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In the present scenario human beings are striving hard to sustain in this world through
proper needs like food, clothes, shelter, education etc. There are certain needs in this
world. That are rights every human beings. Every day we need certain things to eat
and drinks, for all survivals. In the above all as we now food is the supreme one. It is
nothing but food is the one and only factor which plays vital role responsible for the
existence of human life.
Milk is considered itself as “food “because milk contains many of the vital proteins
and vitamins. Which are necessary for the existence of the human life. We all know
that cow gives as milk. So from the ancient period itself milk as become an essential
food for human life. So they buy milk instantly from societies and shop. Some people
have their own civilisation and some have cattle farm for self-consumption of milk as
well as for how ever as civilisation advances and growth in they, economy, semi-
urban areas are changed in to urban areas as a result cattle farm slowly disappears
from city and are settled in villages because of highly expenses in the cattle farm
maintenance people solely emerges from that job to another even through the crises
occurs I the field of milk production no reduces the consumption of milk in their day
to day life.
The consumption milk by the families is increasing day by day people have no time to
look after the how for feeding them for milk do they use to buy milk. Thus arises the
emergence of new brand in the field of milk industry. Here arises the importance of
recognised societies and companies.
In this organisational study I conducted which enables to know the real functioning of
the organisation.
In the present scenario the business become competitive and technology has
changed the nature of business and organisation a lot. This study analysis in
detail about the functioning of the department on the basis of strength
weakness
To understand the human resource management in the economy
To understand the quality of product and consumer behaviour of the company
The study was conducted for a period of one month from 02.05.19 to 31.05.19, at
Eranakulam Regional Cooperative Milk Producers Union (ERCMPU) Thripunithura.
SOURCES OF DATA
a) Primary data
Primary data were collected through observations, personnel interview,
discussion with manager and employees of the various department of the
organizations
b) Secondary data
Secondary data were collected through literature review which includes
company interval record publication annual report website(officials and
others)
The given time for the completion of this work was one month. If more time
was given, more information could be collected.
Due to busy schedules of the officers and the employees proper detailed
discussion with them was not possible.
The company was reluctant to provide some of its official documents and
reports which are confidential.
INDUSTRY PROFILE
In India the white revolution has achieved its first goal of boosting production
and flooding the country side with milk it led to the sustained growth in the
availability of milk and milk product. In terms of total production India is the leading
producer of milk in the world is followed by USA the milk production in India
accounts for more than 13% of the total world output and 57% of Asia’s total
production during the pre-independence. Public and private agencies dominated the
dairy industry, although government policy. Did early efforts to organize during along
co-operative lines were made immediately after the enactment of the co-operative
society’s act 1912. The present day Anand pattern dairy co-operative at Anand in 1d
946 under the direction and guidance of sardar vallabai patel. They dairy farmers of
the knead. District of Gujarat organized themselves to form a dairy co-operative in
order to directly under take sale and processing of milk collected from member dairy
farmers district Milam food ltd are some of the dairy co-operative which now
functioning in India which here been formed in partnership with the respective dairy
federation of Kerala, Uthranjal, Utharpradesh, Andrapradesh.
In the year 1986 the department of defence established dairy farmers forms
supply of milk of British Troops stationed at Allahabad at advised by the board of
Agriculture. However only in the 20th century India witnessed a flurry of activities in
the field of cattle rearing a dairy.
The dairy Industry was greatly affected during the second World War due to
shortage of milk and the demand for milk and milk product the from the army’s as
well as civilian’s population. After independence there was another support of
expansion in the field of piney co-operative.
To meet the growing demand of milk and products, there is the need to
revamp the country’s milk policy and promote manufacture of high quality dairy
products. There is very good scope for new entrepreneurs. The dairy industry
involves processing raw milk into products such as consumer milk, butter, cheese,
yogurt, condensed milk, dried milk and ice cream using processed such as chilling,
pasteurization and homogenization.
Animal milk has been part of the human diet in many counties across the world since
prehistoric times. Most of the milk for human consumption comes from 5 major
Mammals’ spies: cow, buffaloes, sheep, goats and camels. Buffaloes milk production
is concentrated in Asia especially India. Tradition dietary habit, climate and other
Natural conditions are important factors determining production and consumption of
milk and dairy products for a country or region. European countries, Arab nations and
South Asia, for example has a long history of animal milk production and
consumption whereas in East Asia and African countries, milk has been relevant in
the diet of the people. Owing to favourable conditions for dairy farming, New
Zealand, Australia. North and South America have become major milk producing
regions. However milk production or dairy farming, is only one link in the value
chain. On a Global basis, only a small percentage of global milk production is
consumed in raw form. In fact in most developed countries, the amount of raw milk
used for human
Consumption is only 5 to 10 percentage. More than 90 percentage of the raw milk is
processed into derivative products in these countries. Thus, dairy processing has
emerged as a major industry in itself.
Milk production is expected to shift from high cost to low cost countries, and output
growth will increasingly be located in regions with rising demand for milk and milk
products: continuing a trend evidences in the 1990s. As a result the proportion of
world milk production originating in the developing countries is projected to
increase. While some developing countries are projected to become more active in
export market, the developing countries as a whole would remain substantial net
importers of dairy products.
The Global Diary outlook report forecast that by 2020 the world annual production of
milk will grow to 827 million tons. Production by geographic region, however, is not
expected to shift significantly.
The European Union, EU28 (The 28th member state was actual in July, 2013. India
and the US are the large milk producers, in 2020.
Due to worldwide growth in during consumption nearly all countries /regions are
projected to increase absolute projection volumes.
New Zealand EU -28, Australia and US were the large exporters in 2010
New Zealand, US. Exports are forecast to increase considerably by 2020.
Russia and China, and Mexico Where the largest in 2010
Argentina is expected to become a larger exporter of milk products.
MEGA DIARY FARMERS
U.S dairy farmers produced a record 200 million gallon of’ milk in 2012, due to their
ability to successful manage larger herds and increase per-cow milk production more
than half (57°/o) of milk produced in the U.S come from during farmers managing at
least 500 cows. Milk Production at during farming operation is increasing due to:
Advantage in equipment
Access to higher quality feed.
Changes in herd size and management Increased automation of new technology has
resulted in greater efficiency and economy of’ scale at large Diary farms. These
advances are making it harder for smaller, less technology sophisticated farmers to
stay competitive. Since 1992 the numbers of licensed farmers has decreased 61
%.Increased herd size around the globe has given way to the so called mega farmers.
Where herds of a few thousand cows are typical and herds can number in the terms of
thousands. Indian operates one of the largest US mega during Farmers
Managing30000 cows and Saudi Arabia operate the world largest Mega-during farm
with 38000cows.
TRADE
At the global level import demand for dairy products could reach 51 million tones in
2010. An increase of 12 million tones over the base period, a similar proportional
increase to that seen in the 1990s. This would imply that the proportion of total milk
traded would remain small - 8% of world production.
The developed countries are projected to continue to account for the bulk of exports
of dairy products in 2010- three quarters of trade only a slightly smaller portion than
at the start of the 1990s, when developed countries accounted for 8% of world export
show ever a shift in the relative importance of different regions is foreseen. The
proportion of world exports supplied by New Zealand and Australia are projected to
increase substantially, while those originating in Europe will decrease and the
situation in North America will change little. The imports of developed countries are
projected change little.
The imports of developed countries are projected to change little over the projected
period. For the countries in transition, limited growth in milk output and some
increase in domestic demand are expected to inhibit export growth and improvements
in domestic processing capacity should act to curtail import demand.
International prices for dairy products measured by an index grouping the single
commodities traded are not expected to increase in real terms over the next decade.
However, it is anticipated that, even at this price level, there would the enough
income growth in importing to stimulate production for export in low cost milk
producing countries.
India has one of the largest livestock populations in the world. 50%of the buffaloes
and 20% of the cattle in the world are found in India, most of which are milk cows
and buffaloes. Dairy development in India has been acknowledged the world over as
one of modem India’s most successful developmental program. Today, India is the
largest milk producing country in the world. Milk and milk products is rated as one of
the most promising sectors which deserves appreciation in a big way. When the world
milk production registered a negative growth of 2%, India performed much better
with 4% growth. The total milk production is over 72 million tones and the demand
for milk is estimated at around 80 million tons. By 2005, the value of Indian dairy
produce is expected to be Rs.1, 000,000 million. In the last six years foreign
investment in this sector stood at Rs.3600 million which is about one fourth of the
total investment made in this sector. Manufacture of casein and lactose, largely being
imported presently, has good scope. Exports of milk products have been decimalized.
The milk surplus states in India are Uttar Pradesh, Punja, Hariyana, Raathan, Gujarat,
Maharashtra Andhra Pradesh. Kamataka and Tamil Nadu. The manufacturing of milk
products is concentrated inthese milk surplus States. Today, India is the largest milk
producing country in the world. The production of milk products i.e. milk products
including infant milk food, malted food condensed milk & cheese stood at 3.07 lakh
tones in 19992000.Production of milk-powder including infant milk-food had risen
2.25 lakh tons in1999—2000, whereas that of malted food k al 65000 tons. Cheese
and condensed milk production stands at 5000 and 11000 ton respectively. Some
plants are coming-up to producing lactose, casein and improved Chees varieties
Dr. Varghese Kurien, the man who transformed lives of million people. He is the
person who taught poor famers how to dream high. His presence is immortal for
generations. Dr. Varghese Kurien (26 November 1921 - 9 September 2012) was a
renowned Indian social entrepreneur and is best known as the “Father of the White
Revolution”, for his “billion-litre idea” (Operation Flood) - the world’s largest
agricultural development programme.
This transformed India from a milk-deficient nation to the world’s largest milk
producer surpassing the United States of America in 1998, with about 17% of global
output in 2010- 11,which in 30 years doubled the milk available to every person.
Dairy farming became India’s largest self-sustaining industry. He made the country
self-sufficient in edible oils too later on, taking the powerful and entrenched oil
supplying lobby head-on.
The transition of the Indian milk industry from a situation of net import to that of
surplus has been led by the efforts of National Diary Development Board’s Operation
Flood Program under the ages of the former chairman of the board. Dr. Kurien,
launched in 1970. Operation Flood has led to the modernization of lndia sectorand
created a strong network for procurement processing and distribution of milk by the
co-operative sector. Per capita availability of milk has increased from 132 gm perday
in 1950 to over 220 gm per day in 1998. The main thrust of Operation Flood was to
organize dairy cooperatives in the milk shed areas of the village and to link them to
the four Metro cities, which are the main markets for milk. The efforts undertaken by
NDDB have not only led to enhanced production improvement in methods of
processing and development of a strong marketing network, but have also led to the
emergence of dairying as an important source of employment and income generation
the rural areas.
It has also led to an improvement in yields, longer lactation periods, shorter calving
intervals, etc. through the use of modern breeding techniques. Establishment of milk
collection centres and chilling centres has enhanced life of raw milk and enabled
minimization of wastage due to spoilage of milk. Operation Flood has been one of the
world’s largest dairy development programmers and looking at the success achieved
in India by adopting the co-operative route, a few other countries have also replicated
the model of India’s Whit Revolution.
The foundation of Anand pattern of milk cooperation was laid with organization of
the Kaira District Cooperative ltd at Anand in Gujarat. In this pattern all functions of
dairying such as milk production, procurement, processing and marketing are all
controlled by the milk producers themselves. The structure of Anand Pattern milk
cooperatives consist of primary milk producers’ cooperative societies at the village
level, regional cooperative milk producers’ union at the regional level, and
cooperative milk marketing federation at state level. The village societies are the grass
root level units. A panel of elected members from the base level working as the apex
body of this model.
Amul’s success led to the creation of similar structures of milk producers in ot her
districts of Gujarat. They drew on Amul’s experience in project planning and
execution. Even before the Dairy Board of India was born, farmers and their leaders
carried out empirical tests of the hypotheses that explained Amul’s success. In these
districts, milk producers and their leaders experienced significant commonalties and
found easy and effortless ways to adapt Amuls game plan to their respective areas.
This led to the creation of the NDDB with the clear mandate of replicating the Anand
Pattern’ in other parts of the country. Initially the pattern was followed for the dairy
sector hut at a later stage. Oilseeds, fruit and vegetables, salt, and tree sectors also
benefited from its success.
COMPANY PROFILE
HISTORY
Ernakulam regional Cooperative Milk Producers Union Ltd (Ernnkulam Milk Union),
Milma, was registered on 12.9.1985 with Ernakulam, Trichur, Kottayam and Idukki
Districts in central Kerala as its area of operation. The union along with its sisters
unions (TRCMPU&MRCMPU) is affiliated to the Kerala Cooperative Milk
Marketing Federation Ltd. KCMMF was set up in 1980 as the implementing agency
for Operation Flood II i the state of Kerala. The goal of KCMMF is “the socio-
economic progress of the dairy farmer through procuring, processing and marketing
of milk”. The mission of Milma is “farmer’s prosperity through consumer
satisfaction”. The ERCMPU operates on the truly democratic line of ‘of the farmer,
by the farmer, for the farmer”. The union has an elected board and all employees
including the Managing Director are its own employee’s. The Union procures milk
from farmers through affiliated Anand Pattern Dairy Co-operatives (APCOS) as well
as from the traditional societies, which are not affiliated. The Union could ensure
consistent and remunerative price to milk producers even when prices of most of
other agricultural produces were volatile. The prosperity of 2.79 lakh odd milk
producers of the state depends upon the Ernakulam Milk Union's ability to provide an
assured and regular market and remunerative price round the year for the milk
produced by’ them. Ernakulam Milk union has four diary plants viz..Ernakulum dairy
at Thripunithara. ‘Trichur Diary at Ramavarmapuram, Kottayarn Dairy at Vadanthoor
and Kattappana Dairy at Nirmala city. In addition it has products Dairy at Edapally,
manufacturing ghee, sterilized flavoured Milk. Peda, Ice cream, Yogurt etc. while
milk from nearby societies arc procured and processed diaries. milk from hinterlands
procured through 79 bulk Milk cooling units (BMCUs) set up in the dairy coop
societies (DCS) and chilling centres located at Muvattupuzha’ and Chalakkudy . In
consideration of a common identity for the quality of milk marketed by the Co-
operative sector Milma joined hands with NDDB in adopting a common mnemonic
logo “device of drop” and to strengthen the marketing activity of the organization. All
dairies and head office of the union have ISO 9001:2008 certification. The name
Milma has been derived by Kerala Livestock Development Board (KLD) and milk
Marketing Hoard (MMB) KLD&MMB existed from 1976 to 1981.
Eleven Diaries capable of handling 9.90 lakh liters of milk per day
Two cattle Feed Plants with cumulative capacity or 66MT per day
Over 32000 people working either directly or indirectly for the functioning of
Milma
Objectives
To channelize marketable surplus milk from the rural areas to urban deficit areas to
maximize the returns to the producer and provide quality milk and milk products to
the consumers.
To provide constant market and stable price to the dairy farmers for their
products
NDDB under Dr. Varghees Kurian’s set up KCMMF in 1980 ever since then, there
has been a very close co-cooperation between NDDB and the Federation. NDDB are
the originators of the operation flood program and have been funding agent for the
Operation Flood Projects in Kerala.
2. AMUL
The Dairy co-operative of Gujarat have been the inspiration for the development of
such a vast network of diary co-operatives in Kerala. Among the co-operatives in
Gujarat the Kara Districts co-operative milk producers union (AMUL) is the first
sector.
3. GOVERNMENT OF KERALA
The phenomenal success of the diary co-operatives in Kerala could not have been
achieved without the foundation of
Animal husbandry activities (Animal Husbandry department)
Diary Development department
Kerala Livestock Development Board (Government of Kerala Understanding).
MOTTO
MISSION
VISION
To constantly strive to provide valued consumers with the highest quality milk, milk
products and other product with the best standards of service by our passionate and
focused work forces using state of the art technology ensuring dairy farmer’s delight
by better realization of milk price and offering needed service at his/her doorstep.
LOGO OF MILMA
The logo of the right crescent and the name Milma in small letter under that. The four
crescents represent four important department of Milma. The left crescent represents
procurement and technical input department. The right crescent represents marketing
department. The top most crescent represent processing department which hold the
working of other two departments. Lowermost crescent represent administrative
department, which support all three departments. The name of Milma derived from
two word milk and marketing.
COMPETITORS OF MILMA
PRODUCT COMPANIES
The motto of cooperation “of the people, by the people and for the people “is the
foundation of the “three tier systems” followed by the organization. At the village
level Milma have the village Milk co-operative societies which have the local milk
producers as its members. These village co-operatives units at the Regional level and
form Regional co-operative Milk producers Unions. This union are federated at the
State level to form Sate Federation namely, Kerala Co-operative Milk Marketing
Federation (KCMMF).
Figures at glance
1. MILK
Contains1.5% fat and 9.0% non-fat solids. Ideal for elderly people since fat content in
low. Can also be used for whitening tea and for the preparation of milk based drinks
like fruit shakes. Fat will not settle at the top since the milk is homogenized.
Available in 500ml sachets.
Contains 3.0% fat and 8.5% non-fat solids. Ideal for consumption by children in the
form of milk or in the form of brown beverages like Bourn vita. Fat will settle at the
top if Milk is kept still for some time. Available in 500 ml sachets.
Contains 3.0% fat and 8.5% non-fat solids. Ideal for whitening tea/coffee and for the
preparation of solid curd. Since the milk is homogenised, whitening capacity is more
and less amount of milk will be sufficient for whitening tea/coffee. The milk will not
stick to vessels on heating and hence washing of used vessels is easier. Fat will not
settle at top since the milk is homogenised. Available in 500 ml sachets.
Pasteurized Toned Milk in which Fat is 3.5% and SNF is 8.5%. The milks also
Homogenised to have smaller and uniform fat globules leading to no cream-line
formation, more full-bodied flavour & better mouth feel.
V. Pasteurised Standardised Milk
Pasteurized Toned Milk in which Fat is 3.5% and SNF is 8.5%. The milk is also
homogenised to have smaller and uniform fat globules leading to no cream-line
formation, more full-bodied flavour & better mouth feel.
2. FERMENTED PRODUCTS
Contains 10% non fat solids. Ideal for making curries. Prepared under hygienic
condition by fully machined processes. Cannot be used as starter curd for converting
milk into curd. Available in 500 ml sachet.
Contain 99.7% milk fat. Manufactured by melting fresh cream under hygienic
conditions. Milma Ghee has the ideal golden yellow colour due to presence of natural
carotene in cow milk. No artificial colour or flavours are added in to Milma ghee.
Nature aroma and flavours of ghee is retained since the ghee is produced directly from
fresh cream instead of going in for melting stored butter.
IV. Paneer
Paneer also called Chenna is a milk product made by coagulating boiled hot whole
milk with citric or lactic acid and subsequent drainage of whey. It is a fresh source of
milk protein and has good flavour and smooth texture. It is used in the preparation of
various dishes.
V. Set Curd
This is a coagulated product obtained from the pasteurized toned milk by lactic acid
fermentation through the action of lactic cultures. The product 3.2% and SNF 9.0%
I. Milma Peda
A natural milk toffee manufactured by the heating and removal of major portion of
the water content of fresh milk and by the addition of sugar. No colour or
preservatives are added. Natural colour in the milk gives the product its characterizing
colour. Ideal for children and as an after food sweet. Available in packs of 18 gms.
180 gms and 900 gms.
I. Kulfi
This is an ice cream in which cardamom and saffron flavours are used and filled in
moulded containers.
This is an ice cream which is filled in the dry cone-shaped pastry. Made of a wafer
which enables ice-cream to be held in the hand and eaten without a bowl or spoon.
This is a stick ice cream having chocolate as an outer layer and vanilla flavours ice
cream inside.
Made from pure milk cream (unlike many private brands who vend frozen desserts
made from cheap vegetable fats in the juice of ice cream). This is a real ice cream
made available in various flavours and packs. Produced by hygienically n ISO 9001-
2008 and HACCP certified production facility. Milma Ice Cream is available in a
range of lip smacking flavours, vanilla, Strawberry, mango and fruit & nut.
V. Milma Sip Up
Contains the mixture of flavours, colour powders, sugar and this mixture isadded to
the milk. Flavours used are chocolate, orange, pineapple and pista etc.
VI. Cassata
Mixture of tasty ice cream and toothy fruity encircled with on fresh sponge cake. It is
a delicious snack rich in Milma cream.
5. DRINKS
Milma Dairy Whitener is a partially skimmed milk powder with added sugar. It is
Ideal for preparation of various delicacies. It can also be used as a whitener for tea
and coffee. I he dairy whitener is packed under Nitrogen and has excellent solubility
and a fine granular texture.
6. CATTLE FEED
Best quality cattle feed which is produced under quality supervision of nutritionist
from premium quality ingredients after many quality control and lab tests. Packed in
50 Kg. HDPE bags in pellet form.
II. Milma Gomathi Super
Specially formulated feed for milk producing animals and for body maintenance.
Blend of protein, carbohydrates, fat, vitamins and minerals in this pellet formed
compound cattle feed helps the milky animals to increase their milk production
packed in 50 Kg. HDPE bags in pellet form.
.
III. Milmamin
THIRUVANAHAPURAM ERANAKULAM
PALAKKAD
KOLLAM KOTTAYAM
KOZHIKODE
PATHANAMTHITTA THRISSURE
KANNUR
ALPUZHA
IDUKKI WAYANAD
SOCITIES (APCOS)
FARMER
BOD
MD
DM
Lab
Attender Office
Attender
FUNCTIONAL DEPARTMENTS
Functional Departments or area means that the “Grouping activities or process on the
basis of their needs in- accomplishing one or more tasks” it is a alternative term for
business unit. Ernakulam Regional ‘Co- operative Milk Union is constituted by seven
main functional departments. Each department is headed by departmental managers
and assistant managers. The major four departments at ERCMPU are as following:
PRODUCTION DEPARTEMENT
Supply of milk in our state is much below demand. The state has to procure milk from
other places. Milk is essential commodity and the frequent increases in price will
affect the common man. Further, more investments coming in the population is also
expected to rise. Steps should be taken to encourage dairy farming. Hybrid varieties
or cattle should be given to farmers. This will help in the overall development of the
state as well. Production department deals with processing of milk.
1.1 DEPARTMENT STRCTURE
PRODUCTION DEPARTMENT
MANAGER
ASSISTANT MANAGER
TECHNICAL OFFICER
TECHNICAL SUPERIDENDENT
PLANT OPERATOR
PALNT ATTENDER
1.2 Functions of Production Department
Reception of Milk
The raw milk collected from farmers is kept in BMCUs. From every BMC, milk is
transferred to regional dairies like ERCMPU twice a day by using specially prepared
insulated tanker vehicles. Insulated tanker vehicles were first introduced by Milma in
the country. At first, the milk is received at the tanker reception bay and then it is
transferred to a platform container known as RMRD(Raw Milk Reception Dock).
After the quality check, the milk is kept is a reception tankers just before chilling.
Milma collects milk from inside and outside the state to meet the demand. Andhra
Pradesh and Kanataka are the two states on which Kerala depends more. The milk
from Andhra Pradesh is in condensed form and then diluted to make it into the form
we require.
Processing of milk
1. Chilling of milk
Milk procured from the BMCs is first moved to the containers where it is stored.
The raw milk is then chilled at the plant using plate chillers and moved to be silo.
2. Pasteurization
Milk is an excellent medium tor microbial growth, and when stored at ambient
temperature bacteria and other pathogens soon proliferate. Pasteurization is the
process or improving the quality of milk by eliminating the harmful
microorganisms which maybe present in the milk collected from the societies.
Pasteurization is actually a temperature treatment. The milk from silo is heated up
to a temperature of 71.7°C. The mycobacterium tuberculosis is the most heat
resistant microorganism which may be present in the milk and its heat resistance
is Up to 71.5C. Basically there are two types of pasteurization:
3. Standardization
Table – 1
4. Homogenization
Homogenization is the process of reducing the size of fat globules by breaking them
down into smaller ones using equipment called homogenizer. Homogenization is done
only to Pride milk. They will reduce the size of fat globules up to 0.2mm. Advantages
of homogenization are:
• Increases solubility
As far as Milma is concerned, being a food processing industry; they have given
supreme priority to the final products. For that, immediately after homogenization the
quality of milk is assured by a quality control officer through lab test.
5. Packaging
Alter lab test, the milk was carefully packed in good quality hygienic plastic sachets
which had met enough food quality standards. The plastic sachets are subject to
ultraviolet rays for sterilization. Presently, at Milma there are sevenpackaging units
which are running throughout the day. After safe packaging the milk packets are
shifted to a cool zone for refrigerated storage for a clean and safe dispatch. The
packaging machine packs 35 packets per minute.
6. Dispatch
Distributors collect milk and other milk products from dispatch section and distribute
it to the retailers. Ernakulam dairy has n separate dock for the dispatch of processed
milk. The dispatch dock is adjacent to the cold storage room and has provision for
loading vehicles for dispatch.
Cleaning in place
In the processing plant, so as to ensure the quality of final products very neat and tidy
atmosphere is maintained. To achieve this, after every shift of operation they always
clean the entire milk channels by using caustic soda, hot water and other sanitizers.
They are washing the entire machinery in every 5 hours. As the machineries are bulky
in size and are not transferable, they are cleaned at the actual place where they exist.
This process is known as “Cleaningin Place”.
Storage Capacity
• Capacity or Pasteurizers
Production system
Shift 1 : 8amto4pm
Production planning
Planning is necessary for the smooth running of the organization. Milma has a well—
defined planning system and they will plan the schedule to meet the customer
demand. First, they will plan the standard quantity to be produced and then they will
try to meet that standard. If they can't achieve the target, they will find out the
reasons. The format of their planning schedule is given below.
Product Quantity to be SILO/Tank Quantity to be Remarks
produced produced
Table- 2
Work in plant
Standardisation
and testing ‘Fat 3.05% SNF 8.5%.
Skim milk
Ghee
Distribution
At dispatch dock sachet tested for
MBRT, SFN and coliform
Dispatching
to agents
Market sample tested for MBRT,
SNF and coliform
2. HUMAN RESOURCE DEPARTMENT
The most important resources for an organization are its human resource. So it is very
much important to manage and utilize the human that is the employees of the
organization most effectively. The Ernakulam dairy has an efficient personnel and
administration department. This department is headed by personnel officer and is
responsible for handling the personnel and administration in dairy.
2.1 DEPARTMENTAL STRUCTURE
Personnel officer
Junior Superintendent
Senior Assistant
Office Attender
2.2 Roles and Responsibilities
Assistant Manager
Junior Superintendent
Senior Assistant
Junior Assistant
Stenographer
Typist
2. 3 Staff Policy
There are 250 employees in Emakulam unit. It includes 32office staff and rest is
workers. The employees have formed a welfare society named ‘Milma Employees
Welfare Organization’. It provides loans to its members at a nominal rate of interest.
It also provides scholarship and cash award to the children of its members who secure
proficiency in their studies.
Milma follows time based wage payment system i.e. employees are paid on the
basis of time worked. Some of the non-financial incentives include job security,
promotion, training, social security measures etc.
Milma sends their employees to many training institution across India. Training
includes techniques like lecture, workshops, seminars etc. Milma also gives
apprenticeship training to workers and provides stipend.
Temporary staff is recruited by the cornered units and permanent staff is recruited h
the head office. Selection processes are as follows:
Invited application
This process is carried out to reduce the number of applicants and also to find
out suitable candidate
Interview
This is the third step in the selection process. It is conducted by the top officials
of ERCMPU.
Final selection
The selection process complies only after the selected candidate is given the
appointment letter. The letter mentions the terms of appointment, pay scale etc.
The selected candidate undergoes a probationary period of one year.
Employees are promoted based on their seniority. The worker category promotion is
on the basis of standing orders and officer category on the basis of Staff Regulation
Rules. Promotion for the employees will be given after 5years. If the employees are
not promoted they will be rewarded high grade after 8 years.
Employees in any organization must be motivated to yield better result. The most
important way to motivate is through performance appraisal. It is done in every six
months. Usually department heads conduct the performance appraisal.
Canteen
Canteen functions on contract basis. Usually it's a one year contract. Milk, gas and
curd are given free from the industry. Food subsidy is also offered to the employees.
Restroom
Transportation
“Your Health is our concern” is motto of Milma, these five words say the story of
long year’s leadership, big market capitalization and customer satisfaction which
Milma delivered since long years back. “Ernakulam Regional Cooperative Milk
Producers Union” has a very good and wide spread marketing network. Ernukulam,
Thrissur, Kottayam and lduuki are the four districts under ERCMPU’s area of
operations. The operation area of marketing department of ERCMPU is generally
seven zones. There are supervisors for each zone.
3.1 Departmental Structure
Marketing Organiser
Marketing Assistant
Junior Assistant
3.2 Functions
1. Marketing Manager
3. Marketing organizers
Agency promotion
4. Marketing Assistants
Issue invoices
6. Salesmen
The prices of Milma products are fixed by the Govt. Cost plus profit pricing strategy
is used.
3.5 Promotion
There are hardly any promotional activities. Advertisements are only used when any
offers are provided.
3.6 Distribution
Milk is distributed only through retailers. Other Milma products are distributed
through both wholesalers and retailers. Advance payment is to be made by the agents
for the distribution of milk.
Milma milk has a market share of approximately 63% and is leading in the market.
But other Milma products have relatively small market share as they just meet the
target set by the head office.
4. FINANCE DEPARTMENT
The finance department of Milma deals with all matters relating to finance such as
procurement of fund, determine the source of fund and utilization of these fund. All
the rules and policies regarding the finance department are as per the KCMMF
guidelines. The company follows the straight line method for depreciation. Each units
of’ Milma records the transaction and prepare its accounts relating to that particular
unit only.
In this organization. i.e. ERCMPU assistant finance manager plays a vital role and
have more responsibilities. The role of assistant accounts officer is to prepare the
accounts of all the financial transaction done for the organization. The duty of
assistant accounts verification of all proposals related to accounts etc. junior
superintend also have an important role in the organization. His work includes
verification of cash book, bills and vouchers, monthly preparation of reports on
statutory documents remitted to the government processing and financing agreements
relating to transports. Other staffs in finance department are senior assistant and junior
assistant.
4.1 Departmental structure
Accounts Officer
Junior Superintendent
Senior Assistant
Junior Assistant
Attender
4.2 Functions of Finance Department
i. Manager
Deals with the entire functions of’ the finance and systems
departments.
iii. Superintendent
Issuing cheques
Collecting couriers
Networking
4.4 Sources of Finance
Long term
The source of long term finance is only through loans. Milma gets financial aid from
NDDB through KCMMF. An agreement regarding the financial assistance exists
between the federation and NDDB. As per the agreement 70% of the loan amount
should be repaid and the remaining 30% is subsidized.
Short term
The source or short term fund is procured from to be Canara bank at the prevailing
interest rates. It is mainly in terms of overdrafts
HRD department prepares the payment for employees and sends to the finance
department. Payments are made in two ways, through direct cash from the department
or through the Canara bank. Overtime payment is not paid in cash but paid in bank.
The different modes of payment are:
Cash Purchase
Make payment within 10 days or purchasing the milk from the societies
Credit Purchase
Advance Payment
The depreciation pattern is maintained as per the Income Tax schedule. Every year the
firm prepares provision of depreciation. The following are the depreciation rates for
concerned assets:
• Building - 5%
• Factory building - 5%
• Vehicles - 20%
• Furniture - 15%
The dairy has statutory auditing, which is done by to be registrar of the cooperative
society. For the purpose, a representative is appointed in the dairy as their concurrent
auditor.
The profit earned is given to the farmers as per the quantity and quality of milk they
supply to the concerned society, further; the dividend is paid to the shareholders.
4.9 Income Tax
The organization is bound to pay income tax as per Kerala Cooperative Societies Act.
Every year a certain amount is paid as tax from its profits. Tax planning is done to
avoid paying huge tax. Tax planning is done by ERCMPU with the approval from the
board.
In Kerala, Milma is the first of its kind to computerize its departments. Milma has its
own custom made software for the accounting activities such as recording of financial
transaction. Preparation of bills and vouchers, manufacturing account, trading and
profit and loss account and balance sheet are prepared at the end of each month and
consolidated financial statements are prepared at the end of every financial year.
a) Journal
b) Ledgers
c) Sub ledgers
d) Trial Balance
g) Bank reconciliation
h) Budget
5. QUALITY CONTROL DEPARTMENT
The term of quality can be defined as the sum total of all the attributes of a product
which make it differ from other similar products. Simply quality means deviation
equal to zero. It is the degree of effectiveness of products in satisfying expectations in
the potential customer about the product.
Quality of outgoing milk is maintaining in accordance with PFA standards.
Outgoing milk is checked for its fat and SNF percentage and also for its
bacteriological content quality department provides technical assistance not only to
the plant but also to the primary cooperative societies associated with the plant at
most care is given to ensure the quality of produced and outgoing milk and milk
products. Strict quality control measures are adopted to ensure only very good quality
products are provided to customers. Number of quality test is conducted at ERCMPU
at every moment of operation like milk reception, processing, packaging and dispatch.
1.1 Structure of quality department
Manager
Dairy Chemist
Micro Biologist
Lab Assistant
Attender
Production of milk constituents
Table
In case of milk it acquires some natural properties which give a clear identity on it.
Some of the qualities of milk are categorized below.
Nutriental Quality
Physical Quality
Microbial Quality
Nutriental Quality
88%water-H20
12% solids (solids = FAT +SNF)
FAT carbohydrates- sugar (lactose)
Lacta Albumin
LactaGlobalumin
Proteins
Ceasium
SNF
Non metals
Physical Qualities
1. White liquid
Qualities
For the assurance of food and safety ERCMPU conducts a series of sophisticated
and very accurate quality measures on every point of their operation which starts
from procurement of milk goes though processing and finalize in dispatch.
Various quality measures taken at ERCMPU are as shown below:
After processing one shift milk the entire channel of milk flows will clean
by pumping sodium hydroxide in high pressure through all the channel of
stainless steel.
For the assurance of food safety ERCMPU conducts a series of sophisticated and
accurate quality measures on every point of their operation which starts from
procurement of milk goes through processing and finalize in dispatch. Each
quality checks are related to various conditions of milk and other substances. It
was ordered as while procurement, reception, pasteurization, packaging, dispatch
etc. Various quality measures taken at ERCMPU are shown below:
1. Orognolitic Test (At RMTf [Raw Milk Reception Dock])
Colour
Flavor
Appearance
Taste
2. Platform Test
Sediment test
COB Test (clot on Boiling)
Alcohol Alsarin test
UHT test (Ultra High Temperature)
5. Planting Test
Temperature
Colt on boiling
Fat percentage
SNF percentage
Acidity
Alcohol alsarin Test
Temperature
Clot on boiling
Alcohol alsarin test
Acidity MBR must be minimum 5 hour
8. Test on Butter
Fat percentage
Moisture percentage
Salt percentage
9. Test on Ghee
Moisture percentage
Free fatty acid (FFA) content
Temperature
Heating Temperature
Incubation Temperature
Processing Temperature
Acidity
PH
Standard platelet count
Coli form count
Standard platelet count
Coli form count
Yeast and Mould count
Ph
Standard Plated count (SPC)
Total solids
FATs
SNF
Yeast and Mould count
Line testing
SWAB Test
AR count
water analysis
Microbiological Analysis
Chemical analysis
Cleaning in place (CIP)
12. Raw Material Analysis
This test is to ensure the quality of final product milk before send for packing.
6. PROCUREMENT AND INPUT DEPARTMENT
Assistant Manager
Senior Supervisor
Junior Supervisor
MILMA as organization which function with an aim of providing with function with
an aim of providing with quality product, also takes due care in ensuring the quality of
raw material milk, which is highly perishable in nature. Timely steps are to taken to
ensure the efficiency and effectiveness of production. The two main functions of this
department are milk procurement and providing technical input service.
Procurement
The main function of procurement unit is to collect milk from local societies. The
supervisors provide necessary suggestion to the farmers and to the local societies.
Ernakulum dairy had 48 bulk milk cooler unit (BMCU).The milk is from BMCU is
processed in Ernakulum dairy.
MILMA also provide technical input service to the farmers These input service
include, balanced cattle feed, vetinary inputs, vetinary camps, vetinary emergency
service, embroyo transfer project and artificial insemination foot and mouth disease
control, co-operative development activities etc.. Input service include all that
enhance the efficiency and Profitability of milk production
7. MATERIALS - STORE DEPARTMENT
1. Location for the storage of material shall be fixed taking into consideration the
free and easy access, easy identification, safety, storage space, required to.
2. The racks should be numbered serially (numerically) and the shelves of the
racks shall be marked with alphabetical form bottom to top.
3. Small items such as papers shall be kept in bins with due identification and the
bins shall be placed in the racks
4. Each of items in the stores should have identification label or mark so that the
item can be traced easily.
5. The material kept in the store shall be preserved properly against all types of
damage, pilferage, theft, deterioration.
1.2 Location
The store department of Ernakulum dairy situated nearly the plant and follow FIFO
method.
1.3 Purpose
2. Material issue and control the following activities done at store of Ernakulum
dairy.
Store in charge is responsible for the implementation or this procedure with delegated
responsibilities to other staff as required.
1.6 Procedure
Store in charge shall monitor the inventory level of various items of regular
consumption and shall communicate to purchase department who will process in
accordance with the procedure QSP 2002.
Material Inward
Store in charge shall inward material, which is procured fulfilling one of the
following criteria.
a. Material procured against purchase order
b. Material procured against cash purchase bellow 2500/-duly approved
by relevant authorities.
All incoming material shall be entered in goods inward /inspection note
(from# STR/F01)
On completion of goods inward/inspection note (From #STR/F01) store in
charge shall hand it over to concerned inspection agencies given in the next
page
On the receipt of goods inward /Inspection note, Store officer shall distribute
the original copy to account section through department. Along with the bill
/invoice a duplicate copy shall be retained in store.
Table
RESPONSIBLE FOR
Sl.No DESCRIPTION OF MATERIAL
INSPECTION
1. All engineering goods Deputy engineer , store in charge
2. Consumable for production Concerned section head (TO)
3. Sample ,film ,chemical, acids Head quality control/QCO
4. Laboratory items Head quality control /QCO
5. Printing & stationary Concerned section head /store in
change
6. Society items(P&I) Head procurement & input
Store in charge shall be updating the stock position in computer as per goods
inward/inspection note. If the material is rejected it shall be send back to
supplier with rejection note (From #STR /F02).duplicate copy will be retained
in store.
Issue of Material
Any issue of material from the store shall be based on indent (store requisition
form #STR/F03)
Indent is a request by the department head or authorized official to issue
material form store officer to issue material from the store. The following
persons are authorized to issue the indent to the store.
All section head for store items relating to their section.
DE's and T.D's
T.S (Dairy)
A.M.O/M.O/ the person in charge of the supply management.
The original indent shall be kept in the store and the duplicate shall be
retained with indenting department.
On completion of issue material (against indent) store in charge shall update
the issue details in computer and take print of days transaction report
(#STR/FD4) on daily basis and the same shall be filed in stores
To extent possible, store in charge shall ensure shelf life items are monitored
periodically.
The extent possible, store in charge .shall ensure material are issued on FIFO basis.
CHATER 4
SWOT ANALYSIS
Marketing strategy is a plan of action designed to promote and sell a product. The
SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. This study intends to explore the
SWOT analysis on MILMA, the major players in milk industry of Kerala.
The result of SWOT analysis which I done in the Eranakulam diary is:
STRENGTH
WEAKNESS
OPPERTUNITIES
Export potentials they have god brad name they can export many of
their product out of the boundaries.
Changes in culture of the society make a big need for packet milk in
their daily life.
Scope of product diversification.
The organization can increase its goodwill and profit if it gives more
emphasis on exports.
More opportunities to create demand in rural areas.
Government support, i.e. subsidies tax concession
Good scope for capturing huge market share in the milk products
category.
Scope to process more milk from other states, thus increasing
productivity.
Increasing level of advertisements and related activities can lead to
increase in sales at a higher rate.
There are lot of wastelands, which can be used properly for fodder
cultivation
Increased export potential for indigenous milk products.
THREATS
SWOT analysis of this organization shows its strengths as well as the weakness. This
enables the company to improve its prevailing methods of production. The firms can
make significant results by implementing good business strategies, which may retain
and increase the market share of Milma.
FINDINGS SUGGESSIONS AND CONCLUSION
FINDINGS
The study of the above SWOT analysis shows that strengths and opportunities far
outweigh weakness and threats. Strengths and opportunities are fundamental and
weakness and threats are transitory.
Milma is the most trusted product and the market leader of the diary
industries.
It is interesting to know that customers buy a particular brand without
giving importance to its verities and normally continue to buy the same
brand of milk us long us the brand is available in the place of their
purchase, so the customers are loyal.
It could from the analysis that most of the consumers prefer brand image
and companies’ advertisement factors in the milk promotion and the least
preferred factor is the free gift with the gifts.
Industrial relation with unions is fairly good and there is greater
cooperation between management and employees.
Sales promotion activities are very low compared to those of competitors.
It is interesting to observe that “freshness”, “thickness”, and “nutritive
value” is the very important attribute of milk that influences the brand
preference of the consumers.
Complaints regarding the Milma products are very low.
Milma uses good quality control machineries for the testing of milk.
Company providing a good safety measures for ensuring employees safety.
SUGGESSIONS
Globalization and Liberalization are the mantras of the new economy today,
which is now on the fast track. Industrial production is rapidly moving forward.
The dairy industry is no exception. With the World Trade Organization (WTO)
effective from 01 April 2001 and the imports and exports getting liberalized in the
global economy, the dairy industry, which includes dairy products, faces both an
opportunity for growth as well as a threat for its growth. There is no doubt that
there is tremendous scope for the growth of the dairy industry in the new
millennium.
The organisation study in Milma was done with an objective to understand how an
organisation functions, what are the major departments and functioning of these
departments. The study at Milma provided the opportunity to learn the
organisational goal and objectives, various departments based on functions like;
procurement, production, marketing, human resource etc...That conduct critical
functions and the interrelation between them. Milma observed to be an
organisation that not only has an objectives of working properly but also a socially
responsible organisation that cares for different sections of the society viz: the
milk producers and the milk consumer.
The Milma products diary is an organisation that has changed the face of the
economy because it has the directly affect in the income of milk producing
farmers. It is a socially responsible company which is having an Effluent plant. It
also gives prime importance to its customers by delivering high quality products.
Milma is coming up with new technologies. The organisation has resulted for the
production of various milk products and has occupied various markets in Kerala.
BIBLIOGRAPHY
Books:
Company records
Files and other reports of the company
Organisation structures, Theory and design, Analysis and prescription by
Baligh and Helmy H
Websites:
www.milma.com
www.amul.com
www.kcmmf.in
www.indian dairy.com
www.ercmpu.in/joomla/
Wikipedia