PROJECT MANAGEMENT FINAL REPORT

ON

NEW PRODUCT DEVELOPMENT AND

LAUNCH IN THE DAIRY INDUSTRY
Under the Guidance
of
Dr. Vipul Gupta
Submitted in partial fulfillment of the requirement for the award of Degree of
Master of Business Administration
By
GROUP- 06
Palak Dhawan (501904170)
Prakul Rana (501904171)
Rajat Goyal (501904174)
Sugandhi Koul (501904187)

Batch: 2019-21

L.M. Thapar School of Management

(Thapar Institute of Engineering and Technology, Patiala)
(Deemed to be University)
DeraBassi Campus, Mohali—140507

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Introduction
Our nation has a rich custom in dairying since the hour of Lord Krishna. Dairying has been
intrinsic and non-distinguishable in Indian culture, for quite a long time. Milk constantly
items have consistently been an indispensable piece of our utilization propensities. In the
immense field of creature farming, the commitment of dairying has been generally critical,
regarding work, just as pay age. In post-freedom India, co-employable dairying has been one
of our extraordinary victories, profoundly affecting financial advancement of rustic regions.
India stands first in world milk creation with a portion of around 14 percent in world milk
creation.
Inventory network of the dairy area incorporates beginning from creation of feed for bovines,
creation of milk, transportation, preparing, bundling, dispersion, retail to buyers.
Unmistakably, if a solitary segment of the chain gets abused, it influences the whole store
network's stream. However, the inventory network dangers and vulnerabilities are very
uncontrolled still as a rule an appropriate danger redressal system is by all accounts lacking.

Sector’s supply chain and COVID-19

During the underlying periods of the lockdown limitations, both milk acquirement and deals
of milk were affected in a few pieces of the nation because of store network interruptions.
Disturbance appears to have affected the disorderly private players fundamentally as they
have a higher portion of items in their business portfolio contrasted with the dairy
cooperatives. It was, subsequently, very coherent that the regions/milk sheds where private
players had a more grounded presence, milk got redirected to the dairy cooperatives because
of which, maker cost likewise got repressed because of the awkwardness among request and
supply. As news began streaming about inventory network disturbances, governments, both
focal, and a few states, taken care of business to improve the circumstance. These
intercessions included creation accessible minimal effort working funding to make claimed
foundations to change over milk into skimmed milk powder (SMP) and milk fat, direct
acquisition of excess milk for transformation and direct conveyance to destitute individuals.

Objective: Promoting the intake of low-fat dairy dietary milk in order to regain its value for
the health-ailments prone and health-conscious people.

Scope: Prevalence of obesity, overweight and health-conscious people among the population
has resulted in a rise in demand for low-fat dairy products. Low-fat dairy products prevent

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excess weight gain when consumed in adequate amounts, thus maintaining proper weight
balance and health issues. Low-fat dairy products are known to provide proteins, vitamins,
and calcium during pregnancy as well.

Purpose: Low-fat milk is fat-free and has less than 0.5 gram of fat with no added ingredients
containing fat. It is not as 'creamy' as whole milk and appears lighter and thinner in
consistency According to Dietitians & Nutritionists, low fat milk is great if you are planning
to curb your calorie intake. A glass of full-fat milk might contain up to 10 grams of fat and
roughly 176 Kilo-calories (Kcal) whereas the same amount of low-fat milk might contain
somewhere between 2 grams to 0 gram of fat and somewhere between 89-118 Kilo-calories
(Kcal). Also, skimmed milk has slightly more calcium and protein when compared to full-fat
milk and has no added sugar.

Deliverables: 
Major Deliverables are:
1. Market Survey
2. Research
3. Final Product

1. Market Survey: 

Milk is a great source of vitamin D, proteins and calcium. Still, few people need to avoid it
due to the health effect it has on them. Many people are unable to digest primary sugar found
in milk also known as Lactose. If milk is consumed by Lactose intolerant people it might
trigger unpleasant health issues such as cramps, gas and diarrhoea. Apart from Lactose, there
are other proteins such as whey and casein which are present in dairy products. So, if a
person has been reported negative in a lactose intolerant test, they might still be allergic to
milk, this is due to the sensitivity of that person to whey or casein. With the increase in
demand for dairy products, the use of antibiotics has largely increased. Such a high dump of
antibiotics has increased the resistance of the bacteria and when humans are affected by these
superbugs’ medicines have no effect on them. Milk also has adverse health effects on our
heart due to the amount of cholesterol which increases with the consumption of dairy
products. There are different types of non-dairy substitutes which are available if a person
wants to avoid the consumption of milk. Soy milk, almond milk, coconut milk, oat milk, rice

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milk, Cashew milk, macadamia milk, hemp milk, quinoa milk. There are few things to
consider while selecting from these non-dairy products, which are as follows calcium content,
vitamin b12, additives, cost, dietary needs. Increase in health effects due to the consumption
of dairy products which are dumped with chemicals has paved the way for non-dairy products
which have nutritional benefits and less harmful effects. The Younger generation is facing
problems like obesity and is more allergic to dairy products than ever before, the nutrients
which are extracted from dairy products are also necessary on the contrary. The low-fat dairy
products have low amounts of saturated fats in it compared to the high dairy fat products.
Saturated fats are the main reason for heart problems. The main benefits of consuming low-
fat dairy products like goat milk over high-fat dairy products like cow milk are as follows:
goat milk is slightly lower in lactose, blood pressure friendly, naturally lower in cholesterol,
plenty of calcium and prebiotic. Many gym-centric people have opted for low dairy fat
products to get the right nutrients and less saturated fats. People have started to shift towards
using low-fat dairy due to its benefits over the high-fat dairy. But the consumption of high
dairy is still high due to the unawareness of the health problems caused due to it. Obese
population which is turning towards a healthy dietary plan could help boost the demand for
low dairy fats. Major challenges for low-fat dairy products is to maintain the organoleptic
properties like taste and texture. When you remove excess fat and sodium from a cheese the
low low-fat cheese obtained is very different compared to taste with the original high fat
cheese. Currently, the key manufacturers of low-fat dairy are Amul, Danone, Dairy Farmers
of America, Fonterra co-operative group ltd.

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2. Research: 

Peanut milk  Cholesterol-Lowering Nutrients

 Antioxidant Activity from Vitamin E
 Maintain Metabolism with Vitamin B-6
 Metabolic process Benefits from Magnesium
 High in Vitamin E

Almond Milk  A Good Source of Calcium

 Often Enriched with Vitamin D
 Naturally Lactose-Free
 Dairy-Free and Vegan
 Low in Phosphorus, With a Moderate Amount of Potassium
 Very Easy to Add to Your Diet
Soy Milk  Naturally free of cholesterol
 Low in saturated fat
 Contains no lactose.
 Good source of protein, calcium and potassium.
Rice Milk  It’s the least likely of all milk products to cause allergies.
 Good choice for people with lactose intolerance or allergies to
milk, soy or nuts.
Coconut Milk  Good choice for people with allergies to nuts
 Contains fat
Camel Milk  Help with Diabetes
 Provides immunity
 Promotes growth and development
 Improves blood circulation
 Promotes the health of your heart
Oat Milk  Compared to other types of milk, oat milk generally has more
calories, carbs, and fibres
 Excellent source of many vitamins and minerals
 Slightly Lower in Lactose
Goat Milk  Plenty of calcium
 Naturally lower in cholesterol
 Blood pressure friendly
 Other Essential Minerals
 A good source of key vitamins
 Prebiotic
Walnut Milk  Low in carbs
 Rich in antioxidants
 A great source of essential fatty acids
 A good source of fibre

3. Final Product:
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The final product is different types of milk having extensively innumerable benefits.

Using MS Project

 Identify all the activities involved

The key activities involved in the project are as following:
 Production of feed for cows
 Milk Process
 Milk Transport
 Boiling of Milk
 Pasteurizing Milk
 Heating of Milk
 Adding of Bacteria
 Packaging of Milk and Curd
 Separation of Cream
 Churning of Cream
 Heat Clarification
 Filtration
 Packaging of Ghee
 Warehouse
 Estimate the average time of completion of all the activities
The average time of completion of all the activities are:

S.no. Activities Average Time

1. Production of feed for cows 20 days
2. Milk Process 01 days
3. Milk Transport 02 days
4. Boiling of Milk 01 days
5. Pasteurizing Milk 01 days
6. Heating of Milk 01 days
7. Adding of Bacteria 02 days
8. Packaging of Milk and Curd 01 days
9. Separation of Cream 02 days
10. Churning of Cream 01 days
11. Heat Clarification 04 days
12. Filtration 01 days
13. Packaging of Ghee 01 days
14. Warehouse 01 days

 Investigate predecessor-successor relationship

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 S.no. Activities Predecessor
1. Production of feed for cows
2. Milk Process 1
3. Milk Transport 2
4. Boiling of Milk 3
5. Pasteurizing Milk 4
6. Heating of Milk 3
7. Adding of Bacteria 6
8. Packaging of Milk and Curd 5,7
9. Separation of Cream 6
10. Churning of Cream 9
11. Heat Clarification 10
12. Filtration 11
13. Packaging of Ghee 12
14. Warehouse 13

 Calculate the critical time

S.no. Activities Average Time Critical time

1. Production of feed for cows 20 days 20 days
2. Milk Process 01 days 21 days
3. Milk Transport 02 days 23 days
4. Boiling of Milk 01 days
5. Pasteurizing Milk 01 days
6. Heating of Milk 01 days 24 days
7. Adding of Bacteria 02 days
8. Packaging of Milk and Curd 01 days
9. Separation of Cream 02 days 26 days
10. Churning of Cream 01 days 27 days
11. Heat Clarification 04 days 31 days
12. Filtration 01 days 32 days
13. Packaging of Ghee 01 days 33 days
14. Warehouse 01 days 34 days

 1,2,36,9,10,11,12,13,14 forms a critical path – 34 days

 Calculate free float; total float and interference float of all the activities
 Free Float = ES of next Activity – EF of current Activity

S.no. Activities Free Float

1. Production of feed for cows 0 days
2. Milk Process 0 days
3. Milk Transport 0 days
4. Boiling of Milk 0 days
5. Pasteurizing Milk 01 days

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 6. Heating of Milk 0 days
7. Adding of Bacteria 0 days
8. Packaging of Milk and Curd 06 days
9. Separation of Cream 0 days
10. Churning of Cream 0 days
11. Heat Clarification 0 days
12. Filtration 0 days
13. Packaging of Ghee 0 days
14. Warehouse 0 days

 Total Float = Late Start date – Early Start date

Or 
 Total Float = Late Finish date – Early Finish date

S.no. Activities Total Float

1. Production of feed for cows 0 days
2. Milk Process 0 days
3. Milk Transport 0 days
4. Boiling of Milk 07 days
5. Pasteurizing Milk 07 days
6. Heating of Milk 0 days
7. Adding of Bacteria 06 days
8. Packaging of Milk and Curd 06 days
9. Separation of Cream 0 days
10. Churning of Cream 0 days
11. Heat Clarification 0 days
12. Filtration 0 days
13. Packaging of Ghee 0 days
14. Warehouse 0 days

 Interference Float = Latest Finish Time of Activity under consideration –

Earliest starting Time of the following activity.

S.no. Activities Interference Float

1. Production of feed for cows 0 days
2. Milk Process 0 days
3. Milk Transport 0 days
4. Boiling of Milk 07 days
5. Pasteurizing Milk 06 days
6. Heating of Milk 0 days
7. Adding of Bacteria 06 days
8. Packaging of Milk and Curd 0 days
9. Separation of Cream 0 days
10. Churning of Cream 0 days

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 11. Heat Clarification 0 days
12. Filtration 0 days
13. Packaging of Ghee 0 days
14. Warehouse 0 days

 Draw network diagram for your project.

 Assign different activities of the project to various group members using look-
up function

S.no. Activities Resources Name

1. Production of feed for cows Rajat Goyal
2. Milk Process Rajat Goyal
3. Milk Transport Rajat Goyal
4. Boiling of Milk Palak Dhawan
5. Pasteurizing Milk Prakul Rana
6. Heating of Milk Prakul Rana
7. Adding of Bacteria Palak Dhawan
8. Packaging of Milk and Curd Palak Dhawan
9. Separation of Cream Sugandhi Koul
10. Churning of Cream Sugandhi Koul
11. Heat Clarification Sugandhi Koul
12. Filtration Sugandhi Koul
13. Packaging of Ghee Sugandhi Koul
14. Warehouse Rajat Goyal

The process of extraction of different product out of milk

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The dairy supply chain process begins with growing crops such as corn and soyabeans to feed
dairy cows. About 35% of feed is grown on the farm by the dairy farmers so as to get feeds
that are easily digestible by the cows; the rest is purchased from other farmers; this process
happens in one day. Dairy cows are housed, fed and milked on dairy farms across the
country, an Indian desi cow can produce 4-8 litres of milk every day, cow milk can be
fetched in the duration of a day. After collecting milk from cows, it transported from farms
for processing in insulated tanker trucks. An average truck can carry 5800 gallons of milk and
travels approximately 500 miles round trip, it has to be transported in less than a day. Milk
then reaches processing company, there are thousands of processing plants turning milk into
cheese, yogurt, ice cream, powdered milk and other products. Also, the milk can directly be
transported to the customers, and then before consumption they boil the milk followed by
pasteurisation; both the processes are a day long. The milk transported from farms can also be
heated. Bacteria is then added into the heated milk which when added to regular milk breaks
down milk proteins and lactose. This helps people digest milk better, especially people with
allergies to milk protein or people who are lactose intolerant. Bacteria can also be added to
convert milk into the curd. After pasteurization and heating takes place separately the product
is packed and transported further.

Based on the fact that people prefer low fat milk, after heating the milk, cream separation is
done. The cream will be separated rapidly on cooling, immediately after heating the milk, by
increasing the difference in densities of milk fat and serum. After separation cream is
churned, which is the process of converting cream into butter through appropriate mechanical
manipulations leading to the conversion of oil-in-water (O/W) emulsion of cream into water-
in-oil (W/O) emulsion desired in butter, hence butter can be extracted after this step. The
butter that we get after churning, then goes for clarification, clarified butter is shelf-stable
butter with the milk solids and water removed, leaving just the milk fat behind, this butter is
further filtered so that we can extract ghee out of it. Ghee extracted is then packed and further
sent to the warehouse for selling in market.

 Using hypothetical data perform Earned value Analysis for your project.

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 Modul Estimate Estimate Desig Estimate Cx reach
e d effort d design n hrs d cx hrs
hours reach
65% hours
35%
Milk 300 195 50 105 70
Curd 280 182 45 98 60
Ghee 5 3.25 50 1.75 80
PV 585        
EV 583.25 380.25   203  
AC 355   145   210
SV -1.75        
CV 228.25        
SPI 0.99701        
CPI 1.64296        
CSI 1.63804        

Calculations:

a: Planned Value (PV): Sum of Estimated Effort = Milk + Curd + Ghee

= 300+280+5

= 585

b: Earned Value (EV): [Total modules completed] x [% of completed module]

= [ 585 x (% Design completed)] + [ 90 x (% CX reach completed)]

= [ 585 x (65/100)] + [ 580 x (35/100)]

= 380.25 + 203

= 585.25

c: Actual Cost (AC): Actual Hours = Total Design + Total CX reach

= 145 + 210

= 355

d: Schedule Variance (SV): SV = EV – PV

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 = 583.25 - 585

= -1.75

e: Cost Variance (CV): CV = EV – AC

= 585.25 – 355

= 228.25

f: Schedule Performance Indicator (SPI): SPI = EV ÷ PV

= 583.25 ÷ 585

= 0.997

g: Cost Performance Indicator (CPI): CPI = EV ÷ AC

= 583.25 ÷ 355

= 1.642

h: Cost Schedule Index (CSI): CSI=CPI x SPI

= 1.642 x 0.997

= 1.638

Conclusion:

 SV is negative and SPI is less than 1 thus our project is behind schedule because of
the impact of covid-19 we were not able to have proper transportation for getting our
product as well as delivering our product to our end customers.
 CV is positive and CPI is more than 1 thus our project is under-budgeted.
 CSI is close to 1.0, the project is more likely to recover from the impact of the
epidemic.

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