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AN ORGANIZATIONAL STUDY IN KC MILK By

S.DINESH KUMAR (10MBR031) S.VEERAKUMAR (10MBR107) T.KARTHIK (10MBR049)

Of

KONGU ENGINEERING COLLEGE ERODE 638 052

A PROJECT REPORT Submitted to the

FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

JUNE-JULY 2011 KONGU ENGINEERING COLLEGE, ERODE DEPARTMENT OF MANAGEMENT STUDIES MBA Summer project June July 2010

BONAFIDE CERTIFICATE

Certified that this project report titled AN ORGANIZATIONAL STUDY IN

KC MILK is the Bonafide work of S.Dhinesh Kumar, S.Veera Kumar, and T.Karthik who
are all carried out the project under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Faculty Guide

Dean -MBA

Date:

Seal:

COMPANY CERTIFICATE

S.DHINESH KUMAR S.VEERA KUMAR T.KARTHIK I Year MBA, Department of Management Studies, Kongu Engineering College, Perundurai, Erode 635 052.

DECLARATION

This is to declare that the project report entitled, AN ORGANIZATIONAL

STUDY IN KC MILK is a Bonafide record of the original work undertaken by me, under
the guidance of, Department of Management Studies, Kongu Engineering College, Erode and this has not been submitted earlier to any other university for the award of any degree, diploma, or similar title of recognition.

S.Dhinesh Kumar S.Veera Kumar T.Karthik

ACKNOWLEDGEMENT I would like to thank our college principal, Dr. S.KUPPUSAMY M.E., Ph.D., and the Head of the department of management studies Dr. SOMASUNDARAM BE., M.B.A., Ph.D. for his motivation and providing me moral support during the course of this work. I am very thankful, to Mr.C.SURESH KUMAR BE., Proprietor of KC Milk who is provided the opportunity to do the project. It gives me a great pleasure to express my profound and sincere thanks to my faculty guide Dr.GHANAJOYHI M.com., MBA(HR).professor, department of management studies, Kongu Engineering College for her timely guidance, which this project would have attained a fine and final shape.

CONTENTS CHAPTER
1.0 1.1 2.0 2.1 3.0 3.1 3.2 3.3 3.4 4.0 4.1 4.2 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.0 Introduction Company Profile Food Safety Policy Objectives Procurement Department Milk Procurement Milk Testing General laboratory Microbiology Laboratory Stores Department Stores Process Chart Stores Activity Production Department Milk Processing Quality Policy Quality Objective Processing Of Milk Processing Of Crud Product Description Machinery and Equipment Packaging Department

TITLE

PAGE NO.
8 9 9 10 10 10 11 11 11 12 12 13 14 14 15 15 16 19 22 24 25

7.0 7.1 7.2 7.3 8.0 8.1 9.0 10.0 11.0

Marketing Department Demand Projection Distribution Areas Services Finance Department Scope Of Finance Personnel Department Maintenance Department Conclusion

25 25 26 26 27 28 28 28 29

Introduction
The main aim of this project is to study completely about the management and the companys present status handled by them to achieve their goals and meet their competitors. Prime objective of the study The main objective of the study is to study the whole organizations function in detail to pursuits the theoretical part as we learned earlier. Secondary Objectives of the study y The secondary objective is to identify weather motivational activities have any significant influence on the work of employees of KC milk. y To study whether the factors such as wages, supervision, working, condition, promotion, communication system, health, welfare, safety measures have any significant influence on motivating them. y To find out the attitude of the workers on the working condition and welfare facilities provided to them. y To suggest some measures to improve the motivation level in the organization.

Company Profile The Dairy is located at Seethamara Naal Road, Vedasandur, Dindugal District, Tamil nadu. The company has been exploiting the potential of hygienic and high quality milk to the society. The initial period, a diminutive quantity of cow milk procured around the villages and sold the raw milk to various places of the district. The unit has certified for ISO 9001:2008(Quality Management System), ISO 22000:2005 (Food Safety Management System) & ISO 14001:2004 (Environment Management System) certifications and also obtained MMPO (Milk Milk Products Order) certification from the Government to establish the quality of the products. The Company also proposed to from a another Dairy at Batlagundu and the estimated of milk about 2,00,000 liter per day. The brand K C Milk is also a registered as a Trade Mark. Food safety policy of the firm KC MILK is committed to process and supply the safe and quality milk & milk products to the total satisfaction of the customers through implementation of global standards, interacting with all Distributors and dealers continual improvement of the ISO 22000 Food Safety Management System.

Objectives  Following the safety requirements as per ISO 22000 Food Safety Management System and Milk & Milk Products order requirements.  Compliance with the National & International product and legal requirements.  Communicating with and enhancing customer requirements  Effective implementation of good hygienic practices throughout the firms Safety Management system process.  Evaluation of skills of the employees and train to modern updates effectively  Preparing and adopting the technological innovations for total food safety hazards elimination in every process involved and be prepared for the entire emergency situation.  Interacting with prime suppliers and relevant stock holders to achieve product safety requirements.  Regularly reviewing the food safety policy, objectives and Food Safety Management System.

Procurement Department Milk Procurement


Cow Milk and Buffalo Milk has been procured from the farmers. At present, the raw milk is collecting from 209 Villages through 44 milk collection routes. The collected milk has transports to the company by own/hired trucks. Main areas of milk procured from Kannivadi, Batlagundu, Palani, Vadamadurai, Eriodu, Gujiliamparai, R.Vellodu, Edayakottai Odaipatty, Kallimandayam & neighboring areas.

Procured milk is weighting through computerized data processing unit and details are stored in the system. Payments are made by weekly basis though the computerized billing system. To enrich the life style of farmers, the company also providing loans from the nationalized banks and congregates regular camp for conservation of cow/buffalo health with veterinary doctor.

General Laboratory
As per IS Standards the milk and curd tested by qualified persons. KC milk procuring only the quality raw milk from the selected farmers. During the reception each and every cans is checked for organoleptic tests, adulterations, preservations acidity, MBRT, fat, LLR, and SNF etc. only the good milk will be selected for production. The processed or pasteurized efficiency milk and curd are tested for pasteurization efficiency, MBRT, fat percentage, SNF percentage, homogenizer efficiency etc. only after satisfied with milk quality by quality assurance department the processed milk allowed to packing. By the above are giving quality products to the consumers and getting full support from them.

Microbiology laboratory
As milk contains the 80% water it is an excellent medium for microbial growth. Some microorganisms are beneficial and some are harm full to human beings and animals. May some harmful microbes affect the cow and buffalos hence it may transmitted of the milk sometimes unhygienic practices at field and plant level leads to microbial contamination of milk. So it is necessary to check the microbes at raw and processed milk stage.

Even though we strictly following the IS standard hygienic practices, GMPs and GHPs etc and pasteurization process kill all the pathogens, the firm testing the raw milk, processed milk skimmed milk powder, water etc. for standard palate count, Coliform, E.coli, staphylococcus aureus, Yeast and Mould, Thermoduric, Thermophilic and psychorophilic bacteria. Especially KC curd is hygienically produced by adding probiotic bacterial cultures. These are having several beneficial effects like strengthening immune system.

Stores Department
Stores department involve the responsibility of avoiding the idle of machine without the Stock position of materials availability. The stores keeper is the head of the department and one assistant is working under him.

Stores Process Chart


Indent from the department

Drafting quotation for the parties

Making comparison for the received quotation

Placing order through ERP

Making payment to the party

Delivery of materials

Inspection by factory manager of materials

Making receipt of the materials

Accounting credit ledger

Monthly payment settlement by checking ledger to computer account

Payment dispatch with cheque enclosure to the party

Stores activities 1. Indent for this materials


Indent form contain the requirement of materials for the department use indent form has description of items, quantity date of the materials required for the department.

2. Drafting of Quotation
Before drafting quotation, the requirement of material for the department use indent form has description of items, quantity date of the materials required for the department.

3. Placing Orders
According to the comparisons of quotation the firm can decide that to whom to place order. Order should be clearly mentioned regarding the sales tax, rate, discount, delivery date, payment, mode of dispatch and all correspondences should be clearly mentioned in this purchase order.

4. Performa invoice
Some parties will give credit period up to 30 to 49 days. Some parties will dispatch the materials after getting the full payment. It is the duty of the company to make the amount in advance for the delivery of materials.

Production Department Milk Processing


The raw milk obtained from the villagers are received at dairy and immediately chilled to less than 50C and stored puff installed silos. Pasteurization is one of the most important processes in the treatment of milk. It carried out correctly the process will supply milk with longer shelf life. Temperature and pasteurization time are very important factors which must specified precisely in relation to the quality of milk and its shelf-life requirements, etc. the pasteurization temperature for homogenized, HTST pasteurized, regular-grade milk is usually 162-1670F(72-750C)for 15-20 sec.

A common requirement is that the heat treatment must guarantee the destruction of unwanted microorganisms and of all pathogenic bacteria without the product being damaged.

Quality policy The firm committed the process and supply high quality & hygienic milk & milk products to the society at specified time. The firm built with relationship the firms customers through the most excellent quality and our best services. Quality objective  on time delivered every time  meet the exceed customer requirements  Continually improve effectiveness of the firm quality management system.  Training the employee on appropriate updated technical requirements of product and process.

Processing, Packaging and Storage of Pasteurized Milk Flow Diagram


Procurement Cow and buffalo milk from various villages surrounding in Dindugal district Milk Transport to Plant by Cans

Reception [Through mixing, OT Testing Test]

Normal

Abnormalities

COB & Alcohol Test Negative Weighing Bowl [Weighing of milk identified with agent code, type of milk & no. of cans] Weight Shown in DPU

Positive Rejection

Sampling
[100 ml taken for each agent for LR, Temperature & FAT Test]

Dump tank [Dumping of raw milk] (Microbiological test)

Chilling

[Raw Milk chilled to 50C]


Raw Chilled Milk Storage

Sampling [250 ml milk taken for temperature, CLR, FAT, Acidity & MBRT test] Processing of Raw Chilled Milk Pre-heating at 45 0 C Filtration Cream Separation

Production of Full Cream Milk [FCM], Standardized Milk [SCM], & Tonned Milk [TCM] FCM Fat: 6.0%, SNF: 9.0% Addition of SMP & cream SM Fat: 6.0%, SNF: 9.0% Addition of SMP
TCM

Fat: 6.0%, SNF: 9.0% cream separation Addition of SMP

Homogenization Heating at 65 to 670C

Pasteurization [at 80 t0 85 C for 15 seconds holding time]

Heat reduced to 400 C

Immediate Chilling to 40C

Storage in silos 50 C

Phosphatase test, FAT, Temperature, CLR, SNF, Acidity, MBRT & Homogenization Efficiency test

Packaging

Pocket Sample

FAT, Temperature, CLR, SNF, Acidity, MBRT test, microbiological test, SPC, Coliform, E-coli, staphylococcus

Cold Storage [40 C]

Dispatch (one sample per route for keeping quality test)

Customer Feedback (Suggestion book at dealers and distributors)

Processing, Packaging and Storage of Curd Flow Diagram


Procurement Cow and buffalo milk from various villages surrounding in Dindugal district Milk Transport to Plant by Cans

Reception [Through mixing, OT Testing Test]

Normal

Abnormalities

COB & Alcohol Test Negative Weighing Bowl [Weighing of milk identified with agent code, type of milk & no. of cans] Weight Shown in DPU

Positive Rejection

Sampling
[100 ml taken for each agent for LR, Temperature & FAT Test]

Dump tank [Dumping of raw milk] (Microbiological test)

Chilling

[Raw Milk chilled to 5 C]


Raw Chilled Milk Storage

Sampling [250 ml milk taken for temperature, CLR, FAT, Acidity & MBRT test]

Processing curd

Filtration

Cream Separation

Double Tonned milk fat 1.5% and SNF 9%

Homogenization Heating at 67 C & 200 kg pressure

Pasteurization [At 90 t0 950 C for 15 seconds holding time]

Heat reduced to 40 to 420C

Pasteurized milk stored in silos (40 to 450C)

Sampling [250 ml milk taken for temperature, CLR, FAT, Acidity & MBRT & Homogenization

Efficiency test]

Addition of Cultures Mixing well for half an hour

Packaging

Incubated at 42 C for 5 to 6 hrs and acidity test is conducted for each half an hour

Cold Storage [4 C]

Pocket Sample FAT, Temperature, CLR, SNF, Acidity, MBRT test, microbiological test, SPC, Coliform, E-coli, staphylococcus

Dispatch (one sample per route for keeping quality test)

Customer Feedback (Suggestion book at dealers and distributors)

Process Description

Processing of raw milk mainly involves heat treatment operation usually known as pasteurization and sterilization. These processes are discussed in detail as follows. A weighed amount of raw milk is pumped to a clarifier by means of the milk pump, where it is removed of microscopic impurities. Clarified milk is next sent to the cooler where it is cooled to about 2-5 C, then pumped to the storage tank. It is spiral pipe lines it must be slope upward 1/4ft in direction of flow to eliminate air so nothing flows faster at air pocket restrictions. Here the milk filtrate 450C and cream is separated at 670C, homogenization in 78-800C, in holding tube 15 sec for pasteurization and immediately chilling at 40C from the holding tube the milk moves to flow diversion device
o

Product profile
The KC milk produces three verities of milk and the curd into a two type of packages. 1. Standardized milk (SM) 2. Toned milk (TM) 3. Full cream milk (FM) 4. Pouch curd 5. Cup curd

PRODUCT DESCRIPTION AND APPLICATION

Cow milk is white liquid containing water, fats, protein, and sugar. Chemical analysis of cow milk revealed that about 86-88% of it by weight is water. Cow milk processing results a number of products such as processed milk, crud, cheese and butter. All these products can be consumed by human beings as part of diet on the daily feeding menu.

Cow milk contains 2.4-6.1% lactose. It is a complete food for infants up to 6 months of age; afterwards it acts as supplement to other foods. One point of milk supplies about 320 cal. of which 50% is contributed by fat 20% lactose and 21% by protein. Cow milk is also valuable source of phosphorus, calcium and vitamins. It contains a useful amount of vitamins including vitamin A, thiamin (vitamin B), pyridoxine (vitamin B), bistin, pentothenic acid and vitamin D etc.

Plant Capacity Based on the market study, capital requirement and minimum economy of scale, the milk processing plant will have a capacity of 1,50,000 liters of raw milk per day and producing 1,10,000 liters at full operation capacity. The envisaged plant is expected to operate in triple shifts of 8 hours each a day for a total of 300 working days a year.

The initial installed capacity of the plant was 20,000 liters milk per day, which was then increased to 50,000 liters at two-shift basis. The capacity further has been enhanced to 1, 00,000 liters per day in 2008. The capacity expansion was necessitated by the excellent quality and services of all the products, particularly the standardized milk and full cream milk. The expansion process also included expansion of the covered area in the plant, from 25000Sq.Ft to 50000Sq.Ft. Machinery and Equipment

The list of required machinery and equipment is indicated in Table

s.no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Item Weighing tank Receiving tank Milk clarifier Milk pump Plate cooler Storage tank Milk pump Pasteurizer Filling and packing machine Boiler Chiller Churning equipment Surge tank

Packaging
Its then Pasteurized, Standardized & Homogenized to the specification of toned milk, standardized milk and full cream milk by the imported machineries. The processed milk is then packed to the different volumes like 1000ml, 500ml, 250ml, and 200ml. To conserve the temperature of the milk, the packed pouches are stored in puffed refrigeration storage the process and packing are done under the hygienic conditions as pr the standards of Food & Safety Management & Indian Standards

Marketing
The company has more than six branch offices in various districts in the state competent and qualified promoters having years of experience in the same line business. The firm also has enthusiastic distributers, dealers, and a strong marketing network. The company spreads out its product in the following areas, to enrich the trading position the dairy affords the advertisement in wall painting, boards, media advertisement like most popular local & global televisions, daily, weekly, & monthly magazines, newspapers.

Demand Projection
The demand for industrially processed milk and milk products is highly influenced by urban population growth, income, increased household attitude towards processed foods to save time and labour as well as the availability of the product itself. Considering the combined effect of these factors an annual average growth rate is applied in projecting the demand for the products.

Distribution areas
Palani, nellai, nagercoil, trichy, madurai1, madurai2, pudhukotai, karur, sivakasi, paramakkudi, Chennai, thanjur, ramnad, karaikudi, Coimbatore, Dindugal etc. The products are transported carefully maintaining the cold chain an under the complete hygienic conditions. The company is also having 40 & above puffed Transports on contract for retail sales. While making the product, the firm already constructed the cooling facilities like puffed cold rooms, huge volume compressor cold storage. The product is sold through network on communication basis.

Services
The quality policy of the firm is, Process and Supply of Hygienic & Superior quality of milk to the society at specified time. The main activity of the sales team is Providing a respectable & excellent service to the consumers. Mainly, the Company offers a magnificent schemes to the distributors/dealers & consumers to enhance the marketing strategy. Providing valuable gifts to the regular consumers at festival & carnival episodes. Other than commercial activities, the company also plays the pleasing role in the society. Providing a adequate resources to the company employees like Provident Fund, employee state insurance etc., and given employment opportunity to 350 direct employees and more than 1000 employees indirectly.

Finance Department
Finance is regarded as THE LIFE BLOOD OF BUSINESS ENTERPRISE. Finance function has become so important that it has given birth to financial management as a separate subject. So, this subject is acquiring

universal applicability. Financial Management is that managerial activity which is concerned with the planning and controlling and of the firms financial resources. As a separate activity or discipline is of recent origin it was a branch of economics till 1890. Still today it has no unique today of knowledge of its own, and it draws heavily on economy for its theoretical concepts.

Scope of Finance Management: Firms create manufacturing capacities for production for goods; some provide services to customers. They sell their goods or services to earn profits. They raise funds to acquire manufacturing and other facilities. Thus, the three most important activities of a business firm are:  Production  Marketing  Finance  HR  Maintenance A firm secures whatever capital it needs and employees it (finance activity) in activities that generate returns on invested capital (production and marketing activities). A business firm thus is an entity that engages in activities to

perform the functions of finance, production and marketing. The raising of capital funds and using them for generating returns to the supplies of funds is called the finance function of the firm.

Personnel Department
Recruitment policy The management of HR in an organization is considered as the Personnel Department. Personnel department helps in attracting, holding, maintains, planning, utilizing, training and hiring an effective work place that will aid in the accomplishment of the firms objectives. In case of any grievance among their workers, their disputes are solved internally by the personnel manager. There are 200 employees working in KC Milk.

Maintenance Department
The maintenance department has functioning in firm which could maintain the infrastructures, machines, sanitation and other maintenance activities. Environmental Policy: 1. Creating awareness on Environment 2. Reducing Pollution 3. Continual improvement of the significant aspects. 4. Maintains greenery 5. Conform to the statutory regulations.

Conclusion
The prime objective is to identify whether motivational activities have any significant influence on the work of employees of KC milk. To study whether the factors such as wages, supervision, working, condition, promotion, communication system, health, welfare, safety measures have any significant influence on motivating them. To find out the attitude of the workers on the working condition and welfare facilities provided to them.