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MYMUL
CHAPTER-1
INTRODUCTION
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With the initiation of Indias first five-year plan in 1951, modernisation of the
dairy industry became a priority of the government. The goal was to provid hygienic
e
milk to the countrys growing urban population. Initial government action in this
regard consisted of organizing milk schemes in large cities. To stimulate milk
production, the government implemented the Integrated Cattle Development Project
(ICDP) and the Key Village Scheme (KVS), among other similar programmes. In the
absence of a stable and remunerative market for milk producers, however, milk
production remained more or less stagnant.
During the 1960s, various state governments tried out d
ifferent strategies to
develop dairying, including establishing dairies run by their own departments, setting
up cattle colonies in urban areas and organizing milk schemes. Almost invariably,
dairy processing plants were built in cities rather than in the milk sheds where milk
was produced. This urban orientation to milk production led to the establishment of
cattle colonies in Bombay, Calcutta and madras. These government projects had
extreme difficulties in organizing rural Milk procurement and running mik schemes
l
economically, yet none concentrated on creating an organized system for procurement
of milk, which was left to contractors and middlemen. Milks perishable nature and
relative scarcity gave the milk vendors leverage, which they used to considera le
b
advantage. This left government-run dairy plants to use large quantities of relatively
cheap, commercially imported milk powder.
All these factors combined left Indian dairying in a most unsatisfactory low
level equilibrium. The establishment and prevalence of cattle colonies emerged as a
curse for dairying in the rural hinterland as it resulted in a major genetic drain on the
rural milk animal population, which would never be replaced. City dairy colonies also
contributed to environmental degradation, while the rural producer saw little reason to
increase production.
Operation flood:
The strategy for organized dairy development in India was actually conceived
in the late 1960s, within a few years after the National Dairy Development Board
(NDDB) was founded in 1965. It rested on the Operation Flood programme, which
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was conceived by the NDDB and endorsed by the government. Operation Flood is a
unique approach to dairy development. During the 1970s, dairy commodity surpluses
were building up in Europe. The chairman of NDDB saw those surpluses as both a
threat and an opportunity. The threat was massive exports of low
-cost dairy products
to India, which had it occurred, would have told the death
-knell for Indias staggering
dairy industry. The large quantities that India was already importing had eroded
domestic markets to the point where dairying was not viable. The opportunity, on the
other hand, was built into the Operation Flood strategy. Designed basically as a
marketing project, Operation Flood recognized the potential of the European
surpluses as an investment in the modernization of Indias dairy industry. With the
assistance of the World Food Programme, food aid in the form of milk powder and
butter oil was obtained from the countries of the European Economic Community
(EEC) to finance the programme.
Operation Flood is a programme designed to develop dairying by replicating
the An and Model for dairy development, which has stood the test of time for almost
half a century. The first phase of Operation Flood was launched in 1970 following an
agreement with the World Food Programme, which undertook to provide as aid
126000 tonnes of skim milk powder and 42000 tonnes of butter oil to finance the
programme.
The programme involved organizing dairy co
-operatives at the village level;
creating the physical and institutional infrastructure for milk procurement, processing,
marketing and production enhancement services at the union level; and establishing
dairies in Indias major metropolitan centres. The main thrust was to set up dairy cooperatives in Indias best milk sheds, linking them with the four main cities of
Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk
market was to be captured. In achieving that goal, the first phase of Operation Flood
laid the foundation for Indias modern dairy industry, an industry that would
ultimately meet the countrys need for milk and milk products.
The second phase of the programme was implemented between 1981 and
1985. Designed to build on the foundation laid in the first phase, it integrated the
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milk unions in the state and thus forming the state level apex organization. As a co
operative apex body of the state of Karnataka, it represents dairy farmers
organization and also implements dairy development activities to achieve the
following objectives: Provides assured and remunerative market for the milk produced by the farmer
members.
Provide quality milk to urban consumers.
To build village level institutions in co-operative sectors to manage the dairy
activities.
To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
To facilitate rural development by providing opportunities for self
employment at village level, preventing migration to urban areas, introducing
cash economy and opportunity for steady income.
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rapid
industrialization,
improvement
in
transportation
facilities,
development of machines etc., where as the rural areas were identifed for milk
i
production, the urban centers were selected for the location of milk processing plants
and products manufacturing factories. Gradually formers within easy driving distance
begin delivering milk over regular routes in the cities. Prior of the 1850s most milk
was necessarily produced within a short distance of the lace of consumption because
of lack of suitable means of transport and refrigeration
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research Institutes (now National), Bangalore. Within the span of these four decades
since his book appeared, considerable research has been places in indigenous Dairy
products.
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To consolidate the gains of Dairying achieved in the state of Karnataka and with a
view of to efficiently chill, process and market ever developing and increasing milk
procurement with an utmost emphasis on the Quality and in the process conserve the
socio-economic interests of rural milk producers, the Govt. of Karnataka through
KMF has proposed to undertake several projects with financial and technical support
of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on
10th Nov. 2004
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CHAPTER-2
PROFILE OF THE
ORGANIZATION
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Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the
control of the Department of Animal Husbandry and Veterinary Services of
Karnataka State, which was transferred to Karnataka Dairy Development Corporation
in the year 1974. The capacity was expanded to 60 T
LPD in 1980 and transferred to
the Karnataka Milk Federation in 1984. The capacity was expanded to 100 TLPD
under the Operation Flood II and further expanded to 150 TLPD under OF III
Programme. As per the Government policy the Dairy and its Chilling Centr were
es
handed over to MYMUL on 01.06.1987
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Mission:
MYMUL is committed to provide maximum possible price for the milk
supplied by its members and provide necessary inputs to enhance milk production
while ensuring economic viability of the union.
Quality policy:
MYMUL is committed to producers welfare through customers delight by
adopting continuous improvement and ensure pure and hygienic milk and milk
products.
Values:
Honesty
Discipline
Quality
Cost control
Co-operation
Team spirit
Service motive
Objectives of MYMUL:
To provide a guaranteed remunerative milk market round the year for all the
marketable surplus of member producers in their villages.
To procure milk, process into good quality milk/milk products and market it most
economically and efficiently to give maximum overall net returns to the producers
and general satisfaction to the consumers.
To provide essential technical inputs and services to the producers at their door
steps in an economic and efficient manner and also in a way most acceptable to
them.
To build village level institutions co-operative sector to manage the dairy
activities.
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In order to fulfil these objectives, the union is constantly engaged in working towards
improvements of business as well as the welfare of the producers. This has resulted in
greater performance on commercial as well as in institutional front
AWARD
MYMUL has got two awards they are
ISO 9001-2000
MILESTONES:
y
1987: Bifurcation of Mysore Union into Mysore & Mandya District Unions.
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2003: Released Full Cream Milk in 500 ml and Toned Milk in 250 ml packets.
2005: For the first time received the national award for Energy Conservation
Award from Dr. A.P.J. Abdul Kalam.
2007: Received the National and State award for Energy Conservation Award.
2007: Released 5 Lit Toned milk packet and 100g packet containing 10 No of 10
peda.
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PRODUCT PROFILE
MYMUL manufactures the following products:
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Full Milk; contain 6.1% far and 9% solid not fat. Rich creamier and tasted milk, Ideal
for preparing homemade sweets and savouries. Available in 500ml.
NANDINI CURD
Nandini curd made from pure milk, it is thick and delicious. Giving you all
the goodness of homemade curds. Available in 200gms and 500gms sachet.
NANDINI GHEE
A taste of purity, Nandini ghee made from pure butter it is fresh and pure with a
delicious flavour, hygienically manufactured and packed in aspecial pack to remain
the goodness of pure ghee. Shelf life of six months of ambient temperatures.
Available in 200ml, 500ml, 100ml, sachets and15kgs tins.
NANDINI PEDA
No matter what you are celebrating Nandini Peda from delicious treat for the
family made from Pure milk, store at room temperature approximately seven days.
Available in 50 grams for Pack containing 10 pieces each.
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SWEET LASSIE
Sterilized flavoured milk. Nutritious and healthy milk and an all season
wholesome drink available in different flavours.
MASALA MAJJIGE
It is also one of the drinks available from dairy. It should be prepared with masala
ingredients.
BADAM BURFI
Bad am burfi is a delicious treat made up of milk and it can be stored at room
temperature.
CASHEW BURFI
Fresh and tasty cashew Burfi is made from cashews, Nandini ghee, and sugar
y
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1 General
Area of the Dairy
: 45 acres
Handling capacity
: 2, 74,000 LPD
: 2.89crores
Number of employees
: 374
2 .Milk procurement
Dairy co-operative societies functioning
: 895
: 936
Procurement routes
: 71
Chilling centres
:3
Districts covered
:2
Taluks covered
: 11
Villages covered
: 2005
3 Milk Distributions
Distribution routes
: 35
Districts covered
: 2
: 374
: 235
Milk parlours
: 48
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AREA OF OPERATION
MYMUL not only operates in Mysore districts, but, also operates in some parts
of Chamrajanagar District. It operates 502 distribution centres, concerning all the
agents besides, there are 2 milk parlour maintained by the dairy.
The area of operation is as under:
Mysore District
Mysore Tq.
T Narasipura Tq.
Nanjanagudu Tq.
H.D.Kote Tq.
Hunsur Tq.
Piriapatana Tq.
K.R. Nagar Tq.
Chamrajanagar District
Chamrajanagar Tq.
Gundlupete Tq.
COMPETITORS INFORMATION
The major competitors of the MYMUL are as follows:
>Jersey
>Dodla
>Arogya
>Gomatha
>Thirumala
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>Swastika
>Loose milk vendors
>Heritage
JERSEY
*Plant at Andhra Pradesh
*Sale in Union Jurisdiction 45 TLPD (Thousands litre per day) (100 TLPD in City)
*M.R.P. rate Rs. 16.00 per litres- seller rate Rs. 15.50 to based on quantity.
*Commission ranges from 40-70 per litre (good incentive scheme)
*Quality perception-thick and longer shelf life.
*Flexible distribution-retailers, wholesalers or anyone willing to sell.
*Payments cash and carry or while collecting empty crates on return trip.
*Availability mostly retail outlets and now capturing institutional sales by any
means.
* Vigorous advertisement especially at the point of purchase.
DODLA:
* Plant at Nellore.
*Availability of raw material at cheaper rate.
*Sale in union Jurisdiction 18 TLPD (Thousands litre per day in city)
*M.R.P rates Rs. 13.00 per litre- seller rate 12.50.
*Commission ranges from paisa 40-50
*Quality perception-thick and long shelf life.
*Flexible distribution-retailers or anyone willing to sell
*Returns will be accepted.
*Payment- cash and carry or which collecting empty on return trip.
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AROGYA:
*Plant at Bangalore
*Sale in union jurisdiction 10 TLPD (Thousands litre per day) (25 TLPD in cities)
*MRP Rates Rs. 18.00 per litre.
*Commission ranges from 60 paisa per litre.
*Availability mostly retail outlets like bakeries. Condiments and departmental stores
*Packing is attractive with multicolour printing on sachets.
*Concentrating on value added products and not much on milk.
Heritage
*Plant at Bangalore
*Sale union jurisdiction from 12 TLPD (30 litres TLPD )
*MRP Rates is RS 20 per litre
*More contents in fat than any other milk competitors
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INFRASTRUCTURAL FACILITIES
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I MILK PROCUREMENT
*Milk collection from farmers.
*Dairy co-operative society.
*Bulk milk products.
II. TRANSPORTATION
*They have procurement group contract vehicles.
*Milk Tankers.
IV PACKING
*Milk packing machine
*Curd packing machine
*Lassie, masala majjige packing machine
*Flavoured milk packing machine
*Ghee packing machine
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V ENGINEERING
*Reformation equipments
*Boiler equipment
*Effluent treatment plants
*Electronic generation
VI MARKETING
a. Distribution network
*Agents
*parlours
*Depots
*Franchise
b. Distribution Transport
*Trucks
* Goods auto
*Mobile
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ORGANISATION STRUCTURE
Board Of Directors
President
MANAGING DIRECTOR
(MYMUL)
Manager
(P&I)
(P&I)
Manager
(dairy)
Manager
(Mktg)
Security
supervisor
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Manager
(MIS)
Manager
(Finance)
Deputy manager
(Administration)
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ABBREVIATION
President
: President
MD
Managing Director
MYMUL
DM
Deputy Manager
P&I
Production department
Mktg
Marketing department
HR
MIS
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Weakness
1. Lack of flexibility in deciding about its operation. No authority over issues
like pricing, offering volume discounts etc.,
2. Political interference.
3. Organizational structure does not permit incentive/ reward for good
performance.
Opportunities
1. Since the Mysore district is under Cauvery basin, perennial greens are
available to the cattle.
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2. Institutional markets, bakeries, hotels etc., are not fully tapped and these can
be captured preferably by direct marketing.
3. Diversification of milk products like Peda, Mysore Pak.... etc.,
4. Exploit the Human Face, by positioning in the market as an organisation
with social responsibilities of serving the milk produced by paying
remunerative price and serving customer by offering hygienic quality product
at a reasonable price throughout the year. Union is not in the business to
maximise the profit as in the case of private dairies and is acting as price
stabilizing force in the market. Projecting these to the customers will reinforce
the positive image of the organisation in customers minds as a caring
organisation which service to them as its motto.
Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants.
2. The competition from Co-operatives like Dodla, Heritage, Kamadenu.... etc.,
3. Private dairies procure milk at low cost from producers and sell milk resorting
to unethical trade practices. It is a marketing war in which union has to fight
by rules and other private dairies do not fight by rules. Hence, there is no level
playing field for organization with social responsibilities to compete with
organizations with purely profit motive.
4. Some private dairies are selling homogenised milk, which appears rich. The
union cannot homogenize all its huge quantity of milk due to lack of
homogenizing capacity and increase in processing cost.
5. Plans of major companies like Reliance, ITC to enter into milk market in
future.
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CHAPTER 3:
DETAILED
STUDY OF THE
DEPARTMENT
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3.1
Deputy Manager
Assistant Manager
Extension Officer-III
Helpers
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Introduction:
Raw Material is the basic requirement of every organisation. The sequence of
bringing milk to MYMUL starts from the collection of milk from the individual milk
producer.
MYMUL procures raw milk directly from the farmers through the Dairy Co
operative societies (DCS). MYMUL has got 71 milk procurement routes and each
route covers around 15 to 20 societies. DCS collects milk from producer which is
stored in cans and transported to MYMUL through trucks. If the main dairy is far
away from DCS, the milk is transferred to nearest chilling centre in order to chill the
milk so as to avoid the growth of micro organisms which is then transported to main
dairy.
MYMUL has got three chilling centres located in Hunsur, Kollegala and
Chamrajanagar. After collecting milk from various DCS, it will be processed in
MYMUL and supplied to the customers. Secondary items like packaging materials,
engineering materials are procured through calling tenders. The payment is made to
supplier of milk on weekly basis and the payment for the transport contractors is made
once in a fortnight. In case of shortage of milk, the Union purchases milk from other
dairy at inter dairy price.
The payment is made to farmers on basis of percentage of Fat and SNF
content at a min of 3.5% and 8.5%. The daily average milk procurement here is
3,12,000.
Function:
y
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The technical input programme of the Union mainly covers the following activities:
Artificial Insemination
250000
200000
150000
100000
50000
2004-05
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2005-06
2006-07
2007-08
2008-09
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3.2
MYMUL
Purchase/Stores
Superintendent Purchase
Helpers
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Introduction:
The purchase and stores department plays a vital role in the organisations like
MYMUL, where the core function is production. The purchase department performs
the function ranging from collection of indents from each department to purchasing
through general inquiry or tender. This section basically deals with the purchase of
LPDE films, ghee films, corrugated boxes, cartons, sugar, nitric acid, machinery and
parts, vehicle spare parts, stationery items, oil and lubricants etc., except milk.
Once the purchased items arrive at the union premises, it is taken care by
stores section. Store then sends the material to the respective sections as per the
requirements. If the received materials are not used immediately it is kept into
different places as per its category for the future use. The damaged or obsolete items
are sold to the public through auction or other means.
Purchase Procedure
The purchase process starts when the Managing Director of MYMUL
approves the indent requests from different section and departments
.
Document required: Indent along with the note approved by Managing Dir ctor.
e
1) Enquiry
will
be
made
with
the
registered
manufactures,
dealers/distributors/suppliers etc.
2) Preparing comparative statement of the offers received
3) Samples quality checking wherever samples obtained
4) Rate analysis
5) Placing before the purchase committee for decision, and then obtaining
approval of the Managing Director or direct approval from the Managing
Director depending upon the sequences
6) Placing purchase order/work orders
7) Quality checking after receipt of material
8) Acceptance
9) Payment as per terms and condition
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Date of order
Description of materials
Sales tax
Insurance charges
Delivery period
Payment terms
Store section
Store section acts as receiver and holder of purchased goods. Normally, it
purchases the materials on the basis of purchase order provided by the purchase
section. The purchase order basically contains materials required, quantity of material
and the department requiring that material. During emergency purchases, respective
departments can purchase the materials with the approval of MD. Then, it comes to
store section for record and used. The store department is using materials receipt
ledger, store indent book and daily register for efficient stock maintenance.
Division of Stores: General stores, DCS stores, Machinery and Spares.
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3.3
Production Department
Manager (Dairy)
Deputy Manager
Office Staff
Assistant Manager
A A G-I
A A G-II
Technical Officer
D S G-I
Clerk
Typist
D S G-II
Dairy Operation
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Dairy Technician
Dairy Worker
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Introduction:
The main objective of this department is to follow up production schedule as
per plan and to maintain a good relationship with other departments in order to
upgrade the technical efficiency of production.
Production department is well equipped and has various types of highly
sophisticated machines imported from Sweden and Denmark. Once the milk is
received from P & I department, it is first weighed with the help of weighing bowl.
Later, it is poured in dump tank. Sample testing is made where fat and SNF content of
milk is accessed. The milk is then sent to production section through stainless steel
pipes.
Later, the raw milk is passed through plate chillers of variable capacity where
it is cooled up to 4-5 degrees Celsius. This cooled milk is further stored in a silo of
30,000 litres capacity.
Production process:
The raw material passes through different process before converting into the
finished good. Here, raw milk is the input material which is processed to deliver
consumable milk and milk products as finished goods.
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Filtration
Filtration
Raw chille
Raw chilled milk is re-chilled
to less than 5
A
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Pasteurization
Pasteurization
1.1. Balance Tank
Balance Tank
Auto dislodging and
Auto desludging and
standardization
standardization
2.2. Regeneration-I
Regeneration-I
3.3. Regeneration-III
Regeneration-III
4.4. Heating to more than 72
Heating to more than 72
found
for less than 15 secs
Phosphate is is done. If
Phosphate test testdone. If found
positive reprocess the milk
5. Regeneration-III
5. Regeneration-III
6. Regeneration-I
6. Regeneration-I
for
7. chilling
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Incubation at room at
30-35
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Manager (Dairy)
Technical Officer
Chemist Grade I
Chemist Grade II
Lab Technician
Helper
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Introduction:
MYMUL is committed to meet the ever-changing needs of the customers
without compromising the quality of its products. A separate quality control
department deals with the quality checking mechanism at the input, processing and
output level. The milk that comes to MYMUL by milk tankers goes through several
tests before acceptance. Apart from that, quality of milk and milk products i tested in
s
different levels of production and the quality is maintained.
Quality Objectives at MYMUL:
The basic objectives of the quality control department at MYMUL are:
Improve quality of raw milks received from chilling centres and bulk milk
coolers of the union
Ensure that all the batches of milk, curds, butter and ghee to be sent to the
market confirms to the standard stipulated under Bureau of Indian Standards,
prevention of Food Adulteration Act and AGMARK
Achieve better plant efficiency by carrying out all the maintenance schedule in
time
Achieve cost competitiveness by reducing the water consumption and energy
consumption in the plant to maximum extent
Maintain high standard for housekeeping in plant
To establish high quality brand in the market for its products
Function:
Quality is the essential attribute attached to any product. All products and
services that want to be a leader in the market should provide the superior quality.
MYMUL also follows the same strategy. Q. C department at MYMUL ensures the
quality of the milk and products to the prescribed standards. It is also responsible for
formulating the quality control policies and developme of standards for the milk and
nt
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milk products from time-to-time. The standards are mandatory and include the latest
quality parameters.
The quality control department randomly assesses the quality of milk and the
products produced by the union. It ensures that they comply with the standards and
also provides instructions for improvement. Routine inspection of the dairy plant and
chilling units are part of the responsibility of quality control department to assess the
machinery condition, cleanliness and hygiene and processing parameters being
followed. The Q. C department tests the packaging materials purchased by the union.
The quality testing equipments are checked regularly. The new packaging materials
and newly introduced products go through rigorous qu
ality control checks by Q. C
department. Usually Q. C department tests the purchased materials that are directly
concerned with food. Only after the approval of Q. C the materials purchased are
accepted and stored for record.
Tests carried out for milk and milk products:
Analysis of milk:
1. Argunoreptic test:
This test is conducted to smell, sweet and flavour of milk.
2. Adulteration test:
This test is conducted to see if the procured milk is adulterated with salt,
sugar and soda by the producers.
3. Clot On Boiling test:
This test is conducted to determine heat stability of the milk.
4. Fat and SNF test:
During this test, amount of SNF/FAT is tested. Basically, milk consists
of 85 % water and 15 % solid particles. Price of the milk received from
farmers is determined by its SNF/FAT content. Higher the SNF/FAT in the
milk, greater will be its price.
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Analysis of curd:
There are various tests conducted for the curds in Quality Control department.
They are Acidity test, Yeast and Mould test, coli form test, Body and Texture, flavour
test, Fat and SNF test are also conducted to know the Fat and SNF percentage.
Analysis of Butter:
The various Quality Control tests conducted for butter are Butter Fat test, curd
content test, moisture test, Acidity test, yeast and mould test, coli form counts.
Moisture test is conducted to determine the moisture content of butter according to
predetermine levels of moisture content in the butter.
Analysis of Ghee:
The various Quality Control tests conducted for Ghee are moisture test,
Acidity test, RMV (Richards Mussel Value), PV (Paulsen Value) test and Fat test.
Here, the fat content, acidity percentage and moisture percentage of the ghee is
compared with the predetermined levels of the fat contents, acidity and moisture test.
Standardisation of milk and milk products
PRODUCTS
Toned milk
Double toned
milk
Standardized
milk
Full cream
milk
Butter
Ghee
Peda
Curds
Lassie
FAT %
(min)
3
1.5
SNF %
(min)
8.5
9
ACIDITY %
(max)
0.16
0.16
MOISTURE %
(max)
-
4.5
8.5
0.16
0.16
80
99.7
20
3
1.3
8.5
NA
0.07
1.4
0.95
0.6
16
0.3
20
-
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Manager (Marketing)
Assistant Manager
Marketing Officers
Marketing Superintendent
Marketing Assistant
Helpers
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Introduction:
Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products and
services of value with others. Marketing is a customer-centred philosophy rather than
product-centric philosophy. The job is not to find the right customer for our products,
but the right products for our customers.
Marketing is the vital function of any organisation irrespective of its type of
operation. In general, task of marketing department or marketer is to device marketing
programs to create, communicate and deliver value for consumers.
Functions:
y
Marketing at MYMUL:
MYMUL is marketing milk and milk products in the brand name of
Nandini. The impressive growth in the sale of milk by MYMUL over the years is
due to its persistent efforts to maintain timely supply, maintaining quality and
attending to the complaints of consumers and agents with prompt follow-up action.
FRESH & PURE is the motto of MYMUL.
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Mysore Dairy markets the following types of milk and milk products:
Toned Milk : 3.1 % Fat and 8.5 % SNF
Double Toned Milk : 1.5 % Fat and 9 % SNF
Homogenised Toned Milk : 3.5 % Fat and 8.5 % SNF
Full Cream Milk : 6 % Fat and 9 % SNF
Curd
Sweet Lassie
Ghee
Butter milk
Peda
Mysore Pak
Total milk sales (Avg. Litres/day)
140000
120000
100000
80000
0000
40000
20000
0
200 -0
200 -08
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2008-0
2004-0
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6000
4000
2000
0000
8000
6000
4000
2000
0
2004-05
2005-06
2006-07
2007-08
2008-09
Distribution system:
Milk and milk products are distributed in two times, at morning and evening.
The distribution routes are allocated on the basis of route
-wise, agent-wise and
quantity. Agents are appointed based on the regulation of the milk union and Co
operative Act, after depositing some amount as a security deposit. Minimum distance
of one kilometre is maintained between one agent to the other. The agent takes milk
and milk products twice a day. After deducting the commission, the remaining
payable amount is remitted in two ways: cash or credit system.
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Sales at MYMUL:
Sl.No
Product
Quantity
Rate (Rs.)
120557
19.00
6162
18.00
6663
20.00
10597
24.00
Total
143979
Curd (kg)
26001
24.00
1177
6.00
1332
5.00
Peda (kg)
165
200.00
40
230.00
Ghee (Lit)
2883
270.00
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Manager (finance)
Deputy Manager Finance
Account Officer
Superintendent
Helpers
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Introduction:
Finance department is one of the most important functional departments of
any organization. It aims at gathering the funds from various sources to meet the
financial requirements of the organization. Capital budgeting, capital structure and
working capital management are three important areas of decision making by finance
department.
In capital budgeting, finance department develops efficient capital inve
stment
plans for the favourable operation and growth of the company. It accounts for huge
amount of managerial time and energy.
In capital structure decisions, the means to finance the investment projects is
finalised. The optimum debt-equity ratio is decided in order to minimize the cost of
financing the projects. But it should not conflict with the organizational objectives.
With the increase in equity, the long-term liability of the firm is increased whereas the
increase in debt will increase the risk for the firm.
The difference of current assets and current liabilities is the working capital
for the firm. Working capital management deals with the short-term financial
management of the firm. It is very important for running the day
-to-day financial
activities in the organization, without any interruptions. The credit policy to
customers and the inventory policy at organization are important things to be taken
care of. The appropriate sources of short-term financing are to be decided.
Objectives:
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12000
10000
8000
6000
4000
2000
0
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2007-08
2008-09
100
80
60
40
20
0
2003-04
2004-05
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2006-07
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3.7
Assistant Manager
Administration officer
Administration Superintendent
Administration Assistant G- I
Administration Assistant II
Helpers
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Introduction
Organizations are not mere bricks, mortar, machineries or inventories. They
are the people. It is the people who staff and manage organizations
The success or failure of any organization is basically dependent on the quality
of human resource it has. Human resource gives the competitive edge to an
organization from the other. So, every successful company gives importance to its
human resource and maintains a separate department to deal with it.
Currently, MYMUL has 381 employees at total. To deal with the human
resources at MYMUL, there is a separate department called as Administration
Department or HR Department. It deals with all the dimensions of the employees at
MYMUL.
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Service benefits:
The employees of MYMUL are entitled to various service and welfare
benefits. Some of the benefits provided to employees are:
Dearness Allowance (D.A): It is provided as par with the state government
employees. The D.A amounts to 22.25 % of Basic Salary.
House Rent Allowance (H.R.A): Each employee is entitled for HRA. It amounts
to 13 % of Basic Salary.
Conveyance Allowance: The employees owing four wheelers get a conveyance
allowance equivalent to the cost of 15 Litres of petrol whereas the employees with
two wheelers get amount equivalent to 20 Litres of cost of petrol and others 5
Litres of petrol
Shift Allowance: A shift allowance of Rs. 2/day is provided to th workers
e
working in the second shift i.e. from 2 P.M to 10 P.M. and shift allowance of Rs.
3/day is provided to workers working in third shift i.e. from 10 P.M to 6 A.M.
Heat Allowance: An employee working in the boiler section get an additional
rupee per day plus 250 ml of milk for self consumption on duty.
Cold storage Allowance: The employee working in the cold store get an additional
rupee per day plus 250 ml of milk for self consumption on duty
Attendance Benefits: The employees who remain regular get the additional
amount of Rs. 30 per month and he or she is allowed to be late by an hour once a
month.
Bonus: The bonus is awarded to employees in accordance to The Bonus Act 1965,
amended by Indian government from time to time.
Milk at Subsidized rate: Each employee gets a subsidized milk facility. For every
litre milk purchase, litre milk at free all the time. During flush season (Oct
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Nov) when the procurement of milk is very high, each employee gets litre of
milk at free
Free supply of Ghee: Each employee gets 500 g free supply of ghee twice a year.
Provident Fund: The provident fund facility is provided to employees as per the
Employees Provident Fund and Family Pension Fund Act.
Subsidized Canteen: Mysore Dairy has got one canteen to provide conv
enient and
cheap food facilities to its employees. Here, the employees get breakfast and
meals at very cheap prices.
Medical Facility: It covers the employee and his dependents, children less than 1
8
yrs. For Inpatient up-to Rs. 50,000 per annum is provided.
Leaves:
Earned Leave: An employee can take earned leave of 30 days per year, which if
not taken can be accumulated for a maximum of 240 days
.
Half Pay Leave: The employees are also entitled to 20 days of half pay leave per
year.
Casual Leave: An employee can take 15 days casual leave in a year, but it should
not exceed 7 days in a stretch. Casual half day leave can also be taken.
Maternity Leave: Female employees are availed 2-3 months maternity leave. But
it is granted only twice in ones entire service period.
Extraordinary Leave: It is only provided to the permanent employees and can be
granted only when no other leaves are left to the employees credit. This leave is
granted not more than 60 days at once and can be provided maximum of 5 times
in entire service period.
Promotion and Transfer:
Promotion is solely on the basis of sensitivity and experience. Transfers are always
accompanied by promotions
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Induction:
After an employee is employed in MYMUL, he or she is made familiar to the union
and also know the objectives, values, functions and the operations. This helps the
employee to interact with senior staff members from various departments.
Improve the job knowledge and skills at all levels of the organization.
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Manager (MIS)
Assistant Manager
System Officer
Assistant
Peon/Helpers
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Introduction:
Management Information System (MIS) is the integrated part for providing
information to supporting operation, management and decision making in an
organization. It mainly deals with processing information and conversion of inputs
into outputs.
Function:
MIS is a systematic effort to furnish timely information to the top management.
The main function of this department is to collect information from the production
department everyday in the form of daily reports. The information collected is in the
form of the following:
y
Other details.
The information thus is received, classified, processed and analysed. After the
information is thoroughly analysed, the department combines it in the form of weekly
report and monthly reports. These reports are submitted to MD who in turn issues
instructions to the concern department for further actions. The department will take
care of avoiding the wastage and other production losses. It highlights the importance
of optimum utilization.
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CHAPTER 4:
STUDY OF
SPECIFIC
MANAGEMENT
PROBLEM
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Problems
Shelf life of some products or some Sweets like Peda, Mysore pak is less
Suppliers of milk that is the villagers are not happy with the price that is fixed for
the procurement of milk
There is a lack of awareness among the rural population about the various
products produced by MYMUL
Absence of proper communication channels
FINDINGS
Following are the findings during the study
MYMUL is serving rural region and helping for their upliftment, by way of
procuring milk through poor farmers through its formed societies and paying them
fair returns. It is contributing for economic upliftment of farmers.
MYMUL is earning profit year after year and it is not confronting any financial
problems.
MYMUL is equipped with fully automatic systems which ensure total quality
maintenance.
It has got its own quality control department with fully equipped laboratory and
equipments that help detecting any adulteration or any such other defects.
Through the use of advanced technology, MYMUL provides its customers
bacteria free and balanced nutritious milk.
The channel of communication is good in organization
Maximum employees are satisfied and have accepted the rules, regulations and
policies of the organization.
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CHAPTER 5:
RECOMMENDATIONS
AND
CONCLUSION
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SUGGESTIONS
The following suggestions may be provided to enable MYMUL expand its
market share and maintain the present market leadership as well as to improve its
position in the future years.
There should be more number of Nandini milk parlours in Mysore city and
outside.
Organisation should try to improve the packaging of the product to prevent
leakage.
Organisation should try to adopt more and more new technology and methods
of production to survive in this competitive market.
The company should provide some attractive schemes for the regular
consumers as well as retail sellers.
MYMUL must adopt professionalism in its all-working departments.
Facilities and benefits for Agents, Retailers should improve still better. So that
the turnover of the Retailers will be reduced and market shares will be
increased.
It must guide the consumers regarding its product by giving vario
us
Demonstration programmes.
Online computer systems (website) have to be created by the organisation.
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CONCLUSION
Mysore dairy started functioning from 1975 under the World Bank aided
Dairy Development Project and the union was registered on 23/11/1976. After
bifurcation of Mysore and Mandya District Co
-operative Milk Producers Societies
Union on 1/4/1987, it is renamed as Mysore Chamrajanagar District Co-op. Milk
Producers Societies Union Ltd. This dairy offers the best quality milk in MysorePURE & FRESH.
The Mysore Chamrajanagar District Co-op. Milk Producers Societies Union
is marketing milk and milk products in the name of Nandini are the best quality. It
has been catering the needs of majority of population of Mysore. The future goal of
the organisation is to computerize the whole organisation. The company should lay
emphasis on modernization and product diversification by which the company can
meet the fast changing requirements of the markets and to keep on with the
competitors. Now a days, competitors have been entering into this field in order to
exploit the utility of this industry.
The slogan of Mysore Chamrajanagar District Co-op. Milk Producers
Societies Union is QUALITY EXCELLENCE FROM COW TO CONSUMERS
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7 BIBILOGRAPHY
OFFICIAL WEBSITES:
1) www.kmfmymul.com
2) www.kmf.nandini/mymul.com
3) www.mysoremilkdiary .com
4) www.kmf/mys/nandini.com
BOOKS REFERED
1) 2006, Production Management, Kalyani Publications ,
K.Aswathappa
2) 2007, Human Resources Management, Himalayas Publications
Shashi.k.gupta
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ANNEXURE
Amount
Income
Amount
Staff expenses
14674840.89
Trade profit
76117068.87
Administrative expenses
20889292.10
Other income
Tax
1065513.13
21201774.24
Technical income
5765314.90
Repair vehicle
288972.16
3404705.65
Technical expense
7015099.35
Depreciation
9023336.00
Net profit
11309555.14
Total
88873061.66
Total
88873061.66
DSCMIT, BANGALORE
6469226.00
521452.00
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