1.1 1.2 1.3 1.4


scope of the study objective of the study limitations of the study research methodology

2.1 2.2 2.3 2.4


Co-operative movement in India Co-operative movement in Kerala Industrial co-operative societies Dairy co-operative in India

CHAPTER-3 COMPANY 3.1 certification received
3.3 3.4 3.5 3.6 3.7 Commercial units


Organizational chart-MRCMPU MRCMPU Kannur dairy Growth and development

3.8 3.9

Quality policy Mission Objectives

4.1 4.2 4.3 4.4 4.5 4.6 4.7

Procurement and input department Production department chapter Marketing department Personnel department Finance department Maintains departments Stores department Quality control departments.








I wish to thank especially Mr. I also express my immense gratitude to miss M Priya faculty and project guide JOHN COLLEGE. for having provided me with the opportunity I express my sincere gratitude to our beloved principal for her continued and un falling support in all my academic period. I would like to thank miss to conduct this organizational study.ACKNOWLEDGEMENT I would like to thank god almighty for enabling me to complete this project work successfully. Marketing officer and also other members of Milma kannur dairy who have helped throughout my project work. Bangalore who provided total able guidance in planning this study. T NASEEHUDEEN AHMAD A A . Account officer and Mr. My sincere thanks to all members and staffs of MBA departments for their guidance support.

associate ship or any other similar title.DECLARATION I hereby declare that this project report titled “AN ORGANIZATIONAL STUDY ON MILMA KANNUR DAIRY has been prepared by me under the supervision of Miss M PRIYA faculty. RWCM 6096 DATE: PLACE: . Countersigned M PRIYA NASEEHUDEEN AHMAD A A Reg No. fellowship. affiliated to Bangalore University in partial fulfillment of the requirement of the award of the Master’s Degree in Business Administration during the Academic year 2008-2010 I hereby declare that this Project Report has not been submitted to any other University for the award of any other degree. T John College.

.575 village dairy co-operatives federated in to 170 milk union and 15 federations procured an average 25millions liters of milk every day.the main aim of the program was to organize milk producers co-operatives in several probable places of India taking the kaira district (ANAND) co-operative milk producers union is (AMUL)of Anand . The system of processing. The diary societies in the Gujarat are properly known as ‘white revolution”. preserving and marketing the milk in villages seem to be a problem so in order to solve this problem co-operative milk supply societies and milk unions have been established.17. According to nutrition advisory committee of Indian council of medical research a balanced diet for an adult Indian should include ten ounces of milk per day.4million framers are presently members of village dairy co-operatives. The small farmers faces a number problems such as in adequate transport facility . farmers had a difficulty to take it in to the city. This lightened the path of establishment of” MILMA. and absence of proper system of processing and marketing of milk. Gujarat as the model with the above object in the view.12.CHAPTER -1 1. Most of milk produced in India is from rural areas.” .non availability of veteniery services. All the above mentioned information leads to the conclusions that in the absence of proper machinery to collect and supply milk. milk producers existence in dangerous situation.NDDB has now India’s 1. Government of India launched a dairy program called “flood program” called with National Dairy Development Board (NDDB).0 INTRODUCTION Milk occupies a number position in India’s diet. The production of the milk is done rural areas by small marginal farmers who find it difficult to market but the profitable market is in urban areas.

To identify the strength and weakness of workers an organization. So the study is mainly concentrated to know how these marketing techniques and management system are applied in practice And what are the assistance providing the various department in this union to achieve their organizational goals.2 OBJECTIVE OF THE STUDY • To study the organizational structure of Milma kannur dairy To get fairly acquainted with professional work culture To understand the industrial practice To find out various managerial process handled by milma To study the various functions of each department. And also milma is in prominent position in the milk market of country by adopting various marketing techniques and professional management system in this co-operative union. To study how the theoretical knowledge is made use in real situation • • • • • • . 1. The study also aims to giving suggestions which can help them to improve market share.1.1 SCOPE OF THE STUDY Milma is one of the most brands in milk industry of Kerala having a rigid organizational structure carrying out various managerial functions.

purpose and scope of enquiry. . 1.1. Primary data Primary data are those which are collected for the first time and it happens to be original in nature.4 RESEARCH METHEDOLOGY Duration of the study The duration of the study was 6 weeks from 26-06-2009 Data collection method The collection of data refers to a purposive gathering of information relevant to the subject matters of the study from the units under investigation.3 LIMITATIONS OF STUDY • • • • The time is critical limitation factor in this study Most of data required is kept in head office The unwillingness to disclose all the information from certain departments The study includes all limitation since there is no structured questionnaire form of research. • Lack of proper experience on the part of researcher in conducting such studies in the past. The method of collection of data depends mainly upon the nature. The primary data were collected mainly through.

• • Personal interview with managers Interaction with workers Secondary data The secondary data were obtained through. • • • • Company journals Company websites Magazines Company annual reports .


CHAPTER-2 INDUSTRIAL PROFILE Co-operation means working together jointly.operation become provincial subject and the provinces and princely state made there’re own acts. i. At that time two different laws are existed. All organization of the society ranging from family to nation are built upon the strong foundation of the co-operation. thinking. and working together. Within two decades of independence the membership of primary societies had increased four times while share capital and working capital had increased 23 and 31 times respectively..e. Travancore Cochin co-operative societies act and madras co operative societies act. It implies living. It is a joint action joint possession and management. The co-operative societies in Kerala are divided in two are Agricultural societies and Non agricultural societies.1 Co-op movement in India: The co. By this act a co. In 1904 on the basis of Edward law committee the first co operative society act was passed. 2. At present the word co-operation go beyond in its general concept’ working together’. 2.operative movement in India in the last decade of 19th century with two objectives in view. It introduced as a government sponsored movement started after India became freedom.the workers co-operation in their activities should be guided by the principles “each for all and all for each” and show honesty in their dealings. With the reforms of act 1919 co operative movement entered another phase of expansion. The Kerala government passed the first co operative act in 1969 which came in to force on 15th may. In its technical sense it denotes a special method of doing business and it also stands for deliberate organization of human being for the attainments of their common economic goals. There were only formed credit societies according to this act.2 Co-operative movements in Kerala: The Kerala state was formed in the year 1956. to protect farmers from the hands of private money lenders and to improve their economic condition. Madras province was the birth place of this movement. .

The total membership of these societies is more than 70000. and certain village industries.2.4 Dairy co-operative societies In India: Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge in the practical purpose. A number of industrial have been formed in India in the handloom industry. lead to the dispersal of wealth and create opportunities for the equalization in the distribution of wealth.but after the independence the national government took initiative in setting new dairy co-operatives in many parts of the country. The industrial co-operative in under developed countries have been organized with mainly two objectives-social and economical. . They are formed with the objectives of eliminating the capitalist’s class from the system of industrial production.. enhance competitive ability of the poorer section of the society and accelerate the rate of the capital information in the country. From the economic point of view they generate new incomes.3 Industrial co-op societies: Industrial co-operative societies are formed by small producers and artisans and craft men to undertake small scale cottage industries on co-operative basis. The village and small scale industry are providing an independent as well as subsidiary occupation to a sizable proportion of rural and urban population. There are also known as producers’ co-operatives. The lack of interest on the part of the government was the most important factor contributing to the decline of these industries. coir industries. argument productive capacity. During the pre independence period the dairy co-operative movement was limited to a few pockets of Calcutta. from the social point of view he industrial co-operative safe guard the interest of the poor section of the community against exploitation of the capitalists lead to the capitalists. In 1965 National Dairy Development Board (NDDB) was set with the increasing demand of milk especially in urban areas as well as developing rural economy through the enhancement of milk production of the country. increase employment opportunities. 2. madras Gujarat and Bangalore. The most notable of this venture was the kaira district co-operative milk producers union limited of anand Gujarat.

operation flood programmers’ in order to organize milk producers co-operatives in several probable places of India taking the Anand co-operative milk producers union limited. The Kerala state government has implemented a project called as ksheeradhara with the object of making of state as independent milk supply state.(AMUL)of Anand. which lasted for 26years from 1970 to 1996 and was responsible for making India as world’s largest producers of milk through the combination of energy and wisdom of farmers and combination of effective professional management. Gujarat as a model with the above object in view. NDDB has now integrated 96000 dairy co-operative called as the ANAND PATTERN. During 1997-98 the state hade sixty milk processing plants with an aggregate processing capacity of 5.In 1970the national dairy development board took up. The ksheeradhara would provide for an artificial insemination regime using frozen premium bull sperm samples. The dairy sector India has shown remarkable development in the past decade and India has become one of the largest producers of milk and value added products in the world. Maharashtra now regularly exports milk in to the neighboring states. In addition to this processing plants123 government plans and 33 milk chilling plants operate in the state. It has also initiated a free school feeding scheme benefiting more than three million children from over 19000 schools all over the states. The major success of this mission was achieved through the World Bank financed operation flood. The dairy sector has developed through co-operative in many parts of the country. linking the village society to the state federation in three tier structure. .8 million liters per day.


Kasargode.KCMMF is an organization of farmers and they are the producers of raw milk. Malabar co-operative milk producers union (MRCMPU) covers the districts Wayanad. At the village level it is APCOS. APCOS are organized in the three tire structure. the basic unit of the organization the primary dairy co-operatives. Ernakulum regional co-operative milk producers union (ERCMPU) covers the district of Kottayam. At present there are three regional units. Palakkad. The president of APCO’s is elected form the general body meeting. Regional co-operative milk producers union provide various input like regular vet nary care and the P&I staffs instinct farmers on improve practice of cattle management and fodder production. Alapuzha. kannur. kollam. Malappuram and Kozhikode. Idukki. Ernakulum. The main activities of these societies to collect milk from all its members ensure that the milk sent to the chilling centers and dairies in the time. Trivandrum regional co-operative milk producers union (TRCMPU) covers the district of Trivandrum. The elections to the post of APCO are held on once in fifth year. as an implementing agency for operation flood (a dairy program which was launched in 1970under the sponsor ship of national dairy development board (NDDB). Pathanamthitta. The KCMMF is the apex body of all the Anand pattern co-operative societies (APCOS) in the state. Those who are the actual dairy farmers are the only entitled to become members of the society. and Trichur. Each primary co-operative society is an autonomous self governing organization with its own board of directors elected among the farmers. The union collects the milk from primary societies process it in the dairy run by them and marketing their product both inside and outside of the state.CHAPTER-3 COMPANY PROFILE The Kerala co-op milk marketing federation (KCMMF) popularly known as MILMA was set up in the year 1980 with head office at Trivandrum. The primary co-operative societies unified in regional levels called regional cooperative Milk Producers Union.The village level APCOS are organized . and share holders. channel subsidized cattle field for the farmers etc. The motto of organization “of the people by the people and for the people is the foundation of three tier system.

It provided training course for presidents. 3.Milma has a Central Product Dairy (CPD) was commissioned on 1987 with a capacity of 60000 LPD. Facilities in milk powder factor are made for the production of skim milk powder. milk testers. 3. whole milk powder. These unions are federated at state level to form state federation that is Kerala co-operative milk marketing federation. At 21-1-1992 Milma established and started functioning a fully fledged training centre with hostel facility in the land adjacent Trichur dairy under North Kerala Dairy Project phase -1 and Swiss Development Co-operation.1 CERTIFICATION RECIEVED All the dairy milk chilling plants and procurement and input unit under the union are certified for ISO 9001-2000 and AGMARK. 3. . secretaries. An aseptic packing section and milk powder factory are also established in the dairy compounds which are only of its in Kerala.2 TRINING CENTERS Milma started an orientation program in a rented building in 1984 at Edappally in Ernakulum district. Milma agents and Milma staffs.3 COMMERCIAL UNITS Alapuzha dairy is directly managed by KCMMF as a CENTRAL PRODUCT DAIRY. At the initial period NDDB came forward to help Milma in providing financial assistance and grant for meeting training centre expenses. milk collectors of Anannd Pattern Co-operative Societies. baby foods .at regional level as regional co-operative milk producers union.

3.4 ORGANISATIONAL CHART (MILMA) KICMMF TRCMPU ERCMPU MRCMPU Trivandru m Kollam Alapuzha Pathanamth itata Idukki Trichur Kottayam Ernakulu m Malappura waynad Kasargod Kannur Kozhikod Palakkad .

Kannur. at the distance of 15 km from Kozhikode city. Now has the capacity of processing100000 LTR milk per day. Kannur was inaugurated on august 30th.from 15-01-1990 the administrative committee constituted by the government was governing the organization and from 16-04-1993 MRCMPU has been governing by an elected board of directors . and sambaram. Wayanad.3. ghee. MRCMPU was registered on 29-06-1989 and started functioning on 15-01-1990.6 KANNUR DAIRY The kannur dairy under MRCMPU is situated in Pallikunnu. Malapuram. and 1979.34%and 10%incerase in the sales up at the end of March 2007-2008. The area of operation is in six northern districts Palakad. There has been . Turnover of the dairy increased to 9.the dairy manufactures milk. 3. There are14 milk chilling plants scattered over to state.Before the federation of MRCMPU. 3. Kozhikode.7 GROWTH AND DEVOLEPMENT Milma has concentrated on infrastructure development with financial assistance from NDDB. The milk power plant is set up in Alapuzha having production capacity of 10 MT per day. As on the date there are ten milk processing plants with a combined capacity of 9.the MRCMPU took over the kannur from KCMMF on 1-061990.90 lakh per day. Kannur and Palakad dairies were managed by KCMMF.5 MALABAR REGIONAL CO-OPERATIVE MLK PRODUCERS UNION This is one of the regional co-operative milk producers unions processing and marketing fluid milk and other milk products in Kerala state. and Kasargode with its head office at Peringulam near Kunnamangalam.

3. procurement. Milma has got the market leadership by achieving quality and economy in all their activities adopting quality management system. hygienic and healthy milk and milk products to achieve and enhance customer satisfaction. processing. and marketing of milk products for economic development of the community. When we look in to the various activities of MRCMPU it is good alignment with mission statement. 3.increase of 5000 LTRS milk sales by introduction of homogenized milk also production capacity has reached 100000LTR per day. The above statement shows the aspirations of MRCMPU and its determination to achieve the mission.10 THE OBJECTIVES • To channelize marketable surplus milks from the rural areas to urban deficit areas to maximize return to the producer and provide quality milk and milk products to the consumers. • To carry out activities for promotion of production. To provide constant market and state price to the dairy farmers for theier products • • . 3.8 QUALITY POLICY MRCMPU is committed to provide consistently safe. To buildup available dairy industry in the state.9 MISSION The mission statement of MRCMPU is as follows: To bring about socio economic development of farmers on a suitable basis and providing quality milk and milk products to the customer at a reasonable price.

.The name MILMA represents • • • • • • • • • • • 2100 primary milk co-operative societies 7.5 lakh farmer members Three regional co-operative milk producers union. 11 dairies capable of handling 9.90lakh litters of milk per day Fourteen milk chilling centers Two cattle feed plants with cumulative capacity of 500MT per day One milk powder plant of 10mt per day A well established training center 5200 retail outlets Over 32000 people working either directly or indirectly for MILMA Serves a million of consumer day in day out.


CHAPTER-4 VARIOUS DEPARTEMENTS Milma has different departments. Each department has one departmental head that has the ultimate control over the departments. . which control different functional activities of the organization. The various departments are: 5 Procurement and input department 6 Production department 7 Marketing department 8 Personnel department 9 Finance department 10 Maintains departments 11 Stores department 12 Quality control departments.


ORGANISATIONAL STRUCTURE OF PROCUREMENT AND INPUT DEPARTMENTS Officer in charge Senior Superintendent Junior Superintendent .

there are 14 officers and 29 supervisors in the P&I departments . At present there are officers and supervisors in the department. The department is mainly concerned with organizing and supervising APCOS through the field level activities as the functions related to the production enhancement. other than this as follows. There are seven P&I units in the union. procurement of the milk and input supply to the societies and farmers.Under each P &I department there are 3-6 P&I supervisors and an officer in charge who is the head of the unit. • The main objective of the procurement and input department is to promote and strengthen the dairy co-operative network to ensure sustainable socio economic development of dairy farmers by providing effective support system for profitable production and procurement and to take up other activities so as to achieve objective of the union. The ISO quality objective of procurement departments are • Starting and stabilizing of newly formed APCOS Increase and sustain milk quality Support farmers to reduce production cost Make APCOS vibrant development co-operative organization Monitor procurement cost by efficient organization of milk rout Function as an effective communication channel between union and APCOS • • • • • 4. The P&I departments arranges milk procurement from APCOS through milk routs to its dairies and milk chilling plants o annual contract basis. The p7i units are monitored from the head office .1Following are the extensional activities of the department .1.The procurement department comes under the direct control of the head office at Kozhikode. There are which • • • milk collection routs and distribution routs of routs collection and distribution routs are linked to reduce cost’s main function Cattle feed distribution Artificial insemination Comparative development camps Giving insurance for both farmers and cattle.

Women managing committee. Artificial insemination programs: In order to get good and healthiest cattle to make more production MILMA has been providing artificial insemination centers on in needed place and arranging training for farmers. Feed and fodder program In order to support the dairy farmers to economize milk production. As on31-3-08 there are 18 women promoters working and these 18 promoters would be trained and retrained till the competition of three year term. About 100 women promoters are working now.41%snf. Training women groups in villages by a trained woman promoter.Institution building effort Institution building effort (IB) model societies with strong institution base will be created in training. Quality assurance program All the 856 societies supplying milk to the union. .15%fat and 8. a women promoters selected and placed in a society is engaged for three years. apart from financial gain.16%fatand 8. As per the strategy developed by the union. knowledge and skill improvement of the staff and management of the dairy co-operative societies. including traditional societies would be cover under the quality assurance program(QAP).the improvement in quality of raw milk as shown had helped the union to sell quality milk. the union has been providing balanced cattle feed to the dairy farmers on no profit and no loss basis through the diary co-operative societies. Women cattle care program:A women cattle care program is usually implemented as a 3 year package.38%snf to 4. members and staffs would be trained under this program. Union programs Co-operative development program This program aims to sensitize the farmers and create ownership and belongingness feelings among the members of the co-operative societies. including traditional societies .As the result of intensive quality assurance program implemented at the field level and continuous monitoring the compositional quality of raw milk had improved from the level from 4.

1. The insured is covered for accidental death and permanent total disability. dependents and society staffs under tie-up with new India Assurance Company.Ksheera Karshaka Suraksha Scheme Milma has started the insurance program known as Ksheera Karshaka Suraksha Padathi (KKSP) for the farmer members. The EDTA powder. 4. Milk procurement plan The milk procurement would be increased by 10% till 2010and will be enhanced to 444000 LTR by the year 2009-2010. Malabar regional employee’s fund MRCMPU has made a provision of 2 lakhs during the year 2008-2009towards the initial contribution of the fund. Group gratuity insurance A group gratuity scheme for the employees of APCO societies was started during December 04 in association with LIC of India. non members. emulsifier and antifoaming agent required for milk testing with electronic milk testers would also be supplied for free cost.2 DSC BASED ACTIVITIES Testing chemicals Acid and alchahole for milk testing would be supplied to the societies as a grant in under IDDP (Intensive dairy development program). Scholarships A scholar ship for the higher education is providing from Milma to the wards of the farmers. Milk cans Milk cans had been supplied to the societies under IDDP and under CMP (centrally sponsored scheme) during 2007-08. Reward to the best farmers and APCOS The best farmers and societies at the district level and the union level would be selected and rewarded a sum of RS 2000is awarded at the district level and RS 5000 at the union is expected that the union would collect milk from 125 .

it is e4xpecte that new societies would contribute 2000LTRper day and exciting societies about 424000LTR per day by 2009-10.4 Procurement and sales 1991-2009 YEAR MILK PROCUREME 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 NT 56873 83383 106742 128532 138766 141966 172831 180615 217342 225997 228066 229987 241584 273373 308986 325035 320201 350831 MILK SALES(LTR S) 72014 82524 102920 119805 144593 159835 167430 177812 181099 197165 201714 215095 231600 242532 253828 277631 302267 319579 GHEE SALES(LTRS) 21556 22638 29407 34836 36778 40250 40040 43195 58026 53462 66388 74907 84184 83917 93514 118241 129833 121251 CURD SALES(LTRS ) _ _ _ 692 3992 6561 7976 10153 11263 13048 14593 17419 19589 21901 23807 27191 29192 32508 SAMB ARAM (PACKETS) _ _ _ 442 5254 10371 11664 15641 10710 12380 11243 22452 12112 11803 14565 17199 19174 20750 .1. societies by the year 2009-10.

5 Procurement and sales of milk (91-09) t .1.4.

Procurement and sales from april 2008-march 2009 .


Organizational structure of production department Manager Assistant manager Technical superintend Senior grade officer Operator grade Operator senior grade Plant at tender .

lactose. double toned milk. The production department must make sure that the production is done hygienic condition.Production and manufacturing is a very basic function in every organization. When milk availability is law in summer this milk powder and fat is used for producing fresh balanced milk. maintain the right combination of fat and SNF. safe universally accepted and legal for meeting the required milk around the year. The main functions of production departments are as follows. The non fat solid includes protein. The production means conversion of raw material in to finished goods. . minerals and vitamins. In summer milk production is very law while consumption is more. Milk is essentially contains their main constituents that are fat. Milma kannur dairy currently produces milk curd ghee and sambaram. The production department has to make sure that the goods produced on the basis of order given by marketing department with minimum cost of manufacture. 4. standardized milk.2.1 Milk. and water. During rainy season the production is more than consumption because of the availability of green fodder and water. So this surplus milk is taken to the milk powder plant located in Alapuzha district and converted in to powder and storage. • • To undertake production in hygienic condition To maintain right temperature combination for production. Production quality product with law cost • • Milk production is not uniform in a year. To produce according to the order given by the marketing departments. Here raw material is raw milk itself is converted in to pasteurized toned milk. It may vary according to the weather. This is perfectly scientific. Even though milk is a complete food it also a very fertile media of bacteria to grow in at milking itself. Maintain the right temperature. Solid Not Fat (SNF). If it is un checked the bacteria including to cause diseases in human being multiply fast and spoil the milk.

make color tests. Clarification The received milk quality has to be tested by the lab technician to know whether milk is spoiled. Chilling The milk is chilled up to 40c in the chiller. The standardized milk having 4.55 SNF. Then sample are taken in to test the fat and SNF. Here the cream is separated . homogenized milk. The details of milk of various societies’ weight are transferred from weighing machine comes in green colored sachets of 500 ml.75 fat and 8.the cans are then un loaded from vehicle then it is loaded in to belt conveyer. tastes. it is rejected. This test is called organoleptic test. At the period of deficit the tankers coming from another district would send to weighing machine located in front yard of the company. Then the operators can confirm type of milk to be p produced and can calculate cream for separation. Weighing After clarification milk is poured in to weighing bowl. The chilled milk is stored in separate silo tanks of 30000ltrs capacity in the same temperature which will prevent milk from spoilage.Mainly three types of milk produce by milma kannur dairy. To obtain this the milk is made to pass through narrow slit under high pressure. Those are toned mik. For this purpose the lab technician smells. The production process Receiving the raw milk The raw milk from the various societies are brought in by the contact vehicles in cans . Standardization The milk is standardized as per the requirements.5 %SNF.The toned milk having 3.5% fat and 8. This milk comes in blue packets. Homogenized milk is another product made by splitting of fat globules in to smaller sized globules. It is the milk having law percentage of fat. This process called as homogenization. and standardized milk.its produced by removing the cream for decreasing fat percentage in to the required level.doubtfull tests are send for clot on boiling test and cob is positive.

the machine is fully automatic then only required milk filled in each packets and then the packet is sealed and collected in to trays as 20 number in each tray. This is the scientific method of destroying decease causing bacteria in the milk without destroying nutrient in the milk. Cold storage The packets collected in the plastic trays are placed to the cold storage and then stored in 50c that help to keep milk long laster without losing its quality. The milk is heated up to 720c for about 15 second. Pasteurization This is one of the process that milma undertakes in its dairy plants. . Chilling and storage After pasteurization the milk is again chilled at 40c stored in separate tanks for toned milk. After packing milk is again tested in lab to ensure that PFA specification are satisfied. and homogenized milk Packing The milk is then pumped to the filling machine to filling in the packets(law density polyethylene). standardized milk.using the cream separator to adjust the fat percentage and milk powder is added if required to adjust SNF.

Production process of milk flow chart Start Receiving raw material Clarification Weighing and sampling Chilling Standardization Chilling Pumping to the filling tank Packing Cold storage at 5 c End .

4. The curd will be usable after three hours of packing. Production of curd flow chart Start Receiving of skimmed milk Standardization Heating to 87-90 o c Holding for one hour Cooling to 40-44 0c Incubation Packing Incubation (6-10 hrs) Testing for acidity Shifting to cold storage End is done to get good body and texture of finished product.lactose.5%SNF. The major constituent of curd is water. Then it is pasteurized at 850-900c for 20-25 minutes and cooled to 450c then. This method is adopted successfully in kannur dairy. and phosphorous.protien. After normalizing the production sachets are filled in just after incubation by using fill pack machine. fat 8889%.lactic acid. The firm curd is formed after adding 5-1 5 active culture in it.2 Curd To produce curd fresh milk is heated to 420-450c and it is standardized from 1010. calcium.

washed chilies and curry leaves are added. To prepare sambaram. The processed extracts are pumped to the curd tank and mixed well with the curd.2. The processed sambaram with greater acidity distributer at first.4 Production process of sambaram-flow chart Start Receiving skimmed milk curd (10. Added salt require 2%of curd volume. After addition of pasteurized water in the ratio of 60:40 processed extracts are added. But in milma the method making sambaram is quiet different from homely method. 4. curd with minimum acidity of 1. They are circulated through the chiller till 5 0c temperatures is attained. After that sambaram can be packed and placed in cold store and distributed according to the customer order.2.5% SNF) Adding processed abstract of vegetables Cooling the milk mix to 5 0 c Packing Cold storage End .3 Sambaram Normally sambaram is the byproduct of butter. All these are mixed and filtered and then heated at 750c for 2 minutes.5%of curd volume ginger. For that 2.4.65 is to be used.

5 Production process of ghee. The cream is stored in tanks and pumped in ghee vats of capacity 700 kg and 1000kg after the cream separation process.after labeling the bottles are seeded. Before clarification it is allowed to settle it’s temperature drop to 600-700c.4 Ghee The pure clarified fat is known as ghee. re melted.e. The residues s assembled at the bottom of the vate are removed and poured in to open tanks. The vats containing two layers of stainless steels.flow chart . There are steam coil on inner side of outer stainless steel and thermo coal layer on outer side of inner stainless steel .2.4.there is around 70%cream content in the milk. and again poured in the water. The ghee is prepared using cream i. The residue is actually the burnt SNF in the cream.2. Seeding require maintenance of temperature at 380c . Ghee is the mixture of fatty acids and glycerol. And then it is clarified by further removal of residues impurities.thermo coal prevent escape of heat from the vat to atmosphere. Cream in the vat is heated at 120 degree as well as agitated simultaneously. The residue treatment is done by running chilling water over the residue and allows settling. Any fat content is left in the bottom is collected. The bottles being used should be sterilized . 4. fat content of milk .the bottles are carefully placed in to cartoon and placed into ghee stores until they to be distributed. Then the ghee is poured in the bottle and labeled. Te clarified ghee is stored then in tanks.

Start Receiving the cream Testing of cream(FAT%) Heating (120 0c) Pumping ghee to setting tank Clarification of ghee to cans Labeling of cans Seeding of cans Shifting of cans to ghee store End .

Plant lay out .


1 Product mix . This department is mainly concerned with activities regarding the milk and milk products.Marketing department Marketing is a comprehensive term which includes set of activities that direct to flow of goods and services from producers to consumers. The milk marketing system has been influenced by characteristics of production process and products. Marketing department is an important department in the organization. • • • Market development and supply management Study new markets Identifying marketing problem and measures to solve the problem Finding new customers Canvas for bulk orders Increasing sale and networking The marketing officer is the head of the department. • • • 4. It is one of most dynamic field within management arena.3. That means the distribution of milk and milk products giving details to the production departments about how much to produced to next day. Assistant marketing officer concerned with activities regarding supply management. He is also responsible about the marketing accounting and market development activities. The main functions of the department are. The assistant marketing officers and field officers comes under marketing officers.

it comes in blue colored packing. It is delicious. c) Homogenized milk This is the special type of milk specialized for tea. It uses green color packing. It comes in green colored packing.5snf. 2 curd It’s the fermented product prepared from pasteurized milk using curd culture from the national dairy institute. free from cholesterol and available in 500ml and in bulk. It costs 12.55fat and9. it costs RS 11.55 SNF. It costs RS 11per 500ml. Its available 500ml packets costing of rs 10.It is a complete set of all product line that a particular seller offers to the public for sale. The Malabar regional co-operative society introduced lots of products to the public .the milk contain three present fat and 8. b) Standardized milk This milk contains 4. 3 sambaram Sambaram is the favorite beverage of Kerala the only product of its kind in the market. .that are 1. It comes in convenient sachets of200ml.50per 500ml milk. Pasteurized milk Milma pasteurized vitamin A rich milk comes in three varieties.50per 500ml.and it comes in dark blue color packet. It is fat free milk.mik is of divided in to three types based on quality. In case of milma main product is mik. Product mix has key important in marketing product mix helps to find out whether the product is profitable or not. A) Toned milk This milk is the most commonly used by the domestic consumer. Hotels are the main consumer of this milk.

It comes in 200ml bottle for RS 12. Price is RS 128per 500mg. 6) Butter It is prepared from cream of milk contain81% of fat and less than 15. Milma produces pure good quality ghee fro butter or cream at all dairies. It comes in tetra pack of 200ml. It is available in 100 gms to 15 comes in glass plastic bottles tin and packets.500gmsand family packs are available in salted and un salted varieties. 9) Refresh In addition to the milk drink milma has also mango drink which is a favorite drink in the fruit drink sector. This is available in 100gms200gms. 10) Milma sip up . It is very tasty in chilled condition and has keeping quality of sixty days.6%of water. Its available in 200ml packets.4 lassi It is sweetened and flavored product which is prepared from the curd which is a healthy drink for alleged group. 7) Peda An indigenous milk product manufactured by evaporating water content from whole some cow milk and sweetened with cane sugar it is a nutritious and sweet bit which is available in 25gm packets and 250gm carton. 8) Sterilized flavored skimmed milk It prepared from pasteurized skimmed milk which is sweetened can sugar and flavored with cardamom. 5) Ghee Ghee is the key ingredient of the most delicacies.

It is made from pasteurized skimmed milk sweetened and flavored. It is available in 25 ml polyethylene tube flavor like vanilla, pineapple, strawberry, mango and also rose in chilled condition.

11) Cream roll It is mixture of tasty ice cream and tasty fruity encircled over fresh sponge cake. This is delicious snack rich in milma ice cream. 12) Milma ice cream It is available in range of lip smacking flavor vanilla, chocolate, mango strawberry, and fruit and nut .the only ice cream manufactured in the dairy hence most fresh ice cream. 13) Milma dairy whitener Milma has a plant in Alapuzha for producing the milk powder from milk. 14 milma instant palada mix Milma is also manufacturing instant palda mix. 15) Cattle feed Milma is producing 600MT cattle feed a day. Milma produces both mash and pellet from cattle feed and mixed called milmamin. It is distributed to farmers at reasonable rate through dealers, APCOS, agencies. it has most accessibility in between farmers. The kannur dairy MRCMPU currently producing fat free milk, toned milk, standardized milk, ghee, curd and sambaram.other product like flavored milk ,sip up, refresh ice cream, produced at Kozhikode dairy.mik powder produced at Alapuzha ,cattle feed produced at Pattanakad and Malmbuzha Segmentation and target market of milma milk The segmentation of milk is mainly based on price and fat percentage and profitability. in the case of milma its standardized milk and curd are more profitable. But in the market both rural and urban areas milma toned milk is sold more, than homogenized and rich.

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

4.3.2 Product line and product mix

Milma product line






Beverage s


Cattle feed

Standardi zed milk


Fat products





Milma smart

Sambara m



Cardamo m milk

Cream roll


Lassi Toned milk

Strawberr y

Sip up Mineral water

Fruit nut


4. retailers for the distribution of the products to the consumer. and factories etc. schools.brand mark. temperature to be stored. and address of the company. There are many agent. The puff body is provided by milma so as to deliver milk without losing its chillness. and 41 for milma rich.8 for 500g ghee and66 paisa for one piece of milk peda. technical tray contains 20 packets of milk. These milk packets are put in plastic trays ie secondary packing for the distribution . That is around 80% sales are made at town areas of kannur district. a)area of operation Mostly the sales are made in the urban areas. homogenized. The agent gets commission from milma as paisa 47.3.price of milk. of processing. whole sailors. quantity . In kannur dairy. defense etc. date of packing.4 Distribution Distribution of milk and milk products is one of the major activities of the marketing management. Towards the north the main areas include Payyannur and Thalipparamba. milma gives milk to credit institution for one month credit period where the agent gets only by pre paid. hospital. C) The channels of distribution . expiry date . There are running 39 vehicles including 20 puff body vehicles and 3 of coming soon. There is booth run directly by the milma. the cover has details like brand name . b) Physical distribution The physical distribution is done by contact vehicles. 45. and toned milk respectively. RS 15.the credit institutions are mainly hospitals. details regarding the type of milk.3 Packaging The milk is packed in law density packs(plastic packs) is provided in cans to jails. distribution mainly takes place by agents and credit institution. towards south Aazhiyoor and Mahe towards east Irrity and coastal areas of kannur. They also get 65 paisa for curd of 500ml.3.4.

The credit institutions are mainly hospitals.The milk or milk products reaches retailer or wholesalers then reaches to customer who is the end user. The booth owners may employ distribution boys for home delivery. In older days cash boxes kept in the vehicles where dealers had to deposit next day’s intent along with cash. The cash is collected through distribution vehicles. . defense. The milk is distributed from dairy to consumer through the booth or retailers. the other products are distributed from dairy to wholesalers to retailers to customers. The milk required for a day’s evening is distributed mainly during morning 9am to 11 am. Distribution chart of milk Dairy Retailers Consumers Distribution chart of milk products Dairy Wholesaler s Retailers Consumers D) Distribution activities The vehicles for the distribution on different rout are given a time sheet where each vehicles are allotted time for each rout. For that here are 15 routs operated for next day’s requirement the distribution started from 2. Milma also gives milk directly to credit institutions for one month credit period where retailer’s gets only by prepaid.30 pm on wards. But now the dealer has to give cash along with intent to the driver and should receive a receipt from the driver. schools. In kannur there are 4 wholesalers. direct payments and banks. The milk is produced according to next day’s intent orders received form agents. factories etc.

It contains details like product dispatched and product returned. 118653338ltrs of curd and 7573864 packets of sambaram during this financial year. place. number of trays. signature of the agent etc for the next day. Rout abstract sheet This is prepared on the basis of indent form. agency code. product quantity. It specifies details how much things to be loaded to vehicles from the dock. Intent form details are entered in to the computers and on the basis of that route abstract sheet and dispatch sheet are prepared. It specifies the details of vehicle that this dealer should be given this much product. place. 1543581 kg ghee. name of the agent. Kannur dairy has made more than 20524 liters sale of milk from previous year. 4. Invoice It is the bill given to the dealers through the drivers of the carrier to the remittance by drivers of the carrier.5 Sales position MRCMPU has achieved the sales of 116646184 liters milk. It consists the rout name. how much quantity of the specified product is required and cash details. Gate pass The details of gate pass and dispatch sheet should be same.the security matchs it with the dispatch sheet.Indent form The dealers are provided a intent form in which he has to fill the details like dealers name. .3. total number of sets and trays etc. Dispatch sheet Dispatch sheet contains detail about agencies to get milk.

The dealers are given flex board.41 .50 11 12.80 . • • • They are given painted board with dealers name written on it Helps booth owners for painting their Boothby giving 75%of the cost. The dealers are given subsidy of RS 2000 for refrigerator.65 PRICE/Rs COMMISSION/RS 4.4.3. . and RS 5000 for two wheelers. They often try to emphasis quality of their products comparing others. Rs 5000 for freezer. Promotional activities for dealers • .45 . But they provide advertisement during the festival season through broadcast Medias and print Medias.6 Price list of kannur dairy products KCMMF fixes price for all the products of milma.7 Promotional activities Milma also does promotional activities to boost their sales. stand boards of the products as point of purchase advertisement. The fixed price has to be followed y all dairy.3. They are not frequently giving advertisement through Medias. Rs 1000 for cycle. They give emphasis on dealer promotional activities.50 128 15.50 3. SL.NO 1 2 3 4 5 6 ITEMS TONED MILK MILMA RICH HOMOGENISED CURD SAMBARAM GHEE PACKING UNIT 500ml 500ml 500ml 500g 200ml 500g 10 11.47 .

.• • Compensation for spoilage. rain coats are given for the distribution boys. • • Agent clubs are formed for dealing the problem and promoting the sales Milma will provide 50%of cost those who wish to start booth of milk and milk products in national high way side. Decoration of booth during festival. Banners at special function Painting of traffic circles hoardings Dairy visit program is conducted for most frequently purchasing consumer that is dealer has to collect that consumer . • Caps.they are given offer to visit dairy and see the working of the dairy. leakage of products to dealers. special discount for ghee whole sailors. • • • • • • Hotel incentives: Rs 300 is given as apprize to new hotel users those who lift at least 30 liter per day continuously for 120 days. Milma opens special stalls at exhibition. Yearly prizes of Rs 3000 by the union and RS 2000 by the dairy to the agents are given those who attain maximum results. vishu in order to boost the sales. festival stalls. Other promotional activities • Advertisement in television at time of onam.


Organizational structure of personnel management Manager Assistant personnel officer Junior superintend Senior assistant typist Junior assistant typist Office attainder .

4. discharge. This personnel and administration department includes one officers and two clerks and one typist.vouchers /payments connected with this department Preparation of stipend bill for apprentice Preparation of salary bill of the employees on daily wages appointed on contract Leave posting and leave u[dating Attendance registers updating. Personnel department is responsible for the execution of policies regarding the recruitment.Personnel department is the department in every firm which is concerned with each employee. punishment etc • • • Preparation of the salary bill Employees provident fund recovery and remittance in time Employees state insurance recovery in time Prepare half yearly statements and connect registers on the above The preparation of journal . And anadditional clerks and apprentice. Out of this 10 officers and 85 are permanent while 3 officers and 8 workers are temporary. classification of employees and wages which had been laid down by the board of directors. There is an electronic thump punching system is assembled in the unit • • • • • • • Recruitment and probation .1 Duties of the department • • Keeping the personnel files of the employees Keeping the service books which contain all the details regarding the job performance . The total number of people working in the company is 330 including temporary and permanent workers. 4. .transfer.

1) Induction training It is the training program used for newly appointed employees’ where new employees is introduced to job situation and company environment 2) On the job training Under this workers are given training during time of working within the organization.• • • • Long term settlement of workmen Travelling allowance bill passing Motor conveyance advance processing Courier register maintenance Security arrangement Training Trade union Preparation of o t bills • • • • 4. and the employees of milma. When a vacancy arises personnel committee conducted interview for every posts in the organization. 3) Refresher training This training is for the previously appointed workers for improving their abilities and skills.2 Training and development Milma has centralized training facility at Trissure providing training to society staff. They . 4.4. There are three types of training in this institution. farmers. It also provides organized training in all aspects of cattle management and society management. And also for making them full of intimated with the company.3 Employment The recruitment in milma is done by head office situated in Kozhikode.4.

Employee is appraised for one year and his performance will be recorded. Upon the promotion the employee on for probation for minimum period of one year and his performance will be assessed. resignation. When there is any vacant position in the federation /union it will be filled by recruitment partly through promotion within the organization Promotion is given to the employees that are for clerical posts and other posts promotion is given in 5 years and for officers post promotion is given in 3 years. If it found un suitable will be reverted to earlier position.advertise it in two leading news papers and a period of two weeks is providing for admitting applications.4Promotion Promotion is considered to be upward movement of person from his current position. retirement. All promotion shall be subjected to approval of managing director.4.if there are no vacancies senior grade is given after 8 years with salary as same as the post. 4. Promotion policy a) Promotion to the higher posts is made when vacancy arises due to death. . status and emoluments. Promotion procedure A vacancy offering promotion opportunity will be notified within the organization and data of those respondents will be screened and those who satisfy minimum requirement for the post will be interviewed and tested by personnel committee. Seniority and merit will be the base for promotion. Candidates are screened after written test and qualified ones are interviewed on the base of rank lists appointment is made. To afford opportunity and assist development and growth of employees in the organizational scale promotion will provide for upward movement to higher responsibility. b) Merit efficiency and performance of the employees assessed by management as the basis for promotion. If the applicants found un suitable he will rejected.

Time wage system is followed in the case of permanent employees and piece wage system is in the case of employees engaged packing of ghee and sambaram. d) An employee should have completed minimum period of the service in feeders category as prescribed in the annexure before being eligible for promotion. Regional transfer: Officers are transferred one dairy to another within the region.7 Compensation wage and salary The remuneration of the employee is based on the long term agreement and it is prepare d once in five years by the management and trade unions.5 Transfer Milma follows two types of transfer policy Inter unit transfer: The workers are transferred to one plant from one plant within the jurisdiction. 4. The various benefits like gratuity are sanctioned on retirement. • Dearness allowance .6 Retirement The retirement period of the employee is 58 years.4.c) Seniority in any grade or holding any additional charges for temporary periods will not itself entitle an employee for promotion. 4. 4.4.4. Salary=basic pay +DA+HRA (10%) +Washing allowance (45/month) +Night allowance.

• Employees provident fund EPF is compulsory for all employees which is 12% of the basic pay and dearness allowance. • Travelling allowance Travelling allowance is also granted to an employee to cover the expenses increased by him in performing journeys in the interest of union. • House rent allowance It shall be paid to the employees of the union at 10% of basic pay irrespective of the stations where duty is performed.8 Allowance rates House rent allowance Foot ware 10% of the basic pay RS120/month .4. First there was no pension. He won’t be eligible for house rent allowance if accommodation is provided by the union.ESI is 1. but 8. • Medical allowance Those employees excluded from ESI are eligible for RS 100/month.75% by the company. at same rate as applicable to employee of government.5% 4.33% of EPF was provided as a pension and balance moved as a provident fund. • co-operative credit societies Credit is given up to 80000 within the guarantee of 2 employee and which should be paid at an interest of 11. • Employees State insurance ESI are for those whose salary is up to RS 7500/-.Dearness allowance shall be paid to the employees’ who are placed on time scales of pay.75%of the total salary and is paid backs 4.

House building advance • .4.4. 4. • • The workers are paid overtime wages for extra works The employees are given night allowance RS 6 is paid per shift.10 Employee service • • milma provides canteen facilities for employees at subsidized rates parking facilities for vehicles the employees other than office staffs are given uniform (2pairs)over coats to officers in plant • • Mobile phone is given to office staffs in marketing department and managers and assistant managers by the dairy. • Auditorium to conduct meeting and functions office library.9Rates of stipend payable to apprentice Graduate apprentice Sandwich course(Degree) Technician apprentice Sandwich course (diploma) Trade apprentice RS 2600/ month RS 1850/month RS1850/month RS 1510/month RS 1440/month 4.11 Employee’s benefits Milma is setting a part an amount of 500000 (approax) for employee benefits.Uniform stitching Male female Uniform washing RS300 RS 75 RS 45/month.4. 4.

• There are also voluntary retirements. demotion. All the loans have to repay within five years at 9% interest. But the company provides harmonies situation to the workers in all level they expected. transfer etc on the basis of these records the performance f the employee is evaluated. • The performance incentives are provided to employees right from managers to sweepers up to RS 4500. for cycle it is 1500. 4. i.e.14 Trade unions At present in kannur dairy has two authorized trade unions. . And the employees are also given festival bonus.• The dairy provides vehicle loans for staffs based on here pay scale.4. 4. Any complaints arising the from the employees are normally taken care by the personnel manager. The company gives RS 3000 to employees’ welfare scheme and RS 70 is taken from employee’s salary.12 Personnel records All the necessity information about the employees is maintained in the personnel record and these are used at the time of promotion. They are INTUC and CITU.4. The retirement benefits provided as based on the salary . • The dairy also provide death benefits. and also RS 100000 for car.for bike it is 25000.they are also given gratuity.13 Industrial relation Milma has formulated certain rules and regulations’ to maintain discipline in the organization.4. 4. an amount is provide to family from employee welfare scheme and also a job is given to member of family considering their qualification. • The dairy provides as a help of RS 5000 for the marriage of employee’s children and RS 1000 for house warming.

4.4. Name of department Engineering accounting Production Marketing Quality control P&I Personnel Store general sslc pdc graduation Post gradution Experience profile . now it has dynamic executive and a committed work force.15 Man power profile The MRCMPU ltd within a short span of 28 years established it own identity in the cooperative industry in the country.

Classification of workers Permanent workers Permanent staffs Probationers Contracts Temporary Casual Apprentice .


Organizational structure of finance department Manager Account officer Junior superintend Senior assistant (steno) Junior assistant (steno) .

Current loses are adjusted by the reserves. It is the source of income other than income from sales. Source of finance There are two types’ financial sources in the company Internal sources • • Income generated from sales is the main source income of milma There are accumulated profits. Capital reserves are also included in this.all department payments and receipts are finally reported to the finance manger. The financial departments’ deals with planning the total required for both long term and short term purposes. All farmers should subscribe certain number of shares of the union. Department is mainly consist with management of financial activities. External sources • Milma raised capital fund by issuing shares only for farmers of the APCOS.Finance is the life blood of every business. This department is maintaining communication with all departments in the organization. The responsibilities of maintaining accounts and exercising financial control is vested with financial manager . This department records classifies and presents information for manufacturing and other activities of the firm. .

Head office manages the requirement of all dairies out of these proceeds based on fund request from dairies. Under the working capital management the finance department prepares requirement plans on ten days base and submitted for arranging fund transfer for meeting the daily requirements of the dairy. There are occasion of advance payment and payment through bank. Similarly the payment of transport contractors is made on 15 days basis. The union follows a centralized cash management system for free movement of fund from dairy to dairy and to meat requirement of all dairies in time. The employee related payments are made only monthly basis and all statutory dues in time. . • Cash collection from sales The union has adopted policy of sales on cash basis with advance collection method with the exception of credit with few governmental agencies.The main activities concerned with the departments are • Management of finance Here the department is entrusted with the function of working capital management. So the dairy has only the responsibilities of preparation of annual capital budget of the dairy and submission to head office for consideration and approval. • Payment to creditors and other agencies They give payment to societies who give milk and all other purchases regarding about production on ten days basis. As part of the financial policy all the long term capital and infrastructure investment plans and activities are performed at head office level.

The same is discuses in the review meeting of the officers at dairy . It is submitted to dairy manager as well as managing directors for evaluation. • . • Fulfillment of statuary obligation The dairy has to be fulfilled various statutory obligations.• Maintenance of record As usual the main duty of finance and account department id to maintain accounts and records. Here in kannur dairy the accounts are computerized with oracle based financial package. In addition to cash book the chilling plant activities are through imprested system of petty cash and purchase. The report elaborates the financial performance of the dairy during the current and up to the current month. income tax. sales tax files. . work contract tax. income tax audit. fringe benefit tax/entry tax etc. The finance department perform about sales tax. service tax. previous month and budget for the current and previous month. The transactions of dairy and chilling plants are recorded through cash book. maintain the records for verification etc. the department is responsible for collection of all taxes and giving the returns before due date. This facilitates the viewers to compare or evaluate the performance. service tax files etc. bank book.preparation of financial report The finance and account departments prepare monthly profit and loss account and are submitted to the dairy manager and head office. sales book and general journals. The account department also maintains various records that are essential for statutory audit. • Analysis of the financial statement The finance department of the dairy prepares monthly financial analysis statement contains details for the major deviation of expenses from the budget as well as the reasoned there for ascertained for the financial control. purchase book.

Financial highlights .both capital and revenue budgets are forwarded to the head office for the approval of the board. reports. Details.• Audit related duties Finance departments of the dairy is responsible for submitting the the financial statement. This department compiles the various quantitative budgets prepared by difference departments’ . • Preparation of budget The dairy prepares both revenue and capital budget annually. After approve the revenue budget is entered in the financial package. clarification etc to the statutory auditors for audit.



Assistant manager (maintenance)

Technical superintend

Special grade technician

Senior grade technician

Technician grade 1/Driver grade 1

Technician grade 2/Driver grade 2

2 Machines used Some of the machines used in the to achieve high efficiency in the dairy processing industry are • • Pasteurize Boiler . The solid waste is used as fertilizer . drivers . Assistant manager is the head of the department . apprentices.5.The Maine purpose this department is to establish system for the maintenance to ensure un interpreted functioning facilities. The dairy owns a water treatment plant treats the effluent water with the capacity of 2000ltres.1 The main functions of maintenance department • • Giving assistance to production Up keeping of machinery Assurance of general utilities Technical and civil maintenance Maintenance of tankers owned by dairy. The maintenance department has to keep up machineries to assure that they are in proper working condition to avoid break down.the water treated is again used for the irrigation of plant in the dairy. 4. steam etc and product transportation. To achieve and maintain higher efficiency and productivity in higher rate it requires a systematic procedure and the control of production and machinery.5. 4. there is 250kv substation owned by the dairy for supply of electricity and generators to back up if there is no power supply. etc. With the modernization of the dairy processing industry employing sophisticated equipment and increasing competition it has become imperative to achieve higher efficiency and economy. electricity steam. • • • The maintenance department is responsible for the bulk milk movement in the tankers in the dairy.The maintenance department has to keep up utilities like electricity water.under assistant manager there are technical superintend technician. The maintenance department has to give assistance to the production department by providing all the general utilities like water.

5. duty engineer shall ensure the maintained personnel are acknowledgeable to carryout routine maintenance. Break down maintenance procedure a) Wherever break down occur. d) Duty engineer shall ensure sufficient place or available ensuring smooth functioning of plant. probable cause. potential problem that may occur in order to bring them under preventive maintenance to reduce the interpretation in production. c) Ones in 6 months duty engineer or unit head shall review nature of break down. b) All the plant and machinery of the dairy and chilling plant shall be dually identified with a unique code for each and individual machine c) Wherever machine supplies provide operational manuals there shall be used as detail for carrying out preventive maintenance.• • Refrigeration Cream separator Homogenizer Packing machines • • 4. frequently recurrence. . details are entered in break down register. d) Check list shall be prepared for identifying machinery and equipment detailing various check and maintenance work e) In case no check list is made available for machinery. b) Concern maintenance personnel shall the details of work done in register. they are preventive maintenance and Break down maintenance Preventive maintenance procedure a) Duty engineer shall maintain list of machinery and equipment that are to be covered under preventive maintenance.3 Types of maintenance There are two types of maintenance that milma normally adopt.



Organizational structure of stores department Manager Assistant store officer Stores attainder Stores apprentice .

Maintenance of stores and its handling should be given importance because investment made in stores is huge and articles worth lakhs are kept in stores. The most important functioning of the stores is that to provide regular service to production and other department for their continuous smooth operation.raw material are received against the orders placed or by local purchase from local vendors. A systematic and proper control of store keeping functioning are essential for ensuring discipline . Issue of storage items to user departments Preparation of various report • • Receipt and inspection of material The raw material are received from two sources. If any shortage or damage is reported it is mentioned in the in the delivery note.availability of articles at required time adequate storage in store keeping records. Delivery not is signed after delivery the delivery note is signed and the original note is retained in the dairy and the duplicate copy is forwarded to seller as an acknowledgment. • • Receiving of material and recording of receipts. Procedure .1 Major functions of stores department are. When materials are received in the store it is checked and agreed with that mentioned in Chelan /deliver note/packing lists /invoice. that are • Receipt from external sources Receipts of material from the outside suppliers. Major aspects involved in the receipt of material As and when materials are received all the items are physically examined for accuracy and inspected for assuring quality. 4. • Receipt from internal sources Raw materials are received from the consumer departments where the item may be of no use. After fulfilling the mentioned it should be taken to store without further delay. Arranging inspection and proper storage and preservation of receipts.Stores play a vital role in the functioning of the organization. All departments are in the direct contact with the stores for their smooth functioning.6.

6. 4. details about sales taxes excise duty etc. 4. If materials are insured claims shall be forwarded to insurance companies.As materials are received details are entered in to goods inward register.4 Pricing For pricing first in first out methods (FIFO) is used. Its original copy is distributed to supplier. Original copy is retained with the account officer. 4.6.6 Purchase of material Purchase made by the store when the stock position reaches the fixed reorder level of each items. and triplicate to purchase section.racks are marked.2 Storage of material Proper safety and the safety of materials are very essential. Small items are stored in bins card and are placed in racks . The store keeper shall prepare purchase requisition note and forward it to the sanctioning authority with the recommendation of concerned section head. quantity. Location of the storage of each material is to be determined. The store keeper shall check stock position of items regularly and whenever the stock reaches the reorder level he shall initiate the action for purchase of these items. details of supplier.6. quantity.3 Issue of material The promptness of the materials issued reflects the efficiency of the store keeping. Some time the purchase rate sand suppliers will be finalized by KCMMF or MRCMPU and intimated the units . mode of conveyance. duplicate to store. In case voluminous items with low value like spares weighted average price is used. It consists of details like date. 4.6. The items having good resale value should be stored separately. An issue of material s from the store should be o the basis of intends is requested by the department head or the authorized officials to issue materials from the store. Proper authorization should be there otherwise entire store systems will be collapsed. inspecting etc .5 Disposal of scrap material Arrangement shall be made to keep scrap/unusable material in store separately. duplicate is in purchase section and triplicate in the stores When acceptance certificate is given by inspection officer store keeper shall prepare goods in ward note.Then a material inspection note is prepared triplicate. 4. a discrepancy report will be intimated to supplier when any discrepancy is noted.if the material is rejected is sent back to supplier with a rejection note. type of packaging. Consists of details like purchase order no date details like purchase order each case the purchase order shall be prepared incorporating the terms and conditions intimated by the KCMMF or MRCMPU.In certain case purchase rates and .

name of the major suppliers. 6) Cost report Account code wise statement monthly print out. Purchase of non routine items Here the section head shall initiates the purchase when material is required. . issue and the balance of the value. print outs taken monthly and kept in store. 4) Stock movement statement It contains monthly opening balance receipts and issue. 4. specification. name of consumer section. 3) Day book It contains details of daily receipts and issue of materials in quantity and value.supplier may not fixed by KCMMF or MRCMPU the quotation shall be invited from potential suppliers and shall be opened at the date and time mentioned in quotation note.6. After getting the sanction from the sanctioning authority for purchase requisition note prepared by department head purchase should be undertaken by the purchasing officer or stores officer. Quotation might be invited for single purchase for fixed period like one month or one year etc.7 Records maintained by the store departments 1) bin cards It contains detail like description of item size. name of the supplier. A quotation register shall be maintained by the purchase officer o store officer and all the quotation shall be opened and their tabulation statement shall be recorded in it and signed by the officers. 5) stores ledger It contains item wise details of quantity and value that is the transactions report taken whenever needed. Closing balance print out is taken monthly. Purchase of capital items The dairy manager can purchase capital items where specific provision is made in the “approved capital budget of unit and cost of item which is less than 10000/-“when the cost exceeds 10000 /-purchases shall be made after getting prior approval from head office. 2) Stores ledger It contains details regarding receipts.




Organizational structure of quality control department Manager Assistant manager (quality control) Technical superintend-lab Lab technician-1 Lab technician-2 Lab assistant .

Quality standards of milk products Toned milk Homogenized milk Milma rich FAT% 3 3 4. 4.5 9 .5 8.” “We milma shall strive to excel in the market leadership by achieving quality and economy in all our activities adopting quality managemet system”.” 4. Organoleptic testis conducted to find out whether mil is good or bad.2 Functions of quality control departments The main functions of quality control department are the inspection of milk of each society. In process inspection Here the analysis is conducted during the processing of milk deference tests are conducted to achieve the quality of milk.7.The quality control department assures the quality of milk and milk products at the dairy. color.5 SNF% 8. If there is doubt full cases the samples of milk will send to clot on boiling test. “We milma shall strive scientific approach to ensure the continual improvement in personal. flavor. The test conducted during the reception of milk is called organoleptic test.7. taste are all to be noted in this test.1 Quality policy “Farmers prosperity through customer satisfaction” “MRCMPU ltd is committed to provide consistently safe hygienic and healthy milk and milk product to achieve and enhance consumer satisfaction. Inspection is mainly conducted in order to make sure that the production is carried out as per their standards. That is the appearance. The quality control labs. Receiving inspection Receiving inspection is the inspection of milk while receiving the raw milk from the society. in our activities that increase value and status of this organization and its associations. If the clot on boiling test is positive the milk is rejected. testing and inspection come under the quality control department.

• Gerber test It is used to identify the contents of fat in the milk. It is conducted twice I a month. This also conducted twice in a month. Various tests conducted from the dairy • Organoleptic test It is primary test conducted to find out acceptability of milk • SNF test It is used to detect the SNF in the milk. Milma has an electronic machine to detect fat in the milk. Objectives of inspection . • Acidity test This test is used to measure the lactic acid in the milk.16. • Coli form plate count This test is conducted to find out bacteria in the milk. • Temperature test This test is conducted to know the temperature of milk. If there is still any problem it is again reprocessed to achieve the fixed standards.Final inspection After completion of production process one packet milk is taken from the storage in order to ensure the standards as prescribed. • Methylene blue reduction test This is used to identify the bacterium that exists in the milk. Acidity should be between0.13-0. it is called as fat detecting machine. The reading of the milk by corrected lactometer is taken first at 290c.

.• • • Reduce poor performance Maintain standards Reduce economic loss • Remove defective milk • Provide research for evaluation.


• The place where the factory settled is appropriate enough to take care about all marketing activity. strenght and weekness are internal factors and opportunities and threats are external factors. • The gradual change of society in to disposable culture make big need for packet milks in their daily life • The increasing number of super markets and margin free markets gives new opportunity to enter urban markets. SWOT stands for Strength Weakness. SWOT analysis is tool for auditing an organization and its environment. • At present kannur milma dairy has 1045 functioning retail dealers 32 credit institutions. Strength of milma • Milma’s products enjoy the reputation of high quality and healthy as most of its products are made with milk collected from farmers in rural areas. It is the first stage of planning and helps marketers to focus on key issues. Opportunities and Threats. • There is good communication system and co-operation among all department of milma and it has good organization structure to help thing are going smoothly. • The employees selected in milma are efficient enough to take responsibilities and challenges and able to do their maximum to achieve organizational goal. Opportunities • A fair growth in production and increasing scenario of houses as well as families gives milma a good opportunity to make good market strength in kerala. • Milma plant having all necessary equipments and machineries to meet the present demand of quality milk and milk products.SWOT analysis is the key concept in the world of co-operative planning. . strategy formulation and other practical spheres of management.

Milma should concentrate more informative and catchy advertisement of all products highlighting the product quality. Threats • Deficiency of fodder in summer creates lesser production of milk. It makes difficulties in achieving customer demand and makes more expenses. • Milma never gets much more attention from the government side. • Milma giving more care to farmer’s prosperity. • Because of increasing cost milma is facing threat of price rise. expensive training especially in marketing wing. Milma should find more market areas for the utilization of their entire production capacity. Suggestions An overall analysis of milma shows that it has well managed structure. it leads much more difficulties to meet employees and other parts of organization’s objectives. even though the following suggestions are put forward to increase the functional efficiency. • • .but it suffers un usual interfere from government side.Weakness • Because of having less margin most of the sellers in rural areas ignores milma products instead of other company’s products except milk. • Milma should give target achievable training to officers and workers instead of routine. • Milma requires more advertisement in the competitive environment.

This organizational study also showed the important roles played by every single functions of the management. So the company should give the attention in ensuring the quality of products and introduce more promotional activities to overcome the competition.CONCLUSION The organizational study gave a greater learning experience to me. body language. Milma is the present milk marketing leader in Kerala. attitude. This entire problem can be met through professional management approach and target oriented training and proper planning. and in efficiencies and I became more conscious about time management. the experience of doing one month long study gave me opportunity to explore in to the areas of practicable knowledge of management and nature of a company. but in this changing condition the marketing of milma products has become more challenging as it now faces several competition from private milk producers and local producers. It also lead me into some thoughts about my behavior. .

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