INTRODUCTIONMilma is an organization of farmers. They are the producers of raw material milk, the shareholders in organization. The chairman and board of directors are elected from among them. The farmers are members of APCOS. The president of the APCOS forms the general body of the regional milk unions, which federate to from the KCMMF the Kerala Co-operative Milk marketing Federation (KCMMF)) or Milma started its operation in 1980 with its headquarter at Thiruvanthapuram. It was started under t6he Indo Swiss project was launched in 1963. On the basis of bilateral agreement executed between the Swiss confederation and the Govt. of India. The project was ma egret stra5tites in the improvement of lives stock of farmers in the state. The project is now managed by the Kerala Livestock Development and Milk Marketing Board. Its main motives were to implement the operation flood program started by National Dairy Development Board in Kerala.The organization study is conducted at MILMA, EDAPALLY. The study aims to have an overview of major concepts and emerging trends adopted in Milma. The study was undertaken on May, 2013.OBJECTIVES OF THE STUDY To acquire knowledge about the functional as well as managerial aspects of the company. To know about the production process of the product used by the ultimate consumer. To gain knowledge about origin and history of the industry. To understand how the key business process are carried out in organization. To understand how information system is used in an organization. To acquire practical experience in organization activities To get a clear picture about a corporate and the industrial profile.

LIMITATION OF THE STUDYDue to tack of technical knowledge in doing a project work, it is sum that some errors might occur in the project report. Though all the employees in the organization are very much co-operating, because of their time limitation they cannot spend much more time for the researcher. METHODOLOGY OF THE STUDYThe methodology adopted in the study comprises of primary & secondary data and their systematic analysis. In this project the researcher used a method of direct interview conducted among various departmental heads, other staffs, co-workers etc. Researcher also collected information from the company fires and from employees secondary data is collected from early said company's last 2 years files.

CHAPTER I

INDUSTRY PROFILEAbout industryA dairy is a business enterprise established for the harvesting of animal milk mostly from cows or goats, also from buffalo, sheep, horses or camels - for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multipurpose farm that is concerned with the harvesting of milk. India has the highest livestock population in the world with 50% of the buffaloes and 2Oo/o of the world's cattle populationIn different parts of the world the structure of the dairy industry varies. Most of the milk is distributed through wholesale markets in major milk producing countries. In developing countries, the past practice of farmers was marketing milk in their own neighborhoods, in India same practice were continued till packets became available. The world largest importer of dairy product is New Zealand and the largest importer of dairy products is Japan.The milk production in India accounts for more than 13o/o o'f the total output and 35% of Asia's total milk production. Indias milk production in 1950-51 was low as million tones. Today the country has emerged the second largest milk producer in the world. Indias contribution to world milk production rise from 12o/o-15o/o and it will increase up to 30%-35% by the year 2020. Indian dairy market has a pyramidal shape with a large base area which supplies low cost milk to the manufactures. Corporative federation is the main players in the daily sector.1.1 Evolution of the industryNow well-known by the popular sobriquet 'MILMA', Kerala Co-operative Milk Marketing Federation (KCMMF) was formed in 1980 as a state adjunct of the National Dairy Program 'Operation Flood'. lt is a three-tiered organization. It was started under the lndo-Swiss project. The project was launched in '1963 on the basis of a bilateral agreement executed between the Swiss Confederation and the Government of India. The project has made great strides in the improvement of livestock farming in the state. One of them is the development of Swiss Brown, a cross breed suited for the states conditions. The project is now managed by the Kerala Livestock Development and Milk Marketing Board. The project impact was so widespread that close to about 83% of the adult cattle of the state got converted to the new breed - Sunandini-, the milk production increased by over ten times and the per capita availability of milk increased by over 7 times over a million families dependent on milk production. The project has succeeded in integrating better technology and management to the traditional small holder production system.At the grassroots level MILMA has 3059 Anand model primary mirk co-operative societies as on 31 .03.2012 with 8.6 lakh local milk producing farmers as members. These primary societies are grouped under three Regional Co-operative Milk producers, Unions viz TRCMPU for Thiruvananthapuram region, ERCMPU for Ernakulum regionAnd MECMPU for Malabar region. At the apex level KCMMF functions from the Head quarters at Thiruvananthapuram. From the different units managed directly by KCMMF the various units under regional unions MILMA produces and distributes pasteurized Vitamin - A enriched milk and various milk-based products as well as mango drink throughout the state. MILMA has been instrumental in achieving the national goal of self-sufficiency in milk production in the state. Still the goal is receding As Kerala enjoys one of the highest ranges of per capita milk consumption. KCMMF is totally content in the realization of this vision which was set before it. KCMMF has achieved the distinction in its performance by close association and bond with National Dairy Development Board, Animal Husbandry Department and Dairy Development Department of the State and Kerala Livestock Development Board.Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called MILMA was established in April, 1980 with is head office at Trivandrum for the successful implementation of 'Operation Food Program in Kerala. At the village levelwe have the Village Milk Co-operative Societies which have the local milk producers as its members. The Village Co-operatives unite at Regional level to form Regional Co- operative Milk Producers' Unions. These Unions later federate at the State level to form State Federation.Operation FloodA success story on the Dairy scene in India during the sixties was the farmer-owned AMUL Co-operative in Anand (Kaira District, Gujarat) with is integrated approach to production, Procurement, Processing and Marketing on Cooperative line. Over the years, this evolved itself into a model, based on self-rule by farmers ensuring maximum returns to them. This model came to known as 'ANAND PATTERM. The efficiency of the Model was worth replication. Therefore, a dairy program called "OPERATION FLOOD' was launched in 1970 under the aegis of the National Dairy development Board (NDDB). NDDB functioned as the technical consultants and the erstwhile Indian Dairy Corporation as the funding agency. The ideology followed by "OPERATI2N FL)OD' was the remunerative linking of rural milk producing centers with the urban demand centers so as to build up a viable diary industry.Kerala was included in the second phase of 'operation Flood'(OF ll 1980-1987) The eight southern districts from Trivandrum to Trichur were included in the ,Operation Flood'. Expense of the project had a total ouilay of Rs.29 crores.From 1980 KCMMF was involved in concentrated spearhead team activities, identification of potential milk collection area, formation of milk Co-operatives and extension activities. MILMA came into its own on 1-4-1983 when it took over theRevenue earning activities of Procurement and Marketing from the Govt. in April 1983-Encouraged by the response of (OF Ill). This same areas were included in the third phase of 'operation Flood' (OF lll). This phase had an outlay of Rs.18 crores.The growing popularity of the concept of Co-operative Section has spurred the authorities into exploring new vistas. The uncovered northern areas from palakkad toKasargode were thus brought under the Co-operative umbrella with the inception of the NORTH KEMLA DAIRY PROJECT. This Project is funded by the Swiss Development Cooperation through the National Dairy Development Board.1.2 Present situation 14 milk chilling centers 2702 primary milk cooperative societies 7.78 lakhs farmer members Eleven diaries capable of processing 9.90 lakhs liters of milk per day. A well established training center located at Trissur. 5.200 retail outlets and 32000 people working either directly or indirectly It has 3 regional co-operative milk producers union. The Union procures milk from farmers through affiliated Anand pattern Dairy cooperatives (APCOS) as well as from the traditional societies, which are not affiliated. The union could ensure consistent and remunerative price to milk producers even when prices of most of other agricultural produces were volatile. The prosperity of 2.80 lakh odd milk producers of the state depends upon the Ernakulum Milk Unions ability to provide an assured and regular market and remunerative price round the year for the milk produced by them.1.3 Contribution to the societySocial Provides a lots of employment opportunities to lots of people. Provide satisfied employees. Provides satisfaction to customers Ensures the welfare of the society .l Ensure the welfare of the state. Ensure the prosperity of the nation

Environment No noise pollution, air pollution and water pollution Eco-friendly in nature Making uses of bye products Promotes the govt. intervention in the society1.4 Comparison of organization with similarAmulGujarat cooperative Milk Marketing Federation Ltd. (GCMMF, is Indias largest product marketing organization with an annual turnover of Qa11-12) us$ 2.5 billion. Its daily milk procurement is approx. 13 million lit (peak period) per day from 1 6,117village milk cooperative societies, 17 member unions covering 24 districts, and 3.1g million milk producer members.For its consistent adherence to quality, customer focus and dependability, GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi National Quality Award in1999 in Best of Alt category. In 2002 GCMMF bagged Indias Most Respected company Award instituted by Business World.

GCMMF An Overview Table 1.1. Year of Establishment 1973

Members 17 District Cooperative Milk Producers Unions (16 Members & 1 Nominal Members)

No. of Producer Members 1.18 Million

No. of Village societies 16,117

Total Milk handing capacity per day13.67 Million liters per day

Milk Collected (Total 2011 12)3.88 Billion liters

Milk Collection (Daily average 2011-12)10.6 million liters (peak 13 million)

Milk Drying Capacity 647 Mts. Per day

Cattle feed manufacturing capacity 3690 Mts. Per day.

Sales turnover (2011-12)Rs. 11668 Crores (US $2.5 Billion)

Organizational chart

Chairman of KCMMF Boards of DirectorsMRCMPUChairman ERCMPUChairman TRCMPUChairman Board Members PresidentFarmersPresidentPresident

CHAPTER 2

COMPANY PROFILE2.1 Vision & MissionVisionTo constantly strive to provide valued consumers with the highest quality milk, milk products and other products with high standards of service by our passionate and focused work forces using state of the art technology ensuring sustained growth and simultaneously ensuring dairy farmer's delight by better realization of milk price and offering needed service at his/her doorstep'"

Mission Farmers prosperity through consumer satisfaction"Motto"Your health is our concern"Ernakulum Regional Co-Operative Milk Producers Union LimitedThe Ernakulum Regional Co-Operative Milk Producers Union Limited (ERCMPU) is the central society of the primary milk co-operatives organized in Anand pattern under the operation flood program, sponsored by the national dairy development board (NDDB). The operation of the union comprises of 4 central Kerala districts namely Trichur, Ernakulum, Kottayam and ldukki. This regional union is affiliated to the state Apex body namely Kerala Co-operative Milk Marketing Federation Limited (KCMMF).The Ernakulum regional union is an autonomous body registered under Kerala co- operatives societies act, 1869. This is the agency responsible for the implementation of operation flood program and all allied commercial activities in the field of diary development in central Kerala aiming at replication of AMUL as envisaged in the program2.2 Evolution of MilmaThe name MILMA has been derived from the cumbersome predecessor, Kerala Livestock Development Board and Milk Marketing Board (KLD&MMB). KLD&MMB existed from 1g76 to 1g81. The name M|LMAwas coined atthe official level by Mr. S. Nagarajan lAS. A 1961 batch lndian Administrative Service (lAS) officer, he took over KLD&MMB as its first chairman.Milk distribution in Kerala was available at only a few locations in Kerala. The distribution and sale was handled by the employees of the Board. The consumers had to purchase coupon booklets in advance and exchange the coupons in exchange for milk. No mechanism existed to tally the sale of milk and the coupons received. Mr. Nagarajan bought about a change in this system by making the consumer pay for milk at the time of purchase instead of the coupon booklet system. Moreover at that time milk was being sold in bottles and for the first time in lndia he introduced milk in % liter sachets. He had a prototype machine for packaging milk in sachets installed in Thiruvananthapuram. From the public sector he moved the sale of milk to the private sector. Milk booths permits were issued to private entities for the sale of milk from MILMA. From 1981 onwards under the advice of Dr. V. Kurien, by forming cooperative societies Prayar Gopalakrishnan and others were able to introduce MILMA to the whole of Kerala.Ernakulum Regional Co-operative Milk Producers' Union Ltd. (Ernakulam Milk Union), Milma, was registered on 12.9.1985 with Ernakulam,. The Union along with its sister unions (TRCMPU & MRCMPU) is affiliated to the Kerala Co-operative Milk Marketing Federation Ltd. KCMMF was set up in 19BO as the implementing agency for Operation Flood ll in the State of Kerala. The goal of KCMMF is "the Socioeconomic progress of the dairy farmer through procuring, processing and marketing of milk" The mission of Milma is "farmers' prosperity through consumer satisfaction". The ERCMPU operates on the truly democratic lines of "of the farmer, by the farmer and forthe farmer". The Union has an elected Board and all employees including the Managing Director are its own employees.The Union procures milk from farmers through affiliated Anand Pattern Dairy Co-operatives (APCOS) as well as from the traditional societies, which are not affiliated. The Union could ensure consistent and remunerative price to milk producers even when prices of most of other agricultural produces were volatile. The prosperity of 2.80lakh odd milk producers of the state depends upon the Ernakulum milk Union's ability to provide an assured and regular market and remunerative price round the year for the milk produced by them.Emakulam Milk Union has four dairy plants viz., Ernakulum Dairy at Tripunithura, Thrissur Dairy at Ramavarmapuram, and Kottayam Dairy at Vadavathoor and Kattappana Dairy at Nirmala City. In addition, it has a products' Dairy at Edappally, manufacturing Ghee, Sterilized Flavoured Milk, Peda, lce cream, Yogurt etc. While milk from nearby societies are procured and processed at dairies, milk from hinterland is procured through 87 Bulk Milk Cooling Units (BMCUs) set up in the Dairy Co-operative Societies (DCS) and chilling centers located at Muvattupuzha and Chalakudy.ln consideration of a common identity for the quality of milk marketed by the Co-operative sector Milma joined hands with NDDB in adopting a common mnemonic logo device of drop and to strengthen the marketing activity of the organization All dairies and head office of the Union have lSO 9001:200g certification.Objectives To channelize marketable surplus milk from the rural areas to urban deficit areas and to maximize the returns to the producers and provide quality milk and milk products to the consumers.

To carryout activities for promoting Production, Procurement, Processing and Marketing of milk and milk products for economic development of the farming community.

To provide assured year round market and stable price to the dairy farmers for their produce.Corporate Quality PolicyERCMPU is committed to: Organize and develop milk producers' co-operative societies and encourage production of milk in its area of operation in order to consistently supply safe, hygienic and healthy milk and milk products to the valuable consumers and enhance consumer satisfaction.

Continually improve the quality management systems adopted in this endeavor by arranging training for union employees and the producer members and meeting all the statutory and regulatory requirements of the product.2.3 Product profileMilma offers a wide range of products to its customers. It has become the most popular brand name in Kerala due to the quality of product it offers. A marketing chain consisting of nearly 4000 retail outlets, across the state ensures availability of Milma's products to consumers. Milma with its motto "Your health is our concern" has become synonymous with assured quality of milk and milk products. Milma's spectrums of products adhere to the PFA rules and are released for distribution only after stringent quality checks. The different products of Milma are:Milma smart milkIt contains 1.5% fat & 9% non-fat solids. Ideal for elderly people since fat content is low. It can also be used for whitening tea/coffee and for the preparation of milk based drinks like fruit shakes. Fat will not settle at the top since the milk is homogenized. Milma toned milkIt contains 3% fat & 8.5% non-fat solids. It is ideal for consumption by children the form of milk or in the form of brown beverages like Bournvita. Fat will settle at the top if milk is kept still for some time. Homogenized toned milkIt contains 3% fat and 8.5% non-fat solids. It is ideal for whitening tea/coffee and for the preparation of solid curd. Since the milk is homogenized, whitening of capacity is more and less amount of milk will be sufficient for whitening tea/coffee. The milk will not stick to vessels on heating. Milma rich milkIt contains 45% 'fat and 8.5% non-fat solids. It is ideal for the preparation of payasam and sweets. Fat will settle at the top if milk is kept still for some time since the milk is not homogenized. Skimmed milk curd It contains 10% non-fat solids. lt is deal for making curries. It is prepared under hygienic conditions by fully mechanized process. It cannot be used as starter-curd for converting milk into curd. Milma Sambharam (butter milk)Sambharam contains 4.5o/o lotal solids and natural flavour extracts. lt is ideal as thirst quencher during hot season. It is prepared under hygienic conditions using fully mechanized processes. Milma gheeMilma ghee contains 99.7% milk fat. lt is manufactured by melting fresh cream under hygienic conditions. Milma ghee has the ideal golden yellow due to presence of natural carotene in cow milk. No artificial colors or flavors are added in Milma ghee. Natural aroma and flavor of ghee is retained since ghee is produced directly from fresh cream instead of going in for melting stored butter. Milma pedaMilma peda is a natural milk toffee manufactured by the heating and removal of a major portion of the water content of fresh milk and by the addition of sugar. No color or preservatives are added. Natural carotene in the milk gives the product its characteristics color. it is idealfor children and as an after food sweet. Milma instead palada mix Palada payasam is a traditional delicacy of Kerala. The preparation is time consuming and requires skill. lt is made by concentrating high fat milk, rice granules and sugar. Milma has standardized its own large scale production process. It is easily prepared from the mix by simply mixing the palada mix with hot milk and heating the same for 10 minutes. Milma Ice CreamIt is made from pure milk cream. This is real ice cream made available in various flavors and packs. Produced hygienically in lSO 9000 and HACCP certified production facility. Milma Sip - UpIt is an ice-lolly made available in two varieties - milk sip- up and water sip -up. Both are packed in elongated and tubular pouches, which can be broken by biting into it. The contents are then consumed by sipping at the broken end' Made by using pure milk, pasteurized water, sugar and permitted flavors.

Managing Director (1)Organizational chart

PS TO MD (1)

MGR.(P&M) (1)MGR.(project) (1)MGR.(P&A) (1)MGR.(P&I) (1)MGR.(P&M) (1)

AO(1)AM(PROJ) (1)AM(P&I) (1)

Steno (4)Typist (2)JR/SRAssets (8)

Drivers (6)

AA0(1)Attendees(6)Supr. (3)

Sweepers(1)

AM (PUR)(1)AM (MIS)(1)

DEO (1)ASO (1)

Managing Dairy (1) Organizational chart

QCO (1)Marketing Org (1)

Lab Asst (1)T.S.D(1)

P.I. Opt. (1)

Technician (2)

P.I. Attender (10)

Sweeper (1)

CHAPTER 3

Functional departmentsEvery organization needs a well-established administrative setup for efficient functioning. The diary plant has established marketing, finance, production and personnel quality control department under the supervision of experienced and competent officers. All the departments are under the control of departments heads that are controlled by General Manager. They are mainly 7 departments in the organization. They are:- Procurement and input Department Production Department Maintenance Department Quality Department Personnel & Administration Department Finance Department Marketing Department

3.1 Procurement and lnput Department (P&l)

ManagerDepartment Structure

Milk Procurement Officer

Assistant Milk Procurement Officer

Supervisor

Milma being a process oriented organization depends mainly on its raw material. The major raw material required for production is milk which is highly perishable in nature Timelystepsaretobeimplementedtoensuretheeffectivenessoftheproduction.The dairy has efficient procurement and input department under the leadership of Assistant Manager P & l.Functions:-The procurement and input department deals with the functioning are the collection of milk from farmers to the respective regional dairies/ societies of APCOS' lt collects around 110000 liters of milk per day from its societies. It has 60 direct societies which supply milk directly to the plant. This department also provides various incentives to the farmers for the production of milk and also for milk producing farmers and these incentives are known as in Puts'Procurement activity aims for the obtainment of basis and main raw materials. This department has established 87 coolers for cooling the milk from getting damaged and it is kept in various APCOS societies also. Milk from 180 societies is chilled at BMCU's and is transported to the plant. The chilling centers are handling the milk. It is chilled there and later transported to plant.Most of the primary facilities like milk cans testing equipment and other technical inputs are provided to the societies by ERCMPU.The procurement and input department deals with the following functions Determination of milk PriceThe milk price of farmers is determined based on the price chart. It has two standards for the determination of milk price is based on fat percentage and solid non-fat percentage. Training for farmersSufficient training programs are conducted and suitable training is given to the farmers for the proper handling and caring of their cattle as well as the handling of milk. This is done for getting better quality milk' TransportationThe milk collected from various centers are transported using own milk carriers or by using contract vehicles owned by third party Summer incentivesThis incentives is concentrated on providing cattle feed during the summer season. It starts during February. It helps farmers to feed the cattle and make more milk from it. Input to farmersERCMPU is providing various inputs to farmers such as subsidies on insurance' feeding cattle, loan for buying cattle and for cattle shed etc' these are provided to farmers for increasing production. Regularly taking milk At present Rs2 incentive per liter Cover them under Mediclaim insurance Rs.200 as subsidies to each and every farmer Subsidies for cattle shed from Rs6000 to 10,000 per one shed for farmer Subsidies for insuring cow under united India insurance company under Gow Suraksha Scheme" Subsidies for cow mat ; Rs500/cow carry out veterinary service to the farmers at subsidiary rate Rs'100 Regularly conduct free training programs for farmersFarmer's pension scheme Rsl0 to 12 crores per year by Milma. They provide Rs28500 per cow as subsidy to sc/ST category, ie 75% of the cost of the cow. cash or money is provided by Milma, Union Bank and NABARD Technical in putsERCMPU is giving the following technical inputs to enhance milk production and to support DCS. The Union has 8 veterinary service units and 1 decentralized veterinary units through which around 8000 veterinary emergency cases are attended every year. Ernakularn Milk Union has established 118 artificial insemination centers in the societies, by training the DCS staff and providing them the cry cans and A.l accessories under the NPCBB programme. These centers carry out around 80000 artificial inseminations every year. Cattle feed is made available to APCOS. About 3000 MT of cattle feed is sold by the APCOSs every month. Heifer Adoption Programme: Female calves with good pedigree are collected and given cattle feed al50o/o cost up to the age of first calving. Interest subsidy for cattle loan. Cattle insurance Premium Subsidy Mediclaim insurance for farmers, Society staff and their family members' Milking Machine Purchase Subsidy Paddy straw supply at subsidized rate. Cattle shed construction ,renovation subsidy in ldukki district.Go-operative Development Activities:The inherent togetherness brought about by being a part of a society was seen as a potential platform for dissemination of related information and discussion of various issues that crop up in the normal village life style. Thus was born the idea of a co-operative Development wing which held activities that saw the village as a whole and the society a nodal point, ie these activities went one step ahead by seeing the milk suppliers not merely as a farmer member but went on to see them as a part of the fabric of the village. The issues dealt with human health aspects, nutrition aspect, scientific management techniques of dairying and such varied topic with the help of leading experts in the concerned where discriminated' This is more of a socially motivating exercise than an image building venture. Embryo Transfer: In an effort to bring the results of research into the field conditions, Embryo Transfer Technology has been introduced to upgrade cattle wealth. ET was started in 1990 and so far, had a commendable 48% success rate which is comparable to the national standards.Milk ProcurementThe union procures milk from producers through Anand Pattern Dairy Co-operatives (APCOS) and traditional societies not affiliated to the Union. At present there are 857 functional dairy co-operative societies under the union' supplying around 1'9 lakh litres of milk daily. There are about 280'150 producer members affiliated to these societies under the Milk Union. The procurement and lnput department of the Union is providing assistance in organizing milk societies and carrying out dairy development activities in the villages.With the intention of improving the chemical and bacteriological quality of milk procured by the village dairy co-operatives, the Union has successfully implemented the Gol scheme, strengthening lnfra structure for Quality and Clean Milk Production" for quality of Rs.6g1.66 lakhs with 100% achievement. Bulk milk coolers were installed in 87 societies under the project with a total chilling capacity of 173000 litres per day (LPD). Also intensive Dairy Development Programme was implemented in ldukki district during 2004-2009 with a total outlay of Rs.288.15 lakhs with 100% achievement.3.2 Personnel and Administration Department (P&A)

ManagerDepartment Structure

Junior Superintendent

Junior Supervisor

Attender

one of the major assets of the organization is its human resources' so it is very important to manage and utilize the human, Milma is making continuous efforts for the skill up gradation of the work force by deputing personnel for on the job training. Milma enjoy excellent labour relationship, which is one of their major strength. The function can be divided into personnel and administrative functions.RecruitmentThe company employees have permanent, causal and contract employees. Permanent recruitment is done from the head office' Contract recruitment is done through the employment exchanges and through APCOS work contract is through quotation. For permanent recruitment, they give notification to at least 3 newspapers. From the approved applications, candidates are selected for written test' Approved is mainly based on qualification. Selection of the suitable candidate will be done based on the test/interview. The written test will be conducted at Ernakulam. Appointment will be given based on the rank list and vacancy.

TrainingEmployees are given training from time to time. Training includes on the job training and off the job training. NDDB is in charge of providing training to the fresh employees. In Kerala, training is given at Thrissur. Orientation program is conducted for workmen. Moreover there is ISO based training is provided to all the employees. In most of the cases, on the job training is enough. Proposed training module Change management Total Quality Management Team building and leadership Communication and leadership management Training program on dairy technology for non-dairy technologist Training program on technological and engineering aspects of milk condensing and drying plant

Performance AppraisalThe company has the practice of appraising the performance every year. This is mainly for deciding the promotion. It is rated on the basis of Knowledge of work Attitude of work Decision of making Ability to inspire & motivate Communication skill Team work Relation with public Supervisory ability Ability to execute the orders.Based on the criteria the performance of the employee is rated as, outstanding, very Good, good and below average.PromotionPromotion is of 2 types: In the case of officers, merit comes seniority & in the case of other employees seniority comes first. Department promotion comes of each unit' This department committee is headed by unit head, personal head of that unit, sectional head in which promotion is being done along with M.D representatives' They will prepare the rank list & it is sending for the approval.Promotion being done based on the vacancy as per approved staff' in the case of officers, promotion being done based on merit comes seniority which is done by personal committee headed by chairman of union and government representatives. In the board, KCMMF representatives of board & managing directors person comes and interview the candidate and prepared rank list and place the same before the board of directors and they approved the rank list and promotion being done based on vacancies.Welfare measuresMost of the employees are members of the welfare society' The members of the welfare society have to contribute an amount of Rs.50 every month. From this fund' cash have been awarded for scoring high mark in SSLC of employees children, marriage concern, death etc. canteen facility is available for the employees in every working shift. Housing subsidy is also given to the employees. Different employee scheme and insurance are promoted for the welfare of the employees'Time office and attendanceEmployees are asked to mark their attendance every working day while entry to the organization and while they leave the work' Attendance is marked using the finger punching system. This is done with the identify card issued to the employee at the time of joining the organization.Normal shift for office staff: 10am-5pmworking in plants (3shifts): 9 am - 5pmSalary administrationEmployee salary includes Basic Pay (BP), Deamess Allowance (DA) and House Rent Allowance(HRA), Payrevisiontakesplaceatevery5years'EachsixmonthDAis revised.Salary ={basic salary+(142/100*BP)+HRA+ Medical Allowance(150)}Both the organization and employer contribute equally towards the employees PF'Leave administrationIn Milma, there are three different types of leave. They are casual leave' sick leave and earn leave. All employees both workers and office staff can take 12 casual leaves. Another type of leave is earned leave; each employee earns 1 leave for 11 working days. Salary is given or last working day of every month to the permanent employees.Grievance HandlingSingle window grievance handling mechanism is arranged in the dairy. Any employee can directly report their complaints to the concerned assistant manager of his department. If the action is not satisfactory, he can be report to the dairy manager. The Last door at which complaints can approach is the board of directors.CanteenFor employees, a canteen functions inside the dairy' Tender is given and quotation is taken and thus canteen functions on contract basis' Most often there is one year contract For the canteen, milk, cooking gas and curd is given free from industry. For meals rate is Rs.5. there is fully functioning canteen committee which consists of 5 members- personnel manager, one representative of trade union and three members from different departments.

3.3 Marketing Department

ManagerDepartment Structure

Assistant Marketing Officer

Marketing Organizer

Senior Assistant

Junior Assistant

Marketing is the art of selling products. It deals with identifying and meeting human and social needs profitability. It is typically seen as task of creating' promoting and delivering goods and service to customers' The aim of marketing is to know and understand the customer so well that product or service fits him and itself' The products are sold throughout the agents, wholesalers, direct outlets and parlours. Milma has adopted centralized marketing. Except milk and curd every products are marketed from Edappally. 62 products are sent to every other location under Ernakulam. There are 42distributors, more than 2 transport vehicles for supply.Main competitors for Milma are:- Pooja Nambeeshan RKG PDDP Milgram ShakthiFunctions Marketing of milk and milk products Widening the area of marketing Proper handling Conducting surveys on marketing mix Promotional activities Appoint distributors Set targetSales promotionMilma is a brand name and people trust more on the Milma products. lts superior quality products and wide reach has helped it to build a large group of loyal customers. There are no big schemes for sales promotion. Promotional efforts such as flexi, canopy etc. Warehousing is main ta Milma itself. Even though advertisement is low sales of Milma is much better.PricePrice is done by government and KCMMF jointly. As a result of government intervention in fixing the price standards of milma products, price levels are lesser compared to the competitor products. Price of the products are decided on the basis of market demand.ProductTo finalize a product to be launched, a consumer survey is conducted' For the acceptance of each product, consumer awareness has to be created.

Channels of distributionMilk and milk products are distributed to several distribution points, redistributors and to the direct agencies. There are more than 1800 agencies in Ernakulum dairy itself' out of total customers, about 82o/o {a loyal customers who have been purchasing the product for more than three Years.Gustomer identificationThe first and foremost function of the marketing department is to increase profit by coordinating sales force, targeting right customers for increasing sales' Products are sold through direct run, parlours, wholesalers, and retail dealers,PaymentCash and carry method is adopted for dealers. Distributors collect the money when deliver is made. cash is then remitted in the payment collection section. The payment collectors are paid for the service they render.The leading product in the market are set curd of 400gm, Rs.35. it has a share of 50% and milk. 75% marker share on ghee, 10% market share on ice cream item and it varies depend on the Product.List of suppliers of Milma1.Elizabeth Enterprises, Manjapra-lce cream carton, frozen dessert, lid2. Kartek, Cheranelloor-Peda carton, chocolik, mango mist3. P.P George and Sons, Angamaly-Carton for set curd, ice cream carton4. Berachah Print House, Kochi-Paper lid for 100m1 milkon5. Prima Packages, Thrissur-Ghee carton6. Bethel offset printers, Edappally-Sticker Label, ice cream cup lid7. JP Polymers, Perumbavoor-lce cream cup in all sizes8. Color Trendz, Chennai-Mango pulp, cocoa Powder, Choco diP9 Century Ultrapack, New Delhi-Yoghurt cup10Paradise industries, Cheruvanor-Wooden spoon. wooden stick3.4 Finance Department

Finance ManagerDepartment Structure

Assistant Manager

Account Officer

Assistant Account Officer

Finance is considered as the life blood of a business. It is the fact that business needs finance to make more money. Financial management is that managerial activity which is concerned with the planning and controlling of the firm's financial resources.ln this organization assistant accounts officer or account manager plays a vital role and have more responsibilities. The role of assistant account officer is to prepare the account of all the financial transactions done for the organization. His work include verification of cash book, bills and vouchers, monthly preparation of reports on statuary documents remitted to the government processing and financing agreements relating to transports.Functions of finance department Formulate the capital structure and determine the source and application of funds. Annual budget preparation and allocation of funds to various departments and Project to undertaken. Book keeping and final account preparation Conducting pre audits and concurrent audits of everyday recording of all the cash flows.Capital structureThe organization capital structure comprises entirely of short term funds. Lt consist of the daily collection from the dealers, loans and grants from NDDB, dairy department of Kerala and Central governmentSources of fundsThe main sources of funds for the dairy are the daily collection from the sales of milk and other milk products. The grants from central and state government are also available. Some of the shares are:- Share issue Equity share Bank loans Government grantsSales accountper day sales even through school are 2.96 lakh litre. Organization has aimed for 3.06lakh. 96.9% has achieved. comparing to previous year sales there has been 8.8% increase in sales.Table 1.3Per day sales (in litre) Dairy 2009-21002010-20112011-2012

EKM to Kattapana185776186807200068

Thrissur 423464281548989

Kottayam 457994302546883

Total 273921272647295939

Payment and collectionThe sale of the product is based on cash and a carry system. Hence the collection is done by distributors and is remitted to the bank and the slip is given to account department. Distributors collect money from the dealers, when milk packets are delivered to customers. The main payment made by the department is giving salary to the employees. Casual laborers are paid cash in every two weeks and contract laborers are paid only month basis.During the starting of the years the societies of the union was 806 and during the reported year 14 societies also joined and number of societal members increased to 820 from 806 societies. There was Rs19577600 as the working capital. From 820 societies it was increased to Rs19777600.Accounting methodsErnakulam dairy is practicing mercantile accounting methods for recording its transactions.

Table 1.4Income and expenses 2011-2012Sl. No. Incomes Amount (in lakhs)

1Opening capital195.46

2Income from other sources688.29

3Investment from societies3.74

4IBO working loans 200.00

5Particular loan to societies 11.85

6Share suspense1.80

7Central govt. project cpm100.24

8Kerala govt. milking cows131.00

9Central govt. project Idukki424.00

10Working capital differrence 318.46

Total2074.84

Table 1.5Sales of milk and milk products in the year 2011 - 20122011-2012Budget

ProductsQuantityBudgetActual2012-2013

MilkLitres 1117888010831375117684800

Ghee Kg696356737905806031

YoghurtKg6875284629122137

Ice CreamLitres 491608524770551751

Peda Numbers 356670507023541080

Curd Kg503230047343205215800

3.5 Quality Control Department Department Structure

Quality Control Officer

Quality Control Assistant

Lab Assistant

The quality can be defined as the sum total of all the attributes of a product which make it different from other similar products. It aims at for the production of quality control. As this is a food manufacturing industry, the quality control departments plays a very important role. Every day the raw materials are tested before and after production. Quality of outgoing milk is maintained in accordance with the PFA (Prevention of Food Adulteration) standards. Outgoing milk is checked for its FAT & SNF percentages and bacteriological quality. Department provides technical assistance not only to the plant but also to the primary cooperative societies. As the main raw material is milk' the detection of bacteria is very important because, if its content increases, the product gets damaged easily. Ernakulam dairy has fully fledged quality control department functioning under the leadership of Manager quality control. staff strength is 7 including manager.Functions: The main function is to conduct scientific test to ensure the quality of products. This is mainly done during the reception of raw milk, processing and packing.

Render technical and legal assistance to primary dairy co-operatives and regional milk unions.

Liaison and maintain quality of milk and milk products as for the standards.Objective of Quality Control is Prevent marketing of impure, low quality foods. Prevent transmission or cause of disease. Claims made on labels, advertisement etc. Prevent marketing of milk having external agent.Quality control measures adopted Supplies audit whenever required Food safety audit is conducted one in three months HACCP audit is conducted one in three months Food safety meeting is conducted regularly in every month. Cleaning in place (CIP) after all shifts of operation.Test for fat and SNF content is measured at the collection center itself. Fat content is measured using an instrument called Milco tester, Average fat content of milk collected at the plant is about 3.9%. SNF percentage is directly proportional to the corrected lactometer reading (CLR).Quality control checksFor the assurance of the food safety, ERCMPU conducts a series of quality measures on every point of their operation which starts from procurement of milk goes through processing and finalize in dispatch. Various quality measures taken at ERCMPU are:- Platform testIt is conducted during collection of milk to ensure quality of milk which is taken into the plant. It is the 1st level test conducted in the organization to find the fat & SNF content, These test are conducted to check adulteration, traces of blood and also to check other impurities present in the milk. Alcohol testIn alcohol test the acidity, salt balances and microbial quality of milk are tested. In this test, a drop of alcohol is added to the sample and lactic acid is checked and if its level found above 0.16% the milk is substandard and is rejected. lnline testThis test is done during the processing of milk. ln this test a sample is drawn in random and various tests are performed. A register is maintained to cross check the observed value with the optimum value. lf there is any deviation from the standard temperature like abnormal increase in the temperature of the milk the process is repeated until the desired temperature.Methylene blue reduction testThis is done to access the bacterial quality of milk. In this test, Methylene blue dye is added to the milk sample. When the dye is added, the sample will have blue color. Then the time for changing the color from blue to white is measured if it is less than the prescribed time 6 hours, then the milk is re-pasteurized.There are two types of milk:-1. Whole milk2. Jersey milkWhole milk and jersey milk is detected by checking the Fat, SNF & acidity percentage For Whole milk Fat 4%Solid fat 8.3%Acidity 14% For Jersey milkFat 4%Solids not fat 8.5 %Acidity 4%

3.6 Production Department

Manager Department Structure

Technical Officer

Technical superintendent

Plant Operative

Attender

As far as a dairy is concerned, manufacturing of milk and milk products forms the most important part. Throughout these years Milma has always been the market leader. The organization gives supreme importance to the manufacturing process and ensures 100% safety during manufacturing process. Their main aim is to produce good quality milk from healthy animals.After procuring the milk, processing and conversion of raw milk into value added Products. since milk is highly perishable product, it requires great care in the transportation and the processing for more than eight hours it will perish. The Ernakulam dairy has an efficient production department functioning under the assistant manager production.Function of the department Receipt of raw milk Storage of raw milk Processing the raw milk Packing, storage, dispatch Safe disposal of effluents

Production Flow Chart 2. Ice cream milk production

Receiving Milk Pasteurizing at 78 C 100c Testing Fat & SNF at Quality ControlChilling Aging