tumkur milk coorporation

8/20/2019 tumkur milk coorporation

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ORGANIZATION STUDY

1. INDUSTRY PROFILE

INTRODUCTION:

Human behavior in organization is determined partly by the requirements of the

formal organization and partly by the personal systems of the individuals forming the

organization. The behavior that emerges from this interaction defines the field of the

organizational behavior.

In the production department when we entered in the beginning the manager told

his assistant to explain the process. Then she had explained about how the milk is

procured and weighed in the machines. Pasteurizing and standardization of the milk was

shown. hile explaining she was really calm and explaining each point and also was

answering to our questions. !fter this we were called to production office where the

production manager asked whether we understood the process or not. He was actually

curious about speaking with us in "nglish. Then again he also explained about the

process and then gave much useful information. !fter listening to this I understood how

well they know each and every factor which affects the production and quality.

In the quality department how the tests are conducted. #oth the laboratories were

hygienic and technological. hen I saw the lab technicians were doing the $actose and

%erber tests for finding out the degree of the milk and contamination in it& came to know

these tests were not only limited to schools or colleges to teach students. #ut were really

used here for the safety of its consumers and how well it was utilized in milk industries

like this.

In finance department got the opportunity to see the functioning of the clerks&

officers and manager. They all were coordinating with each other in the formal manner. If

they had doubt about how to pass about new entries especially new comers& then they

would ask for the help from their seniors. 'uch (ob pressure would be on them at the

financial year ending. #ecause they would be very busy in the preparation of the

financial statements.

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$earnt why (ournals and ledgers are so important because these are the base of

what kind of transaction it was. These are the sources and act as history where they can

check for reference of any entry.

H) manager within his busy schedule made some time for us to explain the

recruitment policies of employees& training to them and (ob promotion on seniority basis.

In the H)' sub(ect we had studied that there were recruitment policies& (ob training

techniques and promotion policies. !fter meeting him we came to know that the '* and

H) manager +himself, would select the suitable candidates for the *airy after going

through the resumes and then personal interview for the candidates. Promotions are

generally given on seniority basis. #ecause seniors would have much more thorough

knowledge about how the functions affect other things and dairy it-s relation with '/.H) allowance and conveyance allowance are given to the employees because it-s situated

00 kms away from Tumkur city. 1o this helped me to understand why conveyance

allowance should be given to employees. It will reduce the burden on the employees and

they would come to work freely.

There is also the availability of the canteen. Here all the employees including few

managers would go to take lunch. Here there is no discrimination and the quality of the

food is also good. 1tudents like us can also visit the canteen and take food. There is no bifurcation among anyone. 1ame south Indian food is given to all at very low price of

)s.02. Here few informal talks go on. "mployees find some time to talk with their

colleagues here. Their family matters or some other news like politics and films. 1o this

is the time and place where they can hangout for some time and feel they are with the

best ones.

/or welfare and positive state of employees a temple is being constructed within

the plant. !fter talking with the employees it-s known that they are happy with it. In thefuture they can (ust visit the temple and pray there. It creates some kind of attachment of

the employees with the organization.



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ORGANIZATION STUDY

!fter watching all the departments and plant layout which is divided into

3administration- +union office, and the 3*airy- I learned the things like how (uniors

behave with seniors& how the one function would affect another like if the procurement is

less then that day the production will be less and the products which would reach to 04milk parlors under it would be quite few. ork pressure is faced by the employees

because many times we were asked to come later so that they can make some time to

explain us about their department&

/inally I could say that it was a great experience taking over an internship

program in this organization which taught me about organizational culture. e can use

this gained knowledge in classroom. hen some sub(ects are being explained in the

classroom then the experience of watching the functions here would help us to relate andunderstand the sub(ect in a better way. Totally this was helpful to enhance our skills&

knowledge and experience.



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ORGANIZATION STUDY

1.1 An overview of dairy indu !ry in India

hite )evolution in India

The first organized attempt at providing safe milk to customers was made by the

military dairy farms& with the ob(ective of supplying milk to the #ritish troops in India.

The next attempt at the organized dairying in the #ombay city by the #ritish %ovt. to

improve the city milk supply in fact 'r. ).! Pepparall& the secretary of the milk

marketing board of "ngland& in a meeting with a press in 0566& stated that the milk being

sold all by the private traders in #ombay had a bacteriological count higher than the

sewage of $ondon7 This necessitated the %overnment-s intervention in the year 0568&which led to the establishment of the #ombay 'ilk scheme and a private firm owned by

'r. Polson& located at !nand. 699 kms north of #ombay& to supply milk to the scheme.

The opening up of the attractive market of #ombay to the milk producers of kaira

district& provided the stimulus to increase their production shortly after India became

independent& the %overnment of #ombay realized that the prevailing system of milk

contractors& trades and the private Paulson airy were exploiting the farmers of kaira

district. :ooperative milk union+popularly known as !';, starting with a modestcollection of 289 liter of milk per day in 056


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federation. !ll the district cooperative milk producers unions are to become members of

these federations and receive their assistance under the program through these

federations.

The funds for the implementation of operation floodD0 pro(ect were generated by

the sale of 024804 tons of skim milk power and =5>5> tons of butter oil provided by the

world food program. ! total of )s 00>.6 crores was generated for the implementation of

the program. The I*: was specially setup by their sale for the implementation of the

pro(ect.

/und for the implementation of operation food are being party generated by the

"uropean "conomic :ommunity +"":,. The pro(ect is also to receive orld #ank

assistance of E089 millions. Part of the pro(ect is to come from reflows of loans made

under the operation floodD0 and the interest there on. The remaining funds for the pro(ect

are to be generated by sale of a further fifth of 09899 tons of milk powder and =8999 tons

of butter oil that "": is likely to provide.

The state dairy federations are the implementing agencies for each state dairy

development program under operation floodD0. The federation puts up a perspective plan

for I*: under the program for dairy plants. :attle feed plants& milk marketing

infrastructure on 49F loan =9F grant basis funds required for the organization of the

rural milk producer-s cooperative are provided on a 099F grant basis& the I*: also lays

great emphasis on the training of the personnel required for the implementation of the

program rests with the state dairy federation& the B**# provides services for planning

the pro(ect and setting up of dairy and cattle feed plants on turnDkeyGconsultancy basis.

The B**# has been deputing searched teams for organizing milk producers-

cooperatives. It has to for the arranged visit of some 08489 farmers& from all over the

country to !nand and training some 8999 professionals for the implementation of the program& the I*: has total strength of 289& and B**# employees some 0289 persons of

whom 499 are professionals while the I*: is a %overnment of India company& the

B**# is a registered society. B**# apart from providing services for the



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implementation of operation flood also provides the applied research and development

support to the pro(ects.

"." Dairy Indu !ry in #arna!a$a

In une 0546& an integrated pro(ect was launched in arnataka to restructure and

reconcile the dairy industry on the cooperative principal and lay foundation for the new

direction in dairy development& work on the every first world bank aided dairy

development pro(ect was initiated in 0548.

Initially the pro(ect converted < southern districts of arnataka and arnataka

dairy development corporation was set up to implement the pro(ect. The multilevel

activities were setup with dairy cooperative societies at gross root levels& milk union atthe middle level as an apex body& vested with responsibility of implementing )s.80 crores

pro(ect ended and the dairy development was continues in second phase from !pril 05


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arnataka milk federation is a cooperative apex body in the state of arnataka for

representing dairy-s farmer-s organization and also implementing dairy farmer-s

organization and also implementing dairy development activities to achieve.

The following ob(ectsC

0, Providing assured and remunerative market for the entire milk producers by the farmer

members.2, Providing hygienic milk to urban consumers=, To build village level institutions I cooperative sector to manage the dairy activities.6, To ensure provision of milk production inputs processing facilities for selfDemployment

at village level. Preventing migration to urban areas introducing cash economy and

opportunity for steady income

The philosophy of dairy development is to eliminate middlemen and organizes

institutions to be owned and managed by the milk producers by themselves& employing

professional. !chieve economies of scale to ensure maximum return to the milk

producers& at the same time providing wholesome milk at lowest possible price to urban

consumers ultimately the complex network of cooperative organization should build a

bridge million of consumers on the other side and achieve a socioeconomic revolution in

the hinterland of the state.

". CO/PANY PROFILE

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ORGANIZATION STUDY

TU/#UR /IL# UNION IS A CO0OPERATI E INSTITUTION which is

also having motive of social service where it was registered on =9 th 'arch 0544 at

T;' ;) to initiate the dairy development activities in the district and to provide

facilities to process milk and milk products and also their marketing at 'alla 1andra &which is 00kms away from Tumkur urban area. It is situated in the rural area& which is

outside the (urisdiction local authority such as municipal and corporation.

O- e'!ive of !+e union

0. Providing assured and remunerative market for all the milk produced by the farmer

members.

2. Providing hygienic milk to urban consumers.

=. To build village level institutions in coDoperative sector to manage the dairy activities.

6. To ensure provision of milk production inputs processing facilities.

8. To facilitate rural development by providing opportunities for selfDemployment at village

level& preventing introducing cash economy and opportunity for steady income.

PRINCIPLES C

The formal principle of the T;' ;) 'I$ ;BIAB is bound to get nationwide

best place in milk production in order to achieve the same the union follows the under

listed principalsD

0. To help its member association financially and socially and to improve their work towards

making a profit business.

2. To adopt modern technology.

=. To provide the best service to the customers and the milk producers through services and

dedication of all employees

/i ion

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ORGANIZATION STUDY

Tumkur 'ilk ;nion is committed to socio economic development of its member

milk producers by adopting advanced technology to make dairying a profitable business

by the dedicated workmanship to provide best services to its members and consumers

thereby achieving the best position in the country.

a(ue

The following are the values bound by T;';$D

0. Honesty

2. *isciplineG Timeliness

=. uality

6. Trust8. Impartial

>. 1avings

4. Transparency

2ua(i!y 3o(i'y

Tumkur :oDop 'ilk ;nion is certified as I1A 22999C 2998 from *BJ #usiness

!ssurance from /ood 1afety 1ystem :ertificate is committed to supply safe 'ilk K 'ilk Products to the satisfaction of customers byC

• :omplying with statutory and regulatory requirements

• :onstant communication with all parties involved in the food chain

• !dopting %HP& %'P K H!::P

• !dopting scientific processing methods

• Providing appropriate training to employees

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ORGANIZATION STUDY

This commitment is supported by measurable ob(ectives and brings about continual

improvement.

=.0 /i(e !one C

1l. Bo. Lear 'I$"1TAB"1

0 0548 1pearhead team commenced its work

2 054> /irst milk route organization

= 054> ;nion registration

6 0544 /ormation of 'anaging :ommittee

8 0544 1anction of 20 !cre othanahally /odder farm

> 0544 1anction of 49 !cre land for *airy construction.

4 0545 "stablishment of *iagnostic laboratory

< 05


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06 0554 :ommissioning of 1T"PDwomen societies

08 0555 :ommissioning of 'adhugiri :hilling centre

0> 2990 :rossed 0 $akh gs 'ilk Procurement on Actober 2990.

04 2996 #ulk milk coolers and "lectronic weighing machines

0< 2998 *airy processing capacity increased from >9999 ltrs to 0 lakh ltrs

05 2998 :rossed 2 $akh gs 'ilk Procurement on Actober 2998.

29 299> :ertification of I1A and H!::P

20 299> :rossed 0 $akh $iters 'ilk sales on une 299>.

22 299> %rade M!M certification from department of audit for the year 299>D94

2= 2994 Anline )')* computerization of milk procurement truck sheet

26 2995 Implementation of )s 2GD incentive by %A to milk producers

28 2995 :rossed = $akh gs 'ilk Procurement on une 2995.

2> 2995 :rossed 0.8 $akh $iters 'ilk sales on /ebruary 2995.

24 2909 Installation of ::TJ

2< 2909 0. uality Incentive of 09 paisa per g of milk to 1ociety staff.

2. 09 paisa Incentive to society staff for implementing %A schemes.

25 2909 Implementation of T;';$ website



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ORGANIZATION STUDY

=9 2900 :rossed 6 $akh gs of 'ilk Procurement on une 2900.

=0 2902 :rossed 2 $akh $iters 'ilk sales on !pril 2902.

=2 2902 Introduction of 'ysore Pak Production G 1ales

== 2902 :ertification of I1A 22999C2998

=6 290= Inauguration of new Packing station and *airy processing capacity increased

from 0 lakh ltrs to =.28 lakhs

=8 290= Implementation of )s 6GD incentive by %A to milk producers

=> 2906 Total /unctional 'P:1 crossed 0999 on

=4 2906 :rossed 8 lakh kgs of 'ilk procurement on 2


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ORGANIZATION STUDY

Bandini Toned 'ilk is the arnataka-s most favorite 'ilk. /resh and pure milk

containing =.0F fat and


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ORGANIZATION STUDY

!vailable in 289 ml packs to the consumers since une 299=.

D5 &o6o*eni,ed Cow /i($

Bandini Homogenized :ow 'ilk containing =.>F /at K


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ORGANIZATION STUDY

/IL# PASTEURISATION0FLO8 C&ART


:hilling center dock

)eceiving& grinding and weighingand testing +quality control,

*iary for processing

Transportation

1torage

Te$%&'g

:hilling

Pasteurized :hilled 'ilkD1ilo)aw :hilled 'ilk

/loat #alance Tank

Pasteurizer :hilling 1ectionPump

Pasteurizer )eDgeneration 1ectionD0:ream 1eparator ater

1team Pasteurizer )eDgeneration 1ectionD2


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ORGANIZATION STUDY


'ixing #atteryGPH"

/*J

Holding :oil

Homogenizer

Pasteurizer Heating 1ection

1caldingater

throughPump


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ORGANIZATION STUDY

4." /IL# PRODUCTS

!, :urd

Bandini :urd made from pure milk. It-s thick and delicious giving you all the goodness

of homemade curds.

!vailable in 299grams and 899 grams packs.

Produ'! De 'ri3!ion of 'urd:

0. Product Bame C :urd

2. How it is to be used C *irect consumption with food K making butter

'ilk K curd

=. Packaging C /ood grade preprinted Polythene film

Packaging +299g& 899g K bulk cans,

6. 1helf life C 6< hours from the date of Package

when 1tored at 6 degree or less

8. here it will be sold C !t Bandini retail stores K other marketing

Autlets

>. $abeling instructions C ithin 2 days from the *ate of packing

1tored at 6 degree or less

4. Is special distribution control neededC Preferably through Insulated vans



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ORGANIZATION STUDY

Curd Produ'!ion:

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1(Rece&)% o* )a$%e+,& e. %o'e. /&l0

I' c+,. e%

2(ea%&'g %o 32 %o 35 .eg

el$&+$

3(A..&%&o' o* $%a,%e, c+l%+,e

4(P+/)&'g %o ala'ce %a'0

5(Rece&)% a'. ee.&'g

o* l/

6(Pac0&'g

!(I'c+ a%&o'

(

P&ll&'g &' c,a%e$

"( T,a'$*e,,&'g %o col. $%o,e

1#(

S%o,age

11(

D&$)a%ch


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ORGANIZATION STUDY

)5 )u!!er /i($

Bandini spiced #uttermilk is a refreshing health drink. It is made from quality

curds and is blended with fresh green chilies& green coriander leaves and fresh ginger.

Bandini spiced #uttermilk promotes health and easy digestion.

It is available in 299 ml packs since une 2992 and is priced at most competitive

rates& so that it is affordable to all sections of people.

Produ'! De 'ri3!ion of -u!!er 6i($

0. Product Bame C 'asala #utter milk

2. How it is to be used C /or %eneral drinking as whitener for coffee K tea

and to prepare flavored milk to make dahi& yoghurt K

butter milk .

=. Packaging C Packed in multilayer pigmented $*P/ preprinted

film of /ood %rade in 289ml& 899ml K 0999m

Packs and bulk in 11 cans and tankers.

6. 1helf $ife C 26 hours from the date of packing at 6 degree or

less .

8. here it will be sold C )etail outlets& /ood service "stablishments bulk

sale

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ORGANIZATION STUDY

/a a(a )u!!er 6i($ Produ'!ion:

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6(Rece&)% o* ,a7

Ma$ala &%e/1(

ollec%&o' o* c+,. &'

ca'$

11( T,a'$*e,,&'g %o

ala'ce %a'0

1 (D&$)a%ch

16(S%o,age

15( T,a'$*e,,&'g %o

col. $%o,e

12(Rece&)% a'.

*ee.&'g o* l/

13(Pac0&'g

14(P&ll&'g &'%o

(lea,&'g

!(G,&'.&'g o* Ma$ala

&%e/$

2(M&8&'g %eee$$el +$&'g

5(A..&%&o' o* $al%

3(ollec%&o' o*

)a$%e+,& e.ch&lle. 7a%e,

&' ca'$

4(A..&%&o' %o /&8&'g

e$$el

"(A..&'g %he

Ma$alaI%e/ &' /&8&'g

1#(&l%,a%&o'


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ORGANIZATION STUDY

:, 7+ee

! taste of purity& Bandini %hee made from pure butter. It is fresh and pure with a

delicious flavor. Hygienically manufactured and packed in a special pack to retain the

goodness of pure ghee.

!vailable in 299 ml& 899 ml& 0999ml packs K 08 kg tins.

Produ'! De 'ri3!ion of *+ee

0. Product Bame C %hee

2. How it is to be used C *irectly or indirectly as a :ooking or

flavoring medium in food preparation.

=. Packaging C Packed in multiplayer co "xtruded film +food

grade, In different pack size +299ml&

899ml K 0999ml, and in bulk lacquered Tin

containers.

6. 1helf $ife C 1ix months from date of packing at room

temperature when stored in cool K dry

place.

8. here it will be sold C !t all provision stores& at Bandini retail

points K wholesale dealers



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ORGANIZATION STUDY

7+ee Produ'!ion:


4(+,&'g1(

ollec%&o'o* c,ea/ &'

c,ea/$%o,age

%a'0

2(P+/)&'g %h,o+gh

c,ea/ ch&lle,

3(ollec%&o' o*

c,ea/ &' +%%e,

5(ollec%&o' o*

+%%e, &' %,olle9

1"(S%o,age

14(ool&'g : $e%%l&'g o*

ghee

"(ollec%&o' o*

/el%e. +%%e, &'

!( T,a'$*e,,&'g &'%o+%%e, /el%&'g a%

6(ollec%&o' o* +%%e,/&l0 &'


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ORGANIZATION STUDY

*, Peda

Bandini Peda made from pure 'ilk.

!vailable in 099 gms K 289 gms packs.

Produ'! De 'ri3!ion of 3eda:

0. Product Bame C Peda

2. How it is to be used C !s a sweetmeat

=. Packaging C #utter paper liner in carton

Packing +289g,

6. 1helf life C < days from date of packing at ambient

temperature.

8. here it will be sold C !t Bandini parlors& Bandini retail

stores& wholesale dealer.

>. $abeling instructions C best before within < days from

date of packing& milk based

highly perishable

4. Is special distribution control C Bo


1 (Pac0&'g a% 4#-45 .eg

15(ollec%&o' o* ghee &'

ala'ce %a'0

11(

ol.&'g 1#-15 /&'+%e$

12(oo0&'g %o

1 -!#

13(ollec%&'g &' ghee

$e%%l&'g %a'0

1#(

oo0&'g o* +%%e,*a% ;11!-12#< .eg

2#(D&$)a%ch

1!(O'l&'e

(D,a&'&'g o* $o+,

+%%e,

16(Rece&)% o* l/= %&'$=

co,%o'


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ORGANIZATION STUDY

4. FUNCTIONAL DEPART/ENTS OF OR7ANI9ATION

4.1 FINANCE

T;';$ is one of the 6 dairies initially started by **:. This diary wasestablished with initial investment of )1 6& >=& 22&=>9 borrowed as loan from B**# as

I*! loan. The fund given by B##* has generated from orld #ank and it has been

given loan from government of arnataka or guarantors.

The funds given by B**# as I*! loan was used for the construction of diary&

installation of commission of plant& machineries& equipment in the diary.

Fun'!ion of Finan'e De3ar!6en!:

0. Preparation of budget for integrating business plan with 'I1 section.

2. 'aintaining related accounts for milk purchase.

=. Preparing and arranging payment for 'P:1.

6. !rranging scrutiny of marketing records relating to sale of milk and milk product.

8. !rranging for writing of payment for different materials purchases.

>. !rranging remittances of taxes.

4. Preparation of payrolls of time milk union.


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ORGANIZATION STUDY

AC2UISITION OF FUNDS:

Ance when the requirement of funds is identified& those funds should be acquired.

The funds of T;';$ include reserves and surplus and share capital& T;';$ issues

only equity shares& as it is a coDoperative society. It owes 48>.96 lakhs shares capital from

its


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ORGANIZATION STUDY

/AINTENANCE OF )OO#S OF ACCOUNTS:

The finance department does costing in T;';$ itself. Thought the finance

department maintains cost accounts& the prices of the product of T;';$ are fixed by

'/. "ach and every transaction that takes place in the diary has to be recorded properly

for the purpose of having better control over the funds and for optimal utilization of

funds. !ll the transactions are recorded in (ournals and then posted into ledgers.

AUDITIN7 C

There are two types of are done in T;';$&

0. Internal audit.

2. 1tatutory audit.

0. In!erna( audi! C The union has system of per audit conducted by team of chartered

accountants. This makes day to day internal audit books of accounts in all financial

activities of diary.2. S!a!u!ory audi! C the statutory audit of union is done by government department and

department of coDoperative society-s audit. /or this purpose an assistant director deputed

by department of coDoperative audit under rule 660 to milk union.

FINANCE DEPART/ENT STRUCTURE

4.". /ANA7E/ENT INFOR/ATION

SYSTE/


*eputy manager

!ccounting officer

1upervisors

:lerical staff


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ORGANIZATION STUDY

/irst of all& let us look into three elements of 'I1.

/ANA7E/ENT

hat is 'anagementO

It is an administration in an institution or %overnment in a state or in a country or

an "xecutive in an Industry.

To achieve the desired results& we make supervisions step by step. There are

different ways to manage or carry out the work. The success ways to manage or to handle

the situation is nothing but management.

The examples of 'anagements areC

Personal 'anagement

Production 'anagement

Inventory 'anagement

The management can be classified into three categoriesC

Top 'anagement

'iddle 'anagementAperating 'anagement

IB/A)'!TIAB

Information is the valuable commodity required by the management in order to plan and

control its operations effectively.

Information is considered as a significant resource in the process of decision making

effectively.

SYSTE/



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ORGANIZATION STUDY

The third element of 'I1 is 1ystem.

hat do you mean by 1ystemO

"verybody talks of 1ystem. If things go wrong we blame the 1ystem. Then what is1ystemO

The element of 1ystem is very well defined by ebster *ictionary. It says that it is set of

arrangements or things so correlated or connected to form a unit or organization.

1ystem is a set of elements working together to achieve common ob(ectives.

"g. !udit& Traffic 1ystem.

'any examples could be given

"g. 1olar 1ystem& #lood :irculation 1ystem.

The broader definition would indicate that the system is a method of doing things

logically and in orderly fashion expecting results with minimum efforts.

O- e'!ive of /IS

To get information G data in time.

To get information G data in a proper Performa.

To analyze the information.

To furnish the information to management to take decisions on time.



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ORGANIZATION STUDY

FLO8 OF INFOR/ATION

The $owest $evel of 'anagement is Aperating 'anagement is confined to day to

day work. They are supposed to implement the decisions already taken.

The 1econd $evel is 'iddle 'anagement. It will supervise the implementation and

provides ma(or links and feedback the management.

The Top 'anagement would confine itself in formulating various policies and taking

decisions to keep its position in the field.

Ro(e of /IS in De'i ion /a$in*

1peed!ccuracy

)eliability

1ecurity

Timeliness

;nderstandability

Ro(e of /IS in Tu6$ur Dairy

To collect the information

D *aily G eekly G 'onthly.

To furnish monthly reports to

D '/ G B**# G Athers.

To furnish monthly information to #oard for *ecision 'aking.

:omputer related works.'ilk #illing G 1ales !ccounting G Pay )oll G %I1 G I*I1.

!nnual #udgetingDIntegrated #usiness Plan

Pro(ect orks& To guide students for Pro(ect )eports.



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ORGANIZATION STUDY

4.%. &U/AN RESOURCE /ANA7E/ENT

Human resource management is a management function that helps a manager to

recruit& select& train K develop members of organization. It mainly concerned with the

people dimensions in organization

T;';$ has a very efficient H)Ddepartment also known as ?!dministrative

*epartment@ the activities are very limited. #ut this department carries out its function

effectively K maintains good employee K employer relations.

FUNCTIONS C

0. )ecruitment of candidates.2. 1election of best suited and right person.=. Training and development of employees.6. /raming of rules.8. :reating a good working environment.>. 'otivating the employees to work hard4. 'aximizing the performance of employees


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ORGANIZATION STUDY

2. :onveyance allowanceCD company provide conveyance facility to its employees from

the place of residence to the place of work. T;';$ also provide these allowance

because it is situated 00 ' away from Tumkur. :onveyance allowance of 028Gmonth

for person owing scooterG motor cycle& )1>8 for moped whereas )1 =8 for others will begiven.

=. 1hift allowanceCDIt is an allowance given to employees who work in shifts+except

general shift,1hift allowance should not be taken into account for the purpose of

calculating P / &bonus etc

6. Provident Kpension /undCD This contribution is equal to that of employee contribution

02F of salary K it is divided between provident K pension fund as 4F

respectively the total accumulated is balanced in the individual P/ account and is paid to

employee at the time of his retirement or on is leaving the service. In the event of death

of the employee accumulated balance is paid to legal hire.

8. %ratuityCD The amount of gratuity payable in generally 08 day average salary per year.

/or this purpose salary includes only basic and P!

>. %1$I1CD?%roup 1aving $inked Insurance 1cheme@

a, *eath relief fundCD The company is following fund according to the %ovt declarations.

4. $eave facilitiesCD !ll permanent employees will be given leave facilities as mentioned

below

a, "arned leave D=9 days Gyear

b, :asual leaveD 08 daysGyear

c, :ommitted GHalf day 09dayGyear

d, %overnment holiday as per :1)


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ORGANIZATION STUDY

5. Handicap allowanceC D "very disabled person gets 299Gmonth

09. ashing allowanceC D ashing allowance is also provided by T;';$ to each

employee of )s. =9. It will not be taken into account for the purpose of P/ calculation P/

bonus "1I and gratuity.

00. 1alary advanceC D orkmen will be provided to avail this facility 4 times in a year.

The entire allowance amount will be deducted from the salary of the month in which

advance is paid.

T+e o!+er &R/ 3ra'!i'e 3ra'!i'ed in TU/UL are a under:

0. :anteen facility

2. /estival advance=. "mergency and medical loan facility6. "mployment opportunity8. $ong service award hospitalization>. :old storage allowance4. "mployee state insurance


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T;';$ +Tumkur 'ilk ;nion $imited, has a very able marketing department. It

has a very efficient staff and wellDtrained 1taff. They carry out the marketing activities

very well and try to reach the desired goals within a specified time period.

/ar$e!in*

!rea of operation

The marketing area of Tumkur 'ilk ;nion is entire Tumkur district and part of #angalore city.

i.e. *abaspet& Belamangala& Hesaragatta road& #agalagunte& :hikkabanavara& #one mill&

1hettihalli& 'allasandra& :hikkabidarakallu& 'allasandra& !nchepalya&


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ORGANIZATION STUDY

;nion has two modes of distribution channels. The union directly markets milk K milk products

through its own channel of retailers appointed in their area operation through contract vehicles.

)etailers directly sell milk to customers at their out lets as well as distribute milk to customers

door step through home delivery boys.

;nion has also deployed mobile sales vans for better market penetration for sale of union

products.The second channel of distribution is through '/. The union sells milk in #ulk to sister

unions G*airy +*ates dairy sales, as per milk movement plan *rawn by '/ union also sells

milk products +%hee& 1'P& 'P& *!I)L HITB")& #utter milk, through '/. ;nion also

sells milk products +%hee& 1'P& #utter, through '/-s established retail channel K *irect #ulk

sales.

'a(or marketing initiatives taken

• "xpansion of product portfolio by introducing different variants of milk in retail market

to suit to customers required union sales. T'& HT'& H:'& K 1hubam milk in pack size

ranging from 289ml& 899 ml to 0999ml.• 'arket expansion by increasing the member of outlets K retailers& parlors.• :onsumer :are :entre in Tumkur K alk in cold store at #angalore to market milk K

milk product available throughout the day to customers as well as retailers.• 'arket expansion in )ural !reas& *eployment of 'obile sales vehicles.



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ORGANIZATION STUDY

• 1trengthening of cold chain by providing chest coolers to channel members at subsidized

raters.• *eployment of refrigerated vehicles to selected market areas.• Increasing the product range offered for sale by procuring milk products manufactured by

different unions K units of '/.• "xtensive consumer education by organizing dairy visit to schools K college students K

'ahila 'andal-s K other social organization.

"xtensive advertisement through wall paintings K PAP materials like glow sign #oard etc.

The ;nion sells milk through 55< retail outlets through 82 morning and 09 evening distribution

routes.

Area of 'on'ern in 6ar$e!in* and di !ri-u!ionThe union has made good progress on the marketing from the liquid milk market +)atio, as

grown at an appreciable rate in the last 8 years. /igures given belowC

Lear ty milk sold in lpd

+In retail market,

F growth over previous year

2995D09 066>=9 4F

2909D00 0>6>29 06F

2900D 02 0> 0=F

2902D0= 05 09 F

2908D0> up to ulyD08 2==2>4 8F



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ORGANIZATION STUDY

Fun'!ion

0. :ollection indent form retailer session wise.

2. Preparation of distribution sheet.

=. Preparation of indent for production.

6. !warding of distribution contract.

8. *istribution of 'ilk and 'ilk product.

>. !ppointmentGcancellation of retailer ship.

4. )edressel of customer complaints.


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ORGANIZATION STUDY

6. Homogenized cow toned 'ilk

8. 1tandardized 'ilk

Total curds sales T;';$ Per dayC 0=&899kgs

Total 'ilk sales T;';$ per dayC 0& 6=&999ltrs

:hannels of *istributionC

62 *istribution vehicles are there.

69 are Insulated vehicles

2 are )efrigerated vehicles

0= 'ilk unions all over arnatakaC

0. #angalore *airy 4. 1himoga

2. 'other *airy


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ORGANIZATION STUDY

• Toned milk )s.9.8> per liter

• %hee )s.29.50 per liter

•

:urds)s.0.89 per liter

• Peda )s.2=.8> per liter

• 'asala butter milk )s.9.89 per liter

/a or 'o63e!i!or :

The ma(or competitors of T;';$ are the loose milk vendors& but the other brands areCD

• !rogya• *odla


TUMU@

> O@ERETAI@ERS

S OPSONSUMERS S OPS ONSUMERS


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ORGANIZATION STUDY

• ersy• !grigold• Tirumala

The private brands are promoting these products through ma(or advertising& more retailmargins& etc.

Promotional !ctivitiesC

0. *oor to door campaigningC this is done through the sales force team by questioning the

consumer& reasoning them& mailing brochures etc. this is carried on periodically.

2. Arganizing meetingsC meetings on important public places and inviting important people

like doctor& professional& government officer-s etc.=. Jisit to mahila mandalsC visiting to mahila mandals and creating awareness about the

product and its benefits& inviting them to the plant and shows them the production.6. Jisit of school children to the dairy and promoting their products through them by issuing

samples.8. Inviting the consumer forum and creating awareness to them.>. Participating in trade shows& exhibition and educate people.4. Through advertising in ma(or media like T.J& newspapers& and hoardings.


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ORGANIZATION STUDY

The milk coming from cooperative societies in various routes reaches in lorries of

various capacities likewise by tankers from chilling centers. /irst the milk which is

present in the cans in checked normally by a skilled person so that they can make sure

that there is nothing bad in the milk. !fter that the sample of each society Gis taken in thesample bottles.

1pecific %ravityC

The coded milk samples specific gravity is measured as :$)+ :alibrated

$actometer )eading, as per I1I the specific gravity of milk is to be volumetrically tested

at 24 dg :. Hence samples temperature is ad(usted and lactometer float in milk is taken as

reading when it is put to the (ar. The specific gravity of milk is over and above water

which is 0.9 hence the relative reading of $actometer is taken as 0.9Q2


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O)


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ORGANIZATION STUDY

The primary responsibility of manufacturing activity is to produce a product or products atC

0, PreDestablished cost2, !ccording to the specified quality=, ithin stipulated time schedule

FUNCTIONS

0, Procurement of raw milk2, 'aintain and produce the standard quality products=, :ost of production

Ty3e of 3rodu'! 3rodu'ed

0, 'ilk

2, Peda=, %hee6, #utter milk.8, :urd.

;. S8OT ANALYSIS

EN IRON/ENTAL SCAN

Internal !nalysis "xternal !nalysis

1trengths eakness Apportunities Threats

1 AT 'atrix



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ORGANIZATION STUDY

1 AT analysis is the tool for auditing an organization K its environment. It is the

first stage of planning K helps markets to focus on key issues. O'ce 0e9 &$$+e$ ha e

ee' &.e'%& e. %he9 *ee. &'%o /a,0e%&'g o ec%& e$( It can be used in con(unction

with other tools of audit and analysis.

?1 AT@ stands for strengths& weakness& opportunities and threats. 1trengths and

eakness are within the company where as opportunities and threats are external

factors.1trengthsC 1trengths are its resources K capabilities that can be used as a basis for

developing competitive advantage. It means the power of the organization to utilize the

available resources in maximum extent to achieve the goals of an organization. The

power may be in the form of finance& H)& place& ownership etc.

8ea$ne e C !ttributes of the person or company those are harmful to achieving the

ob(ectives.

O33or!uni!ie C "xternal :onditions those are helpful to achieving the ob(ectives

T+rea! C "xternal :onditions which could do damage to the ob(ectives.

;.1 STREN7T&S:

0, ! high processing infrastructure.a, *airy plant with a capacity of 8& 4=&999 kgs per day.

b, /acilities to manufacture ghee& curd& peda& butter& butter milk 2, #rand support of BIB*IBI by '/& this brand image is well established in the market.=, T;';$ en(oys a strong customer based in their domestic market they have captured

almost 88F of market share in the domestic market.6, Technological support from B**# each and every development stages of the

organization.

8, The organization is capable of meeting the large demand& which cannot be met by anyother sources.

>, $arge network of organized suppliers for the procurement of milk.4, It has an automated production process& which helps them to reduce the cost of

production per unit.


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ORGANIZATION STUDY

09, T;';$ has a strong customer base.

;." 8EA#NESSES:

0, $ack of well experienced engineering personnel. !ll superior posts in all the departmentsare filled through promotions.

2, $onger distribution routes and retailers points& it can cause delay in production&

distribution=, Tight overhead cost.6, :entralized decision making is the burning problem in the organization since it takes very

much of time& due to lack of cooperation between different departments.

;.% OPPORTUNITIES:

0, The market potential is large so that there is ample scope for improvement of sales.2, Apportunity to introduce product range.=, $arge area of land is available for different activates.6, Increase the level of customer awareness.

;.4 T&REATS C

0, $arge numbers of competitors are entering into the market.2, ;nethical practices of competitors.=, ! group of unorganized local vendors can dominate the market.



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ORGANIZATION STUDY

;.=. /'#inney> ?> /ode(

The 4D1s are

• 1tructure• 1hared Jalues• 1ystem• 1tyle


&ard>

Sof!


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ORGANIZATION STUDY

• 1taff • 1kills& and• 1trategy

'c insey-s 4Ds framework was developed in the late 4-s by 'c insey company areputed management consultancy firm in the ;nited 1tates.

The framework rest on the proposition that effective organizational change is best

understood in terms of the complex relationship between strategy& structure& systems&

style& skills& staff and shared values+or super ordinates goals,D the 41-s.

Or*ani,a!ion S!ru'!ure of TU/UL C



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ORGANIZATION STUDY

S!ru'!ure



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ORGANIZATION STUDY

The way the organization is structured and who reports to whom. The most

important resource of organization is its people& how they are organized is crucial to its

functioning and accomplishing successful implementation of its strategy.

In simple structure is a pattern in which various parts or components are interDrelated and interDconnected. 1o organization structure is a pattern of relationships among

various activities and positions& The structure defines the relationships among people in

the organization.

"ach division is responsible for its marketing of milk products and related

activities and up to an extent they are responsible for maintaining accounts of their

income and expenditure.

S!ra!e*y

The integrated vision and direction of the company& as well as the manner in

which it derives& articulates& communicates and implements that vision and direction.

Tumkur 'ilk ;nion $td. will endeavor to become learning and knowledge based

organization. The company will establish itself as a preferred supplier of milk by

delighting the customers with its products and services.

Co ! /ini6i,a!ion:

The company is striving to become one of the most cost competitive plants in the

industry and generate wealth to serve its shareholders& the surrounding community and

the nation. #y establishing 6 chilling centers it-s cutting the cost of transportation.

:onsistent with the purpose of improving the quality of life in India through leadership in

sectors of national economic significance& Tumkur 'ilk ;nion $imited will strive to lead

the milk producer industry. This shall be achieved through high productivityN continuous

improvement and technological breakDthrough. Tumkur milk ;nion $td would endeavor

to return to society what it earns by creating a difference in the lives of people in its

immediate surroundings.

/ocusC



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ORGANIZATION STUDY

The main focus of Tumul is to provide more money per liter to its member

farmers through higher productivity. It also takes care of their cattle breeds and for that

reason there are !I centers and veterinary hospitals.

*ifferentiationC

Tumkur 'ilk ;nion is committed to supply safe 'ilk K 'ilk Products to the satisfaction

of customers byC

• :omplying with statutory and regulatory requirements

• :onstant communication with all parties involved in the food chain

• !dopting %HP& %'P K H!::P

• !dopting scientific processing methods

• Providing appropriate training to employees

This commitment is supported by measurable ob(ectives and brings about continual

improvement.

Sy !e6

The decision making system within the organization can range from management

institution& to structured computer system to complex aspects of systems and artificial

intelligence. It includes

:omputer systemAperational systemsH) systems

The process and flow that shows how the organization gets things done from day

to day activities. 1ystems cover formal and informal procedure that governs every day

activities covering everything from management point of contact with the customer.

S+ared va(ue



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ORGANIZATION STUDY

These are called ?super ordinate goals@ when the model was first developed.

These are the core values of the company that are evidenced in the corporate culture and

general work ethics.

1hared values mean that the employees share the same guiding values. Jalues are

things that you would strive for even if they were demonstrably not profitable.

a(ue C

The following are the values bound by T;';$D

0. Honesty

2. *isciplineG Timeliness

=. uality

6. Trust

8. Impartial

>. 1avings

4. Transparency

The employees of Tumul are working according to the values of the company.

They are punctual to the work. :oordinating with other departments and maintaininghygiene near the procurement& production& packaging and products departments.

S!y(e

1tyle refers to the employees shared and common way of thinking and behaving

unwritten norms of behavior and thoughtC

$eadership 1tyle



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ORGANIZATION STUDY

Arganizational :ulture

Here style implies the leadership approach of top management and the company-s

employee-s way of thinking and behaving. The style is the tangible evidence of what

management considers important& the way it collectively spends time and attendance and

uses symbolic behavior.

In Tumul even though the leadership style is centralized the respective authorities

and responsibilities have been given to the respective department managers and deputy

managers. This helps them to take on time decisions which may not require the nod of

'* at that moment only.

S$i((

! skill refers to the fact that employees have the skills needed to carry out the

company-s strategy. Training and *evelopment ensuring people know how to do their

(obs and stay up to date with the latest techniques.

1kills have been classified into :onceptual skills& Technical skills and

interpersonal skills by 'intzberg.

T;' ;) ;nion $imited is committed to upgrade the skills and knowledge of itsworkforce for developing all employees into knowledge workers. In order to achieve this

the company will strives to

Provide both 3on the (ob- training to its employeesPrepare and implement a training plan based on identified training needs to

develop employees as better human beings.

Te'+ni'a( $i(( :

Technical skills which are required to do the (ob in Tumul are to have thoroughknowledge of computers and the software-s used in the respective departments. The

software-s which are used in Tumul are *elta Information 1ystems& 'ysore. ebsite is

created by :yrus solution& #angalore. )espective departments need specific qualified

candidates like quality control department hires the candidates who have #.1c



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ORGANIZATION STUDY

background& 'I1 takes ':! and '#! holders& Production department has #" in I"'

background candidates in the top positions.Jarious training programmes such as :'P Training& ':' training& President training&

!I 1ingle K :luster& !':;& /irst !id& 1ecretary& Tester training K P.* training are

being arranged from time to time to enhance work efficiency. The officers of the union

are also being trained in different disciplines. 1o here according to department wise

technical training is needed to the fresher-s so that they can be successful in their (obs.

Interpersonal 1killsCThere is H) department in the administration section. Here they inspire the employees to

go for more productivity by providing them few allowances like shift allowance& medical

reimbursement facilities and promotions based on their seniority and experience. If any

conflict arises between then the deputy H) manager would take the complaints of boththe parties and the problem will be tackled formally. There is no room for indecent acts.

:onceptual 1killsC 'anaging *irector is at the top of the hierarchy. 1o the final decisions are made

by him like sanctioning new schemes to farmers and finalizing the tenders. If the

decisions are related to particular departments then they can be taken by the respective

department deputy managers. #ut for ma(or decisions they would call '* through

telephone and take his nod."xperience in respective department counts while managers take the decisions. 1o

here the managers are continuously striving for knowledge.

S!aff

1taff means that the company has hired able people& trained them well and

assigned them to the right (obs. Here in T;';$ there are =>9 permanent employees.

1election& training& reward and recognition& retention& motivation and assignment to

appropriate work are all key issues. !ll these employees are striving hard to contribute

the organizational development at Tumul and achieving at the individual level.



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ORGANIZATION STUDY

=. FINDIN7S

T;' ;) 'I$ ;BIAB is a cooperative institution which has the motive of social

service. It-s engaged in the production of milk and milk products.T;';$ sells its all products to the Bandini milk parlors and general public for

consumption.The mode of procurement of milk is through the societies formed by the farmers. ;sing

tankers and vans milk is procured from


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ORGANIZATION STUDY

In the plant portion of the site is under construction to build the infrastructure which is

required for more procurement and production.The financial statements of T;';$ are prepared in accordance with :ompanies !ct of

058>.!nnual turnover 2906D2908 was 205


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ORGANIZATION STUDY

• Public relationC The public relations can be increased by the organization this can be done

by visiting the customers along with the agents within their territory there by developing

healthy relations.

• :onsumer awareness programC The customer awareness program can be conducted by the

organization.

• TransportationC The tender allocation may be done to the responsible transportation

agentsGservices. !nd the delivery staff has to be trained to behave like salesman& because

they are the representatives of the union.

• )efrigeration facilityC It has been studied that there is demand for milk throughout the

day hence some of the agents +not all, have purchased a refrigerator at their own cost andsell the milk at an extra cost and this is also loss to the customer. Hence the provide

refrigerator facility to the agent at subsidized rates.

• :ratesC The crates should be kept clean and they should be immediately replaced in case

of damage& because the damaged crates are prior to results in damaged pouches of milk.

CONCLUSION

To conclude& milk and milk products are the main daily necessities of human life

for all age group. /rom the study it is revealed that B!B*IBI is the only branded milk

operating with no union (urisdiction. The union has not gained considerable market share.

1ince it is in coDoperative sector the union works in the interest of producers and

consumers. Their main motive is the welfare of the farmer members.

The organization has to give importance to agents who are going to play keenly in

pushing the Bandini products. Hence the organization has to undertake the sales

promotion activities for motivating the agents as well as consumer to push the products

hard in the market.

In today-s competitive world though many unorganized sectors have emerged& still

T;';$-1 BIB*IBI milk and milk products are unique.



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ORGANIZATION STUDY



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ORGANIZATION STUDY

@. LEARNIN7 E PERIENCE

It is a great experience at T;';$ where we learnt many things about thefunctioning of the company in accordance with the present market trends.

e being the students of 'I# were exposed to working environment.

e saw the coordination between the (uniors and seniors. How (uniors were

giving respect to the seniors. "ven though at computer work new entrants are

faster they used to take the guidance of their superiors. It shows that experience

matters.

1ince T;';$ is an organization which produces edible food hygiene is rightly

maintained. 1o it helped me to learn why different organizations have different

policies of maintenance.

e came to know how management maintains relationship with workers& how

they handle grievances. e came to know how to interact with the people of the

organization

This helped in developing our knowledge K it gave a practical experience of

the industrial scenario in the competitive environment outside the realms of the

institute. !lso understood that only through team work& every work could be

completed and mission can be accomplished.

ournals and ledgers were treated important in this organization also because

there are the basis for any transaction which have been occurred. 1o got to

know why we had these chapters in our fundamentals of accounting.

T;';$ has given more important to the customer satisfaction. #y this we have

learned the strategies to be adopted for customer satisfaction.

e observed the working technologies& management process& hierarchical

relationships among the employees and practices of organization like training&

safety and welfare etc...

e have studied the traits and qualities essential for executives and manage

motivation& leadership& understanding the needs of subordinates. e studied



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ORGANIZATION STUDY

about human resource skills& which indicate ability to deal with subordinate in a

human approach to their problems& develop personnel support and team spirit.

!miable relations between the various departments make it possible for

T;';$ to optimize its functioning. 1elfDmanaging& thinking and ability toad(ust to new environment have enhanced. e also came to know about the

importance of training and development which will help an employee for their

career building and selfDdevelopment.

Thus internship training has honed personal attitude like skills& talent& abilities

and attitude etcSwhich would guide us in contribution to Bation by working

efficiently in organization which fosters top performance.



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ORGANIZATION STUDY

11. )I)LIO7RAP&Y

!. #ooks

a. J.1. )amaswamy K 1.B. Bamakumari& 'arketing 'anagement& 'acmillan Publishing

India $td& /ourth "ditionC2995 b. *r. . !shwathappa& Production Aperation 'anagement& Himalaya Publishing House&

/irst "ditionC 299<c. P. 1ubba )ao& Human )esource 'anagement& Himalaya Publishing House& /irst "ditionC

299<

#. "#1IT"

www.tumulcoop.com

www.kmfnandini.coop

:. Bews paper

#usiness Times& #usiness orld

*. )eport

:ompany !nnual )eport

Documents

tumkur milk coorporation