the company.

4.4.3 Employment

The recruitment in milma is done by head office situated in Kozhikode. When a vacancy

arises personnel committee conducted interview for every posts in the organization. They

advertise it in two leading news papers and a period of two weeks is providing for admitting

applications. Candidates are screened after written test and qualified ones are interviewed

on the base of rank lists appointment is made.

4.4.4Promotion

Promotion is considered to be upward movement of person from his current position. To

afford opportunity and assist development and growth of employees in the organizational

scale promotion will provide for upward movement to higher responsibility, status and

emoluments. When there is any vacant position in the federation /union it will be filled by

recruitment partly through promotion within the organization

Promotion is given to the employees that are for clerical posts and other posts promotion

is given in 5 years and for officers post promotion is given in 3 years.if there are no

vacancies senior grade is given after 8 years with salary as same as the post.

Promotion procedure

A vacancy offering promotion opportunity will be notified within the organization and data

of those respondents will be screened and those who satisfy minimum requirement for the

post will be interviewed and tested by personnel committee. All promotion shall be

subjected to approval of managing director. If the applicants found un suitable he will

rejected.

Upon the promotion the employee on for probation for minimum period of one year and his

performance will be assessed. If it found un suitable will be reverted to earlier position.

Employee is appraised for one year and his performance will be recorded. Seniority and

merit will be the base for promotion.

Promotion policy

a) Promotion to the higher posts is made when vacancy arises due to death, retirement,

resignation.

b) Merit efficiency and performance of the employees assessed by management as the

basis for promotion.

c) Seniority in any grade or holding any additional charges for temporary periods will not

itself entitle an employee for promotion.

d) An employee should have completed minimum period of the service in feeders category

as prescribed in the annexure before being eligible for promotion.

4.4.5 Transfer

Milma follows two types of transfer policy

Inter unit transfer:

The workers are transferred to one plant from one plant within the jurisdiction.

Regional transfer:

Officers are transferred one dairy to another within the region.

4.4.6 Retirement

The retirement period of the employee is 58 years. The various benefits like gratuity are

sanctioned on retirement.

4.4.7 Compensation wage and salary

The remuneration of the employee is based on the long term agreement and it is

prepare d once in five years by the management and trade unions. Time wage system is

followed in the case of permanent employees and piece wage system is in the case of

employees engaged packing of ghee and sambaram.

Salary=basic pay +DA+HRA (10%) +Washing allowance (45/month) +Night allowance.

Dearness allowance

Dearness allowance shall be paid to the employees’ who are placed on time

scales of pay, at same rate as applicable to employee of government.

House rent allowance

It shall be paid to the employees of the union at 10% of basic pay irrespective of the

stations where duty is performed. He won’t be eligible for house rent allowance if

accommodation is provided by the union.

Travelling allowance

Travelling allowance is also granted to an employee to cover the expenses

increased by him in performing journeys in the interest of union.

Medical allowance

Those employees excluded from ESI are eligible for RS 100/month.

Employees provident fund

EPF is compulsory for all employees which is 12% of the basic pay and dearness

allowance. First there was no pension, but 8.33% of EPF was provided as a pension

and balance moved as a provident fund.

Employees State insurance

ESI are for those whose salary is up to RS 7500/-.ESI is 1.75%of the total salary

and is paid backs 4.75% by the company.

co-operative credit societies

Credit is given up to 80000 within the guarantee of 2 employee and which should

be paid at an interest of 11.5%

4.4.8 Allowance rates

House rent allowance 10% of the basic pay

Foot ware RS120/month

Uniform stitching

Male RS300

female RS 75

Uniform washing RS 45/month.

4.4.9Rates of stipend payable to apprentice

4.4.10 Employee service

milma provides canteen facilities for employees at subsidized rates

parking facilities for vehicles

the employees other than office staffs are given uniform (2pairs)over coats to

officers in plant

Mobile phone is given to office staffs in marketing department and managers and

assistant managers by the dairy.

Graduate apprentice RS 2600/ month

Sandwich course(Degree) RS 1850/month

Technician apprentice RS1850/month

Sandwich course (diploma) RS 1510/month

Trade apprentice RS 1440/month

Auditorium to conduct meeting and functions office library.

4.4.11 Employee’s benefits

Milma is setting a part an amount of 500000 (approax) for employee benefits.

The workers are paid overtime wages for extra works

The employees are given night allowance RS 6 is paid per shift.

House building advance

The dairy provides vehicle loans for staffs based on here pay scale.for bike it is

25000, for cycle it is 1500, and also RS 100000 for car. All the loans have to repay

within five years at 9% interest.

There are also voluntary retirements. The retirement benefits provided as based on

the salary .they are also given gratuity.

The dairy also provide death benefits. i.e. an amount is provide to family from

employee welfare scheme and also a job is given to member of family considering

their qualification.

The dairy provides as a help of RS 5000 for the marriage of employee’s children and

RS 1000 for house warming.

The company gives RS 3000 to employees’ welfare scheme and RS 70 is taken from

employee’s salary. And the employees are also given festival bonus.

The performance incentives are provided to employees right from managers to

sweepers up to RS 4500.

4.4.12 Personnel records

All the necessity information about the employees is maintained in the personnel record

and these are used at the time of promotion, demotion, transfer etc on the basis of these

records the performance f the employee is evaluated.

4.4.13 Industrial relation

Milma has formulated certain rules and regulations’ to maintain discipline in the

organization. Any complaints arising the from the employees are normally taken care by the

personnel manager.

4.4.14 Trade unions

At present in kannur dairy has two authorized trade unions. They are INTUC and CITU.

But the company provides harmonies situation to the workers in all level they expected.

4.4.15 Man power profile

The MRCMPU ltd within a short span of 28 years established it own identity in the co-

operative industry in the country. now it has dynamic executive and a committed work force.

Name of

department

sslc pdc graduation Post gradution

Engineering

accounting

Production

Marketing

Quality control

P&I

Personnel

Store

general

Experience profile

Classification of workers

Permanent workers

Permanent staffs

Probationers

Contracts

Temporary

Casual

Apprentice

FINANCE DEPARTMENT

Organizational structure of finance department

Manager

Account officer

Junior superintend

Senior assistant (steno)

Junior assistant (steno)

Finance is the life blood of every business. This department records classifies and presents

information for manufacturing and other activities of the firm. Department is mainly consist

with management of financial activities. The financial departments’ deals with planning the

total required for both long term and short term purposes. The responsibilities of

maintaining accounts and exercising financial control is vested with financial manager .all

department payments and receipts are finally reported to the finance manger. This

department is maintaining communication with all departments in the organization.

Source of finance

There are two types’ financial sources in the company

Internal sources

Income generated from sales is the main source income of milma

There are accumulated profits. It is the source of income other than income from

sales. Current loses are adjusted by the reserves. Capital reserves are also included

in this.

External sources

Milma raised capital fund by issuing shares only for farmers of the APCOS. All

farmers should subscribe certain number of shares of the union.

The main activities concerned with the departments are

Management of finance

Here the department is entrusted with the function of working capital management.

As part of the financial policy all the long term capital and infrastructure investment

plans and activities are performed at head office level. So the dairy has only the

responsibilities of preparation of annual capital budget of the dairy and submission to

head office for consideration and approval. Under the working capital management

the finance department prepares requirement plans on ten days base and submitted

for arranging fund transfer for meeting the daily requirements of the dairy.

Cash collection from sales

The union has adopted policy of sales on cash basis with advance collection method

with the exception of credit with few governmental agencies. The union follows a

centralized cash management system for free movement of fund from dairy to dairy

and to meat requirement of all dairies in time. Head office manages the requirement

of all dairies out of these proceeds based on fund request from dairies.

Payment to creditors and other agencies

They give payment to societies who give milk and all other purchases regarding

about production on ten days basis. Similarly the payment of transport contractors is

made on 15 days basis. The employee related payments are made only monthly

basis and all statutory dues in time. There are occasion of advance payment and

payment through bank.

Maintenance of record

As usual the main duty of finance and account department id to maintain accounts

and records. Here in kannur dairy the accounts are computerized with oracle based

financial package. The transactions of dairy and chilling plants are recorded through

cash book, bank book, purchase book, sales book and general journals. In addition

to cash book the chilling plant activities are through imprested system of petty cash

and purchase. The account department also maintains various records that are

essential for statutory audit, income tax audit, sales tax files, service tax files etc.

.preparation of financial report

The finance and account departments prepare monthly profit and loss account and

are submitted to the dairy manager and head office. The report elaborates the

financial performance of the dairy during the current and up to the current month,

previous month and budget for the current and previous month. This facilitates the

viewers to compare or evaluate the performance.

Analysis of the financial statement

The finance department of the dairy prepares monthly financial analysis statement

contains details for the major deviation of expenses from the budget as well as the

reasoned there for ascertained for the financial control. It is submitted to dairy

manager as well as managing directors for evaluation. The same is discuses in the

review meeting of the officers at dairy

.

Fulfillment of statuary obligation

The dairy has to be fulfilled various statutory obligations. The finance department

perform about sales tax, income tax, work contract tax, service tax, fringe benefit

tax/entry tax etc. the department is responsible for collection of all taxes and giving

the returns before due date, maintain the records for verification etc.

Audit related duties

Finance departments of the dairy is responsible for submitting the the financial

statement, Details, reports, clarification etc to the statutory auditors for audit.

Preparation of budget

The dairy prepares both revenue and capital budget annually. This department

compiles the various quantitative budgets prepared by difference departments’ .both

capital and revenue budgets are forwarded to the head office for the approval of the

board. After approve the revenue budget is entered in the financial package.

Financial highlights

4.5 MAINTANANCE DEPARTMENT

Manager

Assistant manager (maintenance)

Technical superintend

Special grade technician

Senior grade technician

Technician grade 1/Driver grade 1

Technician grade 2/Driver grade 2

The Maine purpose this department is to establish system for the maintenance to ensure un interpreted functioning facilities. With the modernization of the dairy processing industry employing sophisticated equipment and increasing competition it has become imperative to achieve higher efficiency and economy. To achieve and maintain higher efficiency and productivity in higher rate it requires a systematic procedure and the control of production and machinery.

The maintenance department has to give assistance to the production department by providing all the general utilities like water, electricity steam, etc. there is 250kv substation owned by the dairy for supply of electricity and generators to back up if there is no power supply. The maintenance department has to keep up machineries to assure that they are in proper working condition to avoid break down.

Assistant manager is the head of the department .under assistant manager there are technical superintend technician, apprentices, drivers .The maintenance department has to keep up utilities like electricity water, steam etc and product transportation.

4.5.1 The main functions of maintenance department

Giving assistance to production Up keeping of machinery Assurance of general utilities Technical and civil maintenance Maintenance of tankers owned by dairy.

The maintenance department is responsible for the bulk milk movement in the tankers in the dairy. The dairy owns a water treatment plant treats the effluent water with the capacity of 2000ltres. The solid waste is used as fertilizer .the water treated is again used for the irrigation of plant in the dairy.

4.5.2 Machines used

Some of the machines used in the to achieve high efficiency in the dairy processing industry are

Pasteurize Boiler Refrigeration Cream separator Homogenizer Packing machines

4.5.3 Types of maintenance

There are two types of maintenance that milma normally adopt, they are preventive maintenance and Break down maintenance

Preventive maintenance procedure

a) Duty engineer shall maintain list of machinery and equipment that are to be covered under preventive maintenance.

b) All the plant and machinery of the dairy and chilling plant shall be dually identified with a unique code for each and individual machine

c) Wherever machine supplies provide operational manuals there shall be used as detail for carrying out preventive maintenance.

d) Check list shall be prepared for identifying machinery and equipment detailing various check and maintenance work

e) In case no check list is made available for machinery, duty engineer shall ensure the maintained personnel are acknowledgeable to carryout routine maintenance.

Break down maintenance procedure

a) Wherever break down occur, details are entered in break down register.b) Concern maintenance personnel shall the details of work done in register.c) Ones in 6 months duty engineer or unit head shall review nature of break down,

frequently recurrence, probable cause, potential problem that may occur in order to bring them under preventive maintenance to reduce the interpretation in production.

d) Duty engineer shall ensure sufficient place or available ensuring smooth functioning of plant.

4.6 STORES DEPARTMENT

Organizational structure of stores department

Manager

Assistant store officer

Stores attainder

Stores apprentice

Stores play a vital role in the functioning of the organization. All departments are in the direct contact with the stores for their smooth functioning. The most important functioning of the stores is that to provide regular service to production and other department for their continuous smooth operation. Maintenance of stores and its handling should be given importance because investment made in stores is huge and articles worth lakhs are kept in stores.

A systematic and proper control of store keeping functioning are essential for ensuring discipline ,availability of articles at required time adequate storage in store keeping records.

4.6.1 Major functions of stores department are,

Receiving of material and recording of receipts. Arranging inspection and proper storage and preservation of receipts. Issue of storage items to user departments Preparation of various report

Receipt and inspection of material

The raw material are received from two sources, that are

Receipt from external sources

Receipts of material from the outside suppliers.raw material are received against the orders placed or by local purchase from local vendors.

Receipt from internal sources Raw materials are received from the consumer departments where the item may be of no use.

Major aspects involved in the receipt of material

As and when materials are received all the items are physically examined for accuracy and inspected for assuring quality. When materials are received in the store it is checked and agreed with that mentioned in Chelan /deliver note/packing lists /invoice. Delivery not is signed after delivery the delivery note is signed and the original note is retained in the dairy and the duplicate copy is forwarded to seller as an acknowledgment. If any shortage or damage is reported it is mentioned in the in the delivery note. After fulfilling the mentioned it should be taken to store without further delay.

Procedure

As materials are received details are entered in to goods inward register. It consists of details like date, details of supplier, quantity, details about sales taxes excise duty etc.Then

a material inspection note is prepared triplicate. Original copy is retained with the account officer, duplicate is in purchase section and triplicate in the stores

When acceptance certificate is given by inspection officer store keeper shall prepare goods in ward note. Consists of details like purchase order no date details like purchase order no, mode of conveyance, type of packaging, quantity, inspecting etc .if the material is rejected is sent back to supplier with a rejection note. Its original copy is distributed to supplier, duplicate to store, and triplicate to purchase section. a discrepancy report will be intimated to supplier when any discrepancy is noted. If materials are insured claims shall be forwarded to insurance companies.

4.6.2 Storage of material

Proper safety and the safety of materials are very essential. Location of the storage of each material is to be determined. Small items are stored in bins card and are placed in racks .racks are marked.

4.6.3 Issue of material

The promptness of the materials issued reflects the efficiency of the store keeping. Proper authorization should be there otherwise entire store systems will be collapsed.

An issue of material s from the store should be o the basis of intends is requested by the department head or the authorized officials to issue materials from the store.

4.6.4 Pricing

For pricing first in first out methods (FIFO) is used. In case voluminous items with low value like spares weighted average price is used.

4.6.5 Disposal of scrap material

Arrangement shall be made to keep scrap/unusable material in store separately. The items having good resale value should be stored separately.

4.6.6 Purchase of material

Purchase made by the store when the stock position reaches the fixed reorder level of each items. The store keeper shall check stock position of items regularly and whenever the stock reaches the reorder level he shall initiate the action for purchase of these items.

The store keeper shall prepare purchase requisition note and forward it to the sanctioning authority with the recommendation of concerned section head. Some time the purchase rate sand suppliers will be finalized by KCMMF or MRCMPU and intimated the units .in each case the purchase order shall be prepared incorporating the terms and conditions intimated by the KCMMF or MRCMPU.In certain case purchase rates and supplier may not fixed by KCMMF or MRCMPU the quotation shall be invited from potential suppliers and shall be opened at the date and time mentioned in quotation note.

A quotation register shall be maintained by the purchase officer o store officer and all the quotation shall be opened and their tabulation statement shall be recorded in it and signed by the officers. Quotation might be invited for single purchase for fixed period like one month or one year etc.

Purchase of non routine items

Here the section head shall initiates the purchase when material is required. After getting the sanction from the sanctioning authority for purchase requisition note prepared by department head purchase should be undertaken by the purchasing officer or stores officer.

Purchase of capital items

The dairy manager can purchase capital items where specific provision is made in the “approved capital budget of unit and cost of item which is less than 10000/-“when the cost exceeds 10000 /-purchases shall be made after getting prior approval from head office.

4.6.7 Records maintained by the store departments

1) bin cardsIt contains detail like description of item size, specification, name of the major suppliers.

2) Stores ledgerIt contains details regarding receipts, issue and the balance of the value, name of the supplier, name of consumer section.

3) Day bookIt contains details of daily receipts and issue of materials in quantity and value. print outs taken monthly and kept in store.

4) Stock movement statementIt contains monthly opening balance receipts and issue. Closing balance print out is taken monthly.

5) stores ledgerIt contains item wise details of quantity and value that is the transactions report taken whenever needed.

6) Cost reportAccount code wise statement monthly print out.

4.7 QUALITY CONTROLL DEPARTMENT

Organizational structure of quality control department

Assistant manager (quality control)

Technical superintend-lab

Lab technician-1

Lab technician-2

Manager

Lab assistant

The quality control department assures the quality of milk and milk products at the dairy. The quality control labs, testing and inspection come under the quality control department.

4.7.1 Quality policy

“Farmers prosperity through customer satisfaction”

“MRCMPU ltd is committed to provide consistently safe hygienic and healthy milk and milk product to achieve and enhance consumer satisfaction.”

“We milma shall strive to excel in the market leadership by achieving quality and economy in all our activities adopting quality managemet system”.

“We milma shall strive scientific approach to ensure the continual improvement in personal, in our activities that increase value and status of this organization and its associations.”

4.7.2 Functions of quality control departments

The main functions of quality control department are the inspection of milk of each society. Inspection is mainly conducted in order to make sure that the production is carried out as per their standards.

Receiving inspection

Receiving inspection is the inspection of milk while receiving the raw milk from the society. The test conducted during the reception of milk is called organoleptic test. Organoleptic testis conducted to find out whether mil is good or bad. That is the appearance, color, flavor, taste are all to be noted in this test. If there is doubt full cases the samples of milk will send to clot on boiling test. If the clot on boiling test is positive the milk is rejected.

In process inspection

Here the analysis is conducted during the processing of milk deference tests are conducted to achieve the quality of milk.

Quality standards of milk

products FAT% SNF%Toned milk 3 8.5

Homogenized milk 3 8.5Milma rich 4.5 9

Final inspection

After completion of production process one packet milk is taken from the storage in order to ensure the standards as prescribed. If there is still any problem it is again reprocessed to achieve the fixed standards.

Various tests conducted from the dairy

Organoleptic testIt is primary test conducted to find out acceptability of milk

SNF testIt is used to detect the SNF in the milk. The reading of the milk by corrected lactometer is taken first at 290c.

Coli form plate countThis test is conducted to find out bacteria in the milk. It is conducted twice I a month.

Gerber testIt is used to identify the contents of fat in the milk. Milma has an electronic machine to detect fat in the milk. it is called as fat detecting machine.

Temperature testThis test is conducted to know the temperature of milk.

Acidity testThis test is used to measure the lactic acid in the milk. Acidity should be between0.13-0.16.

Methylene blue reduction testThis is used to identify the bacterium that exists in the milk. This also conducted twice in a month.

Objectives of inspection

Reduce poor performance Maintain standards Reduce economic loss

Remove defective milk Provide research for evaluation.

5 - SWOT ANALYSIS

SWOT analysis is the key concept in the world of co-operative planning, strategy

formulation and other practical spheres of management. SWOT analysis is tool for auditing

an organization and its environment. It is the first stage of planning and helps marketers to

focus on key issues. SWOT stands for Strength Weakness, Opportunities and Threats.

strenght and weekness are internal factors and opportunities and threats are external

factors.

Strength of milma

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.

At present kannur milma dairy has 1045 functioning retail dealers 32 credit

institutions.

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.

The place where the factory settled is appropriate enough to take care about all

marketing activity.

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 un

usual interfere from government side.

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

Suggestions

An overall analysis of milma shows that it has well managed structure, even though the following suggestions are put forward to increase the functional efficiency.

Milma should give target achievable training to officers and workers instead of routine, expensive training especially in marketing wing.

Milma should concentrate more informative and catchy advertisement of all products highlighting the product quality.

Milma should find more market areas for the utilization of their entire production capacity.

CONCLUSIONThe 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. It also lead me into some thoughts about my behavior, attitude, body language, and in efficiencies and I became more conscious about time 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 competition 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.