DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}

INTRODUCTION• Managing dairy business in India is more of an art than science. Most of the dairy

professionals may not tend to agree with this statement though it is supported by authentic data from actual case studies.

• A milk vendor handling two hundred Kg. milk/day and without using any adulterants or preservatives is in a position to easily earn more than Rs.600/day (>Rs. 3.00/Kg.). Using adulteration, dilution and manipulation he can further improve his returns by two three times.

• An ethical “HALWAI” (sweet meat manufacturer) producing good quality ethnic

dairy products, besides earning handsome profits( more than 20% of business

turnover) can easily attain appreciable annual business growth rate.

• Milk contractors from unorganized sector having much lower investment as compared to owners of dairy plants are supplying raw milk to commercial dairy plants in private and public sector. These contractors are making fabulous profits (Rs.3/Kg. to Rs.5/Kg) by using their expertise and innovative techniques(known and unknown to the professionals purchasing milk for organized sector)

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}

INTRODUCTION

• Professionally managed commercial dairy plants are either in loss or earning much less than clearly visible profit margin of Rs. 3 /Kg. Desirable profit being the difference of gross revenue and total expenditure for a specific period divided by quantity of standard milk (6.5% Fat & 8.8% Snf) procured/processed by the dairy plant should be >Rs.3/Kg.

• In most of the case studies undertaken by mission (IIM) profit remains a insignificant amount ( much lower than profit margins quoted above).

• We need to evolve a transparent and effective monitoring /performance evaluation system for commercial dairy plants in India so that owner of business can review on daily basis his profit or loss without any ambiguity or distortion. DBMS is a professional approach and an attempt to achieve this objective. It is based on famous “MARWARI” concept of business management called “PARTHA”.

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}

ANNEXURE-A

• Dairy plant selling pasteurized liquid milk must earn >Rs.3.00/Kg.

• Assuming annual average basic price of raw milk as Rs.13.00/Kg. (6.5%/8.8%) or Rs. 200/Kg. Fat (Rs. 120 /Kg Fat & Rs. 59.09/ Kg. SNF) total solids=15.3%

• Milk collection/processing/packing /marketing cost for efficiently managed dairy plant will not normally exceed Rs.3.00/Kg. (including processing losses)

• Pasteurized standardized milk containing 4.5% Fat and 8.5% SNF

(Total solids=13%) would cost Rs. (13.00+3.00-2.40)=Rs.13.60/ Kg.

{(6.5-4.5)x 120=Rs.2.40}

(8.8-8.5)x 59.09=Rs.0.17727/ Kg {Ignore considering it as part of handling loss}

Retail consumer price for pasteurized standardized milk in most of our towns is Rs. 17.00/Liter or even more.

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}

ANNEXURE-A

• As such there is clear profit margin of more than Rs.3.00/Kg.

• {17.00-13.60=3.40/ Kg.}

• Increase in volume of milk due to dilution: 15.3/13 =1.17

{Hidden gain due to increase in volume (0.17X3.40) = Rs.0.578/Kg}

• {It will compensate the weight volume difference as milk is packed and sold in liters but purchased in Kgs.}

• Dairy company handling one lac Kg. milk per day would thus make annual net profit of more than Rs. 12 crores. (>20% of turn over) provided there are no hidden losses. { 100000x3.40x365=Rs.12,41,000,00}

• ANALYZE HIDDEN REASONS TO KNOW WHY YOUR PROFITS ARE LOW?.

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}

ANALYZING PROFIT & LOSS STATEMENT

TYPICAL DAILY PROFIT & LOSS STATEMENT {Basis 100 kg.)

S.NO DESCRIPTION AMOUNT(Rs.) S.NO REVENUE AMOUNT(Rs.)

I Purchase price of milk (6.5%/8.8%) 1040 I Sale of standardised milk 500

II Overhead cost on milk procured. 150 II Sale of toned milk 400

III Processing cost including packing 150 III Sale of double toned milk 200

IV Cost of utilities and maintenance 50 IV Sale of skimmed milk 200

VI Manpower and allied costs 50 V Sale of other products 300

relating to service departments like

quality assurance,PNL & HRD, Assuming realization from standard milk ( 6.5% Fat & Purchase, Stores, security/estate 8.8% SNF) as Rs. 1800/100 Kg.

and finance marketing etc.

VII TOTAL EXPENDITURE 1440 VII TOTAL REVENUE 1600

Daily Profit=Rs.{1600-1440)/100= Rs.1.60/Kg.{Basis: 100 Kg. Standard milk (6.5% Fat/8.8%SNF)}

“PARTHA” PROFIT NORMS:-Rs.{Selling Price/ Kg. -(Cost Price of milk/kg. +handling expenses/Kg.)

“PARTHA” PROFIT =Rs{ 18-(10.40+4.00)}=Rs3.60/Kg. Cost of milk=Rs1040 Other costs= 4.00/Kg.

LOSS AGAINST PROJECTED“PARTHA PROFIT = Rs. (3.60-1.60)=Rs 2.00/Kg. OR Rs.200/!00 Kg.

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}INTRODUCING PARTHA IN DAIRY BUSINESS

Business of procuring milk , manufacturing value added products and marketing the

produce can be divided in to following ten functional activity centers/departments.

1 Milk procurement

2 Production

3 Quality Assurance

4 Engineering

5 Personnel and Human Resource Development

6 Finance

7 Materials Management

8 Purchase

9 Marketing

10 Estate & Security

Each of the above ten departments have distinct function to perform and discharge its

specified obligations. For the success of business venture, it is extremely important for

the management to specify norms for each performance parameter.

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}INTRODUCING PARTHA IN DAIRY BUSINESS(MILK PROCUREMENT)

These norms can be fixed in consultation with the concerned staff bench marking with the best in the

country.

CREATING NORMS AFFECTING PARTHA {MILK PROCUREMENT DEPARTMENT}

Milk procurement in dairy business is often neglected function but it deserves maximum attention

from top management.80% to 85% of the total business expenditure in dairy business is incurred on

purchase of raw milk. Based on key performance parameters relating to milk procurement typical

norms for each activity can be specified as under:

PRIME PERFORMANCE PARAMETERS: NORMS

I Quantity of milk procured (Kg/day) As per specified targets

II Quality of milk procured ( V3/V2/V1/U) 100%V3

III Landed cost of milk (Rs. /Kg.) As per specified targets

EXPENSE RELATED PARAMETERS: Rs./Kg.

1 Basic cost of milk:(As per competitive market rates) 10.71

2 Milk handling charges (Village level milk collection): 0.350

3 Milk transportation expenses ( VLC to MCC): 0.113

DAIRY BUSINESS MANAGEMENT SYSTEM {DBMS}INTRODUCING PARTHA IN DAIRY BUSINESS(MILK PROCUREMENT)

4 Milk transportation expenses from MCC to Dairy plant/ Kg.milk: 0.200

5 Tester expenses/Kg. milk ; 0.024

6 Milk chilling charges/ Kg.milk: 0.100

7 Maintenance expenses / Kg. Milk: 0.003

8 Manpower cost /Kg. Milk: 0.058

9 Cost of testing chemicals (Sulphuric acid) /Kg.milk: 0.012

10 Cost of testing chemicals ( Amyl alcohol) /Kg. Milk: 0.021

11 Cost of detergents/ cleaning & sanitizing agents /Kg. Milk: 0.003

12 Total milk procurement overhead expenses: 0.884

13 Landed cost of milk 11.594

Once these norms based on scientific calculations are specified and well demonstrated in field

conditions by effective and efficient management, every zonal Incharge would then be asked to

make consistent efforts to attain these performance levels. Monitoring performance using

PARTHA as a tool can help the management in continuously upgrading quality of raw milk

improving quantity of milk procured besides reducing total cost of milk procurement.

PARTHA PROJECT PLAN

• Based on infrastructure and resources available with the organization projected “PARTHA” plan can be drafted by management.

• This document is based on raw material inputs, product mix combination,projected expenditure/ revenue account, contribution per unit and anticipated annual profits.

TECHNO-ECONOMICS OF DAIRY BUSINESS FOR PASTEURISED LIQUID MILK PLANT ONLY

DESCRIPTION

TOTAL MILK HANDLED KGs. 50000 100000 150000 200000 250000 300000 350000LIQUID MILK SALES QUANTITY (LTR) 48450 96899 145349 193798 242248 290698 339147TOTAL FAT KGS 6.50% 3250 6500 9750 13000 16250 19500 22750TOTAL SNF KGS 8.80% 4400 8800 13200 17600 22000 26400 30800

NET AVAILABLE ( FAT ) 99.50 3234 6468 9701 12935 16169 19403 22636NET AVALLABLE (SNF ) 99.50 4378 8756 13134 17512 21890 26268 30646

REQUIRED FAT FOR LIQUID MILK 3.10% 1550.00 3100.00 4650.00 6200.00 7750.00 9300.00 10850.00REQUIRED SNF FOR LIQUID MILK 9.10% 4550.00 9100.00 13650.00 18200.00 22750.00 27300.00 31850.00

SURPLUS FAT FOR GHEE 99.00% 1684 3368 5051 6735 8419 10103 11786 GHEE MANUFACTURED 99.80% 1687 3374 5061 6748 8436 10123 11810

EXTRA SNF REQUIRED FOR LIQUID MILK -172 -344 -516 -688 -860 -1032 -1204 RATE OF SNF PER KGS 65.00 -11180 -22360 -33540 -44720 -55900 -67080 -78260

REALISATION (LIQUID MILK) 10.70 518411 1036822 1555233 2073643 2592054 3110465 3628876

REALISATION (GHEE) 106.80 180185 360370 540555 720739 900924 1081109 1261294

***** TOTAL REALISATION ****** 687416 1374831 2062247 2749663 3437079 4124494 4811910

** TOTAL COST OF MILK WITH 659528 1261898 1853428 2442198 3031053 3619908 4213593 OVER HEADS **

CONTRIBUTION PER DAY 27888 112934 208819 307465 406026 504586 598317

CONTRIBUTION / KG OF MILK (Rs.) 0.56 1.13 1.39 1.54 1.62 1.68 1.71 CONTRIBUTION PER MONTH (IN Lacs) 8.37 33.88 62.65 92.24 121.81 151.38 179.50

CONTRIBUTION PER YEAR (IN Lacs) 100.40 406.56 751.75 1106.87 1461.69 1816.51 2153.94

PROFIT BEFORE 100.40 406.56 751.75 1106.87 1461.69 1816.51 2153.94INTEREST & DEPRICIATION INTEREST PER ANNUM. 132.76 132.76 132.76 132.76 132.76 132.76 132.76

DEPRECIATION PER ANNUM. 97.21 97.21 97.21 97.21 97.21 97.21 97.21

NET PROFIT (Per Annum) in Lacs -129.57 176.59 521.78 876.90 1231.72 1586.54 1923.97

TECHNO-ECONOMICS OF DAIRY BUSINESS COMPOSITE PRODUCT MIX (SMP, GHEE & PASTEURISED MILK ANNEXURE-A

==== ================================ =========== ==================== ========== ========== ========= ========= =========== ========== ==========

SNO DESCRIPTION Unit in Rs.==== ================================ =========== ==================== ========== ========== ========= ========= =========== ========== ========== TOTAL MILK HANDLED (Litres) 350000

TOTAL FAT KGS 6.50% 22750TOTAL SNF KGS 8.80% 30800

1 MILK USED FOR LIQUID MILK 0 50000 100000 150000 200000 250000 300000 350000

2 LIQUID MILK (FAT KGS) 3.00% 0.00 1545.00 3090.00 4635.00 6180.00 7725.00 9270.00 10815.00LIQUID MILK (SNF KGS) 9.00% 0.00 4635.00 9270.00 13905.00 18540.00 23175.00 27810.00 32445.00

3 MILK USED FOR GHEE & SMP 350000 300000 250000 200000 150000 100000 50000 0

SURPLUS FAT FOR GHEE 99.00% 22523 20978 19433 17888 16343 14798 13253 11708 GHEE MANUFACTURED 99.80% 22568 21020 19471 17923 16375 14827 13279 11731

4 SURPLUS SNF FOR SMP 99.00% 30492 25857 21222 16587 11952 7317 2682 (1953) SMP MANUFACTURED 99.60% 31598 26795 21992 17189 12385 7582 2779 (2024)

RATE OF FAT PER KGS (ANNX-B) 112.77 111.42 112.77 112.04 111.84 111.69 111.62 111.24 111.16RATE OF SNF PER KGS (ANNX-B) 57.49 56.80 57.49 57.12 57.01 56.94 56.91 56.71 56.67TOTAL COST OF (FAT & SNF) 4284142 4336273 4308126 4300353 4294656 4292083 4277361 4274354REALISATION (LIQUID MILK) 10.70 0 535000 1070000 1605000 2140000 2675000 3210000 3745000REALISATION (GHEE) 106.80 2410223 2244887 2079550 1914213 1748877 1583540 1418203 1252867REALISATION (SMP) 60.00 1895876 1607689 1319503 1031316 743130 454943 166756 -121430***** TOTAL REALISATION ****** 4306099 4387576 4469053 4550529 4632006 4713483 4794960 4876437CONTRIBUTION PER DAY 21956.89 51302.97 160926.60 250176.61 337350.21 421400.34 517599.02 534804.14CONTRIBUTION / KG OF MILK 0.06 0.15 0.46 0.71 0.96 1.20 1.48 1.53CONTRIBUTION PER MONTH (IN Lacs) 6.59 15.39 48.28 75.05 101.21 126.42 155.28 160.44CONTRIBUTION PER YEAR (IN Lacs) 79.04 184.69 579.34 900.64 1214.46 1517.04 1863.36 1925.29 LESS INTEREST 132.76 132.76 132.76 132.76 132.76 132.76 132.76 132.76 LESS DEPRECIATION 97.21 97.21 97.21 97.21 97.21 97.21 97.21 97.21 NET PROFIT (Per Annum) in Lacs -150.93 -45.28 349.37 670.67 984.49 1287.07 1633.39 1695.32

TYPICAL “PARTHA BASED” PROFITABILITY STATEMENT

• Conventional profitability statement or balance sheet is neither cost specific nor related to output of prime performance parameters.

• Total expenditure against each head for each department with specified “Partha” norms should be compiled, monitored and analyzed at regular intervals.

DEPARTMENT WISEPARTHA STATEMENT FOR THE MONTH OF MARCH 2003

ACTUAL PARTHA VARIANCE NORMSPARTICULARS QTY AMOUNT AMOUNT AMOUNTMILK QUANTITY VLC 2594000MILK QUANTITY CONT. 473280OTHER SOURCES 1031830MILK QUANTITY TOTAL 4099110

PROCUREMENT OVERHEADS

OVERHEAD COST / KG OF MILK

COMMISSION ON MILK 863486.00 907900.00 44414.00 0.35FREIGHT ON MILK BOTH SIDES 1015593.00 1167300.00 151707.00 0.45MAN POWER COST 269731.00 269731.00 0.00 269731.00CHILLING EXPENSES 263641.00 259400.00 4241.00 0.10MILK COLLECTION EXPENSES 4391.00 51880.00 47489.00 0.02STAFF WELFARE 0.00 1000.00 1000.00 1000.00TELEPHONE EXPENSES 4097.00 6000.00 1903.00 6000.00VEHICLE RUNNING (MCC) 269021.00 269021.00 269021.00 269021.00MILK PROCUREMENT EXPS 6365.00 6365.00 6365.00 6365.00

TOTAL: 2696325.00 2938597.00 517658.00 PER/KG EXP. 1.04 1.13 0.09

ANALYZING “PARTHA BASED “ PROFITABILITY STATEMENT

• We all know that divided responsibility is no one’s responsibility.

• Total dairy business can be conveniently demarcated in ten functional divisions or departments who can be made responsible for efficient resource utilization and effective revenue generation pertaining to their specific tasks and assignments.

LIST OF EXPENSESMILK PROCUREMENT

DESCRIPTION ACTUAL.AMT PARTHA.AMT VARIANCE.AMT NORMS MAN POWER COST (SALARY) 269,731.00 269,731.00 0.00 269,731.00FREIGHT UPTO MCC & PLANT 1,010,257.00 1,010,257.00 0.00 1,010,257.00MCC MAINTENANANCE CHARGES 19,246.00 19,246.00 0.00 19,246.00STORE MATERIAL CONSUMED 19,246.00 19,246.00 0.00 19,246.00PRINTING & STATIONERY 4,600.00 4,600.00 0.00 4,600.00STAFF WELFARE 1,000.00 1,000.00 0.00 1,000.00

0.00TELEPHONE 5,000.00 5,000.00 0.00 5,000.00TRAVELLING 31,500.00 31,500.00 0.00 31,500.00

0.00 0.00 0.00TOTAL 1,360,580.00 1,360,580.00 0.00 1,360,580.00

LIST OF EXPENSES PRODUCTION

DESCRIPTION ACTUAL.AMT PARTHA.AMT VARIANCE.AMT NORMS MAN POWER COST (SALARY) 431553.00 431553.00 0.00 431553.00PRINTING & STATIONERY 661.00 2500.00 1839.00 2500.00REPAIR & MAINTENANCE 3000.00 2500.00 (500.00) 2500.00FREIGHT INWARD 600.00 600.00 600.00MISC. EXPENSES 0.00 0.00TESTING 0.00 0.00STAFF WELFARE 300.00 300.00 300.00BUSINESS PROMOTION 1433.00 1000.00 (433.00) 1000.00POSTAGE & TELEGRAMM 0.00 0.00LIVERIES 2339.00 1000.00 (1339.00) 1000.00

TELEPHONE EXPENSES 28.00 2000.00 1972.00 2000.00TRAVELLING EXPENSES 728.00 1000.00 272.00 1000.00

DEPRECIATION 0.00 0.00INTEREST 0.00 0.00AGMARK EXPENSES 8400.00 8400.00 0.00 8400.00

TOTAL 448142.00 450853.00 2711.00 450853.00

TYPICAL DEPARTMENT WISE “PARTHA” STATEMENT

• Close monitoring and effective corrective action for all deviations noticed in the “Partha” statement is the key for managing profitability of business operations.

• All departments must record all below norms performance entries in red ink so as to high light areas that need prompt attention of top management and all concerned.

DEPARTMENT WISEPARTHA STATEMENT FOR THE MONTH OF JUNE- 2003 Page: 1

ACTUAL PARTHA VARIANCE NORMSPARTICULARS QTY AMOUNT AMOUNT AMOUNTMILK QUANTITY VLC 767955MILK QUANTITY CONT. 0OTHER SOURCES 0MILK QUANTITY TOTAL 767955

PROCUREMENT OVERHEADS

OVERHEAD COST / KG OF MILK

COMMISSION ON MILK 229720.00 268784.25 39064.25 0.35FREIGHT ON MILK BOTH SIDES 721112.00 345579.75 375532.25 0.45MAN POWER COST 185631.00 185631.00 0.00 185631.00CHILLING EXPENSES 145607.00 76795.50 68811.50 0.10MILK COLLECTION EXPENSES 1197.00 15359.10 14162.10 0.02STAFF WELFARE 0.00 1000.00 1000.00 1000.00TELEPHONE EXPENSES 0.00 6000.00 6000.00 6000.00VEHICLE RUNNING (MCC) 99457.00 99457.00 99457.00 99457.00MILK PROCUREMENT EXPS 2306.00 2306.00 2306.00 2306.00

TOTAL: 1385030.00 1000912.60 282354.40 PER/KG EXP. 1.80 1.30 0.50

PRIME PERFORMANCE PARAMETERS AFFECTING “PARTHA”

• Profits projected in overall “Partha” profitability report can only be achieved if all departmental heads keep their focus on their prime performance parameters.

• Goals,objectives and tasks relating to all prime performance parameters must be clearly specified. Resources be made available and progress closely monitored

PERFORMANCE PARAMETERS AFFECTING PARTHA

PROCUREMENT DEPARTMENTUNIT /(Rs.)

1 MILK QTY. / DAY (KG) 3600002 QUALITY OF MILK (%) V3 STANDARD 100.00%2 QTY. OF MILK EACH M.C.C. PER DAY (KG) 300003 LANDED COST (Max) / KG OF MILK 11.594 BASIC COST / KG OF MILK 10.715 MILK HANDLING CHARGES (VDC LEVEL) 0.3506 MAINTENANCE COST / KG OF MILK 0.0037 MILK TRANSPORT COST VDC TO MCC / KG OF MILK 0.1138 MILK TRANSPORT COST MCC TO PLANT 0.2009 TESTER EXPENSES / KG OF MILK(Total) 0.024

10 CHILLING CHARGES / KG OF MILK 0.10011 MAN POWER COST / KG OF MILK 0.05812 SULPHURIC ACID / KG OF MILK 0.01213 AMYL ALCOHOL EXPENSES / KG OF MILK 0.02114 CLEANING AGENT EXPENSES / KG OF MILK 0.003

ANALYZING PRIME PERFORMANCE UTILIZATION EFFICIENCY REPORTS

• Micro level control on profitability can only be exercised if regular utilization efficiency reports for prime performance parameters are made and analyzed scientifically.

• In order to high light the impact of efficiency lower or higher than specified norms impact charts be made and supplied to all concerned.

PRODUCTION RECOVERY OF FAT

MONTH 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04APR 98.50 98.35 99.11 98.57 99.02 99.55 99.15 99.99 99.04MAY 99.44 99.17 98.02 97.55 98.65 96.26 98.66 98.55 99.58JUN 99.30 97.97 97.43 99.96 98.67 96.26 98.41 99.46 100.15JUL 99.12 97.02 98.52 99.38 98.87 95.62 98.19 100.10AUG 98.76 98.29 98.51 100.45 99.32 99.12 99.27 100.03SEP 98.48 98.60 98.63 99.31 99.12 97.85 100.07 100.22OCT 99.01 99.04 99.03 99.51 99.11 97.05 99.34 100.01NOV 98.50 98.50 99.17 99.15 99.95 99.10 99.60 100.00DEC 99.00 98.50 99.31 99.89 99.17 99.27 99.97 100.03JAN 99.00 99.26 99.87 99.40 100.40 99.12 99.97 99.00FEB 98.50 98.67 99.68 100.42 100.88 98.63 99.99 100.00MAR 98.41 99.05 99.68 99.15 99.15 98.85 99.77 100.01AVERAGE 98.84 98.54 98.91 99.40 99.36 98.06 99.37 99.78

AFFECT OF RECOVERY (FAT %) PER MONTHMILK QUANTITY (KGS) 50000 100000 150000 200000 250000 300000 350000FAT KGS. 3250 6500 9750 13000 16250 19500 22750FAT RATE @ 105/- / KGS 341250 682500 1023750 1365000 1706250 2047500 2388750

RECOVERY %97.00 -204750 -409500 -614250 -819000 -1023750 -1228500 -143325097.10 -194512 -389025 -583537 -778050 -972562 -1167075 -136158797.20 -184275 -368550 -552825 -737100 -921375 -1105650 -128992597.30 -174037 -348075 -522112 -696150 -870187 -1044225 -121826297.40 -163800 -327600 -491400 -655200 -819000 -982800 -114660097.50 -153562 -307125 -460687 -614250 -767812 -921375 -107493797.60 -143325 -286650 -429975 -573300 -716625 -859950 -100327597.70 -133087 -266175 -399262 -532350 -665437 -798525 -93161297.80 -122850 -245700 -368550 -491400 -614250 -737100 -85995097.90 -112612 -225225 -337837 -450450 -563062 -675675 -78828798.00 -102375 -204750 -307125 -409500 -511875 -614250 -71662598.10 -92137 -184275 -276412 -368550 -460687 -552825 -64496298.20 -81900 -163800 -245700 -327600 -409500 -491400 -57330098.30 -71662 -143325 -214987 -286650 -358312 -429975 -50163798.40 -61425 -122850 -184275 -245700 -307125 -368550 -42997598.50 -51187 -102375 -153562 -204750 -255937 -307125 -35831298.60 -40950 -81900 -122850 -163800 -204750 -245700 -28665098.70 -30712 -61425 -92137 -122850 -153562 -184275 -214987

98.80 -20475 -40950 -61425 -81900 -102375 -122850 -143325 98.90 -10237 -20475 -30712 -40950 -51187 -61425 -71662 99.00 0 0 0 0 0 0 0 99.10 10237 20475 30712 40950 51187 61425 71662

99.20 20475 40950 61425 81900 102375 122850 14332599.30 30712 61425 92137 122850 153562 184275 21498799.40 40950 81900 122850 163800 204750 245700 28665099.50 51187 102375 153562 204750 255937 307125 35831299.60 61425 122850 184275 245700 307125 368550 42997599.70 71662 143325 214987 286650 358312 429975 50163799.80 81900 163800 245700 327600 409500 491400 57330099.90 92137 184275 276412 368550 460687 552825 644962

100.00 102375 204750 307125 409500 511875 614250 716625

PRODUCTION RECOVERY OF SNF

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-0599.57 98.75 93.87 98.41 99.11 98.87 99.26 99.0899.13 98.54 97.82 98.75 99.64 98.85 99.21 100.04

100.47 97.73 95.63 98.17 99.64 99.04 100.98 100.3098.54 98.92 101.12 97.88 96.67 98.83 100.0098.32 99.28 101.77 98.93 97.42 99.26 99.9298.17 99.91 100.33 99.16 97.70 99.42 100.0099.01 99.34 100.22 99.69 98.84 99.40 100.4999.23 99.39 100.94 100.00 98.26 100.01 100.1299.01 97.92 100.79 99.45 99.26 99.94 100.0099.02 99.87 99.86 99.38 97.52 99.45 99.0099.76 100.12 100.08 99.15 98.97 99.43 100.0098.85 100.41 99.96 99.55 97.74 99.42 100.0299.09 99.18 99.37 99.04 98.40 99.33 99.92

AFFECT OF FUEL UTILISATIONMILK QUANTITY (KGS) 50000 100000 150000 200000 250000 300000 350000HUSK CONSUMED IN (MT) 177.00 354.00 531.00 708.00 885.00 1062.00 1239.00STEAM GENERATED (MT) 708.00 1416.00 2124.00 2832.00 3540.00 4248.00 4956.00HUSK COST @ Rs. 1.50/Kg 265500 531000 796500 1062000 1327500 1593000 1858500

% FUELUTILISATION

70 -42480 -84960 -127440 -169920 -212400 -254880 -29736071 -39825 -79650 -119475 -159300 -199125 -238950 -27877572 -37170 -74340 -111510 -148680 -185850 -223020 -26019073 -34515 -69030 -103545 -138060 -172575 -207090 -24160574 -31860 -63720 -95580 -127440 -159300 -191160 -22302075 -29205 -58410 -87615 -116820 -146025 -175230 -20443576 -26550 -53100 -79650 -106200 -132750 -159300 -18585077 -23895 -47790 -71685 -95580 -119475 -143370 -16726578 -21240 -42480 -63720 -84960 -106200 -127440 -14868079 -18585 -37170 -55755 -74340 -92925 -111510 -13009580 -15930 -31860 -47790 -63720 -79650 -95580 -11151081 -13275 -26550 -39825 -53100 -66375 -79650 -9292582 -10620 -21240 -31860 -42480 -53100 -63720 -7434083 -7965 -15930 -23895 -31860 -39825 -47790 -5575584 -5310 -10620 -15930 -21240 -26550 -31860 -37170

85 -2655 -5310 -7965 -10620 -13275 -15930 -1858586 0 0 0 0 0 0 087 2655 5310 7965 10620 13275 15930 1858588 5310 10620 15930 21240 26550 31860 3717089 7965 15930 23895 31860 39825 47790 5575590 10620 21240 31860 42480 53100 63720 7434091 13275 26550 39825 53100 66375 79650 9292592 15930 31860 47790 63720 79650 95580 11151093 18585 37170 55755 74340 92925 111510 13009594 21240 42480 63720 84960 106200 127440 14868095 23895 47790 71685 95580 119475 143370 16726596 26550 53100 79650 106200 132750 159300 18585097 29205 58410 87615 116820 146025 175230 20443598 31860 63720 95580 127440 159300 191160 22302099 34515 69030 103545 138060 172575 207090 241605

AFFECT OF RECOVERY (SNF%) PER MONTHMILK QUANTITY (KGS) 50000 100000 150000 200000 250000 300000 350000SNF KGS 4250 8500 12750 17000 21250 25500 29750SNF RATE @ 55/- / KGS 233750 467500 701250 935000 1168750 1402500 1636250

RECOVERY %97.00 -140250 -280500 -420750 -561000 -701250 -841500 -98175097.10 -133237 -266475 -399712 -532950 -666187 -799425 -93266297.20 -126225 -252450 -378675 -504900 -631125 -757350 -88357597.30 -119212 -238425 -357637 -476850 -596062 -715275 -83448797.40 -112200 -224400 -336600 -448800 -561000 -673200 -78540097.50 -105187 -210375 -315562 -420750 -525937 -631125 -73631297.60 -98175 -196350 -294525 -392700 -490875 -589050 -68722597.70 -91162 -182325 -273487 -364650 -455812 -546975 -63813797.80 -84150 -168300 -252450 -336600 -420750 -504900 -58905097.90 -77137 -154275 -231412 -308550 -385687 -462825 -53996298.00 -70125 -140250 -210375 -280500 -350625 -420750 -49087598.10 -63112 -126225 -189337 -252450 -315562 -378675 -44178798.20 -56100 -112200 -168300 -224400 -280500 -336600 -39270098.30 -49087 -98175 -147262 -196350 -245437 -294525 -34361298.40 -42075 -84150 -126225 -168300 -210375 -252450 -29452598.50 -35062 -70125 -105187 -140250 -175312 -210375 -24543798.60 -28050 -56100 -84150 -112200 -140250 -168300 -19635098.70 -21037 -42075 -63112 -84150 -105187 -126225 -147262

98.80 -14025 -28050 -42075 -56100 -70125 -84150 -98175 98.90 -7012 -14025 -21037 -28050 -35062 -42075 -49087 99.00 0 0 0 0 0 0 0 99.10 7012 14025 21037 28050 35062 42075 49087

99.20 14025 28050 42075 56100 70125 84150 9817599.30 21037 42075 63112 84150 105187 126225 14726299.40 28050 56100 84150 112200 140250 168300 19635099.50 35062 70125 105187 140250 175312 210375 24543799.60 42075 84150 126225 168300 210375 252450 29452599.70 49087 98175 147262 196350 245437 294525 34361299.80 56100 112200 168300 224400 280500 336600 39270099.90 63112 126225 189337 252450 315562 378675 441787

100.00 70125 140250 210375 280500 350625 420750 490875

POWER UTILIZATION EFFICIENCY JUNE 03

====== ====================================== =============== ============== ================= =================SR.NO. PARTICULARS UNIT POWER PRODUCTION POWER UNITS

CONSUMPTION KG AS PER NORMSUNITS (NORMS)

====== ====================================== =============== ============== ================= =================1 GHEE MT 119.449 24.70 2950.392 GHEE PROCESSING IN D.O.PLANT KG 0.036 0.00 0.003 MILK POWDER KG 0.761 7890.00 6004.294 CITY SUPPLY KL 58.956 1890.40 111450.195 BUTTER KG 0.075 134.40 10.086 MILK CAKE KG 0.007 178.80 1.257 PINNI KG 0.007 226.00 1.588 PANEER MT 44.257 1.41 62.459 SFM KL 88.075 15.04 1324.45

10 SFM HOMOGENISATION KG 37.50 0.00 0.0011 LASSI MT 75.724 0.92 69.3712 CURD MT 50.724 16.66 845.0113 Reconstitution of smp MT 31.200 122.47 22925.4514 BOILER KG 6.11 0.00 0.0014 REFRIGERATION PER/MT 34.000 0.00 0.0015 ETP MONTHLY 0.00 0.00 0.0016 LIGHTING PANEL per day 283.00 30.00 8490.0017 MILK BAR per day 54.00 30.00 1620.0018 WATER SUPP PUMP MONTHLY 0.00 0.00 0.00

====== ====================================== =============== ============== ================= =================TOTAL====> 155754.50

====== ====================================== =============== ============== ================= =================UNITS ACTUALLY CONSUMED ======>>>> 171694.50====================================== =================PSEB=145566.5 DG UNIT 26128 % UTILIZATION 90.72

====== ====================================== =============== ============== ================= ================= SUMMARYTARGET ====> 90.00ACHIEVED ====> 90.72VARIANCE ====> 0.72LOSS\PROFIT RS.====>====> 12018.62

AFFECT OF POWER UTILISATION PER MONTHMILK QUANTITY (KGS) 50000 100000 150000 200000 250000 300000 350000UNITS CONSUMED 77576 155152 196351 261801 327251 392702 458152POWER COST @ Rs. 4/- /UNIT 310304 620608 785403 1047204 1309005 1570806 1832607

% POWERUTILISATION

74 -49649 -99297 -125664 -167553 -209441 -251329 -29321775 -46546 -93091 -117810 -157081 -196351 -235621 -27489176 -43443 -86885 -109956 -146609 -183261 -219913 -25656577 -40340 -80679 -102102 -136137 -170171 -204205 -23823978 -37236 -74473 -94248 -125664 -157081 -188497 -21991379 -34133 -68267 -86394 -115192 -143991 -172789 -20158780 -31030 -62061 -78540 -104720 -130901 -157081 -18326181 -27927 -55855 -70686 -94248 -117810 -141373 -16493582 -24824 -49649 -62832 -83776 -104720 -125664 -14660983 -21721 -43443 -54978 -73304 -91630 -109956 -12828284 -18618 -37236 -47124 -62832 -78540 -94248 -10995685 -15515 -31030 -39270 -52360 -65450 -78540 -9163086 -12412 -24824 -31416 -41888 -52360 -62832 -7330487 -9309 -18618 -23562 -31416 -39270 -47124 -54978

88 -6206 -12412 -15708 -20944 -26180 -31416 -36652 89 -3103 -6206 -7854 -10472 -13090 -15708 -18326

90 0 0 0 0 0 0 091 3103 6206 7854 10472 13090 15708 1832692 6206 12412 15708 20944 26180 31416 3665293 9309 18618 23562 31416 39270 47124 5497894 12412 24824 31416 41888 52360 62832 7330495 15515 31030 39270 52360 65450 78540 9163096 18618 37236 47124 62832 78540 94248 10995697 21721 43443 54978 73304 91630 109956 12828298 24824 49649 62832 83776 104720 125664 14660999 27927 55855 70686 94248 117810 141373 164935

100 31030 62061 78540 104720 130901 157081 183261

FUEL UTILIZATION EFFICIENCY JAN 2003PARTICULARS UNIT FUEL PRODUCTION FUEL

CONSUMPTION KG KG.KG. NORMS

GHEE KG 0.610 346209 211039

GHEE PROCESSING IN D.O.PLANT KG 1.570 0 0

MILK POWDER KG 4.000 464385 1857540

CITY SUPPLY LTR. 0.040 885456 35418

BUTTER KG 0.220 726 160

MILK CAKE KG 5.000 156 779

PINNI KG 10.000 358 3580

PANEER KG 0.175 6935 1213

SFM KG 0.400 0 0

LASSI LTR. 0.025 85 2

CURD KG 0.025 6016 150

CAN WASHING PER/MT 0.500 0 0

TRAY WASHING PER/MT 0.200 74439 14888

TANKER WASHING MONTHLY 5 300 1500

CIP EVAPORATOR MONTHLY 4500 31 139500

CIP PROCESSING MONTHLY 80 62 4960

CAC MONTHLY 2250 6 13500R/C POWDER

TOTAL====> 2284229HUSK ACTUALLY CONSUMED KG 706940STEAM GENERATION KG 2827760

% UTILIZATION 81TARGET 90ACHIEVED 81VARIENCE -9LOSS\PROFIT RS. -110821

PRODUCTION LABOUR UTILIZATION REPORT FOR JAN'200331.00

MAN MAN LABOUR LABOURUNIT HRS HRS COST PROD. HRS

SNO DESCRIPTION P/DAY P/KG P/KG (NORM)

1 Milk Reception 24.00 7442 Ghee Residue Treatment 16.00 4963 Blending (Supervision) 8.00 1844 Processing(MT) 0.32 6227 19935 Powder Plant Cleaning 16.00 4966 Liquid Milk Packing 120.00 37207 Butter & Ghee Mfg.(MT) 6.60 294 19428 Liquid Milk despatches 24.00 7449 Lassi (Manual) Ltr 0.130 2.01 0

10 Lassi (Machine) Ltr 0.075 83 611 Toffees Nos 0.022 012 Baker Bulk KG 0.011 0

(BD 0.50%)13 DW/SUNMILK KG 0.018 014 WMP KG 0.010 6775 6715 SMP HIGH BD KG 0.008 0 016 SMP LOW BD KG 0.009 457610 413817 SFM PRODUCTION BOTTLE 0.028 0.02 0 018 SFM RELABELLING BOTTLE 0.014 0 019 Butter Packing 100 GMS KG 0.125 0.994 642 8020 Butter Packing 500 GMS KG 0.071 0.199 85 621 Butter Packing 20 KG KG 0.023 0.010 680 1622 Ghee Packing 1 lt. PP LT. 0.011 0.015 58596 62823 Ghee Packing 15 Kg Tin KG 0.004 262065 110924 Ghee Packing 5 LT. Tin/JARS LT. 0.008 2320 1825 Ghee Packing 2 LT. Tin LT. 0.015 2396 3726 Ghee Packing 1 LT. Tin LT. 0.017 7130 12127 Ghee Packing 1/2 LT. Tin LT. 0.030 924 2828 Ghee Packing 1/2 LT. PP LT 0.017 0.023 2868 4829 Ghee Packing 1 LT. BB LT. 0.012 10200 12130 Ghee Packing 1/2 LT. BB LT. 0.019 960 18

PRODUCTION LABOUR UTILIZATION REPORT FOR JAN'200331.00

MAN MAN LABOUR LABOURUNIT HRS HRS COST PROD. HRS

SNO DESCRIPTION P/DAY P/KG P/KG (NORM)

31 WMP PACKING 10 KG TIN KG. 0.014 0 032 SMP PACKING 1 KG. KG. 0.012 0 033 SMP PACKING 1/2 KG. KG. 0.022 0 034 Dahi (Small Batch) CUP 0.030 1.75 2082 6235 Dahi (500 grm.) KG 0.030 5492 16536 Pinni KG 0.400 308 12337 Paneer (Commercial) KG 0.108 2466 26538 Paneer (Small Packing) KG 0.120 4469 53639 Milk Cake KG 0.440 156 6940 Candies Nos 0.029 0 041 Cup Nos 0.032 0 042 Bricks Nos 0.046 0 043 Gallon Nos 0.183 0 0

NORM LAB. HOURS 1220

S U M M A R Y ACTUAL LAB USED 21084

1 MSL. 24802 MTFF. 904 % UTILIZATION 63 S.S. 36684 CONT. 16384 VALUE OF LABOUR 198637

HOURS EXCESS USEDTOTAL 23436

S U M M A R Y MISC.ACTIVITIES 2352 TARGET 80.00

ACHIEVED 5.79NETT.MANPOWER 21084 VARIANCE -74.21

SAVING HRS. -15646.85 PROFIT\LOSS RS. -156468.53

AFFECT OF MAN POWER UTILISATION PER MONTH

MILK QUANTITY (KGS) 50000 100000 150000 200000 250000 300000 350000MAN Hrs. UTILISED 6749 12888 17577 23436 29295 35154 41013RATE / Hrs. @ Rs. 12/-(Avg) 80988 154656 210924 281232 351540 421848 492156

UTILISATION %

80 -8099 -15466 -21092 -28123 -35154 -42185 -4921681 -7289 -13919 -18983 -25311 -31639 -37966 -4429482 -6479 -12372 -16874 -22499 -28123 -33748 -3937283 -5669 -10826 -14765 -19686 -24608 -29529 -3445184 -4859 -9279 -12655 -16874 -21092 -25311 -2952985 -4049 -7733 -10546 -14062 -17577 -21092 -2460886 -3240 -6186 -8437 -11249 -14062 -16874 -1968687 -2430 -4640 -6328 -8437 -10546 -12655 -14765

88 -1620 -3093 -4218 -5625 -7031 -8437 -9843 89 -810 -1547 -2109 -2812 -3515 -4218 -4922 90 0 0 0 0 0 0 0 91 810 1547 2109 2812 3515 4218 4922

92 1620 3093 4218 5625 7031 8437 984393 2430 4640 6328 8437 10546 12655 1476594 3240 6186 8437 11249 14062 16874 1968695 4049 7733 10546 14062 17577 21092 2460896 4859 9279 12655 16874 21092 25311 2952997 5669 10826 14765 19686 24608 29529 3445198 6479 12372 16874 22499 28123 33748 3937299 7289 13919 18983 25311 31639 37966 44294

100 8099 15466 21092 28123 35154 42185 49216

INTERNATIONAL IMPROVEMENT MISSION

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