CHAPTER 1

INTRODUCTION

1.1 Background of Study:

1.1.1 Establishment Dates & Historical Development:

Prior to the establishment of the corporation a separate Dairy Development

Board was constituted to carry out the task of dairy development activities in
Nepal started in Tusal Village of Kavre Distrct in BS 2009(1925) on
experimental basis with a small scale milk processing plant under the
Department of agriculture. In the year BS 2010/011 at the initiative of Dairy
Development Board, the central Dairy plant was established and it started milk
collection, processing and marketing activities from the year BS 2014(1957)
DDC a fully state owned corporation which was initiated for the economic
advancement of the poor farming communities, has flourished into a nation wide
movement with an annual collection over 80 million liters of milk cooperative
spread out in 40 districts.

With state-of-the-art infrastructure comprising of fully modern dairy plants, 11

cheese manufacturing units, 40 milk chilling plants and highly quantified dairy
specialists, DDC is a precious asset in the economic development of our nation.

DDC uncompromising about a strict adherence to quality of milk and milk

products, hygiene and sanitation of the plants. DDC pledge to uphold the grand
tradition set by their predecessors and to endorse the trust and faith placed in
them by their valued customers.

1.1.2 Function of DDC:

The function of DDC is as follows:

1. To provide a guaranteed market for milk to the rural farmers with fair
price.

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 2. To supply pasteurized milk and milk products to urban consumers.

3. To develop organized milk collection system to meet increasing demand

for pasteurized milk and milk products.

4. To develop an organized marketing system for milk and milk products in

urban areas.

1.2 Introduction of product:

In commercial view product means a good or service which can be bought and
sold. In marketing view, a product means anything that can be offered to a
market that might satisfy a want or need. And in manufacturing point of view
product means that which are purchased as raw material and sold as finished
goods. In general usage, product may refer to a single item or unit, a group of
equipment products, a grouping of goods or services or an industrial
classification for the goods or services. A product is anything that can be offered
to a market for attention, acquisition, use or consumption and that might satisfy a
want or need of consumers. In broad sense product is everything that receives in
an exchange product, include physical objects, services, persons, places
organization, ideas or mixes of these activities.

1.2.1 Product Concept

Here we study three types of product concept

1. Core product
2. Actual product
3. Augmented product

1. Core product:

The core product means product's genuine utility. Buyers purchase the product
for their needs fulfill or satisfy their needs. For example a woman buy a fresh
cream is not only buying a set a chemical and physical attributes, she is rather
buying beauty for herself.

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2. Actual Product:

Actual products are built over the core product. It is offered to the market for
sale. It has same characteristics like quality, features, design, brand and
packaging. For example Samsung television, Dell computers, Bata shoes, Nokia
mobile etc.

3. Augmented Product:

The augmented product is the supplementary benefits over the buying of actual
product and core product. When a person buys a product he is not merely buying
the physical object and benefits but the whole range of services attached with the
product. The delivery, warranty, credit facilities, advice and consultant are same
example of augmented product which provides a complete solution to the
costumer problems. In today's competition market environment, manufacturers
have to add benefits to their products not only to satisfy buyers but also to delight
them.

1.2.2 Types of product:

Products can broadly be classified into two groups.

1) Consumer Products
2) Industrial products

This classification is based on the types of buyer .These products which are
purchase to satisfy personal needs that product are called consumer product.
Food items, clothes, household item, whisky, car, motorcycle are some example
of consumer product. Fuel, raw material, machines, plants, tools are some
example of industrial product.
Consumer buy product to satisfy personal needs, while industrial buyer seek to
satisfy their organizational goals. Thus, the buyer intend to the ultimate use of
product determines whether a product is consumer product or industrial product.

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 1) Consumer Product

Consumer products have been classified on a no. of criteria. The major criteria
uses for classification are nature of product, consumer buying motives, the
amount of involvement in buying process of the overall buying behavior of
consumers.

1. Nature of Product
2. Consumer buying motive
3. Involvement of consumers
4. Buying behavior of consumers

1. Nature of Product

According to nature of product, consumer product are classified into

three types:

A. Perishable Consumer Product: The time span from production to

consumption for perishable product is very short. E.g green vegetables,
fruits, milk, meat.

B. Non- durable Consumer Product: This type of product has longer life
than perishable but their quality level is reduced it stored for a long time.
Soap, shampoo, cosmetic, packaged food and cold drinks are some
examples.

C. Durable Consumer product: It has long lasting time period for

consuming the goods. Its benefits last for many years. Car, motorcycles,
household equipments are some examples of durable products.

2. Consumer's Buying Motive

According to consumer's buying motive, consumer product can be

classified into necessity product and luxury product.

i) Necessity Product: The product which can fulfill the consumers

physiological safety and needs that products are called necessity

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 product. Food items, clothes, furniture, education and entertainment
are some eg of necessity product.

ii) Luxury Product: The product which is used by consumers to meet their
esteem and satisfy self-actualization needs are called luxury product. Eg
of luxury product are expensive cars, jewelry, expensive perfumes and
whisky.

3. Involvement of Consumers
According to involvement of consumers the buying process, product can
be classified into high involvement products and low involvement
products.

i) High Involvement Product: High involvement product are those which

consumer are highly involve in the buying process. Consumer is highly
involve which the product is expensive, risky and purchased infrequently.
For eg a person takes much more information about the car before he
purchase. In this eg car is high involvement product because car is
expensive and purchased infrequently for that person.

ii) Low Involvement Products: The product which the consumers buy
easily without planning, information, taking and without worry. Low
involvement products are generally low price, purchase frequently and not
at all self- expensive eg toothpaste, soap, tea, biscuits etc.

4. Buying Behavior of Consumer

Under buying behavior of the consumer the consumer product is
classified into four categories.

i) Convenience Product: Convenience product are generally low price

items that a consumer buys frequently. These are low involvement
product. It is also non durable product that needs frequently buying in
small quantity. Eg toothpaste, salt, sugar, soap, dry cell batteries, blade
etc.

ii) Shopping Product: Shopping product are less frequently purchased

goods and services. These products are generally high priced. Consumers
take involvement in the purchase of this type of goods. Consumers have
no brand, awareness, conviction and loyalty for shopping product. Eg of
shopping products are home appliances, furniture, clothing, shoes etc.

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 iii) Specialty product: This type of product so special for consumer that they
are ready to put in extra effort to purchase this type of product. Specialty
products generally have special features. They may be frequently or
infrequently purchased. It is the special and unique features perceived by
the consumer that makes a general product a specialty product for the
consumer. Therefore every product has a chance of becoming a special
product for a group of consumer.

iv) Unsought Product: This category has added by Philip Kotler in the
1990's. Unsought product is that product that has very low consumer
awareness and desire to purchase and consume. They are generally high
price items. Many of new invention are unsought by consumer until they
have known about its benefits. Eg of such unsought products are life
insurance, new magazines, policies, new product etc.

2) Industrial Product

Classification of industrial product is often different due to large no. and types
of such product. Although it have been classified into five categories.

a) Raw material

It is unprocessed industrial product that will be converts into final products. It

also is categories in natural raw material and agricultural p Agricultural
Product: Agricultural product are that products which are produced by
farming. Such as rice, maize, wheat, tobacco, sugarcane, fruits, milk, meat,
wool etc .its production are seasonal.

b) Fabricating Parts and Material

Semi-finished product are that products which are produced by farming. Such as
tires, engines, nut bolts are used in car but they are fabricating parts until they are
assembled in making of car.

c) Installations

Installations are fully manufactured products that are used in the production of
other products or for providing service. These are generally longer life span, high

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priced and infrequent purchasing, example of installation are for restaurants,
refrigerators, gas stores, oven are installations for proper company, turbines and
generates are installations and for banks, computers, staffs, arm machine are
installations.

1.3 Statement of the Problem:

The prime problem areas to access in the study are

a. How far has DDC been able to shift the product to daily life uses?
b. What are its terms to providing daily product?
c. Unhygienic product or lack of training or in proper inspection
d. Analysis from past and present data and arises of its problem.

1.4 Objectives of the study:

The objective of study are as follows:

1 To study about the background and introduction of DDC.

2 To study about the different product lines of DDC.
3 To know about the collection network for its different products.
4 To analyze the basis of classification of products of DDC.
5 To analyze the production capacity of DDC under different milk supply
scheme.
6 To know the sales and distribution management and employee statement of
DDC.

1.5 Significance of the study:

The significances of the study are as follows:

I. To fulfill the requirement of the Bachelor of the business studies (BBS)

According to the T.U curriculum.

II. It is useful for future reference to those scholars who want to carry out
Similar type of research work.
III. For library use for generals.

IV. On the basis of the suggestion and the recommendation of the study, the

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 Organization can take actions for improving the performance for various
Works.

1.6 Limitation of the Study:

The main limitations of the study are as follows:

I. Due to organization secrecy’s, report is prepared on the basis of

provided data only.

II. The secondary data provided by the Product are not sufficient for this
study.

III. This study focuses on the aspect of the daily product.

CHAPTER 2

RESEARCH METHODLOGY

The research methodology is the process of arriving to the solution of the

problem through planned and systematic dealing with the collection analysis and
interpretation of facts and figures. For the purpose of achieving the objectives,
the following methodology has been proposed to follow, which include research
design, nature of data collecting procedure, presentation and analysis technique.

2.1 Nature and Sources of data:

The study has used both primary and secondary data.

2.1.1 Primary data:

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Primary data is an original data gathered by the researcher for the research
project at hand. The Data collected for the first time by the investigator himself
from the field of enquiry is called “Primary Data” An investigator can collect
data by using different methods for him/her own purpose of investigation. So
primary data collection includes direct personal inter view, indirect oral inter
view questionnaire, observation, survey etc.

2.1.2 Secondary data:

If we use the data, which is collected by, second person or the data id prepared
by second person is called secondary data. In another word the data, which are
initially collected by someone but obtained from published or unpublished
sources, are called secondary data. Due to lack of time and proper feasible
investigation the primary data are limited to certain extent only. These data has
been collected from the office of DDC and various materials published by
CWIN.

The secondary data used by the research work are as follows:

1. The staffs of DDC.

2. The product advertised by DDC.

3. Websites of DDC.

2.2 Data collection procedure:

Data collection procedure includes different method applied to collect data. All
research involves the collection and analysis of data, whether through reading,
observation, asking question or a combination of these or other strategies. The
data collected during and for research may, however vary in their characteristics.

The data collection procedures are as follows:

I Field visit.

I. Observation.

II. Unstructured interviews with staffs.

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 III. Website

2.3 Research design:

The study attempts to show the dynamism of the product character

that can help the industry to survive forever. The analysis of the study is based on
certain research design. Because to accomplish and type of research, well set
research design is necessary to fulfill the objectives of the study. The research
design followed for this study is analytical as well as exploratory. For the
purpose, the annual report published by the industry, brochures, website and
other data were collected from the office person of DDC.

2.3.1 Product Design:

The idea of new product/services comes from various, such as

customer, top level management, marketing personnel, research and
development, production and engineering department and above all the
competitors. Once the new idea as developed into the product and/or services it
doesn't remain forever. Product should be design on the basis of consumer test
and preference. Since human needs have very long life cycle, products must be
constantly developed and introduced to the market in order to meet those needs.
Organization can survive and make profit only when they are able to innovate,
develop, produce and launch new products into the market.

2.3.2 Design of new product :

Diversification of company's product line can be accompanied in two ways:

1 New product can be integrated into current product line.

2 New product is entirely unrelated to current product line.

2.3.3 Product Redesign

The redesign of existing product is undertaken for many reason like extension of
market by enhancing consumer appeal and acceptance. To accomplish this

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objective, new features can be added to the product or the packaging and forms
of the products can be adapted to new styling trends. The more presence of
competitive items on the market makes it mandatory that products be updated
periodically.

CHAPTER 3

DATA PRESENTATION AND ANALYSIS

In order to analyze and interpret the obtained data, data processing has been
made in terms of tables. Along with interpretation, we can give the detailed
theoretical concept of the DDC in this chapter as well. This chapter includes the
presentation and analysis of the following as below

3.1 Data Presentation:

The data presentations are as follows:

3.1.1 Product Profile of DDC:

Dairy Development Corporation is the pride of the nation and leading

manufacturer of standardized pasteurized milk , full cream milk , sterilized
flavored milk , cream yoghurt , ice-cream , yak cheese, spread cheese, kanchan
cheese, mozzarella pizza cheese , paneer ,ghee ,yak ghee, butter, lalmohan ,
rusbari , peda an butter milk.

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 Dairy Development Corporation
Product Profile

Fig No- 1

3.1.2 Milk

Milk, highly nutritious, versatile food. People enjoy drinking milk in its natural
form and also used it to make a wide range if food products, including cream,
butter, yoghurt, cheese and ice-cream.

A. Collection of Milk

DDC has been collecting milk from 40 districts. It is collected through the
farmers owned milk producer cooperative societies (MPCS). Now, its collection
network has spread from panchthar in East to Surkhet in the West.

Hetauda milk supply scheme also support KMSS & BMSS by supplying excess
milk above their local requirement. Biratnagar Milk Supply scheme
manufactures skimmed milk powder from its excess milk and milk excess from
other supply schemes.

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DDC has been playing a special role in contributing to uplift the economic status
of rural farmers. Thus dairy has been recognizes us an effective tool for poverty
alleviation. In the fiscal year 2062/2063 DDC purchased about (approx.) 150000
liters of milk per day from the farmers.

B. Collection Network

The collection network under different milk supply schemes is presented below.
Chilling Centers (C.C) established under the milk supply schemes are in
operation across the country for chilling the milk collected from the MPCCs.

Schemes MPCCs C.C District Covered

KMSS 520 16 7
BMSS 140 11 6
HMSS 155 8 4
LMSS 79 5 3
MWMSS 52 3 3
MPPSS 24 - 6
Total 970 43 29
Table NO 1

DDC milk comes in three brands.

Standard Milk
Whole Milk
Low Fat

Composition of standard milk

S.No Parameters Value
1 Fat 3.00%
2 SNF 8.00%
Table No - 2
Packing: Available in 500 ml pouch.

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 Composition of Full Cream Milk
S.No Parameters Value
1 Fat 5.00%
2 SNF 8.00%
Table No - 3
Packing: Available in 500ml pouch

Composition of Low Fat Milk

S.No Parameters Value
1 Fat 1.5%
2 SNF 8.5%
Table No- 4
Packing: Available in 500ml pouch

Milk collected from rural areas is standard to contain 3% fat and 8% solid-not-fat
(SNF) and pasteurized by a HTST pasteurizer. Milk is heated to 76 degree
centigrade, hold it for 15 seconds and promptly cooled to 4-5 degree centigrade.
The pasteurized milk is filled in ½ polythene pouch for sales in the market. DDC
also supplied pasteurized whole milk containing 5% fat and 8% SNF and Low
Fat Milk containing 1.5% fat and SNF.

3.1.3 Paneer:

Paneer is one of the indigenous varieties of milk products obtained from fresh
buffalo milk. It contains 70-71% moisture, 29-30% total milk solids and 13%
milk fat. DDC supplies 200 gm vacuum packed paneer in low density for local
sales. It is also packed in bigger size as per the special order of consumers.

DDC Paneer
S.No Parameters Value
1 Fat on dry matters basis 50%
2 Protein 18%

Table No - 5
Packing: Available in 200gm and 1kg poly pack.

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3.1.4 Dahi (Yoghurt):

Yoghurt fermented, semi fluid milk product used extensively as a healthy food. It
is prepare from a fresh whole or skim mil, boiled and concentrated by
evaporation.

A) DDC Sugar Free Dahi

100% unadulterated milk, robust and intense with flavor. This yoghurt is
extremely versatile good with everything. Highly recommende for lassis, sauces,
salads, marinades also suitable for diabetic consumers.

Composition of Sugar Free Dahi

S.No Parameters Value
1 Fat 3.00%
2 SNF 12.00%
Table No- 6
Packing: Available in 1, 2&5 liters earthern pot and ½ liter

B) DDC Dahi:

Dahi is one of the best known and most popular fermented milk products
consumed by large sections of the population through out of the country. DDC
produces two kinds of Dahi i.e. ordinary and special. A blend of the finest whole
milk and specially selected traditional spices, this sweet, luscious, creamy dahi
transforms even the simplest meals into feasts fit for kings.

Composition of Ordinary Dahi

S.No Parameters Value
1 Fat 3%
2 SNF 8%
3 Sugar 2%
Table No- 7

Composition of Special Dahi

S.No Parameters Value
1 Fat 3%
2 SNF 8%

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 3 Sugar 2%
Table No- 8
Packing: Available in 1, 2&5 liters in earthern pot & ½ liter in pouch. 100 ml &
200 ml in cups.

3.1.5 Sweets

Sweets are one if the most popular DDC milk product. DDC sweets make every
occasion a memorable one. DDC produce mainly three kinds of sweets i.e.
Rasbari, Lalmohan and Pedas.

A) Rasbari
It is made from pure cow milk. It is soft, delicious and extra special to eat.

Composition of Rasbari
S.No Parameters Value
1 Fat 5%
2 Sugar 45%
3 Protein 5%
Table No - 9
Packing: Available in plastic container (10 pieces)

B) Lalmohan
It is tasty just as good eaten either piping hot or cool. This rich tasting
sweetmeat is ensured to tickle your taste buds.

Composition of Lalmohan
S.No Parameters Value
1 Fat 10%
2 Sugar 42%
3 Protein 6%
Table No- 10
Packing: Available in plastic container (8 pieces)

C) Peda

Made from fresh milk this all time favorite from DDC is not only full of natural
goodness but also highly delightful.

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 Composition of Peda
S.No Parameters Value
1 Fat 20%
2 Sugar 25%
3 Protein 15%
Table No-11

Packing: Available in 200gm & 500gm paper box

3.1.6 Cheese:

Cheese is nutritious food made from the milk. It is one of the world’s oldest dairy
products. It is one of the most versatile foods in the world. There are more than
400 different types of cheese with more than 2000 different names. It come in
hundred of different shapes, sizes, texture, flavor and aroma and used in many
different ways. We can enjoy with bread, crackers, fruits used as an ingredient in
cooked foods or granted on salad and pastas. Cheese is a healthy component of
cuisine all over the world. It contains all the valuable nutrients found in milk
such as protein, vitamin, minerals etc.

DDC is main supplier of cheese in Nepal. It has been producing from 11 center
of Nepal. DDC has producing 5 varieties of cheese.

A) Yak Cheese:

Yak cheese is a product of high attitude of alpine region of Nepal obtained form
yak milk. It contains not more than 43% moisture and 2% of edible salt. It should
not less than 45% milk fat on dry matter basis. It is considered a special variety
of cheese in Nepal.

Composition of Yak Cheese

S.No Parameters Value
1 Fat 45%on dry matter
basis
2 Protein 25%
3 Salt 2%
Table No- 12
Packing: Available in 100gm, 200gm and 500gm poly pack

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B) Kanchan Cheese:

Kanchan cheese is pure cow milk cheese manufactured in Pashupatinagar, Illam

of the eastern hilly region of Nepal. This is the best cheese in Nepal and has good
market. The chemical composition of kanchan cheese is more or less similar to
yak cheese but differs in taste, flavor and texture.

Composition of Kanchan Cheese

S.No Parameters Value
1 Fat 45% on dry matter
basis
2 Protein 25%
3 Salt 25%
Table No- 13
Packing: Available in 200gm, 500gm and 1kg poly pack

C) Spread Cheese:

It is a unique blend of kanchan cheese and yak cheese. Its excellent spread ability
characteristic and mouth watering flavor gives a wonderful combination to all
cheese favorites.

Composition of Spread Cheese

S.No Parameters Value
1 Fat 14-16%
2 Moisture 64-66%
Table No - 14
Packing: Available in 200gm poly pack.

D) DDC Mozzarella Cheese:

When you bake pizza with DDC mozzarella cheese, people will beg you for the
recipe. Made at the highlands of mid – central Nepal, its wonderful stretching

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and melting properties, even for your pies and pastas transcend from being
normal and mundane to gloriously divine.

Composition of Mozzarella Cheese

Parameters Value
S.No
1 Fat 45% on dry matter
basis
2 Protein 20%
3 Salt 1%
Table No - 15
Packing: Available in 200gm, 500gm and 1kg poly pack.

3.1.7 Butter:

Butter is solidified milk especially made from cow’s milk used principally as a
food item. In the manufacture of butter, the cream is skimmed from the milk or
separated mechanically. Then it is placed in churn (mix) & the butter is
coagulated (heavy) by agitation (stir).

Composition of Butter
S.No Parameters Value
1 Milk Fat Min 80%
2 Salt 1-1.5%
Table No - 16
Packing: Available in 100gm duplex board box, 250gm butter paper
pack, 1kg butter paper pack.

3.1.8 Ghee:

Ghee is the pure classified fat derived solely from cow and buffalo milk in which
no color is added. The culinary tradition of the kingdom are interwoven with
yellow are granular, its rich flavor has remind unchanged for over 5 decades.

Composition of Ghee
S.No Parameters Value
1 Milk Fat 99.5%

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 2 R.M Value 28-30%
3 P.V Value 2-5%
4 Free Oleic Acids 0.3-0.5%
Table No - 17
Packing: Available in ½ liter, 1 liter poly pack, ½ liter, 1 liter jar.

3.1.9 Ice Cream:

It is a frozen dairy product having rich source of calcium, phosphorus and other
minerals. Ice Cream contains permitted food colors, edible flavors and permitted
stabilizers and emulsifies not exceeding 0.5% by weight. It contains 10% milk
fat, 3.5% protein and 36% total solids. DDC ice cream is available in 80ml cups
and 1 liter containers in different flavors like Vanilla, Strawberry, Chocolate and
Pistachio etc.

Composition of Ice-Cream
S.No Parameters Value
1 Fat 12%
2 SNF 11%
3 Sugar 15%
Table No - 18
Packing: Available in 50ml, 100ml and a liter cup and also in cone.
.

3.2 Data Analysis:

The data analysis are as follow:

3.2.1 Production Capacity:

The production network under different Milk Supply scheme (per day/per shift)
is presented below.

Production Capacity
S.No Schemes Capacity (liters)
1 KMSS 75000

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 2 BMSS 25000
3 HMSS 15000
4 LMSS 2500
Total 117500
Table No - 19

Production capacity

Figure No. 2

From the above table and figure, we can know that the total milk production
capacity per day is 117500 ltrs. Under different schemes KMSS supplies 75000
ltrs of milk per day, whereas BMSS supplies 25000 ltrs, HMSS 15000 and
finally LMSS supplies 2500 ltrs of milk.

3.2.2 Sales and Distribution Management:

For the customer’s facilities, DDC has managed the sales booths in the
following centers.

S.N Schemes Franchise Sales booth Sales Dealer Distributor

Centre
1 KMSS - 1200 - - -

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 2 BMSS - 122 2 36 3
3 HMSS - 185 2 4 1
4 LMSS - 47 1 9 -
5 MPPSS 11 - 3 - 5
Total 11 1554 8 49 9
Table No - 20

Sales and Distribution management

Figure No. 3

The above figure shows the sales and distribution management of DDC. The
KMSS consists of 1200 sales booths. Similarly, BMSS consists of 122 sales
booths, 2 sales center, 36 dealer and 3 distributor. HMSS consists of 185sales
booths, 2 sales centers, 4 dealers and 1 distributors. LMSS includes 47 sales
booths, 1 sales centers 9 dealers. MPPSS consists of 11 franchise, 3 sales centers
and 5 distributors. In total there are 1554 sales booths, 8 sales centers, 49 dealers
and 9 distributors.

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3.2.3 Employees Statement:

DDC has given opportunities for 798 employees in permanent basis in

administrative & technology sector. Besides this an organization has appointed
309 employees in different sector as monthly salary and labor basis.

S.No Schemes Technology Administrative

1 KMSS 203 197
2 BMSS 98 49
3 HMSS 80 54
4 LMSS 25 16
5 MWMSS 14 2
6 MPPSS 83 48
Total 502 296
Table No – 21

Employee Statement

Figure No. 4

The above figure shows the employee statement of DDC. DDC employees are
divided into two categories i.e. technology and administrative. The production
process includes more technical job, so there are more technical staffs appointed
in every place of operation. In total there are 502 technological staffs and 296
administrative staffs.

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3.2.4 Milk & Dairy Product Production Statements:

In the fiscal year 2012/2013, organization’s milk and dairy product production
statement are as below:-

S.No Description/Statement Unit Quantity

1 Milk Collection Liters 5,41,20,000
2 Milk Processing Liters 6,76,14,000
3 Cheese Production Kg 1,69,000
4 Butter Production Kg 12,32,000
5 Yoghurt Production Liters 12,82,000
6 Ghee Production Kg 6,65,000
7 Ice-Cream production Liters 38,000
8 Paneer Production Kg 62,000
9 Skim Milk Powder Kg 5,48,000
Production
10 Fresh Milk Bottles 2,18,000
11 Butter Milk Production Liters 12,41,000
12 Rasbari Cans 89,000
13 Lalmohan Cans 61,000
14 Pedas Boxes 55,000
15 Zera Mohi Liters 50,000
Table No - 22

Milk & Dairy Product Production

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 Figure No. 5
The above figure shows the different items that are produced by DDC with their
quantity of production in a year. In a year 5, 41, 20,000 ltrs of milk are collected,
while 6, 76, 14,000 ltrs of milk are processed.

CHAPTER 4
SUMMARY, CONCLUSIONS & RECOMMENDATIONS

4.1 Summary:

This study examined the types of product of DDC. The study is based on
Interviews, questionnaire .There are many product which is available in packets,
liters gram & kg. The basic objective is to analyse the basic classification of
product of DDC. It helps to know the market capture of DDC in milk produce by
DDC and to study the background and introduction of DDC.

Its problem areas are how, when & what are the terms to provide the daily
product. It is conducted by using analyzing data and tools have been used to
present, analyzed and interpret the data. To support the view of data has also
been made the major points for the analysis and interpretation are to uphold the
grand tradition set by their procedures and to endorse the trust and faith place in
them by their value customer.

DDC has successfully achieved the ISO 9001:2000 certification. They had
follow a theory of HACCP certification too. Their achievements in quality were
clearly demonstrated that they successfully achieved all these awards.

Future – Today, after almost decades of growth and development the dedication
and innovative spirit of DDC is a strong as continuing with advance knowledge
skills and technology. Leadership is the path to even great success in the future.

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4.2 Conclusions

1. DDC is producing more than 20 types of products.

2. Its product covers 60 to 65% of total market sales.

3. DDC product is in maturity stage in product life cycle.

4. Highest selling and demanded product is standard pasteurized milk.

5. DDC has 5 milk supply schemes, 11 cheese manufacturing units and 1 milk
product production and supply scheme

6. DDC is collecting, processing and supplying milk 7 milk product through

1200 milk cooperatives, 40 milk chilling plants, more than 1500 milk
booths, 8 sales centers, 49 dealers, 9 distributors and 11 franchises.

7. Only Biratnagar supply schemes is producing skim milk powder i.e. dry
milk

8. DDC focuses largely in quality rather than promotion and marketing.

9. DDC was able to achieve ISO 9001:2000 certificate and HACCP

certificate.

10. Latest product of DDC is Butter milk (mohi) and low fat milk.

11. DDC is providing employment for Approx. 1200 employees.

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4.3 Recommendations:

1. DDC have to face “Milk Holiday” due to its low holding capacity and other
factors, to solve this problem DDC must establish new plants to produce
Skimmed Milk Powder (Dry Milk) and they should also focus on exporting
their products.

2. DDC should control internal & external leakage.

3. DDC should establish Research & Development Department for making

research.

4. The production of DDC product should be increased at special occasion,

feast & festival considering consumer demand by proper management and
planning.

5. DDC should produce coliform free milk by comprising manpower and

technology.

The further recommendations are:

i) DDC should also produce milk products like Infant Milk Food,
Lactozen, Chocolate and khuwa etc.

ii) Due to political interference, nepotism & favoritism there is

overstaffing in DDC. Therefore, this system should be eliminated.

iii) DDC should have good management for making decision regarding
work, technology and marketing.

iv) DDC should retained harmonious relationship with farmers, milk

producers, distributors, consumers, employees, government.

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 BIBLIOGRAPHY

 Raymond, R Mayer “Production and Operation Management”.

 Chase, Aquitano, Jacobs "Production and Operation Management".

 Keith, Lockyer "Production and Management".

 Agrawal, Govinda Ram "Marketing Management".

 Prokopenko, Joseph "Production and Operational Management".

 Riggs, James "Production System".

 Manandhar, K.D. "Production and Operation Management".

 Wild. Ray "Production and Operation Management".

 Stanton, J. William "Fundamental of Marketing".

 Shrestha Dr. Shyam K. "Fundamental of Marketing".

Websites

www.wikipedia.org
www.about.com
www.google.com
www.dairydev.com.np

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